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Related Party Transactions
 12 Months Ended
Dec. 31, 2011
Related Party Transactions

19. Related Party Transactions

The table below sets forth the major related parties and their relationships with the Group:

 

Related Parties

     

Relationship with the Group
Entities within the non US listed part of the Phoenix TV Group      Under common control by Phoenix TV
CMCC      A shareholder of Phoenix TV
Mr. Gao Ximin and Mr. Qiao Haiyan      Legal shareholders of Tianying Jiuzhou, employees of the Group
Mr. He Yansheng      Legal shareholder of Yifeng Lianhe, employee of the Group
Mr. Li Ya      Chief operating official of the group

During the years ended December 31, 2009, 2010 and 2011, significant related party transactions were as follows:

Transactions with the Non US Listed Part of Phoenix TV Group:

 

     For the Years Ended December 31,  
     2009     2010     2011     2011  
     RMB     RMB     RMB     US$  

Content provided by Phoenix TV Group

      (1,540 )      (3,671 )      (4,923 )      (782 ) 

Data line services provided by Phoenix TV Group

      (395 )      (352 )      (367 )      (58 ) 

Advertising and promotion expenses incurred for/(charged by) Phoenix TV Group

      1,435        (438 )      (663 )      (105 ) 

Technical support provided by Phoenix TV Group

      (172 )      (314 )      (533 )      (85 ) 

Corporate administrative expenses allocated from and charged by Phoenix TV Group

      (1,155 )      (617 )      (1,139 )      (181 ) 

Advertising revenues earned from Phoenix TV Group and its customers

      3,845        4,824        21,619        3,435   

Paid service revenues earned from Phoenix TV Group

      —          12,450        2,400        382   

 

As discussed in Note 2(a), the Group and Phoenix TV Group collaborate and conduct promotion campaigns for mutual branding and promotions. Total advertising and promotion fees incurred by the Group and by Phoenix TV Group are allocated to the Group based on its percentage of revenue to the total revenue of the Group and Phoenix TV Group. For the year ended December 31, 2009, the Group’s actual incurred amount of such advertising and promotion expenses exceeded the advertising and promotion expenses allocated to the Group, the excess amount of RMB1.4 million was recorded as a distribution to Phoenix TV Group. Starting from January 1, 2010, according to the cooperation agreement Phoenix TV Group charged the Group for the excess portion of advertising and promotion expenses allocated to the Group over the actual expenses incurred by the Group. The above table shows the distribution to Phoenix TV Group in year 2009 and the amounts charged by Phoenix TV Group in the years 2010 and 2011. The disclosure previously in the Company’s registration statement on Form F-1 filed only showed the total amount of advertising and promotion expense allocated to the Group.

Transactions with CMCC:

 

     For the Years Ended December 31,  
     2009     2010     2011     2011  
     RMB     RMB     RMB     US$  

Advertising revenues earned from CMCC

      —          —          4,582        728   

Paid service revenues earned from and through CMCC

      157,276        281,577        442,696        70,337   

Revenues sharing and bandwidth cost to CMCC

      (22,786 )      (34,777 )      (68,543 )      (10,891 ) 

As of December 31, 2010 and 2011, the amounts due from and due to related parties were as follows:

 

     As of December 31,  
         2010              2011              2011      
     RMB      RMB      US$  

Amounts due from related parties:

         

Accounts receivable from CMCC

      16,487         63,886         10,150   

Staff advance to management

      —           502         80   
  

 

 

     

 

 

     

 

 

  

Total

      16,487         64,388         10,230   
  

 

 

     

 

 

     

 

 

  

Amounts due to related parties:

         

Due to Phoenix TV Group

      43,477         3,889         618   
  

 

 

     

 

 

     

 

 

  

The amounts due to Phoenix TV Group comprised a short-term loan and other operating funds advance provided by Phoenix TV, expenses paid by other entities of the Phoenix TV Group on behalf of the Group and expenses charged by Phoenix TV Group under the 2010 cooperation agreement, offset by accounts receivable from Phoenix TV Group for the advertising services provided to its customers, as well as technical and marketing services provided to Phoenix TV Group. Refer to Note 18(a).

The short-term loan amounted to US$5 million was provided by Phoenix TV Group in 2000 to support working capital of PHOENIXi Investment Limited and its subsidiaries. It was settled with the completion of PHOENIXi’s liquidation in December 2011, refer to Note 17.