Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 19, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ChinaNet Online Holdings, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 22,376,540 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001376321 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets_Se
Consolidated Balance Sheets (September 30, 2013 Unaudited)(USD ($)) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Current assets: | ' | ' | ||
Cash and cash equivalents | $4,933,000 | $5,483,000 | ||
Term deposit | 3,446,000 | 3,357,000 | ||
Accounts receivable, net | 10,772,000 | 8,486,000 | ||
Other receivables, net | 2,285,000 | 3,103,000 | ||
Prepayment and deposit to suppliers | 15,115,000 | 14,596,000 | ||
Due from related parties | 443,000 | 210,000 | ||
Other current assets | 47,000 | 136,000 | ||
Deferred tax assets-current | 35,000 | 50,000 | ||
Total current assets | 37,076,000 | 35,421,000 | ||
Investment in and advance to equity investment affiliates | 845,000 | 959,000 | ||
Property and equipment, net | 1,280,000 | 1,636,000 | ||
Intangible assets, net | 6,559,000 | 7,167,000 | ||
Deposit for purchasing of software technology | 2,438,000 | ' | ||
Goodwill | 11,380,000 | 11,083,000 | ||
Deferred tax assets-non current | 1,220,000 | 652,000 | ||
Total Assets | 60,798,000 | 56,918,000 | ||
Current liabilities: | ' | ' | ||
Short-term bank loan * | 813,000 | [1] | ' | [1] |
Accounts payable * | 402,000 | [1] | 110,000 | [1] |
Advances from customers * | 1,485,000 | [1] | 1,065,000 | [1] |
Accrued payroll and other accruals * | 833,000 | [1] | 904,000 | [1] |
Payable for acquisition * | 488,000 | [1] | 1,266,000 | [1] |
Taxes payable * | 8,190,000 | [1] | 6,683,000 | [1] |
Other payables * | 263,000 | [1] | 217,000 | [1] |
Total current liabilities | 12,474,000 | 10,245,000 | ||
Long-term liabilities: | ' | ' | ||
Deferred tax liability-non current * | 1,566,000 | [1] | 1,689,000 | [1] |
Long-term borrowing from director | 142,000 | 139,000 | ||
Total Liabilities | 14,182,000 | 12,073,000 | ||
ChinaNet Online Holdings, Inc.’s stockholders’ equity | ' | ' | ||
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 22,376,540 shares and 22,186,540 shares at September 30, 2013 and December 31, 2012, respectively) | 22,000 | 22,000 | ||
Additional paid-in capital | 19,860,000 | 20,008,000 | ||
Statutory reserves | 2,296,000 | 2,296,000 | ||
Retained earnings | 21,128,000 | 19,505,000 | ||
Accumulated other comprehensive income | 3,462,000 | 2,393,000 | ||
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 46,768,000 | 44,224,000 | ||
Noncontrolling interests | -152,000 | 621,000 | ||
Total equity | 46,616,000 | 44,845,000 | ||
Total Liabilities and Equity | $60,798,000 | $56,918,000 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Consolidated_Balance_Sheets_Se1
Consolidated Balance Sheets (September 30, 2013 Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 22,376,540 | 22,186,540 |
Common stock, shares outstanding | 22,376,540 | 22,186,540 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income And Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Sales | ' | ' | ' | ' |
From unrelated parties | $7,341,000 | $10,236,000 | $23,108,000 | $38,232,000 |
From related parties | 140,000 | 51,000 | 314,000 | 117,000 |
7,481,000 | 10,287,000 | 23,422,000 | 38,349,000 | |
Cost of sales | 3,366,000 | 6,163,000 | 13,123,000 | 28,065,000 |
Gross margin | 4,115,000 | 4,124,000 | 10,299,000 | 10,284,000 |
Operating expenses | ' | ' | ' | ' |
Selling expenses | 617,000 | 640,000 | 2,007,000 | 2,042,000 |
General and administrative expenses | 1,544,000 | 1,260,000 | 4,690,000 | 4,320,000 |
Research and development expenses | 578,000 | 356,000 | 1,490,000 | 1,112,000 |
2,739,000 | 2,256,000 | 8,187,000 | 7,474,000 | |
Income from operations | 1,376,000 | 1,868,000 | 2,112,000 | 2,810,000 |
Other income (expenses) | ' | ' | ' | ' |
Interest income | 30,000 | 2,000 | 94,000 | 123,000 |
Interest expense | -10,000 | ' | -10,000 | ' |
Other expenses | -10,000 | -148,000 | -12,000 | -148,000 |
10,000 | -146,000 | 72,000 | -25,000 | |
Income before income tax expense, equity method investments and noncontrolling interests | 1,386,000 | 1,722,000 | 2,184,000 | 2,785,000 |
Income tax expense | -201,000 | -182,000 | -469,000 | -196,000 |
Income before equity method investments and noncontrolling interests | 1,185,000 | 1,540,000 | 1,715,000 | 2,589,000 |
Share of losses in equity investment affiliates | -45,000 | -97,000 | -170,000 | -394,000 |
Net (loss)/income | 1,140,000 | 1,443,000 | 1,545,000 | 2,195,000 |
Net loss / (income) attributable to noncontrolling interests | 19,000 | -223,000 | 78,000 | -446,000 |
Foreign currency translation gain | 248,000 | -139,000 | 1,076,000 | 159,000 |
Comprehensive Income | 1,388,000 | 1,304,000 | 2,621,000 | 2,354,000 |
Comprehensive loss/ (income) attributable to noncontrolling interests | 24,000 | -184,000 | 71,000 | -450,000 |
Comprehensive income attributable to ChinaNet Online Holdings, Inc. | 1,412,000 | 1,120,000 | 2,692,000 | 1,904,000 |
Earnings per common share | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.05 | $0.05 | $0.07 | $0.08 |
Diluted (in Dollars per share) | $0.05 | $0.05 | $0.07 | $0.08 |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in Shares) | 22,371,649 | 22,186,540 | 22,253,463 | 22,185,226 |
Diluted (in Shares) | 22,371,649 | 22,186,540 | 22,253,463 | 22,185,226 |
Net income attributable to ChinaNet Online Holdings, Inc. | $1,159,000 | $1,220,000 | $1,623,000 | $1,749,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net income | $1,545,000 | $2,195,000 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 1,252,000 | 1,223,000 |
Share-based compensation expenses | 114,000 | 38,000 |
Allowances for doubtful debts | 1,024,000 | 561,000 |
Share of losses in equity investment affiliates | 170,000 | 394,000 |
Loss on disposal of property and equipment | ' | 2,000 |
Deferred taxes | -696,000 | -749,000 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -2,269,000 | -5,712,000 |
Other receivables | 101,000 | 198,000 |
Prepayment and deposit to suppliers | -127,000 | 3,401,000 |
Due from related parties | -225,000 | 4,000 |
Other current assets | 89,000 | 34,000 |
Accounts payable | 284,000 | -172,000 |
Advances from customers | 388,000 | 111,000 |
Accrued payroll and other accruals | -84,000 | -134,000 |
Due to related parties | ' | -162,000 |
Other payables | -67,000 | 25,000 |
Taxes payable | 1,313,000 | 1,210,000 |
Net cash provided by operating activities | 2,812,000 | 2,467,000 |
Cash flows from investing activities | ' | ' |
Purchases of vehicles and office equipment | -65,000 | -185,000 |
Deposit for purchasing of software technology | -2,411,000 | ' |
Long-term investment in and advance to equity investment affiliates | -32,000 | ' |
Project development deposit to a third party | ' | -2,450,000 |
Cash effect on deconsolidation of VIEs | ' | -15,000 |
Payment for acquisition of VIEs | -1,768,000 | -1,817,000 |
Net cash used in investing activities | -4,276,000 | -4,467,000 |
Cash flows from financing activities | ' | ' |
Proceeds from short-term bank loan | 804,000 | ' |
Dividend paid to convertible preferred stockholders | ' | -5,000 |
Short-term loan borrowed from an equity investment affiliate | ' | 316,000 |
Short-term loan repaid to an equity investment affiliate | ' | -537,000 |
Net cash provided by (used in) financing activities | 804,000 | -226,000 |
Effect of exchange rate fluctuation on cash and cash equivalents | 110,000 | 44,000 |
Net decrease in cash and cash equivalents | -550,000 | -2,182,000 |
Cash and cash equivalents at beginning of the period | 5,483,000 | 10,695,000 |
Cash and cash equivalents at end of the period | 4,933,000 | 8,513,000 |
Supplemental disclosure of cash flow information | ' | ' |
Income taxes paid | 39,000 | 74,000 |
Non-cash transactions: | ' | ' |
Restricted stock and options granted for future service | $11,000 | $53,000 |
Note_1_Organization_and_nature
Note 1 - Organization and nature of operations | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Text Block [Abstract] | ' | |
Nature of Operations [Text Block] | ' | |
1 | Organization and nature of operations | |
ChinaNet Online Holdings, Inc. (formerly known as Emazing Interactive, Inc.) (the “Company”) was incorporated in the State of Texas in April 2006 and re-domiciled to become a Nevada corporation in October 2006. From the date of the Company’s incorporation until June 26, 2009, when the Company consummated the Share Exchange (discussed below), the Company’s activities were primarily concentrated in web server access and company branding in hosting web based e-games. | ||
On June 26, 2009, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”), with (i) China Net Online Media Group Limited, a company organized under the laws of British Virgin Islands (“China Net BVI”), (ii) China Net BVI’s shareholders, Allglad Limited, a British Virgin Islands company (“Allglad”), Growgain Limited, a British Virgin Islands company ("Growgain"), Rise King Investments Limited, a British Virgin Islands company (“Rise King BVI”), Star (China) Holdings Limited, a British Virgin Islands company (“Star”), Surplus Elegant Investment Limited, a British Virgin Islands company (“Surplus”), Clear Jolly Holdings Limited, a British Virgin Islands company (“Clear” and together with Allglad, Growgain, Rise King BVI, Star and Surplus, the “China Net BVI Shareholders”), who together owned shares constituting 100% of the issued and outstanding ordinary shares of China Net BVI (the “China Net BVI Shares”) and (iii) G. Edward Hancock, the principal stockholder of the Company at that time. Pursuant to the terms of the Exchange Agreement, the China Net BVI Shareholders transferred to the Company all of the China Net BVI Shares in exchange for the issuance of 13,790,800 shares (the “Exchange Shares”) in the aggregate of the Company’s common stock (the “Share Exchange”). As a result of the Share Exchange, China Net BVI became a wholly owned subsidiary of the Company and the Company is now a holding company, which, through certain contractual arrangements with operating companies in the People’s Republic of China (the “PRC”), is engaged in providing advertising, marketing, communication and brand management and sales channel building services to small and medium companies in China. | ||
The Company’s wholly owned subsidiary, China Net BVI was incorporated in the British Virgin Islands on August 13, 2007. On April 11, 2008, China Net BVI became the parent holding company of a group of companies comprised of CNET Online Technology Limited, a Hong Kong company (“China Net HK”), which established and is the parent company of Rise King Century Technology Development (Beijing) Co., Ltd., a wholly foreign-owned enterprise (“WFOE”) established in the PRC (“Rise King WFOE”). The Company refers to the transactions that resulted in China Net BVI becoming an indirect parent company of Rise King WFOE as the “Offshore Restructuring.” | ||
PRC regulations prohibit direct foreign ownership of business entities providing internet content, or ICP services in the PRC, and restrict foreign ownership of business entities engaging in the advertising business. In October 2008, a series of contractual arrangements (the “Contractual Agreements” or “VIE Agreements”) were entered into among Rise King WFOE and Business Opportunity Online (Beijing) Network Technology Co., Ltd. (“Business Opportunity Online”), Beijing CNET Online Advertising Co., Ltd. (“Beijing CNET Online”) (collectively the “PRC Operating Entities”) and its common individual owners (the “PRC Shareholders” or the “Control Group”). The Contractual Agreements allowed China Net BVI, through Rise King WFOE, to, among other things, secure significant rights to influence the PRC Operating Entities’ business operations, policies and management, approve all matters requiring shareholder approval, and receive 100% of the income earned by the PRC Operating Entities. In return, Rise King WFOE provides consulting services to the PRC Operating Entities. In addition, to ensure that the PRC Operating Entities and the PRC Shareholders perform their obligations under the Contractual Arrangements, the PRC Shareholders have pledged all of their equity interests in the PRC Operating Entities to Rise King WFOE. They also entered into an option agreement with Rise King WFOE which provides that at such time as when the current restrictions under PRC law on foreign ownership of Chinese companies engaging in the Internet content, information services or advertising business in China are lifted, Rise King WFOE may exercise its option to purchase the equity interests in the PRC Operating Entities, directly. | ||
Pursuant to the Contractual Agreements, all of the equity owners' rights and obligations of the VIEs were assigned to Rise King WFOE, which resulted in the equity owners lacking the ability to make decisions that have a significant effect on the VIEs, Rise King WFOE's ability to extract the profits from the operation of the VIEs and assume the residual benefits of the VIEs. Due to the fact that Rise King WFOE and its indirect parent are the sole interest holders of the VIEs, the Company included the assets, liabilities, revenues and expenses of the VIEs in its consolidated financial statements, which is consistent with the provisions of FASB Accounting Standards Codification ("ASC") Topic 810 “Consolidation”, subtopic 10. | ||
As of the date of the Share Exchange, through the Contractual Agreements, the Company operates its business in China primarily through Business Opportunity Online and Beijing CNET Online. Beijing CNET Online owns 51% of Shanghai Borongdingsi Computer Technology Co., Ltd. (“Shanghai Borongdingsi”). Business Opportunity Online, Beijing CNET Online and Shanghai Borongdingsi, were incorporated on December 8, 2004, January 27, 2003 and August 3, 2005, respectively. | ||
Shanghai Borongdingsi is 51% owned by Beijing CNET Online. Beijing CNET Online and Shanghai Borongdingsi entered into a cooperation agreement in June 2008, followed up with a supplementary agreement in December 2008, to conduct a bank kiosk advertisement business. The business is based on a bank kiosk cooperation agreement between Shanghai Borongdingsi and Henan provincial branch of China Construction Bank which allows Shanghai Borongdingsi or its designated party to conduct in-door advertisement business within the business outlets throughout Henan Province. The bank kiosk cooperation agreement has a term of eight years beginning in August 2008. However, Shanghai Borongdingsi was not able to conduct the advertisement business as a stand-alone business due to the lack of an advertisement business license and supporting financial resources. Pursuant to the aforementioned cooperation agreements, Beijing CNET Online committed to purchase equipment and to provide working capital, technical and other related support to Shanghai Borongdingsi. Beijing CNET Online owns the equipment used in the kiosk business, is entitled to sign contracts in its name on behalf of the business, and holds the right to collect the advertisement revenue generated from the bank kiosk business exclusively until it recovers the cost of purchasing the equipment. Thereafter, Beijing CNET Online has agreed to distribute 49% of the net profit generated from the bank kiosk advertising business, if any, to the minority shareholders of Shanghai Borongdingsi. | ||
On June 24, 2010, one of the Company’s VIEs, Business Opportunity Online, together with three other individuals, who were not affiliated with the Company, formed a new company, Shenzhen City Mingshan Network Technology Co., Ltd. (“Shenzhen Mingshan”). Shenzhen Mingshan is 51% owned by Business Opportunity Online and 49% owned collectively by the other three individuals. Shenzhen Mingshan is primarily engaged in developing and designing internet based software, online games and the related operating websites and providing related internet and information technology services necessary to operate such games and websites. On January 6, 2011, as approved by the shareholders of Shenzhen Mingshan, an unaffiliated third party invested RMB15,000,000 (approximately US$2,438,469) into Shenzhen Mingshan in exchange for a 60% equity interest in Shenzhen Mingshan. Therefore, beginning on January 6, 2011, the new investor became the majority shareholder of Shenzhen Mingshan. The Company’s share of the equity interest in Shenzhen Mingshan decreased from 51% to 20.4% and the Company ceased to have a controlling financial interest in Shenzhen Mingshan, but still retains an investment in, and significant influence over, Shenzhen Mingshan. On December 19, 2012, as approved by the shareholders of Shenzhen Mingshan, Shenzhen Mingshan reduced its registered and paid-in capital from RMB25,000,000 (approximately US$4,064,115) to RMB22,000,000 (approximately US$3,576,422), resulted from a decrease in paid-in capital from three other noncontrolling shareholders, except Business Opportunity Online. As a result, the Company’s share of the equity interest in Shenzhen Mingshan increased from 20.4% to 23.18% and the Company continued to retain significant influence over Shenzhen Mingshan. | ||
On December 6, 2010, Rise King WFOE entered into a series of exclusive contractual arrangements, which were similar to the Contractual Agreements discussed above, with Rise King (Shanghai) Advertisement Media Co., Ltd. (“Shanghai Jing Yang”), a company incorporated under the PRC laws in December 2009 and primarily engaged in the advertising business, pursuant to which the Company, through its wholly owned subsidiary, Rise King WFOE obtained all of the equity owners' rights and obligations of Shanghai Jing Yang, and the ability to extract the profits from the operation and assume the residual benefits of Shanghai Jing Yang, and hence became the sole interest holder of Shanghai Jing Yang. As of the date these contractual agreements were entered into, Shanghai Jing Yang did not have the resources necessary to conduct any business activities by itself and the carrying amount of the net assets of Shanghai Jing Yang which was all cash and cash equivalents approximate its fair value due to their short maturities. Therefore, Shanghai Jing Yang’s accounts were included in the Company’s consolidated financial statements with no goodwill recognized in accordance with ASC Topic 810 “Consolidation”. | ||
The Company, through one of its VIEs, Beijing CNET Online, acquired a 100% equity interest in Quanzhou Zhi Yuan Marketing Planning Co., Ltd. (“Quanzhou Zhi Yuan”) and a 51% equity interest in Quanzhou Tian Xi Shun He Advertisement Co., Ltd. (“Quanzhou Tian Xi Shun He”) on January 4, 2011 and February 23, 2011, respectively. Quanzhou Zhi Yuan and Quanzhou Tian Xi Shun He are both independent advertising companies based in Fujian province of the PRC, which provide comprehensive branding and marketing services to over fifty small to medium sized companies focused primarily in the sportswear and clothing industry. In June 2011, Beijing CNET Online acquired the remaining 49% equity interest in Quanzhou Tian Xi Shun He. Quanzhou Tian Xi Shun He became a wholly owned subsidiary of Beijing CNET Online accordingly. | ||
On January 28, 2011, one of the Company’s VIEs, Business Opportunity Online, formed a new wholly owned subsidiary, Business Opportunity Online (Hubei) Network Technology Co., Ltd. (“Business Opportunity Online Hubei”). Business Opportunity Online Hubei is primarily engaged in internet advertisement design, production and promulgation. | ||
