| RELATED PARTY TRANSACTIONS |
| 21. |
RELATED PARTY
TRANSACTIONS |
The principal related
parties with which the Group had transactions during the years
presented are as follows:
|
|
|
|
Name of
related party
|
|
Relationship
with the Group
|
|
|
|
Shanghai 51 network
development Co., Ltd. (“51 Network”)
|
|
A VIE of 51.com invested by
Giant Interactive
|
|
|
|
Yangxun Computer Technology
(Shanghai) Co. Ltd.
|
|
A VIE of MET invested by
Giant Interactive
|
|
|
|
Prexton Investment Ltd.,
(“Prexton Investment”)
|
|
Company with the same key
senior executive of the Company
|
|
|
|
Shanghai Jiante
Biotechnology Co., Ltd.(“Shanghai Jiante”)
|
|
Company controlled by Mr.
Shi Yuzhu
|
|
|
|
Huayi Giant
Information
|
|
Equity investee
|
|
|
|
Juxian Network
|
|
Equity investee
|
|
|
|
Juxi Network
|
|
Equity investee
|
|
|
|
Union Sky Holding Group
Limited (“Union Sky”)
|
|
Company’s
shareholder
|
Significant related party
transactions were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended
December 31, |
|
| |
2010 |
|
|
2011 |
|
| |
|
(RMB) |
|
|
(RMB) |
|
|
(US$) |
|
|
|
|
|
|
Technical service fee paid
to 51 network
|
|
|
(12,789 |
) |
|
|
— |
|
|
|
— |
|
|
Other revenue from 51
network
|
|
|
— |
|
|
|
445,580 |
|
|
|
70,796 |
|
|
Rental fee to Prexton
Investment
|
|
|
(3,592 |
) |
|
|
— |
|
|
|
— |
|
|
Rental fee to Shanghai
Jiante
|
|
|
(3,180,000 |
) |
|
|
(12,000,000 |
) |
|
|
(1,906,608 |
) |
|
Advances to Huayi Giant
Information
|
|
|
25,000,000 |
|
|
|
— |
|
|
|
— |
|
|
Royalty fee charged by
Huayi Giant Information
|
|
|
— |
|
|
|
(18,485,392 |
) |
|
|
(2,937,033 |
) |
|
Technical service fee
charge by Huayi Giant Information
|
|
|
— |
|
|
|
(7,500,000 |
) |
|
|
(1,191,630 |
) |
|
Other service fee from
Huayi Giant Information
|
|
|
— |
|
|
|
4,354,136 |
|
|
|
691,803 |
|
|
Payment of individual
income tax related to the exercise of share options by Juxian
Network
|
|
|
— |
|
|
|
(374,213 |
) |
|
|
(59,456 |
) |
|
Technical service fee
charge from Juxian Network
|
|
|
— |
|
|
|
3,039,202 |
|
|
|
482,881 |
|
|
Prepayment to Shanghai
Jiante (1)
|
|
|
— |
|
|
|
958,800,000 |
|
|
|
(152,337,978 |
) |
|
Repayment from Union Sky
(1)
|
|
|
— |
|
|
|
(958,800,000 |
) |
|
|
152,337,978 |
|
|
Interest income from Union
Sky (1)
|
|
|
— |
|
|
|
21,471,866 |
|
|
|
3,411,536 |
|
|
Licensing income from
Yangxun
|
|
|
— |
|
|
|
1,200,000 |
|
|
|
190,661 |
|
|
Marketing expense charged
by Yangxun
|
|
|
— |
|
|
|
(1,080,200 |
) |
|
|
(171,626 |
) |
| (1) |
In April 2011, the Company
made a prepayment to Shanghai Jiante, for a commitment to invest
RMB958,800,000 (US$152,337,978) in Sunshine Insurance Group
Corporation, Ltd., a privately held insurance company, which was
due to investor sentiment, regulatory and other considerations, the
Company subsequently unwound in August 2011 by transferring it to
Union Sky for the full amount of the prepayment plus accrued
interest of RMB21,471,866 (US$3,411,536), which was accrued from
April through August 2011. Both these amounts were settled in cash
in September, 2011. |
Effective June 2009, Lager
Network is no longer the Company’s related party as the
Company’s senior executive has resigned from the directorship
of Lager Network.
Due from related parties as
of December 31, 2010 and 2011 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
2010 |
|
|
2011 |
|
| |
|
(RMB) |
|
|
(RMB) |
|
|
(US$) |
|
|
Receivable from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Huayi Giant
Information
|
|
|
25,000,000 |
|
|
|
23,642 |
|
|
|
3,757 |
|
|
-Juxi Network
|
|
|
— |
|
|
|
16,863 |
|
|
|
2,679 |
|
|
-Juxian Network
|
|
|
— |
|
|
|
3,369,609 |
|
|
|
535,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
25,000,000 |
|
|
|
3,410,114 |
|
|
|
541,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to a related party as
of December 31, 2010 and 2011 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
2010 |
|
|
2011 |
|
| |
|
(RMB) |
|
|
(RMB) |
|
|
(US$) |
|
|
Payable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Juxian Network
|
|
|
— |
|
|
|
540,345 |
|
|
|
85,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
— |
|
|
|
540,345 |
|
|
|
85,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All balances with the
related parties as of December 31, 2010 and 2011 were
unsecured, interest-free and have no fixed term of
repayment.
|