4. Income taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of provision for income taxes

	2013	2012	2011
	US$’000	US$’000	US$’000
The PRC and Hong Kong	(157)	13	(1,204)
	══════	══════	══════

The provision for income taxes consists of:

	2013	2012	2011
	US$’000	US$’000	US$’000
Current tax expenses:
The PRC and Hong Kong	47	117	(46)
	──────	──────	──────
Total current provision	47	117	(46)
	══════	══════	══════
Deferred tax benefit:
The PRC and Hong Kong	26	25	(17)
	──────	──────	──────
Total deferred provision	26	25	(17)
	══════	══════	══════

Reconciling items from income tax

	2013	2012	2011
	US$’000	US$’000	US$’000
Computed tax using respective companies’ statutory tax rates	(49)	31	(263)
Change in valuation allowances	124	166	33
Under-provision for income tax in prior years	-	-	(10)
Non-deductible expenses	(2)	(55)	177
	──────	──────	──────
Total provision for income tax at effective tax rate	73	142	(63)
	══════	══════	══════

Components of deferred tax assets

	2013	2012
	US$’000	US$’000
Tax losses	230	977
Temporary differences	6	(24)
Less: Valuation allowances	-	(691)
	──────	──────
Net deferred tax assets	236	262
	══════	══════

ZHEJIANG

Components of provision for income taxes

	2013		2012			2011
	RMB’000		RMB’000			RMB’000
Current PRC EIT:
Domestic		2,217		3,218			8,912
Income taxes		2,217		3,218			8,912
Deferred tax benefit:		446		(784	)		(993	)
Total deferred taxes		446		(784	)		(993	)

Reconciling items from income tax

	2013		2012			2011
	RMB’000		RMB’000			RMB’000
Income before income taxes		7,961		933			47,309
Computed tax using respective companies’statutory tax rates		1,194		140			7,096
Under/(over)-provision for income tax in prior years	(122)			1,358			512
Temporary differences	(445)			-			-
Tax effect on revenue not subject to tax	(242)			(56	)		(652	)
Tax effect on expenses not deductible for tax purposes	2,279			992			963
Total provision for income tax at effective tax rate		2,664		2,434			7,919

Components of deferred tax assets

	2013		2012
	RMB’000		RMB’000
Tax losses		-		-
Allowance for doubtful debts		2,959		2,513
Net deferred tax assets		2,959		2,513