On March 1, 2011, one of the Company’s VIEs, Business Opportunity Online, together with an individual, who was not affiliated with the Company, formed a new company, Beijing Chuang Fu Tian Xia Network Technology Co., Ltd. (“Beijing Chuang Fu Tian Xia”). Beijing Chuang Fu Tian Xia is 51% owned by Business Opportunity Online and 49% owned by the co-founding individual. In addition to capital investment, the co-founding individual is required to provide the controlled domain names, www.liansuo.com and www.chuangye.com to be registered under the established company. Beijing Chuang Fu Tian Xia is primarily engaged in providing and operating internet advertising, marketing and communication services to small and medium companies through the websites associated the above mentioned domain names. | ||
On April 18, 2011, the Company, through one of its VIEs, Business Opportunity Online Hubei formed a new wholly owned company, Hubei CNET Advertising Media Co., Ltd. (“Hubei CNET”). Hubei CNET is primarily engaged in advertisement design, production, promulgation and providing the related advertising and marketing consultancy services. | ||
On April 18, 2011, one of the Company’s VIEs, Business Opportunity Online Hubei, together with an individual, who was not affiliated with the Company, formed a new company, Zhao Shang Ke Network Technology (Hubei) Co., Ltd. (“Zhao Shang Ke Hubei”). Zhao Shang Ke Hubei is 51% owned by Business Opportunity Online Hubei and 49% owned by the co-founding individual. Zhao Shang Ke Hubei is primarily engaged in providing advertisement design, production, promulgation and brand management and sales channels building services. On December 29, 2011, as approved by the shareholders of Zhao Shang Ke Hubei, two unaffiliated third party investors invested RMB10,000,000 (approximately US$1,625,646) into Zhao Shang Ke Hubei in exchange for an aggregate 50% equity interest in Zhao Shang Ke Hubei. Therefore, beginning on December 29, 2011, the Company’s share of the equity interest in Zhao Shang Ke Hubei decreased from 51% to 25.5%. As such, the Company ceased to have a controlling financial interest in Zhao Shang Ke Hubei, but still retained an investment in, and significant influence over, Zhao Shang Ke Hubei. | ||
On July 1, 2011, Quanzhou Zhi Yuan formed a new wholly owned company, Xin Qi Yuan Advertisement Planning (Hubei) Co., Ltd. (“Xin Qi Yuan Hubei”) and Quanzhou Tian Xi Shun He formed a new wholly owned company, Mu Lin Sen Advertisement (Hubei) Co., Ltd. (“Mu Lin Sen Hubei”). These companies were primarily engaged in advertisement design, production, promulgation and provided the related advertising and marketing consultancy services. In October 2013, the Company unregistered these two companies as their business activities were dormant since incorporation. | ||
On July 1, 2011, one of the Company’s VIEs, Business Opportunity Online Hubei, together with an individual who is not affiliated with the Company, formed a new company, Sheng Tian Network Technology (Hubei) Co., Ltd. (“Sheng Tian Hubei”). Sheng Tian Hubei was 51% owned by Business Opportunity Online Hubei and 49% owned by the co-founding individual until September 3, 2013 when Business Opportunity Online Hubei acquired the remaining 49% equity interest in Sheng Tian Hubei. As a result of the acquisition, Sheng Tian Hubei became a wholly owned subsidiary of Business Opportunity Online Hubei. Sheng Tian Hubei is primarily engaged in computer system design, development and promotion, software development and promotion, and providing the related technical consultancy services. | ||
On December 20, 2011, Business Opportunity Online Hubei acquired a 51% equity interest in Sou Yi Lian Mei Network Technology (Beijing) Co. Ltd., (“Sou Yi Lian Mei”). In September 2012, Business Opportunity Online Hubei acquired the remaining 49% equity interest in Sou Yi Lian Mei. Sou Yi Lian Mei became a wholly owned subsidiary of Business Opportunity Online Hubei accordingly. Sou Yi Lian Mei has a wholly-owned subsidiary, which is Jin Du Ya He (Beijing) Network Technology Co., Ltd (“Jin Du Ya He”). Sou Yi Lian Mei and its subsidiary are primary engaged in providing online advertising and marketing services. | ||
On April 11, 2013, one of the Company’s VIEs, Business Opportunity Online, formed a new wholly-owned company, Quanzhou City Zhi Lang Network Technology Co., Ltd. (“Quanzhou Zhi Lang”). Quanzhou Zhi Lang is primarily engaged in marketing planning, advertisement design, production and promulgation and network technology development. | ||
As of September 30, 2013, the Company operated its business primarily in China through its PRC subsidiary and PRC operating entities, or VIEs as described above. | ||
Note_2_Variable_Interest_Entit
Note 2 - Variable Interest Entities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Variable Interest Entities Disclosure [Abstract] | ' | ||||||||
Variable Interest Entities Disclosure [Text Block] | ' | ||||||||
2 | Variable Interest Entities | ||||||||
To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”). Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of September 30, 2013 and December 31, 2012, respectively: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 3,931 | $ | 4,275 | |||||
Term deposit | 3,446 | 3,357 | |||||||
Accounts receivable, net | 10,621 | 8,392 | |||||||
Other receivables, net | 2,171 | 2,921 | |||||||
Prepayment and deposit to suppliers | 15,113 | 14,587 | |||||||
Due from related parties | 143 | 49 | |||||||
Other current assets | 27 | 35 | |||||||
Deferred tax assets-current | 35 | 50 | |||||||
Total current assets | 35,487 | 33,666 | |||||||
Investment in and advance to equity investment affiliates | 801 | 916 | |||||||
Property and equipment, net | 1,123 | 1,389 | |||||||
Intangible assets, net | 6,556 | 7,152 | |||||||
Deposit for purchasing of software technology | 2,438 | - | |||||||
Goodwill | 11,380 | 11,083 | |||||||
Deferred tax assets-non current | 949 | 511 | |||||||
Total Assets | $ | 58,734 | $ | 54,717 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 813 | $ | - | |||||
Accounts payable | 402 | 110 | |||||||
Advances from customers | 1,485 | 1,065 | |||||||
Accrued payroll and other accruals | 366 | 455 | |||||||
Due to Control Group | 11 | 11 | |||||||
Payable for acquisition | 488 | 1,266 | |||||||
Taxes payable | 7,694 | 6,136 | |||||||
Other payables | 151 | 196 | |||||||
Total current liabilities | 11,410 | 9,239 | |||||||
Deferred tax Liabilities-non current | 1,566 | 1,689 | |||||||
Total Liabilities | $ | 12,976 | $ | 10,928 | |||||
All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets. | |||||||||
For the nine months ended September 30, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$23,120,000, cost of sales of approximately US$13,121,000, operating expenses of approximately US$6,482,000 and net income before allocation to noncontrolling interests of approximately US$2,824,000. | |||||||||
For the three months ended September 30, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$7,380,000, cost of sales of approximately US$3,365,000, operating expenses of approximately US$2,160,000 and net income before allocation to noncontrolling interests of approximately US$1,579,000. | |||||||||
For the nine months ended September 30, 2012, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$38,201,000, cost of sales of approximately US$28,057,000, operating expenses of approximately US$5,475,000 and net income before allocation to noncontrolling interests of approximately US$3,943,000. | |||||||||
For the three months ended September 30, 2012, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$10,222,000, cost of sales of approximately US$6,160,000, operating expenses of approximately US$1,764,000 and net income before allocation to noncontrolling interests of approximately US$1,845,000. | |||||||||
Note_3_Summary_of_significant_
Note 3 - Summary of significant accounting policies | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Significant Accounting Policies [Text Block] | ' | ||||||
3 | Summary of significant accounting policies | ||||||
a) | Basis of presentation | ||||||
The interim consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |||||||
The interim consolidated financial information as of September 30, 2013 and for the nine and three months ended September 30, 2013 and 2012 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The interim consolidated financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, previously filed with the SEC. | |||||||
In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2013, its consolidated results of operations for the nine and three months ended September 30, 2013 and 2012, and its consolidated cash flows for the nine months ended September 30, 2013 and 2012, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. | |||||||
b) | Principles of consolidation | ||||||
The interim consolidated financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. According to the agreements between Beijing CNET Online and Shanghai Borongdingsi, although Beijing CNET Online legally owns 51% of Shanghai Borongdingsi’s interests, Beijing CNET Online only controls the assets and liabilities related to the bank kiosks business, which has been included in the financial statements of Beijing CNET Online, but does not control other assets of Shanghai Borongdingsi, thus, Shanghai Borongdingsi’s financial statements were not consolidated by the Company. | |||||||
c) | Use of estimates | ||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. | |||||||
d) | Foreign currency translation and transactions | ||||||
The functional currency of the Company is United States dollars (“US$”), and the functional currency of China Net HK is Hong Kong dollars (“HK$”). The functional currency of the Company’s PRC operating subsidiary and VIEs is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. | |||||||
For financial reporting purposes, the financial statements of the Company’s PRC operating subsidiary and VIEs, which are prepared using the RMB, are translated into the Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity. | |||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income of the consolidated statements of income and comprehensive income for the respective periods. | |||||||
The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the consolidated financial statements are as follows: | |||||||
30-Sep-13 | 31-Dec-12 | ||||||
Balance sheet items, except for equity accounts | 6.1514 | 6.3161 | |||||
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.2215 | 6.3275 | |||||
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1695 | 6.3313 | |||||
No representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates. | |||||||
e) | Advertising costs | ||||||
Advertising costs for the Company’s own brand building are not includable in cost of sales, they are expensed when incurred or amortized over the estimated beneficial period and are included in “selling expenses” in the statement of income and comprehensive income. For the nine months ended September 30, 2013 and 2012, advertising expenses for the Company’s own brand building were approximately US$292,000 and US$224,000, respectively. For the three months ended September 30, 2013 and 2012, advertising expenses for the Company’s own brand building were approximately US$148,000 and US$56,000, respectively. | |||||||
f) | Research and development expenses | ||||||
The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the nine months ended September 30, 2013 and 2012 were approximately US$1,490,000 and US$1,112,000, respectively. Expenses for research and development for the three months ended September 30, 2013 and 2012 were approximately US$578,000 and US$356,000, respectively. | |||||||
g) | Income taxes | ||||||
The Company follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. | |||||||
h) | Uncertain tax positions | ||||||
The Company follows the guidance of ASC Topic 740 “Income taxes”, which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. | |||||||
The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The tax returns of the Company’s PRC subsidiary and VIEs are subject to examination by the relevant tax authorities. The Company did not have any material interest or penalties associated with tax positions for the nine and three months ended September 30, 2013 and 2012, and did not have any significant unrecognized uncertain tax positions as of September 30, 2013 and December 31, 2012, respectively. | |||||||
i) | Recent accounting standards | ||||||
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. The ASU does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The guidance is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. | |||||||
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”, to resolve a diversity in accounting for the cumulative translation adjustment of foreign currency upon derecognition of a foreign subsidiary or group of assets. This ASU requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, this ASU clarified that the parent should apply the guidance in subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The provisions in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |||||||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes, (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The provisions in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. These provisions provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The provisions in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. | |||||||
Note_4_Term_deposit
Note 4 - Term deposit | 9 Months Ended | |
Sep. 30, 2013 | ||
Term Deposit [Abstract] | ' | |
Term Deposit [Text Block] | ' | |
4 | Term deposit | |
Term deposit as of September 30, 2013 and December 31, 2012 represents the amount of cash placed as a term deposit by one of the Company’s operating VIEs in a major financial institution of China, which management believes is of high credit quality. The term deposit that matured on July 5, 2013 was extended to July 5, 2014 with an interest rate of 3.3% per annual. | ||
Note_5_Accounts_receivable_net
Note 5 - Accounts receivable, net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable Disclosure [Abstract] | ' | ||||||||
Accounts Receivable Disclosure [Text Block] | ' | ||||||||
5 | Accounts receivable, net | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accounts receivable | 14,735 | 12,116 | |||||||
Allowance for doubtful debts | (3,963 | ) | (3,630 | ) | |||||
Accounts receivable, net | 10,772 | 8,486 | |||||||
All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of September 30, 2013, the Company provided approximately US$3,963,000 allowance for doubtful debts, which were related to the accounts receivable of the Company’s internet advertising and TV advertising business segment with an aging over six months. For the nine and three months ended September 30, 2013, approximately US$233,000 allowance for doubtful debts was provided. For the nine and three months ended September 30, 2012, approximately US$350,000 and US$nil allowance for doubtful debts was provided. | |||||||||
Note_6_Other_receivables_net
Note 6 - Other receivables, net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||
6 | Other receivables, net | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Short-term loan made for marketing campaign | 1,626 | 2,375 | |||||||
Short-term loans to unrelated entities | 488 | 475 | |||||||
Term deposit interest receivable | 28 | 59 | |||||||
Staff advances for normal business purpose | 143 | 194 | |||||||
Overdue contract guarantee deposits | 962 | 158 | |||||||
Allowance for doubtful debts | (962 | ) | (158 | ) | |||||
Other receivables, net | 2,285 | 3,103 | |||||||
Short-term loan made for marketing campaign: for one of the major marketing campaigns, the Company made a marketing-related loan of RMB25,000,000 (approximately US$4,064,115) to a TV series of 36 episodes, called “Xiao Zhang Feng Yun.” This TV series was produced in commemoration of “The Republican Revolution of 1911” (the Chinese bourgeois democratic revolution led by Dr. Sun Yat-sen which overthrew the Qing Dynasty). By participating in this TV series, the Company’s logo is shown during the credits at the end of each episode and also shown as a separate card during the closing before the credit screen. This TV series has been broadcasted on CCTV 8 and www.sina.com.cn since September 2011 and continues to sell its broadcasting rights to other provincial TV channels for additional exposure. As of September 30, 2013, the Company has collected an aggregate of RMB15,000,000 (approximately US$2,438,469) from the borrower. In accordance with an agreement between the Company and the borrower, the Company extended the term of this loan from December 31, 2012 to December 31, 2013, as this TV series is still selling its broadcasting rights to TV stations and other media. The Company will continue to assess the collectability of this loan. If an event occurs or circumstances change that could indicate that the collectability of this loan is remote, a full allowance of bad debts provision will be provided for the remaining outstanding balance of this loan. | |||||||||
For all advertising resources purchasing contracts signed by the Company with its resource providers, the Company is required to make contract guarantee deposits, which are either used to pay the actual contract amount of resources used in the last month of each contract period or to be refunded to the Company of the remaining balance upon expiration of the contract. Overdue contract guarantee deposits represented the portion of the contract guarantee deposits, which related advertising resources purchasing contracts had been completed as of each of the reporting dates. Based on the assessment of the collectability of these overdue contract guarantee deposits as of September 30, 2013, the Company provided approximately US$962,000 allowance for doubtful debts, which was related to the contract guarantee deposits of its TV advertising business segment. For the nine and three months ended September 30, 2013, approximately US$791,000 and US$nil allowance for doubtful debts was provided, respectively. For the nine and three months ended September 30, 2012, approximately US$211,000 and US$nil allowance for doubtful debts was provided, respectively. | |||||||||
Note_7_Prepayments_and_deposit
Note 7 - Prepayments and deposit to suppliers | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | ' | ||||||||
Prepayments And Deposits To Suppliers Disclosure [Text Block] | ' | ||||||||
7 | Prepayments and deposit to suppliers | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Contract execution guarantees to TV advertisement and internet resources providers | 8,168 | 9,463 | |||||||
Prepayments to TV advertisement and internet resources providers | 6,845 | 5,069 | |||||||
Other deposits and prepayments | 102 | 64 | |||||||
15,115 | 14,596 | ||||||||
Contract execution guarantees to TV advertisement and internet resource providers are paid as contractual deposits to the Company’s resources and services providers. These amounts will be either applied to the contract amounts and service fees that are needed to be paid for the resources and services provided in the last month of each contract period or refunded to the Company upon expiration of the purchase contracts. | |||||||||
