Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 19, 2014 | |
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 | ' | 22,416,540 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001376321 | ' |
Entity Current Reporting Status | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited)(USD ($)) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $2,723 | $3,442 | ||
Term deposit | 3,443 | 3,467 | ||
Accounts receivable, net | 5,169 | 7,673 | ||
Other receivables, net | 2,603 | 4,299 | ||
Prepayment and deposit to suppliers | 18,041 | 14,692 | ||
Due from related parties | 412 | 502 | ||
Other current assets | 88 | 27 | ||
Deferred tax assets-current | 168 | 153 | ||
Total current assets | 32,647 | 34,255 | ||
Investment in and advance to equity investment affiliates | 781 | 845 | ||
Property and equipment, net | 875 | 1,057 | ||
Intangible assets, net | 5,447 | 6,015 | ||
Deposit and prepayment for purchasing of software technology | 3,281 | 2,453 | ||
Goodwill | 11,368 | 11,450 | ||
Deferred tax assets-non current | 881 | 759 | ||
Total Assets | 55,280 | 56,834 | ||
Current liabilities: | ' | ' | ||
Short term bank loan * | 812 | [1] | 818 | [1] |
Accounts payable * | 412 | [1] | 421 | [1] |
Advances from customers * | 1,012 | [1] | 995 | [1] |
Accrued payroll and other accruals * | 523 | [1] | 676 | [1] |
Due to noncontrolling interest of VIE * | 715 | [1] | ' | [1] |
Taxes payable * | 7,152 | [1] | 7,029 | [1] |
Other payables * | 526 | [1] | 288 | [1] |
Total current liabilities | 11,152 | 10,227 | ||
Long-term liabilities: | ' | ' | ||
Deferred tax liability-non current * | 1,317 | [1] | 1,439 | [1] |
Long-term borrowing from director | 142 | 143 | ||
Total Liabilities | 12,611 | 11,809 | ||
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 at June 30, 2014 and December 31, 2013) | 22 | 22 | ||
Additional paid-in capital | 19,887 | 19,870 | ||
Statutory reserves | 2,602 | 2,602 | ||
Retained earnings | 16,966 | 18,965 | ||
Accumulated other comprehensive income | 3,407 | 3,689 | ||
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 42,884 | 45,148 | ||
Noncontrolling interests | -215 | -123 | ||
Total equity | 42,669 | 45,025 | ||
Total Liabilities and Equity | $55,280 | $56,834 | ||
[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_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | 22,376,540 |
Common stock, shares outstanding | 22,376,540 | 22,376,540 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Sales | ' | ' | ' | ' |
From unrelated parties | $10,179,000 | $8,777,000 | $15,361,000 | $15,767,000 |
From related parties | 182,000 | 115,000 | 183,000 | 174,000 |
10,361,000 | 8,892,000 | 15,544,000 | 15,941,000 | |
Cost of sales | 8,665,000 | 5,290,000 | 12,487,000 | 9,757,000 |
Gross margin | 1,696,000 | 3,602,000 | 3,057,000 | 6,184,000 |
Operating expenses | ' | ' | ' | ' |
Selling expenses | 1,506,000 | 602,000 | 2,095,000 | 1,390,000 |
General and administrative expenses | 1,022,000 | 1,744,000 | 2,009,000 | 3,146,000 |
Research and development expenses | 442,000 | 463,000 | 892,000 | 912,000 |
2,970,000 | 2,809,000 | 4,996,000 | 5,448,000 | |
(Loss)/income from operations | -1,274,000 | 793,000 | -1,939,000 | 736,000 |
Other income (expenses) | ' | ' | ' | ' |
Interest income | 29,000 | 32,000 | 60,000 | 64,000 |
Interest expense | -16,000 | ' | -32,000 | ' |
Other expenses | -2,000 | -1,000 | -3,000 | -2,000 |
11,000 | 31,000 | 25,000 | 62,000 | |
(Loss)/income before income tax expense, equity method investments and noncontrolling interests | -1,263,000 | 824,000 | -1,914,000 | 798,000 |
Income tax expense | -72,000 | -354,000 | -120,000 | -268,000 |
(Loss)/income before equity method investments and noncontrolling interests | -1,335,000 | 470,000 | -2,034,000 | 530,000 |
Share of losses in equity investment affiliates | -43,000 | -54,000 | -58,000 | -125,000 |
Net (loss)/income | -1,378,000 | 416,000 | -2,092,000 | 405,000 |
Net loss attributable to noncontrolling interests | 47,000 | 18,000 | 93,000 | 59,000 |
Net (loss)/income attributable to ChinaNet Online Holdings, Inc. | -1,331,000 | 434,000 | -1,999,000 | 464,000 |
Net (loss)/income | -1,378,000 | 416,000 | -2,092,000 | 405,000 |
Foreign currency translation (loss)/gain | 43,000 | 613,000 | -281,000 | 828,000 |
Comprehensive (Loss)/income | -1,335,000 | 1,029,000 | -2,373,000 | 1,233,000 |
Comprehensive loss attributable to noncontrolling interests | 47,000 | 9,000 | 92,000 | 47,000 |
Comprehensive (loss)/income attributable to ChinaNet Online Holdings, Inc. | ($1,288,000) | $1,038,000 | ($2,281,000) | $1,280,000 |
(Loss)/earnings per common share | ' | ' | ' | ' |
Basic (in Dollars per share) | ($0.06) | $0.02 | ($0.09) | $0.02 |
Diluted (in Dollars per share) | ($0.06) | $0.02 | ($0.09) | $0.02 |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in Shares) | 22,376,540 | 22,200,166 | 22,376,540 | 22,193,391 |
Diluted (in Shares) | 22,376,540 | 22,200,166 | 22,376,540 | 22,193,391 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities | ' | ' |
Net (loss)/income | ($2,092,000) | $405,000 |
Adjustments to reconcile net (loss)/income to net cash used in operating activities | ' | ' |
Depreciation and amortization | 715,000 | 840,000 |
Share-based compensation expenses | 17,000 | 21,000 |
Allowances for doubtful accounts | -30,000 | 787,000 |
Share of losses in equity investment affiliates | 58,000 | 125,000 |
Deferred taxes | -257,000 | -437,000 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | 2,484,000 | -1,781,000 |
Other receivables | 1,285,000 | -701,000 |
Prepayment and deposit to suppliers | -3,460,000 | 258,000 |
Due from related parties | 86,000 | -160,000 |
Other current assets | -62,000 | 32,000 |
Accounts payable | -6,000 | 142,000 |
Advances from customers | 24,000 | -274,000 |
Accrued payroll and other accruals | -151,000 | 32,000 |
Other payables | 271,000 | -45,000 |
Taxes payable | 174,000 | 736,000 |
