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4. Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2012
Components of provision for income taxes |
| Profit/(loss before) income taxes/(benefit):
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | US$’000 |  |  | US$’000 |  |  | US$’000 |
The PRC and Hong Kong |  |  | 13 |  |  |  | (1,204 | ) |  |  | (1,326 | )
| The provision for income taxes consists of:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | US$’000 |  |  | US$’000 |  |  | US$’000 |
Current tax expenses: |  |  |  |  |  |  |  |  |
The PRC and Hong Kong |  |  | 117 |  |  |  | (46 | ) |  |  | 233 |
Total current provision |  |  | 117 |  |  |  | (46 | ) |  |  | 233 |
Deferred tax benefit: |  |  |  |  |  |  |  |  |  |  |  |
The PRC and Hong Kong |  |  | 25 |  |  |  | (17 | ) |  |  | (79 | )
Total deferred provision |  |  | 25 |  |  |  | (17 | ) |  |  | (79 | )
Reconciling items from income tax |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | US$’000 |  |  | US$’000 |  |  | US$’000 |
Computed tax using respective companies’ statutory tax rates |  |  | 31 |  |  |  | (263 | ) |  |  | (203 | )
Change in valuation allowances |  |  | 166 |  |  |  | 33 |  |  |  | 158 |
Under-provision for income tax in prior years |  |  | - |  |  |  | (10 | ) |  |  | - |
Non deductible expenses |  |  | (55 | ) |  |  | 177 |  |  |  | 199 |
Total provision for income tax at effective tax rate |  |  | 142 |  |  |  | (63 | ) |  |  | 154 |
Components of deferred tax assets |
| The components of deferred tax assets are as follows:
|  | 2012 |  |  | 2011 |
|  | US$’000 |  |  | US$’000 |
Tax losses |  |  | 977 |  |  |  | 811 |
Temporary differences |  |  | (24 | ) |  |  | 1 |
Less: Valuation allowances |  |  | (691 | ) |  |  | (525 | )
Net deferred tax assets |  |  | 262 |  |  |  | 287 |
ZHEJIANG |
Components of provision for income taxes |
The provision for income taxes consists of: |  |  |  |  |  |  |  |  |  |  |  |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Current PRC EIT: |  |  |  |  |  |  |  |  |
Domestic |  |  | 3,218 |  |  |  | 8,912 |  |  |  | 4,249 |
Income taxes |  |  | 3,218 |  |  |  | 8,912 |  |  |  | 4,249 |
Deferred tax benefit: |  |  | (784 | ) |  |  | (993 | ) |  |  | (1,481 | )
Total deferred taxes |  |  | (784 | ) |  |  | (993 | ) |  |  | (1,481 | )
Reconciling items from income tax |
The principal reconciling items from income tax computed at the statutory rates and at the effective income tax rates are as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | RMB’000 |  |  | RMB’000 |  |  | RMB’000 |
Income before income taxes |  |  | 933 |  |  |  | 47,309 |  |  |  | 28,481 |
Computed tax using respective companies’statutory tax rates |  |  | 140 |  |  |  | 7,096 |  |  |  | 4,289 |
Under/(over)-provision for income tax in prior years |  |  | 1,358 |  |  |  | 512 |  |  |  | (562 | )
Tax effect on revenue not subject to tax |  |  | (56 | ) |  |  | (652 | ) |  |  | (1,027 | )
Tax effect on expenses not deductible for tax purposes |  |  | 992 |  |  |  | 963 |  |  |  | 68 |
Total provision for income tax at effective tax rate |  |  | 2,434 |  |  |  | 7,919 |  |  |  | 2,768 |
Components of deferred tax assets | The components of deferred tax assets are as follows:
|  | 2012 |  |  | 2011 |
|  | RMB’000 |  |  | RMB’000 |
Tax losses |  |  | - |  |  |  | 348 |
Allowance for doubtful debts |  |  | 2,513 |  |  |  | 2,949 |
Net deferred tax assets |  |  | 2,513 |  |  |  | 3,297 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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