According to the contracts signed between the Company and its suppliers, the Company is normally required to pay the contract amounts in advance. These prepayments will be transferred to cost of sales when the related services are provided. | |||||||||
Note_8_Due_from_related_partie
Note 8 - Due from related parties | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Due From Related Parties Disclosure [Abstract] | ' | ||||||||
Due From Related Parties Disclosure [Text Block] | ' | ||||||||
8 | Due from related parties | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Beijing Fengshangyinli Technology Co., Ltd. | 36 | 53 | |||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 260 | 87 | |||||||
Beijing Telijie Century Environmental Technology Co., Ltd. | 147 | 70 | |||||||
443 | 210 | ||||||||
These related parties are directly or indirectly owned by Mr. Handong Cheng, Mr. Xuanfu Liu or Ms. Li Sun (acting as nominee for Mr. Zhige Zhang), the owners of the Company’s PRC VIEs, Business Opportunities Online and Beijing CNET Online before the Offshore Restructuring. The Company provides advertising services to these related parties in its normal course of business on the same terms as those provided to its unrelated advertising clients. Due from related parties represented the outstanding receivables for the advertising services that the Company provided to these related parties as of each reporting date. | |||||||||
Note_9_Investment_in_and_advan
Note 9 - Investment in and advance to equity investment affiliates | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | ||||||||||||
9 | Investment in and advance to equity investment affiliates | ||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Investment in equity investment affiliates | 768 | 916 | |||||||||||
Advance to equity investment affiliates | 77 | 43 | |||||||||||
845 | 959 | ||||||||||||
The following table summarizes the movement of the investment in and advance to equity investment affiliates for the nine months ended September 30, 2013: | |||||||||||||
Shenzhen | Zhao Shang | Total | |||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2012 (audited) | 492 | 467 | 959 | ||||||||||
Share of losses in equity investment affiliates | (41 | ) | (129 | ) | (170 | ) | |||||||
Advance to equity investment affiliates | - | 32 | 32 | ||||||||||
Exchange translation adjustment | 12 | 12 | 24 | ||||||||||
Balance as of September 30, 2013 (unaudited) | 463 | 382 | 845 | ||||||||||
Shenzhen Mingshan: | |||||||||||||
Shenzhen Mingshan was incorporated on June 24, 2010 by one of the Company’s VIEs, Business Opportunities Online and three other individuals who were not affiliated with the Company. Shenzhen Mingshan was 51% owned by the Company and was a consolidated VIE of the Company from the date of incorporation through January 6, 2011. On January 6, 2011, an unaffiliated third party invested RMB15,000,000 (approximately US$2,438,469) into Shenzhen Mingshan in exchange for a 60% equity interest in Shenzhen Mingshan. The Company’s share of equity interest decreased from 51% to 20.4% accordingly. On December 19, 2012, as approved by the shareholders of Shenzhen Mingshan, Shenzhen Mingshan reduced its registered and paid-in capital from RMB25,000,000 (approximately US$4,064,115) to RMB22,000,000 (approximately US$3,576,422), resulted from a decrease of paid-in capital from three other noncontrolling shareholders, except Business Opportunity Online. As a result, the Company’s share of the equity interest in Shenzhen Mingshan increased from 20.4% to 23.18% and the Company continued to retain significant influence over Shenzhen Mingshan. | |||||||||||||
For the nine months ended September 30, 2013 and 2012, the Company recognized its pro-rata shares of losses in Shenzhen Mingshan of approximately US$41,000 and US$120,000, respectively. For the three months ended September 30, 2013 and 2012, the Company recognized its pro-rata shares of losses in Shenzhen Mingshan of approximately US$6,000 and US$27,000, respectively. These losses recognized were reflected in the caption of “Share of losses in equity investment affiliates” in the Company’s consolidated statements of income and comprehensive income with a corresponding decrease to the carrying value of the investment in Shenzhen Mingshan in the Company’s consolidated balance sheets. | |||||||||||||
Zhao Shang Ke Hubei: | |||||||||||||
Zhao Shang Ke Hubei was incorporated on April 18, 2011 by one of the Company’s VIEs, Business Opportunities Online Hubei and a co-founding individual who was not affiliated with the Company. Zhao Shang Ke Hubei was 51% owned by the Company and was a consolidated subsidiary of the Company from the date of incorporation through December 29, 2011. On December 29, 2011, two unaffiliated third party investors invested RMB10,000,000 (approximately US$1,625,646) in cash into Zhao Shang Ke Hubei in exchange for an aggregate 50% equity interest in Zhao Shang Ke Hubei. The Company’s share of equity interest decreased from 51% to 25.5% accordingly. | |||||||||||||
For the nine months ended September 30, 2013 and 2012, the Company recognized its pro-rata share of losses in Zhao Shang Ke Hubei of approximately US$129,000 and US$274,000, respectively. For the three months ended September 30, 2013 and 2012, the Company recognized its pro-rata share of losses in Zhao Shang Ke Hubei of approximately US$39,000 and US$70,000, respectively. These losses recognized was reflected in the caption of “Share of losses in equity investment affiliates” in the Company’s consolidated statements of income and comprehensive income with a corresponding decrease to the carrying value of the investment in Zhao Shang Ke Hubei in the Company’s consolidated balance sheets. | |||||||||||||
Note_10_Property_and_equipment
Note 10 - Property and equipment, net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
10 | Property and equipment, net | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Vehicles | 992 | 925 | |||||||
Office equipment | 1,544 | 1,481 | |||||||
Electronic devices | 1,237 | 1,205 | |||||||
Property and equipment, cost | 3,773 | 3,611 | |||||||
Less: accumulated depreciation | (2,493 | ) | (1,975 | ) | |||||
Property and equipment, net | 1,280 | 1,636 | |||||||
Depreciation expenses in the aggregate for the nine months ended September 30, 2013 and 2012 were approximately US$461,000 and US$440,000, respectively. | |||||||||
Depreciation expenses in the aggregate for the three months ended September 30, 2013 and 2012 were approximately US$150,000 and US$145,000, respectively. | |||||||||
Note_11_Intangible_assets_net
Note 11 - Intangible assets, net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||
11 | Intangible assets, net | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Intangible assets not subject to amortization: | |||||||||
Trade name | 317 | 309 | |||||||
Domain name | 1,570 | 1,529 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 202 | 196 | |||||||
Customer relationship | 3,526 | 3,434 | |||||||
Non-compete agreements | 1,395 | 1,358 | |||||||
Software technologies | 333 | 325 | |||||||
Cloud-computing based software platforms | 1,509 | 1,470 | |||||||
Other computer software | 78 | 76 | |||||||
Intangible assets, cost | 8,930 | 8,697 | |||||||
Less: accumulated amortization | (2,371 | ) | (1,530 | ) | |||||
Intangible assets, net | 6,559 | 7,167 | |||||||
Amortization expenses in aggregate for the nine months ended September 30, 2013 and 2012 were approximately US$791,000 and US$783,000, respectively. | |||||||||
Amortization expenses in aggregate for the three months ended September 30, 2013 and 2012 were approximately US$262,000 and US$260,000, respectively. | |||||||||
Based on the carrying value of the finite-lived intangible assets recorded as of September 30, 2013, and assuming no subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately US$262,000 for the three months ended December 31, 2013, approximately US$1,049,000 per year through December 31, 2015, approximately US$1,009,000 for the year ended December 31, 2016 and approximately US$509,000 for the year ended December 31, 2017. | |||||||||
Note_12_Deposit_for_purchasing
Note 12 - Deposit for purchasing of software technology | 9 Months Ended | |
Sep. 30, 2013 | ||
Deposits For Purchases [Abstract] | ' | |
Deposits For Purchases [Text Block] | ' | |
12 | Deposit for purchasing of software technology | |
Deposit for purchasing of software technology: the Company made a deposit to an unrelated technical consulting entity of RMB15,000,000 (approximately US$2,438,000) for the purchasing of software technology that related to cloud-computing based applications and mobile based applications. As of September 30, 2013, the Company reviewed the draft valuation results of these target software applications, and was in the process of negotiations and determination of the transaction details. | ||
Note_13_Goodwill
Note 13 - Goodwill | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Goodwill Disclosure [Text Block] | ' | ||||
13 | Goodwill | ||||
Amount | |||||
US$(’000) | |||||
Balance as of December 31, 2012 (audited) | 11,083 | ||||
Exchange translation adjustment | 297 | ||||
Balance as of September 30, 2013 (unaudited) | 11,380 | ||||
Note_14_Shortterm_bank_loan
Note 14 - Short-term bank loan | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Text Block [Abstract] | ' | |
Short-term Debt [Text Block] | ' | |
14 | Short-term bank loan | |
Short-term bank loan as of September 30, 2013 represented a short-term bank loan of approximately RMB5.0 million (approximately US$0.81 million) borrowed by one of the Company’s VIEs from a major financial institution of China. The interest rate of the short-term bank loan is a floating lending rate, which is 30% over the benchmark rate of the People’s Bank of China (the “PBOC”). As of September 30, 2013, the interest rate of the short-term loan is 7.8%. The short-term bank loan will mature on July 31, 2014. | ||
Note_15_Accrued_payroll_and_ot
Note 15 - Accrued payroll and other accruals | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
15 | Accrued payroll and other accruals | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accrued payroll and staff welfare | 456 | 538 | |||||||
Accrued operating expenses | 377 | 366 | |||||||
833 | 904 | ||||||||
Note_16_Payable_for_acquisitio
Note 16 - Payable for acquisition | 9 Months Ended | |
Sep. 30, 2013 | ||
Payable For Acquisitions Disclosure [Abstract] | ' | |
Payable For Acquisitions Disclosure [Text Block] | ' | |
16 | Payable for acquisition | |
Payable for acquisition as of September 30, 2013 and December 31, 2012 represented the outstanding balance payment of approximately RMB3.0 million and RMB8.0 million for the acquisitions of the 49% equity interest in Sheng Tian Hubei and Sou Yi Lian Mei that were consummated in September 2013 and September 2012, respectively. The outstanding balances were paid to the former shareholder of Sheng Tian Hubei and Sou Yi Lian Mei in October 2013 and January 2013, respectively. | ||
Note_17_Taxation
Note 17 - Taxation | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Taxation Disclosure [Abstract] | ' | ||||||||
Taxation Disclosure [Text Block] | ' | ||||||||
17 | Taxation | ||||||||
1) | Income tax | ||||||||
The entities within the Company file separate tax returns in the respective tax jurisdictions in which they operate. | |||||||||
i). The Company is incorporated in the state of Nevada. Under the current law of Nevada, the Company is not subject to state corporate income tax. Following the Share Exchange, the Company became a holding company and does not conduct any substantial operations of its own. No provision for federal corporate income tax has been made in the financial statements as the Company has no assessable profits for the nine and three months ended September 30, 2013, or any prior periods. The Company does not provide for U.S. taxes or foreign withholding taxes on undistributed earnings from its non-U.S. subsidiaries because such earnings are intended to be reinvested indefinitely. If undistributed earnings were distributed, foreign tax credits could become available under current law to reduce the resulting U.S. income tax liability. | |||||||||
ii). China Net BVI was incorporated in the British Virgin Islands (“BVI”). Under the current law of the BVI, China Net BVI is not subject to tax on income or capital gains. Additionally, upon payments of dividends by China Net BVI to its shareholders, no BVI withholding tax will be imposed. | |||||||||
iii). China Net HK was incorporated in Hong Kong and does not conduct any substantial operations of its own. No provision for Hong Kong profits tax has been made in the financial statements as China Net HK has no assessable profits for the nine and three months ended September 30, 2013 or any prior periods. Additionally, upon payments of dividends by China Net HK to its shareholders, no Hong Kong withholding tax will be imposed. | |||||||||
iv). The Company’s PRC operating subsidiary and VIEs, being incorporated in the PRC, are governed by the income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). The EIT rate of PRC is 25%, which applies to both domestic and foreign invested enterprises. | |||||||||
l | Rise King WFOE is a software company qualified by the related PRC governmental authorities and was approved by the local tax authorities of Beijing, the PRC, to be entitled to a two-year EIT exemption from its first profitable year and a 50% reduction of its applicable EIT rate, which is 25% to 12.5% of its taxable income for the succeeding three years. Rise King WFOE had a net loss for the year ended December 31, 2008 and its first profitable year was fiscal year 2009 which has been verified by the local tax bureau by accepting the application filed by the Company. Therefore, it was approved to be entitled to a two-year EIT exemption for fiscal year 2009 through fiscal year 2010 and a 50% reduction of its applicable EIT rate which is 25% to 12.5% for fiscal year 2011 through fiscal year 2013. Therefore, for the nine and three months ended September 30, 2013 and 2012, the applicable income tax rate for Rise King WFOE was 12.5%. After fiscal year 2013, the applicable income tax rate for Rise King WFOE will be 25% under the current EIT law of PRC. | ||||||||
l | Business Opportunity Online was approved by the related PRC governmental authorities as a High and New Technology Enterprise under the current EIT law, and was approved by the local tax authorities of Beijing, the PRC, to be entitled to a favorable statutory tax rate of 15%. Therefore, for the nine and three months ended September 30, 2013 and 2012, the applicable income tax rate of Business Opportunity Online was 15%. | ||||||||
l | Business Opportunity Online Hubei was incorporated in Xiaotian Industrial Park of Xiaogan Economic Development Zone in Xiaogan City, Hubei province of the PRC in 2011. On June 15, 2012, Business Opportunity Online Hubei was approved by the related PRC governmental authorities to be qualified as a software company and was approved by the local tax authorities of Xiaogan City, Hubei province, the PRC, to be entitled to a two-year EIT exemption from its first profitable year, and a 50% reduction of its applicable EIT rate which is 25% to 12.5% of its taxable income for the succeeding three years. Based on the previous communication between the entity and the local tax authorities of Xiaogan Economic Development Zone, the entity is entitled to a two-year EIT exemption for fiscal 2012 and 2013, and a 50% reduction of its applicable EIT rate which is 25% to 12.5% of its taxable income for the succeeding three years until December 31, 2016. However, during the periodic administrative review conducted by local tax authorities of Xiaogan Economic Development Zone in early August 2013, the local tax authorities determined that the first profitable year of the entity was fiscal 2011 instead of fiscal 2012, despite the fact that a deemed income tax computation method was adopted by the entity as approved by the local tax authorities previously. The deemed income tax computation method is considered as a special tax computation and collection method as compared to the regular actual income/loss method. Although there is no definite guidance set forth in the current EIT law regard this issue, the Company believes it may have a favorable impact of the determination of the entity’s first profitable year. Based on the current circumstances, the Company believes that more likely than not the local tax authorities will determine the first profitable year of Business Opportunity Online Hubei as fiscal 2011, which may result in the increase of the entity’s applicable income tax rate for its fiscal year 2013 to 12.5%. Therefore, the entity accrued its income tax expense based on a 12.5% income tax rate for the nine and three months ended September 30, 2013. For the nine and three months ended September 30, 2012, the applicable income tax rate of Business Opportunity Online Hubei was nil%. | ||||||||
l | The applicable income tax rate for other PRC operating entities of the Company is 25% for the nine and three months ended September 30, 2013 and 2012. | ||||||||
l | The current EIT law also imposed a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. Holding companies in Hong Kong, for example, will be subject to a 5% withholding tax rate. Rise King WFOE is invested by immediate holding company in Hong Kong and will be entitled to the 5% preferential withholding tax rate upon distribution of the dividends to its immediate holding company. | ||||||||
For the nine and three months ended September 30, 2013 and 2012, all of the preferential income tax treatments enjoyed by the Company’s PRC subsidiary and VIEs were based on the current applicable laws and regulations of the PRC and approved by the related government regulatory authorities and local tax authorities where the Company’s respective PRC subsidiary and VIEs operate in. Rise King WFOE, Business Opportunity Online and Business Opportunity Online Hubei were most affected by these preferential income tax treatments within the structure of the Company. The preferential income tax treatments are subject to change in accordance with the PRC government economic development policies and regulations. These preferential income tax treatments are primarily determined by the regulation and policies of the PRC government in the context of the overall economic policy and strategy. As a result, the uncertainty of theses preferential income tax treatments are subject to, but not limited to, the PRC government policy on supporting any specific industry’s development under the outlook and strategy of overall macroeconomic development. | |||||||||
2) | Turnover taxes and the relevant surcharges | ||||||||
From January 1, 2012 through August 31, 2012 (for the Company’s PRC operating entities incorporated in Beijing) or October 31, 2012 (for the Company’s PRC operating entities incorporated in Fujian province) or November 30, 2012 (for the Company’s PRC operating entities incorporated in Hubei province), revenue from advertising services is subject to 5.6%-5.7% business tax (including surcharges), depending on which tax jurisdiction the Company’s PRC operating subsidiary and VIE operate in, and 3% cultural industry development surcharge of the net service income after deducting amount paid to ending media promulgators. Revenue from internet technical services was subjected to 5.6%-5.7% business tax (including surcharges), depending on which tax jurisdiction the Company’s PRC operating subsidiary and VIE operate in. | |||||||||