Net cash used in operating activities | -944,000 | -20,000 |
Cash flows from investing activities | ' | ' |
Purchases of vehicles and office equipment | -15,000 | -60,000 |
Prepayment/deposit for purchasing of software technology | -846,000 | -800,000 |
Repayment of short-term loan from unrelated entities | 390,000 | ' |
Payment for acquisition of VIEs | ' | -1,280,000 |
Net cash used in investing activities | -471,000 | -2,140,000 |
Cash flows from financing activities | ' | ' |
Short-term loan from noncontrolling interest of VIE | 717,000 | ' |
Net cash provided by financing activities | 717,000 | ' |
Effect of exchange rate fluctuation on cash and cash equivalents | -21,000 | 69,000 |
Net decrease in cash and cash equivalents | -719,000 | -2,091,000 |
Cash and cash equivalents at beginning of the period | 3,442,000 | 5,483,000 |
Cash and cash equivalents at end of the period | 2,723,000 | 3,392,000 |
Supplemental disclosure of cash flow information | ' | ' |
Income taxes paid | 204,000 | 39,000 |
Interest expense paid | 32,000 | ' |
Non-cash transactions: | ' | ' |
Restricted stock and options granted for future service | $17,000 | $21,000 |
Note_1_Organization_and_Nature
Note 1 - Organization and Nature of Operations | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure Text Block [Abstract] | ' | |
Nature of Operations [Text Block] | ' | |
1 | Organization and nature of operations | |
ChinaNet Online Holdings, Inc. (the “Company”) was incorporated in the State of Texas in April 2006 and re-domiciled to become a Nevada corporation in October 2006. On June 26, 2009, the Company consummated a share exchange transaction with China Net Online Media Group Limited (the “Share Exchange”), a company organized under the laws of British Virgin Islands (“China Net BVI”). 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 (“SMEs”) in China. | ||
The Company’s wholly owned subsidiary, China Net BVI was incorporated in the British Virgin Islands. China Net BVI is the parent holding company 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”). | ||
To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”). Through a series of contractual agreements between Rise King WFOE and Business Opportunity Online (Beijing) Network Technology Co., Ltd. (“Business Opportunity Online”), Beijing CNET Online Advertising Co., Ltd. (“Beijing CNET Online”) and Rise King (Shanghai) Advertisement Media Co., Ltd. (“Shanghai Jing Yang”), the Company, through the WFOE, secures significant rights to influence the three companies’ business operations, policies and management, approve all matters requiring shareholder approval, and the right to receive 100% of the income earned by the three companies. | ||
The Company’s VIE, Business Opportunity Online is a 51% shareholder of Beijing Chuang Fu Tian Xia Network Technology Co., Ltd. (“Beijing Chuang Fu Tian Xia”), the sole shareholder of Business Opportunity Online (Hubei) Network Technology Co., Ltd. (“Business Opportunity Online Hubei”), the sole shareholder of Quanzhou City Zhilang Network Technology Co., Ltd (“Quanzhou Zhi Lang”), the sole shareholder of Beijing Chuang Shi Xin Qi Advertising Media Co., Ltd. (“Beijing Chuang Shi Xin Qi”), the sole shareholder of Beijing Hong Da Shi Xing Network Technology Co., Ltd. (“Beijing Hong Da Shi Xing”), the sole shareholder of Beijing Shi Ji Cheng Yuan Advertising Media Co., Ltd. (“Beijing Shi Ji Cheng Yuan”) and a 23.18% shareholder of Shenzhen City Mingshan Network Technology Co., Ltd. (“Shenzhen Mingshan”). Business Opportunity Online Hubei is the sole shareholder of Hubei CNET Advertising Media Co., Ltd. (“Hubei CNET”), the sole shareholder of Sheng Tian Network Technology (Hubei) Co., Ltd. (“Sheng Tian Hubei”), the sole shareholder of Sou Yi Lian Mei Network Technology (Beijing) Co., Ltd. (“Sou Yi Lian Mei”), and a 25.5% shareholder of Zhao Shang Ke Network Technology (Hubei) Co., Ltd. (“Zhao Shang Ke Hubei”). Sou Yi Lian Mei is the sole shareholder of Jin Du Ya He (Beijing) Network Technology Co., Ltd. (“Jin Du Ya He”). | ||
Note_2_Variable_Interest_Entit
Note 2 - Variable Interest Entities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Variable Interest Entities Disclosure [Abstract] | ' | ||||||||
Variable Interest Entities Disclosure [Text Block] | ' | ||||||||
2 | Variable Interest Entities | ||||||||
Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of June 30, 2014 and December 31, 2013, respectively: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 2,585 | $ | 3,326 | |||||
Term deposit | 3,443 | 3,467 | |||||||
Accounts receivable, net | 5,046 | 7,637 | |||||||
Other receivables, net | 2,138 | 3,416 | |||||||
Prepayment and deposit to suppliers | 18,039 | 14,690 | |||||||
Due from related parties | 260 | 174 | |||||||
Other current assets | 72 | 27 | |||||||
Deferred tax assets-current | 134 | 118 | |||||||
Total current assets | 31,717 | 32,855 | |||||||
Investment in and advance to equity investment affiliates | 737 | 801 | |||||||
Property and equipment, net | 766 | 918 | |||||||
Intangible assets, net | 5,447 | 6,013 | |||||||
Deposit and prepayment for purchasing of software technology | 3,281 | 2,453 | |||||||
Goodwill | 11,368 | 11,450 | |||||||
Deferred tax assets-non current | 606 | 482 | |||||||
Total Assets | $ | 53,922 | $ | 54,972 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 812 | $ | 818 | |||||
Accounts payable | 412 | 421 | |||||||
Advances from customers | 1,012 | 995 | |||||||
Accrued payroll and other accruals | 373 | 279 | |||||||
Due to Control Group | 11 | 11 | |||||||
Due to noncontrolling interest of VIE | 715 | - | |||||||
Taxes payable | 6,668 | 6,542 | |||||||
Other payables | 415 | 142 | |||||||
Total current liabilities | 10,418 | 9,208 | |||||||
Deferred tax Liabilities-non current | 1,317 | 1,439 | |||||||
Total Liabilities | $ | 11,735 | $ | 10,647 | |||||