On July 31, 2012, the Ministry of Finance (the “MOF”) and the State Administration of Taxation (the “SAT”) of the PRC jointly promulgated a “Circular on Launching the Pilot Collection of Value Added Tax in lieu of Business Tax in Transportation and Certain Areas of Modern Services Industries in Eight Provinces and Municipalities Including Beijing” (“Circular Cai Shui [2012] No. 71”), pursuant to which a business tax to value added tax (the “VAT”) transformation pilot program was launched. The implementation date for Beijing is September 1, 2012, for Fujian province, November 1, 2012, and for Hubei province, December 1, 2012. Other circulars such as “Circular on Carrying out the Pilot Collection of Value Added Tax in Lieu of Business Tax to be imposed on Transportation Industry and Part of Modern Services Industry in Shanghai” (“Circular Cai Shui [2011] No. 111”) jointly promulgated by the MOF and the SAT on November 16, 2011 which contains detailed implementation measures for such VAT pilot program apply to the locations including Beijing, Fujian province and Hubei province. In accordance with the Circular Cai Shui [2011] No. 111, the VAT rate for provision of modern services (other than lease of corporeal movables) is 6% and for small scale taxpayer, 3%. Therefore, beginning on September 1, 2012, for the Company’s PRC operating subsidiary and VIEs incorporated in Beijing, November 1, 2012, for the Company’s PRC operating VIEs incorporated in Fujian province, and December 1, 2012, for the Company’s PRC operating VIEs incorporated in Hubei province, service revenues are subject to VAT at a rate of 6%, after deducting the VAT paid for the services purchased from suppliers, or at a rate of 3% without any deduction of VAT paid for the services purchased from suppliers. The surcharges of the VAT is 12%-14% of the VAT, depending on which tax jurisdiction the Company’s PRC operating subsidiary and VIE operate in. | |||||||||
Business tax is a price including tax in the PRC turnover tax system, which is calculated based on the revenue inclusive of turnover tax. Therefore, revenues achieved by the Company which are subject to business tax are presented on a gross basis inclusive of business tax, and on the other hand, business tax was included in cost of revenues upon recognition of services revenues. Contrastively, VAT is a price excluding tax in the PRC turnover tax system, which is calculated based on the revenue exclusive of turnover tax. Therefore, revenues achieved by the Company which are subject to VAT are presented on a net basis exclusive of VAT. | |||||||||
As of September 30, 2013 and December 31, 2012, taxes payable consists of: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Turnover tax and surcharge payable | 2,868 | 2,609 | |||||||
Enterprise income tax payable | 5,322 | 4,074 | |||||||
8,190 | 6,683 | ||||||||
For the nine and three months ended September 30, 2013 and 2012, the Company’s income tax benefit / (expense) consisted of: | |||||||||
Nine Months Ended September 30, | |||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Current-PRC | (1,165 | ) | (945 | ) | |||||
Deferred-PRC | 696 | 749 | |||||||
(469 | ) | (196 | ) | ||||||
Three Months Ended September 30, | |||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Current-PRC | (460 | ) | (373 | ) | |||||
Deferred-PRC | 259 | 191 | |||||||
(201 | ) | (182 | ) | ||||||
The Company’s deferred tax liabilities at September 30, 2013 and changes for the nine months then ended were as follows: | |||||||||
Amount | |||||||||
US$(’000) | |||||||||
Balance as of December 31, 2012 (audited) | 1,689 | ||||||||
Reversal during the period | (168 | ) | |||||||
Exchange translation adjustment | 45 | ||||||||
Balance as of September 30, 2013 (unaudited) | 1,566 | ||||||||
Deferred tax liabilities arose on the recognition of the identifiable intangible assets acquired from acquisition transactions and deconsolidation of subsidiaries consummated in 2011. Reversal for the nine and three months ended September 30, 2013 of approximately US$168,000 and US$56,000, respectively, was due to amortization of the acquired intangible assets. | |||||||||
The Company’s deferred tax assets at September 30, 2013 and December 31, 2012 were as follows: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Tax effect of net operating losses carried forward | 3,625 | 2,929 | |||||||
Bad debts provision | 1,103 | 824 | |||||||
Valuation allowance | (3,473 | ) | (3,051 | ) | |||||
1,255 | 702 | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deferred tax assets reclassified as current asset | 35 | 50 | |||||||
Deferred tax assets reclassified as non-current asset | 1,220 | 652 | |||||||
1,255 | 702 | ||||||||
The net operating losses carried forward incurred by the Company (excluding its PRC operating subsidiary and VIEs) were approximately US$6,770,000 and US$6,363,000 at September 30, 2013 and December 31, 2012, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2033. A full valuation allowance has been recorded because it is considered more likely than not that the deferred tax assets will not be realized through sufficient future earnings of the entity to which the operating losses relate. | |||||||||
The net operating losses carried forward (excluding bad debts provision and non-deductible expenses) incurred by the Company’s PRC subsidiary and VIEs were approximately US$7,674,000 and US$4,093,000 at September 30, 2013 and December 31, 2012, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2018. The related deferred tax assets was calculated based on the respective net operating losses incurred by each of the PRC subsidiary and VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the differences are expected to reverse. No valuation allowance has been recorded because it is considered more likely than not that the deferred tax assets will be realized through sufficient future earnings of the entities to which the operating losses relate. | |||||||||
Valuation allowance to bad debts provision related deferred tax assets were recorded because it is considered more likely than not that this portion of deferred tax assets will not be realized through bad debts verification by the local tax authorities where the PRC subsidiary and VIEs operate in. | |||||||||
The Company’s non-current portion of deferred tax assets and deferred tax liabilities were attributable to different tax-paying components of the entity, which were under different tax jurisdictions. Therefore, in accordance with ASC Topic 740 “Income taxes”, the non-current portion of deferred tax assets and deferred tax liabilities were presented separately in the Company’s balance sheets. | |||||||||
The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. | |||||||||
Note_18_Longterm_borrowing_fro
Note 18 - Long-term borrowing from director | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long Term Borrowing From Director Disclosure [Abstract] | ' | ||||||||
Long Term Borrowing From Director Disclosure [Text Block] | ' | ||||||||
18 | Long-term borrowing from director | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Long-term borrowing from director | 142 | 139 | |||||||
Long-term borrowing from director is a non-interest bearing loan from a director of the Company relating to the original paid-in capital contribution in the Company’s wholly-owned subsidiary Rise King WFOE. | |||||||||
Note_19_Warrants
Note 19 - Warrants | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Warrants Disclosure Textblock [Abstract] | ' | ||||||||||||||||||||||||
Warrants Disclosure Textblock | ' | ||||||||||||||||||||||||
19 | Warrants | ||||||||||||||||||||||||
The Company issued warrants in its August 2009 Financing. Warrants issued and outstanding at September 30, 2013 and changes during the nine months then ended are as follows: | |||||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||||||
Number of | Weighted | Average | Number of | Weighted | Average | ||||||||||||||||||||
underlying | Average | Remaining | underlying | Average | Remaining | ||||||||||||||||||||
shares | Exercise | Contractual | shares | Exercise | Contractual | ||||||||||||||||||||
Price | Life (years) | Price | Life (years) | ||||||||||||||||||||||
Balance, December 31, 2012 (audited) | 2,363,456 | $ | 3.52 | 1.63 | 2,363,456 | $ | 3.52 | 1.63 | |||||||||||||||||
Granted / Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, September 30, 2013 (unaudited) | 2,363,456 | $ | 3.52 | 0.88 | 2,363,456 | $ | 3.52 | 0.88 | |||||||||||||||||
Note_20_Restricted_Net_Assets
Note 20 - Restricted Net Assets | 9 Months Ended | ||
Sep. 30, 2013 | |||
Disclosure Text Block Supplement [Abstract] | ' | ||
Restricted Assets Disclosure [Text Block] | ' | ||
20 | Restricted Net Assets | ||
As most of the Company’s operations are conducted through its PRC subsidiary and VIEs, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from its PRC subsidiary and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by its PRC subsidiary and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after it has met the PRC requirements for appropriation to statutory reserves. Paid in capital of the PRC subsidiary and VIEs included in the Company’s consolidated net assets are also non-distributable for dividend purposes. | |||
In accordance with the PRC regulations on Enterprises with Foreign Investment, a WFOE established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A WFOE is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Rise King WFOE is subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least 10% of its annual after-tax profit until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide for a discretionary surplus reserve, at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. All of the Company’s PRC VIEs are subject to the above mandated restrictions on distributable profits. | |||
As a result of these PRC laws and regulations, the Company’s PRC subsidiary and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of September 30, 2013 and December 31, 2012, net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Company’s PRC subsidiary and VIEs that are included in the Company’s consolidated net assets, was approximately US$5.8 million and US$5.5 million, respectively. | |||
The current PRC Enterprise Income Tax (“EIT”) Law also imposed a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. Holding companies in Hong Kong, for example, will be subject to a 5% withholding tax rate. Rise King WFOE is invested by its immediate holding company in Hong Kong and will be entitled to the 5% preferential withholding tax rate upon distribution of the dividends to its immediate holding company. | |||
The ability of the Company’s PRC subsidiary and VIEs to make dividends and other payments to the Company may also be restricted by changes in applicable foreign exchange and other laws and regulations. | |||
Foreign currency exchange regulation in China is primarily governed by the following rules: | |||
l | Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules; | ||
l | Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules. | ||
Currently, under the Administration Rules, Renminbi is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless the prior approval of the State Administration of Foerign Exchange (the “SAFE”) is obtained and prior registration with the SAFE is made. Foreign-invested enterprises like Rise King WFOE that need foreign exchange for the distribution of profits to its shareholders may effect payment from their foreign exchange accounts or purchase and pay foreign exchange rates at the designated foreign exchange banks to their foreign shareholders by producing board resolutions for such profit distribution. Based on their needs, foreign-invested enterprises are permitted to open foreign exchange settlement accounts for current account receipts and payments of foreign exchange along with specialized accounts for capital account receipts and payments of foreign exchange at certain designated foreign exchange banks. | |||
Although the current Exchange Rules allow the convertibility of Chinese Renminbi into foreign currency for current account items, conversion of Chinese Renminbi into foreign exchange for capital items, such as foreign direct investment, loans or securities, requires the approval of SAFE, which is under the authority of the People’s Bank of China. These approvals, however, do not guarantee the availability of foreign currency conversion. The Company cannot be sure that it will be able to obtain all required conversion approvals for its operations or the Chinese regulatory authorities will not impose greater restrictions on the convertibility of Chinese Renminbi in the future. Currently, most of the Company’s retained earnings are generated in Renminbi. Any future restrictions on currency exchanges may limit the Company’s ability to use its retained earnings generated in Renminbi to make dividends or other payments in U.S. dollars or fund possible business activities outside China. | |||
As of September 30, 2013 and December 31, 2012, there was approximately US$41.2 million and US$38.1 million retained earnings in the aggregate, respectively, which was generated by the Company’s PRC subsidiary and VIEs in Renminbi included in the Company’s consolidated net assets, aside from US$2.5 million and US$2.4 million statutory reserve funds as of September 30, 2013 and December 31, 2012, respectively, that may be affected by increased restrictions on currency exchanges in the future and accordingly may further limit the Company’s PRC subsidiary’s and VIEs’ ability to make dividends or other payments in U.S. dollars to the Company, in addition to the approximately US$5.8 million and US$5.5 million restricted net assets as of September 30, 2013 and December 31, 2012, respectively, as discussed above. | |||
Note_21_Related_party_transact
Note 21 - Related party transactions | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||
21 | Related party transactions | ||||||||
Revenue from related parties: | |||||||||
Nine Months Ended September 30, | |||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 213 | 73 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 7 | 2 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | 94 | 42 | |||||||
314 | 117 | ||||||||
Three Months Ended September 30, | |||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 91 | 18 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 1 | 1 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | 48 | 32 | |||||||
140 | 51 | ||||||||
Note_22_Employee_defined_contr
Note 22 - Employee defined contribution plan | 9 Months Ended | |
Sep. 30, 2013 | ||
Compensation and Retirement Disclosure [Abstract] | ' | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | |
22 | Employee defined contribution plan | |
Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as incurred. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits were approximately US$352,000 and US$288,000 for the nine months ended September 30, 2013 and 2012, respectively. The total amounts for such employee benefits were approximately US$121,000 and US$93,000 for the three months ended September 30, 2013 and 2012, respectively. | ||
Note_23_Concentration_of_risk
Note 23 - Concentration of risk | 9 Months Ended | |
Sep. 30, 2013 | ||
Risks and Uncertainties [Abstract] | ' | |
Concentration Risk Disclosure [Text Block] | ' | |
23 | Concentration of risk | |
Credit risk | ||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, other receivables and prepayments and deposits to suppliers. As of September 30, 2013 and December 31, 2012, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China and Hong Kong Special Administrative Region of the PRC, which management believes are of high credit quality. | ||
Risk arising from operations in foreign countries | ||
All of the Company’s operations are conducted within the PRC. The Company’s operations in the PRC are subject to various political, economic, and other risks and uncertainties inherent in the PRC. Among other risks, the Company’s operations in the PRC are subject to the risks of restrictions on transfer of funds, changing taxation policies, foreign exchange restrictions; and political conditions and governmental regulations. | ||
Currency convertibility risk | ||
Significant part of the Company’s businesses is transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. These exchange control measures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiary and VIEs to transfer its net assets, which to the Company through loans, advances or cash dividends. | ||
Concentration of customers | ||
For the nine months ended September 30, 2012, one customer accounted for 12% of the Company’s sales. Except for the aforementioned, there was no other single customer who accounted for more than 10% of the Company’s sales for the nine months ended September 30, 2013 and 2012, respectively. | ||
There was no single customer who accounted for more than 10% of the Company’s sales for the three months ended September 30, 2013 and 2012, respectively. | ||
As of December 31, 2012, one customer accounted for 10% of the Company’s accounts receivables. Except for the aforementioned, there was no other single customer who accounted for more than 10% of the Company’s accounts receivable as of September 30, 2013 and December 31, 2012, respectively. | ||
Concentration of suppliers | ||
For the nine months ended September 30, 2013, three suppliers individually accounted for 34%, 26% and 14% of the Company’s cost of sales, respectively. For the nine months ended September 30, 2012, two suppliers accounted for 58% and 11% of the Company’s cost of sales, respectively. Except for the afore-mentioned, there was no other single supplier who accounted for more than 10% of the Company’s cost of sales for the nine months ended September 30, 2013 and 2012, respectively. | ||
For the three months ended September 30, 2013, two suppliers individually accounted for 47% and 14% of the Company’s cost of sales, respectively. For the three months ended September 30, 2012, one supplier accounted for 45% of the Company’s cost of sales. Except for the afore-mentioned, there was no other single supplier who accounted for more than 10% of the Company’s cost of sales for the three months ended September 30, 2013 and 2012, respectively. | ||
Note_24_Commitments
Note 24 - Commitments | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
24 | Commitments | ||||
The following table sets forth the Company’s operating lease commitment as of September 30, 2013: | |||||
Office Rental | |||||
US$(’000) | |||||
(Unaudited) | |||||
Three months ending December 31, | |||||
-2013 | 83 | ||||
Year ending December 31, | |||||
-2014 | 301 | ||||
-2015 | 301 | ||||
-2016 | 75 | ||||
Total | 760 | ||||
For the nine months ended September 30, 2013 and 2012, rental expenses under operating leases were approximately US$379,000 and US$355,000, respectively. For the three months ended September 30, 2013 and 2012, rental expenses under operating leases were approximately US$130,000 and US$122,000, respectively. | |||||
Note_25_Segment_reporting
Note 25 - Segment reporting | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
25 | Segment reporting | ||||||||||||||||||||||||||||
The Company follows ASC Topic 280 “Segment Reporting”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess each operating segment’s performance. | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 15,318 | 5,687 | 211 | 2,206 | - | - | 23,422 | ||||||||||||||||||||||
Cost of sales | 6,670 | 5,246 | 1 | 1,206 | - | - | 13,123 | ||||||||||||||||||||||
Total operating expenses | 5,003 | 1,012 | 161 | 880 | 1,131 | * | - | 8,187 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 777 | 32 | 161 | 163 | 119 | - | 1,252 | ||||||||||||||||||||||
Operating income (loss) | 3,645 | (571 | ) | 49 | 120 | (1,131 | ) | - | 2,112 | ||||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (129 | ) | (41 | ) | - | (170 | ) | |||||||||||||||||||
Expenditure for long-term assets | 2,464 | - | - | 2 | 10 | - | 2,476 | ||||||||||||||||||||||
Net income (loss) | 3,204 | (616 | ) | 49 | (44 | ) | (1,048 | ) | - | 1,545 | |||||||||||||||||||
Total assets – September 30, 2013 | 43,197 | 15,836 | 449 | 8,609 | 14,398 | (21,691 | ) | 60,798 | |||||||||||||||||||||
*Including approximately US$114,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 6,071 | 560 | 71 | 779 | - | - | 7,481 | ||||||||||||||||||||||
Cost of sales | 2,406 | 503 | 1 | 456 | - | - | 3,366 | ||||||||||||||||||||||
Total operating expenses | 1,729 | 257 | 56 | 329 | 368 | * | - | 2,739 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 261 | 7 | 56 | 54 | 34 | - | 412 | ||||||||||||||||||||||
Operating income (loss) | 1,936 | (200 | ) | 14 | (6 | ) | (368 | ) | - | 1,376 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (39 | ) | (6 | ) | - | (45 | ) | |||||||||||||||||||
Expenditure for long-term assets | 1,611 | - | - | 2 | 3 | - | 1,616 | ||||||||||||||||||||||
Net income (loss) | 1,694 | (185 | ) | 14 | (49 | ) | (334 | ) | - | 1,140 | |||||||||||||||||||
Total assets – September 30, 2013 | 43,197 | 15,836 | 449 | 8,609 | 14,398 | (21,691 | ) | 60,798 | |||||||||||||||||||||
*Including approximately US$94,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 (Unaudited) | |||||||||||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 15,393 | 19,751 | 214 | 3,031 | - | (40 | ) | 38,349 | |||||||||||||||||||||
Cost of sales | 7,447 | 19,519 | 19 | 1,080 | - | - | 28,065 | ||||||||||||||||||||||
Total operating expenses | 4,666 | 675 | 155 | 813 | 1,165 | * | - | 7,474 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 782 | 51 | 155 | 161 | 74 | - | 1,223 | ||||||||||||||||||||||
Operating income (loss) | 3,280 | (443 | ) | 40 | 1,138 | (1,165 | ) | (40 | ) | 2,810 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (274 | ) | (120 | ) | - | (394 | ) | |||||||||||||||||||
Expenditure for long-term assets | 179 | 6 | - | - | - | - | 185 | ||||||||||||||||||||||
Net income (loss) | 3,208 | (417 | ) | 40 | 579 | (1,175 | ) | (40 | ) | 2,195 | |||||||||||||||||||
Total assets September 30,2012 | 41,547 | 15,607 | 649 | 8,207 | 15,012 | (22,570 | ) | 58,452 | |||||||||||||||||||||
*Including approximately US$38,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 (Unaudited) | |||||||||||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 5,690 | 3,238 | 72 | 1,327 | - | (40 | ) | 10,287 | |||||||||||||||||||||
Cost of sales | 2,522 | 3,162 | 7 | 472 | - | - | 6,163 | ||||||||||||||||||||||
Total operating expenses | 1,313 | 208 | 52 | 339 | 344 | * | - | 2,256 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 261 | 16 | 52 | 54 | 22 | - | 405 | ||||||||||||||||||||||
Operating income (loss) | 1,855 | (132 | ) | 13 | 516 | (344 | ) | (40 | ) | 1,868 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (70 | ) | (27 | ) | - | (97 | ) | |||||||||||||||||||
Expenditure for long-term assets | 133 | 6 | - | - | - | - | 139 | ||||||||||||||||||||||
Net income (loss) | 1,622 | (124 | ) | 13 | 317 | (345 | ) | (40 | ) | 1,443 | |||||||||||||||||||
Total assets September 30,2012 | 41,547 | 15,607 | 649 | 8,207 | 15,012 | (22,570 | ) | 58,452 | |||||||||||||||||||||
*Including approximately US$11,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Note_26_Earnings_per_share
Note 26 - Earnings per share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings per share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
26 | Earnings per share | ||||||||||||||||
Basic and diluted earnings per share for each of the periods presented are calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of US dollars): | |||||||||||||||||
Nine months ended | Three months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$(’000) | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net income attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | 1,623 | $ | 1,749 | $ | 1,159 | $ | 1,220 | |||||||||
Weighted average number of common shares outstanding – Basic | 22,253,463 | 22,185,226 | 22,371,649 | 22,186,540 | |||||||||||||
Effect of diluted securities: | |||||||||||||||||
Warrants and options | - | - | - | - | |||||||||||||
Weighted average number of common shares outstanding – Diluted | 22,253,463 | 22,185,226 | 22,371,649 | 22,186,540 | |||||||||||||
Earnings per share-Basic | $ | 0.07 | $ | 0.08 | $ | 0.05 | $ | 0.05 | |||||||||
Earnings per share-Diluted | $ | 0.07 | $ | 0.08 | $ | 0.05 | $ | 0.05 | |||||||||
For the nine months ended September 30, 2013, the diluted earnings per share calculation did not include the warrants and options to purchase up to 2,363,456 and 939,440 shares of common stock, respectively, because these warrants and options were out-of-the-money, that if included would be anti-dilutive. | |||||||||||||||||
For the three months ended September 30, 2013, the diluted earnings per share calculation did not include the warrants and options to purchase up to 2,363,456 and 939,440 shares of common stock, respectively, because these warrants and options were out-of-the-money, that if included would be anti-dilutive. | |||||||||||||||||
For the nine months ended September 30, 2012, the diluted earnings per share calculation did not include the warrants and options to purchase up to 2,909,390 and 939,440 shares of common stock, respectively, because these warrants and options were out-of-the-money, that if included would be anti-dilutive. | |||||||||||||||||
For the three months ended September 30, 2012, the diluted earnings per share calculation did not include the warrants and options to purchase up to 2,719,347 and 939,440 shares of common stock, respectively, because these warrants and options were out-of-the-money, that if included would be anti-dilutive. | |||||||||||||||||
Note_27_Sharebased_compensatio
Note 27 - Share-based compensation expenses | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||
27 | Share-based compensation expenses | ||||||||||||||||||||||||
On July 5, 2013, the Company granted 150,000 shares of the Company’s restricted common stock to a technical service provider, in relation to its service provided to the Company. These shares were valued at US$0.55 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expenses recognized for the nine and three months ended September 30, 2013 was US$82,500. | |||||||||||||||||||||||||
On January 1, 2012, the Company granted 80,000 shares of the Company’s restricted common stock to an investor relations service provider, in relation to its service provided to the Company for a 24-month period. These shares were valued at US$1.05 per share, the closing bid price of the Company’s common stock on the date of grant. The related compensation expenses were amortized over the requisite service period. Total compensation expenses recognized for the nine and three months ended September 30, 2013 was US$31,500 and US$10,500, respectively. | |||||||||||||||||||||||||
On November 30, 2009, the Company granted 5-year options to each of its three independent directors, Mr. Douglas MacLellan, Mr. Mototaka Watanabe and Mr. Zhiqing Chen, to purchase in the aggregate 54,000 shares of the Company’s common stock at an exercise price of US$5.00 per share, in consideration of their services to the Company. These options vest quarterly at the end of each 3-month period, in equal installments over the 24-month period from the date of grant. Unexercised options will expire on November 29, 2014. | |||||||||||||||||||||||||
On November 30, 2011, under the Company’s 2011 Omnibus Securities and Incentive Plan, the Company issued its management, employees and directors in the aggregate of 885,440 options to purchase up the same number of the company’s common stock at an exercise price of US$1.20 per share. These options were fully vested and exercisable upon issuance and subject to forfeiture upon an employee's cessation of employment at the discretion of the Company. Unexercised options will expire on November 29, 2021. | |||||||||||||||||||||||||
Options issued and outstanding at September 30, 2013 and their movements during the nine months then ended are as follows: | |||||||||||||||||||||||||
Option Outstanding | Option Exercisable | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Weighted | ||||||||||||||||||||
underlying | Average | Average | underlying | Average | Average | ||||||||||||||||||||
shares | Remaining | Exercise | shares | Remaining | Exercise | ||||||||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||||||||
Life (Years) | Life (Years) | ||||||||||||||||||||||||
Balance, December 31, 2012 (audited) | 939,440 | 8.51 | $ | 1.42 | 939,440 | 8.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, September 30, 2013 (unaudited) | 939,440 | 7.76 | $ | 1.42 | 939,440 | 7.76 | $ | 1.42 | |||||||||||||||||
The aggregate unrecognized share-based compensation expenses as of September 30, 2013 and 2012 is approximately US$11,000 and US$53,000, respectively. | |||||||||||||||||||||||||
Note_28_Subsequent_event
Note 28 - Subsequent event | 9 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
28. | Subsequent event | |
Business Opportunity Online, one of the indirect wholly owned VIEs of the Company, Handong Cheng, Chairman and CEO of the Company, and Jinbo Yao, Legal Representative of Beijing 58 Information Technology Co., Ltd. (the “Beijing 58”) have been named as defendants in a civil lawsuit filed in the PRC. The action was filed by Xuanfu Liu, an approximate 34% shareholder of the Company, on October 19, 2013, in the Xiaogan City Xiaonan District People’s Court in Hubei Province, China. The complaint alleges that Mr. Cheng abused operation and management rights and that Mr. Cheng’s disposition of equity interests that Business Opportunity Online held in Beijing 58 (the “Equity Interests”), without the consent of the plaintiff, was an act of infringement and in violation of the articles of association of Business Opportunity Online and Chinese corporate law. The complaint seeks a court order to declare the contract allegedly entered into by and between Mr. Cheng, on behalf of Business Opportunity Online, and Mr. Yao, null and void. The Company denies all of the allegations against it and intends to defend vigorously against the lawsuit. The Company currently cannot estimate the amount or range of possible losses from this litigation. | ||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
Principles of consolidation | |
The interim consolidated financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. According to the agreements between Beijing CNET Online and Shanghai Borongdingsi, although Beijing CNET Online legally owns 51% of Shanghai Borongdingsi’s interests, Beijing CNET Online only controls the assets and liabilities related to the bank kiosks business, which has been included in the financial statements of Beijing CNET Online, but does not control other assets of Shanghai Borongdingsi, thus, Shanghai Borongdingsi’s financial statements were not consolidated by the Company. | |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
Basis of presentation | |
The interim consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
The interim consolidated financial information as of September 30, 2013 and for the nine and three months ended September 30, 2013 and 2012 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The interim consolidated financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, previously filed with the SEC. | |
In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2013, its consolidated results of operations for the nine and three months ended September 30, 2013 and 2012, and its consolidated cash flows for the nine months ended September 30, 2013 and 2012, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Foreign currency translation and transactions | |
The functional currency of the Company is United States dollars (“US$”), and the functional currency of China Net HK is Hong Kong dollars (“HK$”). The functional currency of the Company’s PRC operating subsidiary and VIEs is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. | |
For financial reporting purposes, the financial statements of the Company’s PRC operating subsidiary and VIEs, which are prepared using the RMB, are translated into the Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity. | |
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income of the consolidated statements of income and comprehensive income for the respective periods. | |
Advertising Costs, Policy [Policy Text Block] | ' |
Advertising costs | |
Advertising costs for the Company’s own brand building are not includable in cost of sales, they are expensed when incurred or amortized over the estimated beneficial period and are included in “selling expenses” in the statement of income and comprehensive income. For the nine months ended September 30, 2013 and 2012, advertising expenses for the Company’s own brand building were approximately US$292,000 and US$224,000, respectively. For the three months ended September 30, 2013 and 2012, advertising expenses for the Company’s own brand building were approximately US$148,000 and US$56,000, respectively. | |
Research and Development Expense, Policy [Policy Text Block] | ' |
Research and development expenses | |
The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the nine months ended September 30, 2013 and 2012 were approximately US$1,490,000 and US$1,112,000, respectively. Expenses for research and development for the three months ended September 30, 2013 and 2012 were approximately US$578,000 and US$356,000, respectively. | |
Income Tax, Policy [Policy Text Block] | ' |
Income taxes | |
The Company follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. | |
Income Tax Uncertainties, Policy [Policy Text Block] | ' |
Uncertain tax positions | |
The Company follows the guidance of ASC Topic 740 “Income taxes”, which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. | |
The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The tax returns of the Company’s PRC subsidiary and VIEs are subject to examination by the relevant tax authorities. The Company did not have any material interest or penalties associated with tax positions for the nine and three months ended September 30, 2013 and 2012, and did not have any significant unrecognized uncertain tax positions as of September 30, 2013 and December 31, 2012, respectively. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent accounting standards | |
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. The ASU does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The guidance is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. | |
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”, to resolve a diversity in accounting for the cumulative translation adjustment of foreign currency upon derecognition of a foreign subsidiary or group of assets. This ASU requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, this ASU clarified that the parent should apply the guidance in subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The provisions in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes, (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The provisions in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. These provisions provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The provisions in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Note_2_Variable_Interest_Entit1
Note 2 - Variable Interest Entities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Variable Interest Entities Disclosure [Abstract] | ' | ||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 3,931 | $ | 4,275 | |||||
Term deposit | 3,446 | 3,357 | |||||||
Accounts receivable, net | 10,621 | 8,392 | |||||||
Other receivables, net | 2,171 | 2,921 | |||||||
Prepayment and deposit to suppliers | 15,113 | 14,587 | |||||||
Due from related parties | 143 | 49 | |||||||
Other current assets | 27 | 35 | |||||||
Deferred tax assets-current | 35 | 50 | |||||||
Total current assets | 35,487 | 33,666 | |||||||
Investment in and advance to equity investment affiliates | 801 | 916 | |||||||
Property and equipment, net | 1,123 | 1,389 | |||||||
Intangible assets, net | 6,556 | 7,152 | |||||||
Deposit for purchasing of software technology | 2,438 | - | |||||||
Goodwill | 11,380 | 11,083 | |||||||
Deferred tax assets-non current | 949 | 511 | |||||||
Total Assets | $ | 58,734 | $ | 54,717 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 813 | $ | - | |||||
Accounts payable | 402 | 110 | |||||||
Advances from customers | 1,485 | 1,065 | |||||||
Accrued payroll and other accruals | 366 | 455 | |||||||
Due to Control Group | 11 | 11 | |||||||
Payable for acquisition | 488 | 1,266 | |||||||
Taxes payable | 7,694 | 6,136 | |||||||
Other payables | 151 | 196 | |||||||
Total current liabilities | 11,410 | 9,239 | |||||||
Deferred tax Liabilities-non current | 1,566 | 1,689 | |||||||
Total Liabilities | $ | 12,976 | $ | 10,928 |
Note_3_Summary_of_significant_1
Note 3 - Summary of significant accounting policies (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Balance Sheet Items Except Equity Accounts [Member] | ' | ||||||
Note 3 - Summary of significant accounting policies (Tables) [Line Items] | ' | ||||||
Foreign Currency Exchange Rates [Table Text Block] | ' | ||||||
30-Sep-13 | 31-Dec-12 | ||||||
Balance sheet items, except for equity accounts | 6.1514 | 6.3161 | |||||
Items In Income Statements And Comprehensive Income And Statements Of Cash Flows Nine Months Ended [Member] | ' | ||||||
Note 3 - Summary of significant accounting policies (Tables) [Line Items] | ' | ||||||
Foreign Currency Exchange Rates [Table Text Block] | ' | ||||||
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.2215 | 6.3275 | |||||
Items In Income Statements And Comprehensive Income And Statements Of Cash Flows Three Months Ended [Member] | ' | ||||||
Note 3 - Summary of significant accounting policies (Tables) [Line Items] | ' | ||||||
Foreign Currency Exchange Rates [Table Text Block] | ' | ||||||
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1695 | 6.3313 |
Note_5_Accounts_receivable_net1
Note 5 - Accounts receivable, net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable Disclosure [Abstract] | ' | ||||||||
Schedule Of Accounts Receivable [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accounts receivable | 14,735 | 12,116 | |||||||
Allowance for doubtful debts | (3,963 | ) | (3,630 | ) | |||||
Accounts receivable, net | 10,772 | 8,486 |
Note_6_Other_receivables_net_T
Note 6 - Other receivables, net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Other Receivables [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Short-term loan made for marketing campaign | 1,626 | 2,375 | |||||||