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 six months ended June 30, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$15,307,000, cost of sales of approximately US$12,486,000, operating expenses of approximately US$4,337,000 and net loss before allocation to noncontrolling interests of approximately US$1,668,000. | |||||||||
For the three months ended June 30, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$10,208,000, cost of sales of approximately US$8,664,000, operating expenses of approximately US$2,725,000 and net loss before allocation to noncontrolling interests of approximately US$1,283,000. | |||||||||
For the six months ended June 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$15,740,000, cost of sales of approximately US$9,756,000, operating expenses of approximately US$4,322,000 and net income before allocation to noncontrolling interests of approximately US$1,245,000. | |||||||||
For the three months ended June 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$8,790,000, cost of sales of approximately US$5,289,000, operating expenses of approximately US$2,232,000 and net income before allocation to noncontrolling interests of approximately US$845,000. | |||||||||
Note_3_Summary_of_Significant_
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 June 30, 2014 and for the six and three months ended June 30, 2014 and 2013 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, 2013, previously filed with the SEC (the “2013 Form 10-K”). | |||||||||
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 June 30, 2014, its consolidated results of operations for the six and three months ended June 30, 2014 and 2013, and its consolidated cash flows for the six months ended June 30, 2014 and 2013, 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. | |||||||||
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 | ||||||||
The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the consolidated financial statements are as follows: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Balance sheet items, except for equity accounts | 6.1577 | 6.114 | |||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1441 | 6.2479 | |||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1681 | 6.2105 | |||||||
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 operations and comprehensive (loss)/income. For the six months ended June 30, 2014 and 2013, advertising expenses for the Company’s own brand building were approximately US$973,000 and US$144,000, respectively. For the three months ended June 30, 2014 and 2013, advertising expenses for the Company’s own brand building were approximately US$942,000 and US$120,000, 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 six months ended June 30, 2014 and 2013 were approximately US$892,000 and US$912,000, respectively. Expenses for research and development for the three months ended June 30, 2014 and 2013 were approximately US$442,000 and US$463,000, respectively. | |||||||||
g) | Recent accounting standards | ||||||||
In April 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. 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 May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU supercedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605-Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. For all other entities (nonpublic entities), the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. A nonpublic entity may elect to apply this guidance earlier, however, only as prescribed in this ASU. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and 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 | 6 Months Ended | |
Jun. 30, 2014 | ||
Term Deposit [Abstract] | ' | |
Term Deposit [Text Block] | ' | |
4 | Term deposit | |
Term deposit as of June 30, 2014 and December 31, 2013 represented 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 interest rate of the term deposit is 3.3% per annual. The term deposit matured on July 5, 2014 and was extended to July 7, 2015. | ||
Note_5_Accounts_Receivable_Net
Note 5 - Accounts Receivable, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable Disclosure [Abstract] | ' | ||||||||
Accounts Receivable Disclosure [Text Block] | ' | ||||||||
5 | Accounts receivable, net | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accounts receivable | 10,784 | 13,358 | |||||||
Allowance for doubtful accounts | (5,615 | ) | (5,685 | ) | |||||
Accounts receivable, net | 5,169 | 7,673 | |||||||
All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of June 30, 2014, the Company provided approximately US$5,615,000 allowance for doubtful accounts, 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 six and three months ended June 30, 2014, the Company reversed approximately US$30,000 of allowance for doubtful accounts. | |||||||||
Note_6_Other_Receivables_Net
Note 6 - Other Receivables, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||
6 | Other receivables, net | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Short-term loan made for marketing campaign | 697 | 1,636 | |||||||
Short-term loans to unrelated entities | 400 | 790 | |||||||
Term deposit interest receivable | 114 | 57 | |||||||
Receivable on disposal of fixed assets | 97 | 98 | |||||||
Receivable on disposal of subsidiaries | 1,186 | 1,611 | |||||||
Staff advances for normal business purpose | 109 | 107 | |||||||
Overdue deposits | 961 | 968 | |||||||
Allowance for doubtful accounts | (961 | ) | (968 | ) | |||||
Other receivables, net | 2,603 | 4,299 | |||||||
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$4,060,000) to a TV series of 36 episodes, called “Xiao Zhang Feng Yun.” 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. In accordance with an agreement between the Company and the borrower, the Company extended the term of this loan from December 31, 2013 to December 31, 2014. For the six months ended June 30, 2014, the borrower repaid RMB5,710,000 (approximately US$927,000) of this debt. 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. | |||||||||
Receivables on disposal of subsidiaries represented the cash consideration to be received from the successors of shareholders of the Company’s two former VIEs, which were disposed in November 2013. As of the date hereof, the Company has collected RMB4,550,000 (approximately US$739,000) of this receivable in the aggregate, the remaining balance will be collected within fiscal 2014. | |||||||||
Short-term loans to unrelated entities represented temporary loans advanced to unrelated entities, which were unsecured, non-interest bearing and repayable on demand. | |||||||||
For advertising resources purchase contracts signed by the Company with its resource providers, the Company was required to make deposits, which were either applied to the contract amounts that were needed to be paid with the consent of the counterparty or to be refunded to the Company of the remaining balance upon expiration of the cooperation. Overdue deposits represented the portion of the contractual deposits, which related advertising resources purchase contracts had been completed as of each of the reporting dates with no further cooperation. Based on the assessment of the collectability of these overdue deposits as of June 30, 2014 and December 31, 2013, full allowance for doubtful accounts was provided against these balances, which was related to the deposits of its internet advertising and TV advertising business segment. | |||||||||
Note_7_Prepayments_and_Deposit
Note 7 - Prepayments and Deposit to Suppliers | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | ' | ||||||||
Prepayments And Deposits To Suppliers Disclosure [Text Block] | ' | ||||||||
7 | Prepayments and deposit to suppliers | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deposits to TV advertisement and internet resources providers | 10,367 | 8,907 | |||||||
Prepayments to TV advertisement and internet resources providers | 7,268 | 5,292 | |||||||
Other deposits and prepayments | 406 | 493 | |||||||
18,041 | 14,692 | ||||||||
In order to provide advertising and marketing services, the Company partners with provincial satellite TV stations or its agents to obtain time slots for resale through broadcast advertisements to advertise brands, business information, products and services of its customers. The Company also purchases internet resources from large internet search engines to attract more internet traffic to its advertising portals and provide value-added services to its customers. | |||||||||
In October 2013, the State Administration of Press, Publication, Radio, Film and Television of the People’s Republic of China (the “SARFT”) issued a notice to enhance the management of TV shopping infomercials broadcasted in provincial satellite television stations, which further restricts the contents, air time and duration of these infomercials (the “Restriction Notice”). | |||||||||
Deposits to TV advertisement and internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. | |||||||||
As of June 30, 2014, the deposits to suppliers primarily consisted of deposit to an agent of one of the provincial satellite TV stations partnered with the Company. The Company has partnered with this TV station to broadcast its advertisements for over three years. According to the contract signed between the Company and this agent for the time slots to be resold in fiscal 2014, the deposit will be either applied to the contract amounts of time slots cost that are needed to be paid with the consent of the counterparty or transferred as contractual deposit for fiscal 2015 upon renewal of the purchase contact. Although the Restriction Notice has had and may continue to have a negative impact on the Company’s TV advertising business with this TV station, the Company believes that the cooperation with this TV station will continue and expand with the efforts of development of new form of TV advertising programs and non-TV shopping advertising customers. All deposits are refundable to the Company upon expiration of cooperation with suppliers. | |||||||||
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. | |||||||||
As of June 30, 2014, the Company also had advanced payment carried forward from prior years paid to another TV station which has been partnered with the Company for over five years, which amount the Company originally expected to be utilized in fiscal 2013. However, the Company became aware of that since the second half year of 2013, this TV station had decreased its broadcasting of TV shopping infomercials and adjusted their broadcasting schedule due to the adoption of the Restriction Notice. In response to the restrictions on TV advertisement set forth in the Restriction Notice, the Company discussed with the TV station possible alternatives of applying the balance of the advanced payment, as the amount was unlikely to be refunded to the Company, due to internal administrative policies of the TV station. The TV station and the Company agreed that the unconsumed advanced payment balance can be consumed by any third parties designated by the Company and approved by the TV station, who will broadcast advertisements or other similar TV programs using the balance of available time slots, and the Company will directly collect the amounts from the third parties for the time slots they utilized. The Company expects that the advanced payment balance will be utilized within fiscal 2014. As of the date hereof, the Company has utilized RMB4.2 million (approximately US$0.68 million) of this advanced payment through an unrelated third party. | |||||||||
As of June 30, 2014, the increase in deposit to resources suppliers primarily consisted of an approximately US$1.4 million contractual deposit to the Company’s largest internet resources supplier, as compared to that as of December 31, 2013. | |||||||||