Short-term loans to unrelated entities | 488 | 475 | |||||||
Term deposit interest receivable | 28 | 59 | |||||||
Staff advances for normal business purpose | 143 | 194 | |||||||
Overdue contract guarantee deposits | 962 | 158 | |||||||
Allowance for doubtful debts | (962 | ) | (158 | ) | |||||
Other receivables, net | 2,285 | 3,103 |
Note_7_Prepayments_and_deposit1
Note 7 - Prepayments and deposit to suppliers (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | ' | ||||||||
Schedule Of Prepayments And Deposit To Suppliers [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Contract execution guarantees to TV advertisement and internet resources providers | 8,168 | 9,463 | |||||||
Prepayments to TV advertisement and internet resources providers | 6,845 | 5,069 | |||||||
Other deposits and prepayments | 102 | 64 | |||||||
15,115 | 14,596 |
Note_8_Due_from_related_partie1
Note 8 - Due from related parties (Tables) (Due From Related Parties [Member]) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Due From Related Parties [Member] | ' | ||||||||
Note 8 - Due from related parties (Tables) [Line Items] | ' | ||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Beijing Fengshangyinli Technology Co., Ltd. | 36 | 53 | |||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 260 | 87 | |||||||
Beijing Telijie Century Environmental Technology Co., Ltd. | 147 | 70 | |||||||
443 | 210 |
Note_9_Investment_in_and_advan1
Note 9 - Investment in and advance to equity investment affiliates (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Schedule of Investment in and Advance to Equity Investment Affiliates [Table Text Block] | ' | ||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Investment in equity investment affiliates | 768 | 916 | |||||||||||
Advance to equity investment affiliates | 77 | 43 | |||||||||||
845 | 959 | ||||||||||||
Equity Method Investments [Table Text Block] | ' | ||||||||||||
Shenzhen | Zhao Shang | Total | |||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2012 (audited) | 492 | 467 | 959 | ||||||||||
Share of losses in equity investment affiliates | (41 | ) | (129 | ) | (170 | ) | |||||||
Advance to equity investment affiliates | - | 32 | 32 | ||||||||||
Exchange translation adjustment | 12 | 12 | 24 | ||||||||||
Balance as of September 30, 2013 (unaudited) | 463 | 382 | 845 |
Note_10_Property_and_equipment1
Note 10 - Property and equipment, net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Vehicles | 992 | 925 | |||||||
Office equipment | 1,544 | 1,481 | |||||||
Electronic devices | 1,237 | 1,205 | |||||||
Property and equipment, cost | 3,773 | 3,611 | |||||||
Less: accumulated depreciation | (2,493 | ) | (1,975 | ) | |||||
Property and equipment, net | 1,280 | 1,636 |
Note_11_Intangible_assets_net_
Note 11 - Intangible assets, net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Intangible assets not subject to amortization: | |||||||||
Trade name | 317 | 309 | |||||||
Domain name | 1,570 | 1,529 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 202 | 196 | |||||||
Customer relationship | 3,526 | 3,434 | |||||||
Non-compete agreements | 1,395 | 1,358 | |||||||
Software technologies | 333 | 325 | |||||||
Cloud-computing based software platforms | 1,509 | 1,470 | |||||||
Other computer software | 78 | 76 | |||||||
Intangible assets, cost | 8,930 | 8,697 | |||||||
Less: accumulated amortization | (2,371 | ) | (1,530 | ) | |||||
Intangible assets, net | 6,559 | 7,167 |
Note_13_Goodwill_Tables
Note 13 - Goodwill (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of Goodwill [Table Text Block] | ' | ||||
Amount | |||||
US$(’000) | |||||
Balance as of December 31, 2012 (audited) | 11,083 | ||||
Exchange translation adjustment | 297 | ||||
Balance as of September 30, 2013 (unaudited) | 11,380 |
Note_15_Accrued_payroll_and_ot1
Note 15 - Accrued payroll and other accruals (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accrued payroll and staff welfare | 456 | 538 | |||||||
Accrued operating expenses | 377 | 366 | |||||||
833 | 904 |
Note_17_Taxation_Tables
Note 17 - Taxation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Note 17 - Taxation (Tables) [Line Items] | ' | ||||||||||||
Schedule of Taxes Payable [Table Text Block] | ' | ||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Turnover tax and surcharge payable | 2,868 | 2,609 | |||||||||||
Enterprise income tax payable | 5,322 | 4,074 | |||||||||||
8,190 | 6,683 | ||||||||||||
Equity Method Investments [Table Text Block] | ' | ||||||||||||
Shenzhen | Zhao Shang | Total | |||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2012 (audited) | 492 | 467 | 959 | ||||||||||
Share of losses in equity investment affiliates | (41 | ) | (129 | ) | (170 | ) | |||||||
Advance to equity investment affiliates | - | 32 | 32 | ||||||||||
Exchange translation adjustment | 12 | 12 | 24 | ||||||||||
Balance as of September 30, 2013 (unaudited) | 463 | 382 | 845 | ||||||||||
Schedule of Deferred Tax Liabilities [Table Text Block] | ' | ||||||||||||
Amount | |||||||||||||
US$(’000) | |||||||||||||
Balance as of December 31, 2012 (audited) | 1,689 | ||||||||||||
Reversal during the period | (168 | ) | |||||||||||
Exchange translation adjustment | 45 | ||||||||||||
Balance as of September 30, 2013 (unaudited) | 1,566 | ||||||||||||
Schedule of Deferred Tax Assets [Table Text Block] | ' | ||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Tax effect of net operating losses carried forward | 3,625 | 2,929 | |||||||||||
Bad debts provision | 1,103 | 824 | |||||||||||
Valuation allowance | (3,473 | ) | (3,051 | ) | |||||||||
1,255 | 702 | ||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Deferred tax assets reclassified as current asset | 35 | 50 | |||||||||||
Deferred tax assets reclassified as non-current asset | 1,220 | 652 | |||||||||||
1,255 | 702 | ||||||||||||
Adjustment Due To New Tax Rate Enactment [Member] | Peoples Republic Of China [Member] | ' | ||||||||||||
Note 17 - Taxation (Tables) [Line Items] | ' | ||||||||||||
Equity Method Investments [Table Text Block] | ' | ||||||||||||
Three Months Ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Current-PRC | (460 | ) | (373 | ) | |||||||||
Deferred-PRC | 259 | 191 | |||||||||||
(201 | ) | (182 | ) | ||||||||||
Peoples Republic Of China [Member] | ' | ||||||||||||
Note 17 - Taxation (Tables) [Line Items] | ' | ||||||||||||
Equity Method Investments [Table Text Block] | ' | ||||||||||||
Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Current-PRC | (1,165 | ) | (945 | ) | |||||||||
Deferred-PRC | 696 | 749 | |||||||||||
(469 | ) | (196 | ) |
Note_18_Longterm_borrowing_fro1
Note 18 - Long-term borrowing from director (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long Term Borrowing From Director Disclosure [Abstract] | ' | ||||||||
Long-term Borrowing from Director [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Long-term borrowing from director | 142 | 139 |
Note_19_Warrants_Tables
Note 19 - Warrants (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Warrants Disclosure Textblock [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||||||
Number of | Weighted | Average | Number of | Weighted | Average | ||||||||||||||||||||
underlying | Average | Remaining | underlying | Average | Remaining | ||||||||||||||||||||
shares | Exercise | Contractual | shares | Exercise | Contractual | ||||||||||||||||||||
Price | Life (years) | Price | Life (years) | ||||||||||||||||||||||
Balance, December 31, 2012 (audited) | 2,363,456 | $ | 3.52 | 1.63 | 2,363,456 | $ | 3.52 | 1.63 | |||||||||||||||||
Granted / Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, September 30, 2013 (unaudited) | 2,363,456 | $ | 3.52 | 0.88 | 2,363,456 | $ | 3.52 | 0.88 |
Note_21_Related_party_transact1
Note 21 - Related party transactions (Tables) (Revenue from Related Parties [Member]) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Revenue from Related Parties [Member] | ' | ||||||||
Note 21 - Related party transactions (Tables) [Line Items] | ' | ||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||
Nine Months Ended September 30, | |||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 213 | 73 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 7 | 2 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | 94 | 42 | |||||||
314 | 117 | ||||||||
Three Months Ended September 30, | |||||||||
2013 | 2012 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 91 | 18 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 1 | 1 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | 48 | 32 | |||||||
140 | 51 |
Note_24_Commitments_Tables
Note 24 - Commitments (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
' | |||||
Office Rental | |||||
US$(’000) | |||||
(Unaudited) | |||||
Three months ending December 31, | |||||
-2013 | 83 | ||||
Year ending December 31, | |||||
-2014 | 301 | ||||
-2015 | 301 | ||||
-2016 | 75 | ||||
Total | 760 |
Note_25_Segment_reporting_Tabl
Note 25 - Segment reporting (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 15,318 | 5,687 | 211 | 2,206 | - | - | 23,422 | ||||||||||||||||||||||
Cost of sales | 6,670 | 5,246 | 1 | 1,206 | - | - | 13,123 | ||||||||||||||||||||||
Total operating expenses | 5,003 | 1,012 | 161 | 880 | 1,131 | * | - | 8,187 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 777 | 32 | 161 | 163 | 119 | - | 1,252 | ||||||||||||||||||||||
Operating income (loss) | 3,645 | (571 | ) | 49 | 120 | (1,131 | ) | - | 2,112 | ||||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (129 | ) | (41 | ) | - | (170 | ) | |||||||||||||||||||
Expenditure for long-term assets | 2,464 | - | - | 2 | 10 | - | 2,476 | ||||||||||||||||||||||
Net income (loss) | 3,204 | (616 | ) | 49 | (44 | ) | (1,048 | ) | - | 1,545 | |||||||||||||||||||
Total assets – September 30, 2013 | 43,197 | 15,836 | 449 | 8,609 | 14,398 | (21,691 | ) | 60,798 | |||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 6,071 | 560 | 71 | 779 | - | - | 7,481 | ||||||||||||||||||||||
Cost of sales | 2,406 | 503 | 1 | 456 | - | - | 3,366 | ||||||||||||||||||||||
Total operating expenses | 1,729 | 257 | 56 | 329 | 368 | * | - | 2,739 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 261 | 7 | 56 | 54 | 34 | - | 412 | ||||||||||||||||||||||
Operating income (loss) | 1,936 | (200 | ) | 14 | (6 | ) | (368 | ) | - | 1,376 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (39 | ) | (6 | ) | - | (45 | ) | |||||||||||||||||||
Expenditure for long-term assets | 1,611 | - | - | 2 | 3 | - | 1,616 | ||||||||||||||||||||||
Net income (loss) | 1,694 | (185 | ) | 14 | (49 | ) | (334 | ) | - | 1,140 | |||||||||||||||||||
Total assets – September 30, 2013 | 43,197 | 15,836 | 449 | 8,609 | 14,398 | (21,691 | ) | 60,798 | |||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 15,393 | 19,751 | 214 | 3,031 | - | (40 | ) | 38,349 | |||||||||||||||||||||
Cost of sales | 7,447 | 19,519 | 19 | 1,080 | - | - | 28,065 | ||||||||||||||||||||||
Total operating expenses | 4,666 | 675 | 155 | 813 | 1,165 | * | - | 7,474 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 782 | 51 | 155 | 161 | 74 | - | 1,223 | ||||||||||||||||||||||
Operating income (loss) | 3,280 | (443 | ) | 40 | 1,138 | (1,165 | ) | (40 | ) | 2,810 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (274 | ) | (120 | ) | - | (394 | ) | |||||||||||||||||||
Expenditure for long-term assets | 179 | 6 | - | - | - | - | 185 | ||||||||||||||||||||||
Net income (loss) | 3,208 | (417 | ) | 40 | 579 | (1,175 | ) | (40 | ) | 2,195 | |||||||||||||||||||
Total assets September 30,2012 | 41,547 | 15,607 | 649 | 8,207 | 15,012 | (22,570 | ) | 58,452 | |||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 5,690 | 3,238 | 72 | 1,327 | - | (40 | ) | 10,287 | |||||||||||||||||||||
Cost of sales | 2,522 | 3,162 | 7 | 472 | - | - | 6,163 | ||||||||||||||||||||||
Total operating expenses | 1,313 | 208 | 52 | 339 | 344 | * | - | 2,256 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 261 | 16 | 52 | 54 | 22 | - | 405 | ||||||||||||||||||||||
Operating income (loss) | 1,855 | (132 | ) | 13 | 516 | (344 | ) | (40 | ) | 1,868 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (70 | ) | (27 | ) | - | (97 | ) | |||||||||||||||||||
Expenditure for long-term assets | 133 | 6 | - | - | - | - | 139 | ||||||||||||||||||||||
Net income (loss) | 1,622 | (124 | ) | 13 | 317 | (345 | ) | (40 | ) | 1,443 | |||||||||||||||||||
Total assets September 30,2012 | 41,547 | 15,607 | 649 | 8,207 | 15,012 | (22,570 | ) | 58,452 |
Note_26_Earnings_per_share_Tab
Note 26 - Earnings per share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings per share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Nine months ended | Three months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$(’000) | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net income attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | 1,623 | $ | 1,749 | $ | 1,159 | $ | 1,220 | |||||||||
Weighted average number of common shares outstanding – Basic | 22,253,463 | 22,185,226 | 22,371,649 | 22,186,540 | |||||||||||||
Effect of diluted securities: | |||||||||||||||||
Warrants and options | - | - | - | - | |||||||||||||
Weighted average number of common shares outstanding – Diluted | 22,253,463 | 22,185,226 | 22,371,649 | 22,186,540 | |||||||||||||
Earnings per share-Basic | $ | 0.07 | $ | 0.08 | $ | 0.05 | $ | 0.05 | |||||||||
Earnings per share-Diluted | $ | 0.07 | $ | 0.08 | $ | 0.05 | $ | 0.05 |
Note_27_Sharebased_compensatio1
Note 27 - Share-based compensation expenses (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||||
Option Outstanding | Option Exercisable | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Number of | Weighted | Weighted | ||||||||||||||||||||
underlying | Average | Average | underlying | Average | Average | ||||||||||||||||||||
shares | Remaining | Exercise | shares | Remaining | Exercise | ||||||||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||||||||
Life (Years) | Life (Years) | ||||||||||||||||||||||||
Balance, December 31, 2012 (audited) | 939,440 | 8.51 | $ | 1.42 | 939,440 | 8.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, September 30, 2013 (unaudited) | 939,440 | 7.76 | $ | 1.42 | 939,440 | 7.76 | $ | 1.42 |
Note_1_Organization_and_nature1
Note 1 - Organization and nature of operations (Details) | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||
Dec. 19, 2012 | Dec. 19, 2012 | Jun. 26, 2009 | Sep. 30, 2013 | Dec. 29, 2011 | Dec. 19, 2011 | Jul. 31, 2011 | Jun. 30, 2011 | Apr. 18, 2011 | Jan. 06, 2011 | Jan. 06, 2011 | Jun. 24, 2010 | Jan. 06, 2011 | Dec. 19, 2012 | Dec. 19, 2012 | Dec. 19, 2012 | Jul. 31, 2011 | Jul. 31, 2011 | Mar. 31, 2011 | Apr. 18, 2011 | Jun. 26, 2009 | Jun. 26, 2009 | Jan. 04, 2011 | Jun. 30, 2011 | Feb. 23, 2011 | Dec. 29, 2011 | Dec. 19, 2012 | Dec. 29, 2011 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 20, 2011 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Shenzhen Mingshan [Member] | Revised Registered And Paid In Capital [Member] | Revised Registered And Paid In Capital [Member] | Revised Share Of Equity [Member] | Business Opportunity Online Hubei [Member] | Co-Founding Individual [Member] | Business Opportunity Online [Member] | Business Opportunity Online Hubei [Member] | China Net BVI [Member] | PRC Operating Entities [Member] | Quanzhou Zhi Yuan [Member] | Quanzhou Tian Xi Shun He [Member] | Quanzhou Tian Xi Shun He [Member] | Original Share Of Equity [Member] | Revised Share Of Equity [Member] | Revised Share Of Equity [Member] | Sou Yi Lian Mei [Member] | Sou Yi Lian Mei [Member] | Sou Yi Lian Mei [Member] | |||||||
USD ($) | CNY | ||||||||||||||||||||||||||||||
Note 1 - Organization and nature of operations (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 20.40% | 20.40% | ' | ' | ' | ' | ' | 51.00% | 51.00% | 20.40% | 20.40% | 51.00% | 60.00% | ' | ' | 23.18% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 51.00% | 23.18% | 25.50% | ' | ' | ' |
Shares Issued Pursuant to Share Exchange Agreement (in Shares) | ' | ' | 13,790,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Earned Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Contributed By New Investors (in Dollars) | ' | ' | ' | ' | $1,625,646 | 10,000,000 | ' | ' | ' | $2,438,469 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered And Paid In Capital Of Equity Invement Affiliate (in Yuan Renminbi) | 4,064,115 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,576,422 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered And Paid In Capital Of Equity Invement Affiliate (in Dollars) | $4,064,115 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,576,422 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Voting Interests Acquired | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | 49.00% | 49.00% | ' | ' | 100.00% | 49.00% | 51.00% | ' | ' | ' | 49.00% | 49.00% | 51.00% |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_2_Variable_Interest_Entit2
Note 2 - Variable Interest Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 2 - Variable Interest Entities (Details) [Line Items] | ' | ' | ' | ' |
Sales Revenue, Services, Net | $7,481,000 | $10,287,000 | $23,422,000 | $38,349,000 |
Cost of Services | 3,366,000 | 6,163,000 | 13,123,000 | 28,065,000 |
Operating Expenses | 2,739,000 | 2,256,000 | 8,187,000 | 7,474,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,140,000 | 1,443,000 | 1,545,000 | 2,195,000 |
VIEs [Member] | ' | ' | ' | ' |
Note 2 - Variable Interest Entities (Details) [Line Items] | ' | ' | ' | ' |
Sales Revenue, Services, Net | 7,380,000 | 10,222,000 | 23,120,000 | 38,201,000 |
Cost of Services | 3,365,000 | 6,160,000 | 13,121,000 | 28,057,000 |
Operating Expenses | 2,160,000 | 1,764,000 | 6,482,000 | 5,475,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $1,579,000 | $1,845,000 | $2,824,000 | $3,943,000 |
Note_2_Variable_Interest_Entit3
Note 2 - Variable Interest Entities (Details) - The consolidated VIEsb assets and liabilities | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | ||
USD ($) | CNY | USD ($) | USD ($) | USD ($) | VIEs [Member] | VIEs [Member] | |||
USD ($) | USD ($) | ||||||||
Current assets: | ' | ' | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | $4,933,000 | ' | $5,483,000 | $8,513,000 | $10,695,000 | $3,931,000 | $4,275,000 | ||
Term deposit | 3,446,000 | ' | 3,357,000 | ' | ' | 3,446,000 | 3,357,000 | ||
Accounts receivable, net | 10,772,000 | ' | 8,486,000 | ' | ' | 10,621,000 | 8,392,000 | ||
Other receivables, net | 2,285,000 | ' | 3,103,000 | ' | ' | 2,171,000 | 2,921,000 | ||
Prepayment and deposit to suppliers | 15,115,000 | ' | 14,596,000 | ' | ' | 15,113,000 | 14,587,000 | ||
Due from related parties | 443,000 | ' | 210,000 | ' | ' | 143,000 | 49,000 | ||
Other current assets | 47,000 | ' | 136,000 | ' | ' | 27,000 | 35,000 | ||
Deferred tax assets-current | 35,000 | ' | 50,000 | ' | ' | 35,000 | 50,000 | ||
Total current assets | 37,076,000 | ' | 35,421,000 | ' | ' | 35,487,000 | 33,666,000 | ||
Investment in and advance to equity investment affiliates | 845,000 | ' | 959,000 | ' | ' | 801,000 | 916,000 | ||
Property and equipment, net | 1,280,000 | ' | 1,636,000 | ' | ' | 1,123,000 | 1,389,000 | ||
Intangible assets, net | 6,559,000 | ' | 7,167,000 | ' | ' | 6,556,000 | 7,152,000 | ||
Deposit for purchasing of software technology | 2,438,000 | 15,000,000 | ' | ' | ' | 2,438,000 | ' | ||
Goodwill | 11,380,000 | ' | 11,083,000 | ' | ' | 11,380,000 | 11,083,000 | ||