As of June 30, 2014, the increase in the prepayments primarily consisted of an approximately US$1.4 million prepayment to three of the Company’s major internet resources suppliers and an approximately US$0.6 million prepayment to one of the TV stations that provides TV advertising slots to the Company, as compared to that as of December 31, 2013. | |||||||||
Note_8_Due_from_Related_Partie
Note 8 - Due from Related Parties | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Due From Related Parties Disclosure [Abstract] | ' | ||||||||
Due From Related Parties Disclosure [Text Block] | ' | ||||||||
8 | Due from related parties | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Beijing Fengshangyinli Technology Co., Ltd. | - | 36 | |||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 267 | 295 | |||||||
Beijing Telijie Century Environmental Technology Co., Ltd. | 145 | 171 | |||||||
412 | 502 | ||||||||
These related parties are directly or indirectly owned by Mr. Handong Cheng or Mr. Xuanfu Liu, the owners of the Company’s PRC VIEs, Business Opportunities Online and Beijing CNET Online before the Offshore Restructuring. The Company provides advertising services to these related parties in its normal course of business on the same terms as those provided to its unrelated advertising clients. Due from related parties represented the outstanding receivables for the advertising services that the Company provided to these related parties as of each reporting date. | |||||||||
Note_9_Investment_in_and_Advan
Note 9 - Investment in and Advance to Equity Investment Affiliates | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | ||||||||||||
9 | Investment in and advance to equity investment affiliates | ||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Investment in equity investment affiliates | 696 | 760 | |||||||||||
Advance to equity investment affiliates | 85 | 85 | |||||||||||
781 | 845 | ||||||||||||
The following table summarizes the movement of the investment in and advance to equity investment affiliates for the six months ended June 30, 2014: | |||||||||||||
Shenzhen | Zhao Shang | Total | |||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2013 (audited) | 466 | 379 | 845 | ||||||||||
Share of losses in equity investment affiliates | (2 | ) | (56 | ) | (58 | ) | |||||||
Exchange translation adjustment | (3 | ) | (3 | ) | (6 | ) | |||||||
Balance as of June 30, 2014 (unaudited) | 461 | 320 | 781 | ||||||||||
For the six months ended June 30, 2014 and 2013, the Company recognized its pro-rata shares of losses in Shenzhen Mingshan of approximately US$2,000 and US$35,000, respectively. For the three months ended June 30, 2014 and 2013, the Company recognized its pro-rata shares of losses in Shenzhen Mingshan of approximately US$nil and US$9,000, respectively. | |||||||||||||
For the six months ended June 30, 2014 and 2013, the Company recognized its pro-rata share of losses in Zhao Shang Ke Hubei of approximately US$56,000 and US$90,000, respectively. For the three months ended June 30, 2014 and 2013, the Company recognized its pro-rata share of losses in Zhao Shang Ke Hubei of approximately US$43,000 and US$45,000, respectively. | |||||||||||||
Note_10_Property_and_Equipment
Note 10 - Property and Equipment, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
10 | Property and equipment, net | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Vehicles | 859 | 865 | |||||||
Office equipment | 1,437 | 1,433 | |||||||
Electronic devices | 1,236 | 1,245 | |||||||
Property and equipment, cost | 3,532 | 3,543 | |||||||
Less: accumulated depreciation | (2,657 | ) | (2,486 | ) | |||||
Property and equipment, net | 875 | 1,057 | |||||||
Depreciation expenses in the aggregate for the six months ended June 30, 2014 and 2013 were approximately US$189,000 and $311,000, respectively. | |||||||||
Depreciation expenses in the aggregate for the three months ended June 30, 2014 and 2013 were approximately US$93,000 and $156,000, respectively. | |||||||||
Note_11_Intangible_Assets_Net
Note 11 - Intangible Assets, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||
11 | Intangible assets, net | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Intangible assets not subject to amortization: | |||||||||
Domain name | 1,569 | 1,580 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 201 | 203 | |||||||
Customer relationship | 3,522 | 3,548 | |||||||
Non-compete agreements | 1,393 | 1,403 | |||||||
Software technologies | 333 | 335 | |||||||
Cloud-computing based software platforms | 1,507 | 1,518 | |||||||
Other computer software | 78 | 78 | |||||||
Intangible assets, cost | 8,603 | 8,665 | |||||||
Less: accumulated amortization | (3,156 | ) | (2,650 | ) | |||||
Intangible assets, net | 5,447 | 6,015 | |||||||
Amortization expenses in aggregate for the six months ended June 30, 2014 and 2013 were approximately US$526,000 and US$529,000, respectively. | |||||||||
Amortization expenses in aggregate for the three months ended June 30, 2014 and 2013 were approximately US$262,000 and US$266,000, respectively. | |||||||||
Based on the carrying value of the finite-lived intangible assets recorded as of June 30, 2014, and assuming no subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately US$524,000 for the six months ended December 31, 2014, approximately US$1,048,000 for the year ended December 31, 2015, approximately US$1,008,000 for the year ended December 31, 2016, approximately US$508,000 for the year ended December 31, 2017 and approximately US$310,000 for the year ended December 31, 2018. | |||||||||
Note_12_Deposit_for_Purchasing
Note 12 - Deposit for Purchasing of Software Technology | 6 Months Ended | |
Jun. 30, 2014 | ||
Deposits For Purchasing Assets [Abstract] | ' | |
Deposits For Purchasing Assets [Text Block] | ' | |
12 | Deposit for purchasing of software technology | |