Deferred tax assets-non current | 1,220,000 | ' | 652,000 | ' | ' | 949,000 | 511,000 | ||
Total Assets | 60,798,000 | ' | 56,918,000 | ' | ' | 58,734,000 | 54,717,000 | ||
Current liabilities: | ' | ' | ' | ' | ' | ' | ' | ||
Short-term bank loan | 813,000 | [1] | 5,000,000 | ' | [1] | ' | ' | ' | ' |
Accounts payable | 402,000 | [1] | ' | 110,000 | [1] | ' | ' | 402,000 | 110,000 |
Advances from customers | 1,485,000 | [1] | ' | 1,065,000 | [1] | ' | ' | 1,485,000 | 1,065,000 |
Accrued payroll and other accruals | 833,000 | [1] | ' | 904,000 | [1] | ' | ' | 366,000 | 455,000 |
Due to Control Group | ' | ' | ' | ' | ' | 11,000 | 11,000 | ||
Payable for acquisition | 488,000 | [1] | ' | 1,266,000 | [1] | ' | ' | 488,000 | 1,266,000 |
Taxes payable | 8,190,000 | [1] | ' | 6,683,000 | [1] | ' | ' | 7,694,000 | 6,136,000 |
Other payables | 263,000 | [1] | ' | 217,000 | [1] | ' | ' | 151,000 | 196,000 |
Total current liabilities | 12,474,000 | ' | 10,245,000 | ' | ' | 11,410,000 | 9,239,000 | ||
Deferred tax Liabilities-non current | 1,566,000 | [1] | ' | 1,689,000 | [1] | ' | ' | 1,566,000 | 1,689,000 |
Total Liabilities | $14,182,000 | ' | $12,073,000 | ' | ' | $12,976,000 | $10,928,000 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Note_3_Summary_of_significant_2
Note 3 - Summary of significant accounting policies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | |
CNY | |||||
Note 3 - Summary of significant accounting policies (Details) [Line Items] | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | ' | 51.00% | ' | ' |
Advertising Expense (in Dollars) | $148,000 | $56,000 | $292,000 | $224,000 | ' |
Research and Development Expense (in Dollars) | 578,000 | 356,000 | 1,490,000 | 1,112,000 | ' |
Statute Of Limitations Special Circumstances Underpayment Of Taxes Threshold (in Yuan Renminbi) | ' | ' | ' | ' | 100,000 |
Note_3_Summary_of_significant_3
Note 3 - Summary of significant accounting policies (Details) - The exchange rates used to translate amounts in RMB into US$ | Sep. 30, 2013 | Dec. 31, 2012 |
The exchange rates used to translate amounts in RMB into US$ [Abstract] | ' | ' |
Balance sheet items, except for equity accounts | 6.1514 | 6.3161 |
Note_3_Summary_of_significant_4
Note 3 - Summary of significant accounting policies (Details) - The exchange rates used to translate amounts in RMB into US$ | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Nine Months [Member] | Nine Months [Member] | |||
Note 3 - Summary of significant accounting policies (Details) - The exchange rates used to translate amounts in RMB into US$ [Line Items] | ' | ' | ' | ' |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1514 | 6.3161 | 6.2215 | 6.3275 |
Note_3_Summary_of_significant_5
Note 3 - Summary of significant accounting policies (Details) - The exchange rates used to translate amounts in RMB into US$ | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 3 - Summary of significant accounting policies (Details) - The exchange rates used to translate amounts in RMB into US$ [Line Items] | ' | ' | ' | ' |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1514 | 6.3161 | 6.1695 | 6.3313 |
Note_4_Term_deposit_Details
Note 4 - Term deposit (Details) | Sep. 30, 2013 |
Note 4 - Term deposit (Details) [Line Items] | ' |
Debt Instrument, Interest Rate, Stated Percentage | 7.80% |
Bank Time Deposits [Member] | ' |
Note 4 - Term deposit (Details) [Line Items] | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.30% |
Note_5_Accounts_receivable_net2
Note 5 - Accounts receivable, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Internet Advertising And TV Advertising [Member] | Internet Advertising And TV Advertising [Member] | Internet Advertising And TV Advertising [Member] | |||||
Note 5 - Accounts receivable, net (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | ' | $3,963,000 | ' | $3,630,000 | $3,963,000 | $3,963,000 | ' |
Number of Months Past Due | ' | ' | ' | ' | ' | '6 months | ' |
Provision for Doubtful Accounts | $211,000 | $1,024,000 | $561,000 | ' | $233,000 | $233,000 | $350,000 |
Note_5_Accounts_receivable_net3
Note 5 - Accounts receivable, net (Details) - Accounts receivable, net (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net [Abstract] | ' | ' |
Accounts receivable | $14,735 | $12,116 |
Allowance for doubtful debts | -3,963 | -3,630 |
Accounts receivable, net | $10,772 | $8,486 |
Note_6_Other_receivables_net_D
Note 6 - Other receivables, net (Details) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | |
USD ($) | USD ($) | CNY | USD ($) | USD ($) | TV Ad [Member] | |
USD ($) | ||||||
Note 6 - Other receivables, net (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Loans and Leases Receivable, Net Amount (in Yuan Renminbi) | ' | $4,064,115 | 25,000,000 | ' | ' | ' |
Loans and Leases Receivable, Net Amount | ' | 4,064,115 | 25,000,000 | ' | ' | ' |
Proceeds from Collection of Loans Receivable (in Yuan Renminbi) | ' | 2,438,469 | 15,000,000 | ' | ' | ' |
Proceeds from Collection of Loans Receivable | ' | 2,438,469 | 15,000,000 | ' | ' | ' |
Allowance for Doubtful Other Receivables, Current | ' | 962,000 | ' | ' | 158,000 | 962,000 |
Provision for Doubtful Accounts | $211,000 | $1,024,000 | ' | $561,000 | ' | $791,000 |
Note_6_Other_receivables_net_D1
Note 6 - Other receivables, net (Details) - Other receivables, net (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Note 6 - Other receivables, net (Details) - Other receivables, net [Line Items] | ' | ' |
Allowance for doubtful debts | ($962,000) | ($158,000) |
Other receivables, net | 2,285,000 | 3,103,000 |
Short-term loans to unrelated entities | 488,000 | 475,000 |
Term deposit interest receivable | 28,000 | 59,000 |
Short-term Loan [Member] | ' | ' |
Note 6 - Other receivables, net (Details) - Other receivables, net [Line Items] | ' | ' |
Other receivables, gross | 1,626,000 | 2,375,000 |
Staff Advances [Member] | ' | ' |
Note 6 - Other receivables, net (Details) - Other receivables, net [Line Items] | ' | ' |
Other receivables, gross | 143,000 | 194,000 |
Overdue Contract Execution Deposits [Member] | ' | ' |
Note 6 - Other receivables, net (Details) - Other receivables, net [Line Items] | ' | ' |
Other receivables, gross | $962,000 | $158,000 |
Note_7_Prepayments_and_deposit2
Note 7 - Prepayments and deposit to suppliers (Details) - Prepayments and deposit to suppliers (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 7 - Prepayments and deposit to suppliers (Details) - Prepayments and deposit to suppliers [Line Items] | ' | ' |
Prepayment and deposit to suppliers | $15,115 | $14,596 |
Contract Execution Guarantees [Member] | ' | ' |
Note 7 - Prepayments and deposit to suppliers (Details) - Prepayments and deposit to suppliers [Line Items] | ' | ' |
Prepayment and deposit to suppliers | 8,168 | 9,463 |
Prepayments to TV Ad and Internet Providers [Member] | ' | ' |
Note 7 - Prepayments and deposit to suppliers (Details) - Prepayments and deposit to suppliers [Line Items] | ' | ' |
Prepayment and deposit to suppliers | 6,845 | 5,069 |
Other Deposits and Prepayments [Member] | ' | ' |
Note 7 - Prepayments and deposit to suppliers (Details) - Prepayments and deposit to suppliers [Line Items] | ' | ' |
Prepayment and deposit to suppliers | $102 | $64 |
Note_8_Due_from_related_partie2
Note 8 - Due from related parties (Details) - Due from related parties (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | $443 | $210 |
Beijing Fengshangyinli Technology [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | 36 | 53 |
Beijing Saimeiwei Food Equipment Technology [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | 260 | 87 |
Beijing Telijie Century Environmental Technology [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | $147 | $70 |
Note_9_Investment_in_and_advan2
Note 9 - Investment in and advance to equity investment affiliates (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||||||||||||
Dec. 19, 2012 | Dec. 19, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 29, 2011 | Dec. 19, 2011 | Jun. 30, 2011 | Apr. 18, 2011 | Jan. 06, 2011 | Jan. 06, 2011 | Jun. 24, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 06, 2011 | Dec. 29, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 29, 2011 | Jan. 06, 2011 | Dec. 19, 2012 | Dec. 19, 2012 | Dec. 19, 2012 | Dec. 29, 2011 | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | Shenzhen Mingshan [Member] | Shenzhen Mingshan [Member] | Shenzhen Mingshan [Member] | Shenzhen Mingshan [Member] | Shenzhen Mingshan [Member] | Zhao Shang Ke Hubei [Member] | Zhao Shang Ke Hubei [Member] | Zhao Shang Ke Hubei [Member] | Zhao Shang Ke Hubei [Member] | Zhao Shang Ke Hubei [Member] | Zhao Shang Ke Hubei [Member] | Revised Share Of Equity [Member] | Revised Registered And Paid In Capital [Member] | Revised Registered And Paid In Capital [Member] | Revised Share Of Equity [Member] | Revised Share Of Equity [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | Revised Share Of Equity [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | |||||||||||||||||||
Note 9 - Investment in and advance to equity investment affiliates (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 20.40% | 20.40% | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | 20.40% | 20.40% | 51.00% | ' | ' | ' | ' | 51.00% | 25.50% | ' | ' | ' | ' | 51.00% | 20.40% | ' | ' | 23.18% | 25.50% |
Investment Contributed By New Investors (in Yuan Renminbi) | ' | ' | ' | ' | ' | ' | $1,625,646 | 10,000,000 | ' | ' | $2,438,469 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Contributed By New Investors | ' | ' | ' | ' | ' | ' | 1,625,646 | 10,000,000 | ' | ' | 2,438,469 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | 60.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registered And Paid In Capital Of Equity Invement Affiliate (in Yuan Renminbi) | 4,064,115 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,576,422 | 22,000,000 | ' | ' |
Registered And Paid In Capital Of Equity Invement Affiliate | 4,064,115 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,576,422 | 22,000,000 | ' | ' |
Income (Loss) from Equity Method Investments | ' | ' | ($45,000) | ($97,000) | ($170,000) | ($394,000) | ' | ' | ' | ' | ' | ' | ' | ($6,000) | ($27,000) | ($41,000) | ($120,000) | ' | ' | ($39,000) | ($70,000) | ($129,000) | ($274,000) | ' | ' | ' | ' | ' | ' |
Note_9_Investment_in_and_advan3
Note 9 - Investment in and advance to equity investment affiliates (Details) - Summary of Investment in and advance to equity investment affiliates (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of Investment in and advance to equity investment affiliates [Abstract] | ' | ' |
Investment in equity investment affiliates | $768 | $916 |
Advance to equity investment affiliates | 77 | 43 |
$845 | $959 |
Note_9_Investment_in_and_advan4
Note 9 - Investment in and advance to equity investment affiliates (Details) - The movement of the investment in and advance to equity investment affiliates (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Balance as of December 31, 2012 (audited) | ' | ' | $959,000 | ' |
Share of losses in equity investment affiliates | -45,000 | -97,000 | -170,000 | -394,000 |
Advance to equity investment affiliates | ' | ' | 32,000 | ' |
Exchange translation adjustment | ' | ' | 24,000 | ' |
Balance as of September 30, 2013 (unaudited) | 845,000 | ' | 845,000 | ' |
Shenzhen Mingshan [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Balance as of December 31, 2012 (audited) | ' | ' | 492,000 | ' |
Share of losses in equity investment affiliates | -6,000 | -27,000 | -41,000 | -120,000 |
Exchange translation adjustment | ' | ' | 12,000 | ' |
Balance as of September 30, 2013 (unaudited) | 463,000 | ' | 463,000 | ' |
Zhao Shang Ke Hubei [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Balance as of December 31, 2012 (audited) | ' | ' | 467,000 | ' |
Share of losses in equity investment affiliates | -39,000 | -70,000 | -129,000 | -274,000 |
Advance to equity investment affiliates | ' | ' | 32,000 | ' |
Exchange translation adjustment | ' | ' | 12,000 | ' |
Balance as of September 30, 2013 (unaudited) | $382,000 | ' | $382,000 | ' |
Note_10_Property_and_equipment2
Note 10 - Property and equipment, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation | $150,000 | $145,000 | $461,000 | $440,000 |
Note_10_Property_and_equipment3
Note 10 - Property and equipment, net (Details) - Property and equipment, net (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 10 - Property and equipment, net (Details) - Property and equipment, net [Line Items] | ' | ' |
Property and equipment, gross | $3,773 | $3,611 |
Less: accumulated depreciation | -2,493 | -1,975 |
Property and equipment, net | 1,280 | 1,636 |
Vehicles [Member] | ' | ' |
Note 10 - Property and equipment, net (Details) - Property and equipment, net [Line Items] | ' | ' |
Property and equipment, gross | 992 | 925 |
Office Equipment [Member] | ' | ' |
Note 10 - Property and equipment, net (Details) - Property and equipment, net [Line Items] | ' | ' |
Property and equipment, gross | 1,544 | 1,481 |
Electronic Devices [Member] | ' | ' |
Note 10 - Property and equipment, net (Details) - Property and equipment, net [Line Items] | ' | ' |
Property and equipment, gross | $1,237 | $1,205 |
Note_11_Intangible_assets_net_1
Note 11 - Intangible assets, net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Amortization of Intangible Assets | $262,000 | $260,000 | $791,000 | $783,000 |
Finite-Lived Intangible Assets, AmortizationExpense, Next Three Months | 262,000 | ' | 262,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,049,000 | ' | 1,049,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,049,000 | ' | 1,049,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,009,000 | ' | 1,009,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $509,000 | ' | $509,000 | ' |
Note_11_Intangible_assets_net_2
Note 11 - Intangible assets, net (Details) - Intangible assets, net (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | $8,930 | $8,697 |
Less: accumulated amortization | -2,371 | -1,530 |
Intangible assets, net | 6,559 | 7,167 |
Trade Names [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Indefnite-lived intangible assets | 317 | 309 |
Domain Name [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Indefnite-lived intangible assets | 1,570 | 1,529 |
Contract Backlog [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | 202 | 196 |
Customer Relationships [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | 3,526 | 3,434 |
Noncompete Agreements [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | 1,395 | 1,358 |
Software Technologies [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | 333 | 325 |
Cloud-computing Based Software Platforms [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | 1,509 | 1,470 |
Other Computer Software [Member] | ' | ' |
Note 11 - Intangible assets, net (Details) - Intangible assets, net [Line Items] | ' | ' |
Finite-lived intangible assets | $78 | $76 |
Note_12_Deposit_for_purchasing1
Note 12 - Deposit for purchasing of software technology (Details) | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | CNY | |
Deposits For Purchases [Abstract] | ' | ' |
Deposits Assets, Noncurrent (in Yuan Renminbi) | $2,438,000 | 15,000,000 |
Deposits Assets, Noncurrent | $2,438,000 | 15,000,000 |
Note_13_Goodwill_Details_Goodw
Note 13 - Goodwill (Details) - Goodwill (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
US$(b000) | ' |
Balance as of December 31, 2012 (audited) | $11,083 |
Exchange translation adjustment | 297 |
Balance as of September 30, 2013 (unaudited) | $11,380 |
Note_14_Shortterm_bank_loan_De
Note 14 - Short-term bank loan (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | People's Bank of China [Member] | ||
Note 14 - Short-term bank loan (Details) [Line Items] | ' | ' | ' | ' | ||
Short-term Bank Loans and Notes Payable (in Yuan Renminbi) | $813 | [1] | 5,000 | ' | [1] | ' |
Short-term Bank Loans and Notes Payable (in Dollars) | $813 | [1] | 5,000 | ' | [1] | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | 30.00% | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.80% | 7.80% | ' | ' | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Note_15_Accrued_payroll_and_ot2
Note 15 - Accrued payroll and other accruals (Details) - Accrued payroll and other accruals (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Note 15 - Accrued payroll and other accruals (Details) - Accrued payroll and other accruals [Line Items] | ' | ' | ||
Accrued payroll and other accruals | $833 | [1] | $904 | [1] |
Accrued Payroll and Staff Welfare [Member] | ' | ' | ||
Note 15 - Accrued payroll and other accruals (Details) - Accrued payroll and other accruals [Line Items] | ' | ' | ||
Accrued payroll and other accruals | 456 | 538 | ||
Accrued Operating Expenses [Member] | ' | ' | ||
Note 15 - Accrued payroll and other accruals (Details) - Accrued payroll and other accruals [Line Items] | ' | ' | ||
Accrued payroll and other accruals | $377 | $366 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Note_16_Payable_for_acquisitio1
Note 16 - Payable for acquisition (Details) (CNY) | Jul. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 20, 2011 |
In Millions, unless otherwise specified | Sheng Tian Hubei [Member] | Sou Yi Lian Mei [Member] | Sou Yi Lian Mei [Member] | Sou Yi Lian Mei [Member] | |
Note 16 - Payable for acquisition (Details) [Line Items] | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred, Liabilities Incurred (in Yuan Renminbi) | ' | 3 | 8 | ' | ' |
Percentage Of Voting Interests Acquired | 49.00% | 49.00% | 49.00% | 49.00% | 51.00% |
Note_17_Taxation_Details
Note 17 - Taxation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 11 Months Ended | 3 Months Ended | 9 Months Ended | 24 Months Ended | 36 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 11 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | Nov. 16, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 15, 2012 | Dec. 31, 2013 | Jun. 15, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 15, 2012 | Nov. 16, 2012 | Dec. 02, 2012 | Dec. 02, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 02, 2012 | Nov. 30, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 02, 2012 | |
AccruedIncomeTaxRate [Member] | AccruedIncomeTaxRate [Member] | Standard Rate [Member] | Standard Rate [Member] | Preferential EIT Rate [Member] | Preferential EIT Rate [Member] | Percentage Under The Current EIT Law Of PRC [Member] | Tax Treaty Agreement [Member] | Old PRC EIT Rate [Member] | Technical Support Services [Member] | Technical Support Services [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Business Opportunity Online [Member] | Business Opportunity Online Hubei [Member] | Provision Of Modern Services Small Scale Tax Payer [Member] | Beijing [Member] | Beijing Chuang Fu Tian Xia [Member] | Amortization Of Acquired Intangible Assets [Member] | Amortization Of Acquired Intangible Assets [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | ||||||||||
Business Opportunity Online Hubei [Member] | Business Opportunity Online Hubei [Member] | Rise King WFOE [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||
Note 17 - Taxation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Enterprise Income Tax Rate in PRC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 25.00% | 12.50% | 12.50% | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | 12.50% | 25.00% | ' | ' | 25.00% | 12.50% | ' |