For further development of comprehensive value-added services to its customers, which are mostly SMEs, the Company made a deposit to an unrelated technical consulting entity of RMB15 million (approximately US$2.44 million) for the purchasing of software technology related to operation management applications for SMEs. As of the date hereof, the Company is trial testing these software applications, and is in the process of negotiations and determination of the transaction details. The Company expects to consummate the transaction in 2014. | ||
In October 2013, the Company entered into a contract to engage an unrelated third party to develop several software systems related to internet environment monitoring and system optimization to enhance the overall safety and efficiency of the Company’s network system. The total contract amount was RMB13 million (approximately US$2.11 million). The Company has paid the first installment of RMB5.2 million (approximately US$0.84 million). The transaction as contemplated under the contract is expected to be consummated in 2014. | ||
Note_13_Goodwill
Note 13 - Goodwill | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Goodwill Disclosure [Text Block] | ' | ||||
13 | Goodwill | ||||
Amount | |||||
US$(’000) | |||||
Balance as of December 31, 2013 (audited) | 11,450 | ||||
Exchange translation adjustment | (82 | ) | |||
Balance as of June 30, 2014 (unaudited) | 11,368 | ||||
Note_14_ShortTerm_Bank_Loan
Note 14 - Short-Term Bank Loan | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure Text Block [Abstract] | ' | |
Short-term Debt [Text Block] | ' | |
14 | Short-term bank loan | |
Short-term bank loan as of June 30, 2014 and December 31, 2013 represented a short-term bank loan of approximately RMB5.0 million (approximately US$0.8 million) borrowed by one of the Company’s VIEs from a major financial institution of China to supplement its short-term working capital needs. The interest rate of the short-term bank loan is a floating lending rate, which is 30% over the benchmark rate of the People’s Bank of China (the “PBOC”). As of June 30, 2014 and December 31, 2013, the interest rate of the short-term loan was both 7.8%. The short-term bank loan matured on July 31, 2014. The Company is in the process of extending this short-term bank loan for one year. | ||
Note_15_Accrued_Payroll_and_Ot
Note 15 - Accrued Payroll and Other Accruals | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
15 | Accrued payroll and other accruals | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accrued payroll and staff welfare | 450 | 382 | |||||||
Accrued operating expenses | 73 | 294 | |||||||
523 | 676 | ||||||||
Note_16_Due_to_Noncontrolling_
Note 16 - Due to Noncontrolling Interest of VIE | 3 Months Ended | |
Jun. 30, 2014 | ||
Due To Noncontrolling Interest Of VIE [Abstract] | ' | |
Due To Noncontrolling Interest Of VIE [Text Block] | ' | |
16 | Due to noncontrolling interest of VIE | |
As of June 30, 2014, due to noncontrolling interest of VIE represented a short-term loan borrowed by one of the Company’s VIEs from its noncontrolling interest to supplement the short-term working capital needs of this VIE. The short-term loan is unsecured, interest free and is payable on demand. | ||
Note_17_Taxation
Note 17 - Taxation | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 six and three months ended June 30, 2014, 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 six and three months ended June 30, 2014 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 was 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 for fiscal 2009 and 2010, and a 50% reduction of its applicable EIT rate, which was 25% to 12.5% of its taxable income for the succeeding three years through fiscal 2013. The applicable income tax rate for Rise King WFOE is 25% after fiscal 2013. Therefore, for the six and three months ended June 30, 2014, the applicable income tax rate for Rise King WFOE was 25%, for the six and three months ended June 30, 2013, the applicable income tax rate for Rise King WFOE was 12.5%. | ||||||||||||||||
l | In July 2012, 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% until December 31, 2014. Therefore, the applicable income tax rate of Business Opportunity Online was 15% for the six and three months ended June 30, 2014 and 2013. After fiscal year 2014, the applicable income tax rate for Business Opportunity Online will be 25% under the current EIT law of PRC unless the entity regains the qualification as a High and New Technology Enterprise in fiscal 2015. The Company believes that more likely than not Business Opportunity Online will be able to regain its qualification as a High and New Technology Enterprise and continue to enjoy the favorable statutory tax rate of 15% after fiscal 2014. | ||||||||||||||||
l | 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 EIT exemption for fiscal 2012, as its first profitable year was determined as fiscal 2011 instead of fiscal 2012 in August 2013 by the local tax authorities of Xiaogan City, Hubei province, and a 50% reduction of its applicable EIT rate which is 25% to 12.5% of its taxable income for the succeeding three years through fiscal 2015. Therefore, the applicable income tax rate for Business Opportunity Online Hubei was 12.5% for the six and three months ended June 30, 2014 and 2013. For the three months ended June 30, 2013, the Company recorded an adjustment of approximately US$131,000 income tax expense upon the determination of its first profitable year as fiscal 2011 instead of fiscal 2012 in August 2013 by the local tax authorities of Xiaogan City, Hubei province. After fiscal 2015, the applicable income tax rate for Business Opportunity Online Hubei will be 25% under the current EIT law of PRC. | ||||||||||||||||
l | The applicable income tax rate for other PRC operating entities of the Company was 25% for the six and three months ended June 30, 2014 and 2013. | ||||||||||||||||
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 six and three months ended June 30, 2014 and 2013, 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 | |||||||||||||||||