Number of Years Entitled to EIT Exemption | ' | ' | ' | '2 years | ' | ' | '2 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in Applicable EIT Rate | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Years Entitled to EIT Reduction | ' | ' | ' | '3 years | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable Income Tax Rate | 25.00% | ' | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | 12.50% | 12.50% | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | 12.50% | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Withholding Rate Pursuant to EIT Law | 10.00% | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferential Withholding Tax Rate | 5.00% | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRC Business Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5.70% | 5.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.70% | ' | ' | ' | 5.60% | ' | ' | ' |
Cultural Industry Development Surcharge of Net Service Income | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Provinces | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRC Value Added Tax Rate For Modern Service Provided | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRC Value Added Tax Rate For Modern Service Provided Small Scale Tax Payer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRC Value Added Tax Surcharge Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | ' | ' | ' | 12.00% |
Deferred Tax Liabilities Reversal (in Dollars) | ' | ' | ' | ($168,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $56,000 | $168,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carry forwards Domestic (in Dollars) | 6,770,000 | ' | ' | 6,770,000 | ' | ' | ' | 6,363,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards Foreign (in Dollars) | $7,674,000 | ' | ' | $7,674,000 | ' | ' | ' | $4,093,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_17_Taxation_Details_Taxes
Note 17 - Taxation (Details) - Taxes payable (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Note 17 - Taxation (Details) - Taxes payable [Line Items] | ' | ' | ||
Taxes payable | $8,190 | [1] | $6,683 | [1] |
Turnover Tax And Surcharge Payable [Member] | ' | ' | ||
Note 17 - Taxation (Details) - Taxes payable [Line Items] | ' | ' | ||
Taxes payable | 2,868 | 2,609 | ||
Enterprise Income Tax Payable [Member] | ' | ' | ||
Note 17 - Taxation (Details) - Taxes payable [Line Items] | ' | ' | ||
Taxes payable | $5,322 | $4,074 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Note_17_Taxation_Details_Incom
Note 17 - Taxation (Details) - Income tax expense (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income tax expense [Abstract] | ' | ' | ' | ' |
Current-PRC | ($460) | ($373) | ($1,165) | ($945) |
Deferred-PRC | 259 | 191 | 696 | 749 |
($201) | ($182) | ($469) | ($196) |
Note_17_Taxation_Details_Incom1
Note 17 - Taxation (Details) - Income tax expense (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income tax expense [Abstract]0 | ' | ' | ' | ' |
Current-PRC | ($460) | ($373) | ($1,165) | ($945) |
Deferred-PRC | 259 | 191 | 696 | 749 |
($201) | ($182) | ($469) | ($196) |
Note_17_Taxation_Details_Defer
Note 17 - Taxation (Details) - Deferred tax liabilities (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
US$(b000) | ' |
Balance as of December 31, 2012 (audited) | $1,689 |
Reversal during the period | -168 |
Exchange translation adjustment | 45 |
Balance as of September 30, 2013 (unaudited) | $1,566 |
Note_17_Taxation_Details_Defer1
Note 17 - Taxation (Details) - Deferred tax assets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets [Abstract] | ' | ' |
Tax effect of net operating losses carried forward | $3,625 | $2,929 |
Bad debts provision | 1,103 | 824 |
Valuation allowance | -3,473 | -3,051 |
Deferred tax assets net | 1,255 | 702 |
Deferred tax assets reclassified as current asset | 35 | 50 |
Deferred tax assets reclassified as non-current asset | $1,220 | $652 |
Note_18_Longterm_borrowing_fro2
Note 18 - Long-term borrowing from director (Details) - Long-term borrowing from director (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term borrowing from director [Abstract] | ' | ' |
Long-term borrowing from director | $142 | $139 |
Note_19_Warrants_Details_Warra
Note 19 - Warrants (Details) - Warrants issued and outstanding (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Warrants Outstanding [Member] | Begining Balance [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Number of underlying shares | 2,363,456 |
Weighted Average Exercise Price (in Dollars per share) | $3.52 |
Average Remaining Contractual Life (years) | '1 year 229 days |
Average Remaining Contractual Life (years) | '1 year 229 days |
Warrants Outstanding [Member] | Ending Balance [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Average Remaining Contractual Life (years) | '321 days |
Number of underlying shares | 2,363,456 |
Weighted Average Exercise Price (in Dollars per share) | $3.52 |
Average Remaining Contractual Life (years) | '321 days |
Warrants Exercisable [Member] | Begining Balance [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Number of underlying shares | 2,363,456 |
Weighted Average Exercise Price (in Dollars per share) | $3.52 |
Average Remaining Contractual Life (years) | '1 year 229 days |
Average Remaining Contractual Life (years) | '1 year 229 days |
Warrants Exercisable [Member] | Ending Balance [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Average Remaining Contractual Life (years) | '321 days |
Number of underlying shares | 2,363,456 |
Weighted Average Exercise Price (in Dollars per share) | $3.52 |
Average Remaining Contractual Life (years) | '321 days |
Note_20_Restricted_Net_Assets_
Note 20 - Restricted Net Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
WFOE [Member] | Domestic Enterprise [Member] | PRC Subsidiary and VIEs [Member] | PRC Subsidiary and VIEs [Member] | |||
Note 20 - Restricted Net Assets (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Minimum Percentage of Annual After-tax Profit for General Reserve | ' | ' | 10.00% | 10.00% | ' | ' |
Minimum Required Reserve as Percent of Registered Capital | ' | ' | 50.00% | 50.00% | ' | ' |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $5,800,000 | $5,500,000 | ' | ' | $5,800,000 | $5,500,000 |
Withholding Tax Rate Pursuant To EIT Law | 10.00% | ' | ' | ' | ' | ' |
Preferential Withholding Tax Rate | 5.00% | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | 21,128,000 | 19,505,000 | ' | ' | 41,200,000 | 38,100,000 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends | $2,296,000 | $2,296,000 | ' | ' | $2,500,000 | $2,400,000 |
Note_21_Related_party_transact2
Note 21 - Related party transactions (Details) - Revenue from related parties (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from related parties | $140 | $51 | $314 | $117 |
Beijing Saimeiwei Food Equipment Technology [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from related parties | 91 | 18 | 213 | 73 |
Beijing Fengshangyinli Technology [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from related parties | 1 | 1 | 7 | 2 |
Beijing Telijie Century Environmental Technology [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from related parties | $48 | $32 | $94 | $42 |
Note_22_Employee_defined_contr1
Note 22 - Employee defined contribution plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | $121,000 | $93,000 | $352,000 | $288,000 |
Note_23_Concentration_of_risk_
Note 23 - Concentration of risk (Details) | 3 Months Ended | 9 Months Ended | 21 Months Ended | 21 Months Ended | 6 Months Ended | 9 Months Ended | 21 Months Ended | 9 Months Ended | 21 Months Ended | 9 Months Ended | 21 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Customer 1 [Member] | No Customers [Member] | Supplier 1 [Member] | Supplier 1 [Member] | Supplier 2 [Member] | Supplier 2 [Member] | Supplier 3 [Member] | Supplier 3 [Member] | Accounts Receivables [Member] | Supplier 1 [Member] | Supplier 1 [Member] | Supplier 2 [Member] | Maximum [Member] | Maximum [Member] | |||||||
Maximum [Member] | ||||||||||||||||||||
Note 23 - Concentration of risk (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Major Customers | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | 10.00% | ' | 12.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Percent of Accounts Receivables | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Major Suppliers | 2 | 1 | 3 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Cost of Sales | ' | ' | ' | ' | ' | ' | ' | ' | 34.00% | 58.00% | 26.00% | 11.00% | 14.00% | 10.00% | ' | 47.00% | 45.00% | 14.00% | 10.00% | ' |
Note_24_Commitments_Details
Note 24 - Commitments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Operating Leases, Rent Expense | $130,000 | $122,000 | $379,000 | $355,000 |
Note_24_Commitments_Details_Th
Note 24 - Commitments (Details) - The Companybs contractual obligations (Office Rental [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Office Rental [Member] | ' |
Note 24 - Commitments (Details) - The Companybs contractual obligations [Line Items] | ' |
-2013 | $83 |
-2014 | 301 |
-2015 | 301 |
-2016 | 75 |
Total | $760 |
Note_25_Segment_reporting_Deta
Note 25 - Segment reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 25 - Segment reporting (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation | $82,500 | $11,000 | $114,000 | $38,000 |
Share Based Compensation Expense [Member] | ' | ' | ' | ' |
Note 25 - Segment reporting (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation | $94,000,000 | ' | $114,000,000 | $38,000,000 |
Note_25_Segment_reporting_Deta1
Note 25 - Segment reporting (Details) - Summary of Segment reporting information (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | $7,481,000 | $10,287,000 | $23,422,000 | $38,349,000 | ' | ||||
Cost of sales | 3,366,000 | 6,163,000 | 13,123,000 | 28,065,000 | ' | ||||
Total operating expenses | 2,739,000 | 2,256,000 | 8,187,000 | 7,474,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | ' | ' | 1,252,000 | 1,223,000 | ' | ||||
Operating income (loss) | 1,376,000 | 1,868,000 | 2,112,000 | 2,810,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -45,000 | -97,000 | -170,000 | -394,000 | ' | ||||
Net income (loss) | 1,140,000 | 1,443,000 | 1,545,000 | 2,195,000 | ' | ||||
Total assets | 60,798,000 | ' | 60,798,000 | ' | 56,918,000 | ||||
Internet Ad [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 6,071,000 | 5,690,000 | 15,318,000 | 15,393,000 | ' | ||||
Cost of sales | 2,406,000 | 2,522,000 | 6,670,000 | 7,447,000 | ' | ||||
Total operating expenses | 1,729,000 | 1,313,000 | 5,003,000 | 4,666,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 261,000 | 261,000 | 777,000 | 782,000 | ' | ||||
Operating income (loss) | 1,936,000 | 1,855,000 | 3,645,000 | 3,280,000 | ' | ||||
Expenditure for long-term assets | 1,611,000 | 133,000 | 2,464,000 | 179,000 | ' | ||||
Net income (loss) | 1,694,000 | 1,622,000 | 3,204,000 | 3,208,000 | ' | ||||
Total assets | 43,197,000 | 41,547,000 | 43,197,000 | 41,547,000 | ' | ||||
TV Ad [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 560,000 | 3,238,000 | 5,687,000 | 19,751,000 | ' | ||||
Cost of sales | 503,000 | 3,162,000 | 5,246,000 | 19,519,000 | ' | ||||
Total operating expenses | 257,000 | 208,000 | 1,012,000 | 675,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 7,000 | 16,000 | 32,000 | 51,000 | ' | ||||
Operating income (loss) | -200,000 | -132,000 | -571,000 | -443,000 | ' | ||||
Expenditure for long-term assets | ' | 6,000 | ' | 6,000 | ' | ||||
Net income (loss) | -185,000 | -124,000 | -616,000 | -417,000 | ' | ||||
Total assets | 15,836,000 | 15,607,000 | 15,836,000 | 15,607,000 | ' | ||||
Bank Kiosk [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 71,000 | 72,000 | 211,000 | 214,000 | ' | ||||
Cost of sales | 1,000 | 7,000 | 1,000 | 19,000 | ' | ||||
Total operating expenses | 56,000 | 52,000 | 161,000 | 155,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 56,000 | 52,000 | 161,000 | 155,000 | ' | ||||
Operating income (loss) | 14,000 | 13,000 | 49,000 | 40,000 | ' | ||||
Net income (loss) | 14,000 | 13,000 | 49,000 | 40,000 | ' | ||||
Total assets | 449,000 | 649,000 | 449,000 | 649,000 | ' | ||||
Brand Management and Sales Channel Building [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 779,000 | 1,327,000 | 2,206,000 | 3,031,000 | ' | ||||
Cost of sales | 456,000 | 472,000 | 1,206,000 | 1,080,000 | ' | ||||
Total operating expenses | 329,000 | 339,000 | 880,000 | 813,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 54,000 | 54,000 | 163,000 | 161,000 | ' | ||||
Operating income (loss) | -6,000 | 516,000 | 120,000 | 1,138,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -39,000 | -70,000 | -129,000 | -274,000 | ' | ||||
Expenditure for long-term assets | 2,000 | ' | 2,000 | ' | ' | ||||
Net income (loss) | -49,000 | 317,000 | -44,000 | 579,000 | ' | ||||
Total assets | 8,609,000 | 8,207,000 | 8,609,000 | 8,207,000 | ' | ||||
Others [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total operating expenses | 368,000 | [1] | 344,000 | [2] | 1,131,000 | [3] | 1,165,000 | [4] | ' |
Depreciation and amortization expense included in total operating expenses | 34,000 | 22,000 | 119,000 | 74,000 | ' | ||||
Operating income (loss) | -368,000 | -344,000 | -1,131,000 | -1,165,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -6,000 | -27,000 | -41,000 | -120,000 | ' | ||||
Expenditure for long-term assets | 3,000 | ' | 10,000 | ' | ' | ||||
Net income (loss) | -334,000 | -345,000 | -1,048,000 | -1,175,000 | ' | ||||
Total assets | 14,398,000 | 15,012,000 | 14,398,000 | 15,012,000 | ' | ||||
Inter Segment And Reconciling Item [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | ' | -40,000 | ' | -40,000 | ' | ||||
Operating income (loss) | ' | -40,000 | ' | -40,000 | ' | ||||
Net income (loss) | ' | -40,000 | ' | -40,000 | ' | ||||
Total assets | -21,691,000 | -22,570,000 | -21,691,000 | -22,570,000 | ' | ||||
Report Total [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 7,481,000 | 10,287,000 | 23,422,000 | 38,349,000 | ' | ||||
Cost of sales | 3,366,000 | 6,163,000 | 13,123,000 | 28,065,000 | ' | ||||
Total operating expenses | 2,739,000 | 2,256,000 | 8,187,000 | 7,474,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 412,000 | 405,000 | 1,252,000 | 1,223,000 | ' | ||||
Operating income (loss) | 1,376,000 | 1,868,000 | 2,112,000 | 2,810,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -45,000 | -97,000 | -170,000 | -394,000 | ' | ||||
Expenditure for long-term assets | 1,616,000 | 139,000 | 2,476,000 | 185,000 | ' | ||||
Net income (loss) | 1,140,000 | 1,443,000 | 1,545,000 | 2,195,000 | ' | ||||
Total assets | $60,798,000 | $58,452,000 | $60,798,000 | $58,452,000 | ' | ||||
[1] | Including approximately US$94,000 share-based compensation expenses. | ||||||||
[2] | Including approximately US$11,000 share-based compensation expenses. | ||||||||
[3] | Including approximately US$114,000 share-based compensation expenses. | ||||||||
[4] | Including approximately US$38,000 share-based compensation expenses. |
Note_26_Earnings_per_share_Det
Note 26 - Earnings per share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Warrant [Member] | ' | ' | ' | ' |
Note 26 - Earnings per share (Details) [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,363,456 | 2,719,347 | 2,363,456 | 2,909,390 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Note 26 - Earnings per share (Details) [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 939,440 | 939,440 | 939,440 | 939,440 |
Note_26_Earnings_per_share_Det1
Note 26 - Earnings per share (Details) - Basic and diluted earnings per share (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 26 - Earnings per share (Details) - Basic and diluted earnings per share [Line Items] | ' | ' | ' | ' |
Net income attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) (in Dollars) | $1,159 | $1,220 | $1,623 | $1,749 |
Weighted average number of common shares outstanding b Basic | 22,371,649 | 22,186,540 | 22,253,463 | 22,185,226 |
Weighted average number of common shares outstanding b Diluted | 22,371,649 | 22,186,540 | 22,253,463 | 22,185,226 |
Earnings per share-Basic (in Dollars per share) | $0.05 | $0.05 | $0.07 | $0.08 |
Earnings per share-Diluted (in Dollars per share) | $0.05 | $0.05 | $0.07 | $0.08 |
Note_27_Sharebased_compensatio2
Note 27 - Share-based compensation expenses (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2011 | Jul. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |||||||
Technical Service Provider [Member] | Technical Service Provider [Member] | Investor Relations Service Provider [Member] | Investor Relations Service Provider [Member] | Investor Relations Service Provider [Member] | |||||||
Note 27 - Share-based compensation expenses (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued (in Shares) | ' | ' | ' | ' | ' | ' | 150,000 | ' | 80,000 | ' | ' |
Share-Based Goods And Nonemployee Services Transaction Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.55 | ' | $1.05 | ' | ' |
Share-based Compensation | ' | $82,500 | $11,000 | $114,000 | $38,000 | ' | ' | $82,500 | ' | $10,500 | $31,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $5 | ' | ' | ' | ' | $1.20 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Description | 'These options vest quarterly at the end of each 3-month period, in equal installments over the 24-month period from the date of grant. Unexercised options will expire on November 29, 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | ' | ' | ' | 885,440 | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | $11,000 | $53,000 | $11,000 | $53,000 | ' | ' | ' | ' | ' | ' |
Note_27_Sharebased_compensatio3
Note 27 - Share-based compensation expenses (Details) - Options issued and outstanding (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Options Outstanding [Member] | Begining Balance [Member] | ' |
Note 27 - Share-based compensation expenses (Details) - Options issued and outstanding [Line Items] | ' |
Balance, December 31, 2012 (audited) | 939,440 |
Balance, December 31, 2012 (audited) | '8 years 186 days |
Balance, December 31, 2012 (audited) (in Dollars per share) | $1.42 |
Balance, September 30, 2013 (unaudited) | '8 years 186 days |
Options Outstanding [Member] | Ending Balance [Member] | ' |
Note 27 - Share-based compensation expenses (Details) - Options issued and outstanding [Line Items] | ' |
Balance, December 31, 2012 (audited) | '7 years 277 days |
Balance, September 30, 2013 (unaudited) | 939,440 |
Balance, September 30, 2013 (unaudited) | '7 years 277 days |
Balance, September 30, 2013 (unaudited) (in Dollars per share) | $1.42 |
Options Exercisable [Member] | Begining Balance [Member] | ' |
Note 27 - Share-based compensation expenses (Details) - Options issued and outstanding [Line Items] | ' |
Balance, December 31, 2012 (audited) | 939,440 |
Balance, December 31, 2012 (audited) | '8 years 186 days |
Balance, December 31, 2012 (audited) (in Dollars per share) | $1.42 |
Balance, September 30, 2013 (unaudited) | '8 years 186 days |
Options Exercisable [Member] | Ending Balance [Member] | ' |
Note 27 - Share-based compensation expenses (Details) - Options issued and outstanding [Line Items] | ' |
Balance, December 31, 2012 (audited) | '7 years 277 days |
Balance, September 30, 2013 (unaudited) | 939,440 |
Balance, September 30, 2013 (unaudited) | '7 years 277 days |
Balance, September 30, 2013 (unaudited) (in Dollars per share) | $1.42 |