Service revenues provided by the Company’s PRC operating subsidiary and VIEs were subject to Value Added Tax (“VAT”). VAT rate for provision of modern services (other than lease of corporeal movables) is 6% and for small scale taxpayer, 3%. Therefore, for the six and three months ended June 30, 2014 and 2013, the Company’s 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. | |||||||||||||||||
As of June 30, 2014 and December 31, 2013, taxes payable consists of: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Turnover tax and surcharge payable | 2,327 | 2,343 | |||||||||||||||
Enterprise income tax payable | 4,825 | 4,686 | |||||||||||||||
7,152 | 7,029 | ||||||||||||||||
For the six and three months ended June 30, 2014 and 2013, the Company’s income tax (expense)/benefit consisted of: | |||||||||||||||||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$(’000) | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Current-PRC | (377 | ) | (705 | ) | (197 | ) | (475 | ) | |||||||||
Current-PRC-adjustment due to new tax rate enactment | - | - | - | (131 | ) | ||||||||||||
Deferred-PRC | 257 | 437 | 125 | 252 | |||||||||||||
(120 | ) | (268 | ) | (72 | ) | (354 | ) | ||||||||||
The Company’s deferred tax liabilities at June 30, 2014 and changes for the six months then ended were as follows: | |||||||||||||||||
Amount | |||||||||||||||||
US$(’000) | |||||||||||||||||
Balance as of December 31, 2013 (audited) | 1,439 | ||||||||||||||||
Reversal during the period | (112 | ) | |||||||||||||||
Exchange translation adjustment | (10 | ) | |||||||||||||||
Balance as of June 30, 2014 (unaudited) | 1,317 | ||||||||||||||||
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 six and three months ended June 30, 2014 of approximately US$112,000 and US$56,000, respectively, was due to amortization of the acquired intangible assets. | |||||||||||||||||
The Company’s deferred tax assets at June 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Tax effect of net operating losses carried forward | 4,650 | 3,899 | |||||||||||||||
Bad debts provision | 1,616 | 1,594 | |||||||||||||||
Valuation allowance | (5,217 | ) | (4,581 | ) | |||||||||||||
1,049 | 912 | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Deferred tax assets reclassified as current asset | 168 | 153 | |||||||||||||||
Deferred tax assets reclassified as non-current asset | 881 | 759 | |||||||||||||||
1,049 | 912 | ||||||||||||||||
The net operating losses carried forward incurred by the Company (excluding its PRC operating subsidiary and VIEs) were approximately US$6,973,000 and US$6,840,000 at June 30, 2014 and December 31, 2013, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2034. 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, amortization of intangible assets acquired from business combinations and non-deductible expenses) incurred by the Company’s PRC subsidiary and VIEs were approximately US$11,268,000 and US$7,253,000 at June 30, 2014 and December 31, 2013, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2019. 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 losses are expected to be utilized. The Company recorded approximately US$572,000 and US$333,000 valuation allowance for the six and three months ended June 30, 2014, respectively, because it is considered more likely than not that this portion of the deferred tax assets will not be realized through sufficient future earnings of the entities to which the operating losses relate. | |||||||||||||||||
Full valuation allowance to bad debts provision related deferred tax assets were recorded because it is considered more likely than not that this portion of deferred tax assets will not be realized through bad debts verification by the local tax authorities where the PRC subsidiary and VIEs operate in. | |||||||||||||||||
The Company’s non-current portion of deferred tax assets and deferred tax liabilities were attributable to different tax-paying components of the entity, which were under different tax jurisdictions. Therefore, in accordance with ASC Topic 740 “Income taxes”, the non-current portion of deferred tax assets and deferred tax liabilities were presented separately in the Company’s balance sheets. | |||||||||||||||||
The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. | |||||||||||||||||
Note_18_LongTerm_Borrowing_fro
Note 18 - Long-Term Borrowing from Director | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Long Term Borrowing From Director Disclosure [Abstract] | ' | ||||||||
Long Term Borrowing From Director Disclosure [Text Block] | ' | ||||||||
18 | Long-term borrowing from director | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Long-term borrowing from director | 142 | 143 | |||||||
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, which is not expected to be repaid within one year. | |||||||||
Note_19_Warrants
Note 19 - Warrants | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Warrants Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Warrants Disclosure [Text Block] | ' | |||||||||||||||||||||||||
19 | Warrants | |||||||||||||||||||||||||
The Company issued warrants in its August 2009 Financing. Warrants issued and outstanding at June 30, 2014 and changes during the six 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, 2013 (audited) | 2,363,456 | $ | 3.52 | 0.63 | 2,363,456 | $ | 3.52 | 0.63 | ||||||||||||||||||
Granted / Vested | - | - | ||||||||||||||||||||||||
Forfeited | - | - | ||||||||||||||||||||||||
Exercised | - | - | ||||||||||||||||||||||||
Balance, June 30, 2014 (unaudited) | 2,363,456 | $ | 3.52 | 0.14 | 2,363,456 | $ | 3.52 | 0.14 | ||||||||||||||||||
All unexpired warrants are exercisable and will expire on August 20, 2014. | ||||||||||||||||||||||||||
Note_20_Restricted_Net_Assets
Note 20 - Restricted Net Assets | 6 Months Ended | ||
Jun. 30, 2014 | |||
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 June 30, 2014 and December 31, 2013, 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 both approximately US$7.3 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% 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 Foreign 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 June 30, 2014 and December 31, 2013, there was approximately US$37.2 million and US$39.3 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$2.8 million statutory reserve funds as of June 30, 2014 and December 31, 2013, 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$7.3 million restricted net assets as of June 30, 2014 and December 31, 2013, as discussed above. | |||
Note_21_Related_Party_Transact
Note 21 - Related Party Transactions | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||
21 | Related party transactions | ||||||||
Revenue from related parties: | |||||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 182 | 122 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 1 | 6 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | - | 46 | |||||||
183 | 174 | ||||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 182 | 78 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | - | 4 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | - | 33 | |||||||
182 | 115 | ||||||||
Note_22_Employee_Defined_Contr
Note 22 - Employee Defined Contribution Plan | 6 Months Ended | |
Jun. 30, 2014 | ||
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 both approximately US$265,000 and US$231,000 for the six months ended June 30, 2014 and 2013, respectively. The total amounts for such employee benefits were approximately US$136,000 and US$111,000 for the three months ended June 30, 2014 and 2013, respectively. | ||
Note_23_Concentration_of_Risk
Note 23 - Concentration of Risk | 6 Months Ended | |
Jun. 30, 2014 | ||
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 June 30, 2014 and December 31, 2013, 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 six months ended June 30, 2014, two customers individually accounted for 20% and 19% of the Company’s sales, respectively. Except for the aforementioned customers, there was no other single customer who accounted for more than 10% of the Company’s sales for the six months ended June 30, 2014 and 2013, respectively. | ||
For the three months ended June 30, 2014, the same two customers individually accounted for 30% and 17% of the Company’s sales, respectively. Except for the aforementioned customer, there was no other single customer who accounted for more than 10% of the Company’s sales for the three months ended June 30, 2014 and 2013, respectively. | ||
As of June 30, 2014, two customers individually accounted for 16% and 12% of the Company’s accounts receivables, respectively. As of December 31, 2013, three customers individually accounted for 13%, 12% and 10% of the Company’s accounts receivables, respectively. Except for the afore-mentioned, there was no other single customer who accounted for more than 10% of the Company’s accounts receivable as of June 30, 2014 and December 31, 2013, respectively. | ||
Concentration of suppliers | ||
For the six months ended June 30, 2014, two suppliers individually accounted for 64% and 22% of the Company’s cost of sales, respectively. For the three months ended June 30, 2014, the same two suppliers individually accounted for 71% and 19% 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 six and three months ended June 30, 2014, respectively. | ||
For the six months ended June 30, 2013, three suppliers individually accounted for 34%, 29% and 14% of the Company’s cost of sales, respectively. For the three months ended June 30, 2013, the same three suppliers individually accounted for 34%, 23% and 19% 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 six and three months ended June 30, 2013, respectively. | ||
Note_24_Commitments
Note 24 - Commitments | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
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 June 30, 2014: | |||||
Office Rental | |||||
US$(’000) | |||||
(Unaudited) | |||||
Six months ending December 31, | |||||
-2014 | 196 | ||||
Year ending December 31, | |||||
-2015 | 343 | ||||
-2016 | 83 | ||||
Total | 622 | ||||
For the six months ended June 30, 2014 and 2013, rental expenses under operating leases were approximately US$261,000 and US$249,000, respectively. For the three months ended June 30, 2014 and 2013, rental expenses under operating leases were approximately US$117,000 and US$112,000, respectively. | |||||
In October 2013, the Company entered into a contract to engage an unrelated third party to develop several software systems related to internet environment monitoring and system optimization to enhance the overall safety and efficiency of the Company’s network system. The total contract amount was RMB13 million (approximately US$2.11 million) and the first installment of RMB5.2 million (approximately US$0.84 million) was paid in the first fiscal quarter of 2014. The transaction as contemplated under the contract is expected to be consummated in 2014 and the remaining unpaid contract amount is expected to be paid in 2014. | |||||
Legal Proceedings | |||||
Business Opportunity Online, 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 denied all of the allegations against the Company and intends to defend vigorously against the lawsuit. During the course of the civil litigation, Jinbo Yao, the defendant, filed an objection to remove this case from the Xiaogan City Xiaonan District People’s Court to a Beijing court. Xiaogan City Xiaonan District People’s Court denied the defendant’s objection to remove the case. Jinbo Yao then filed an appeal of that decision to the Intermediate People’s Court of Xiaogan. On March 10, 2014, the Intermediate People’s Court of Xiaogan rendered a final ruling holding that the dispute shall be transferred and heard by the Haidian District People’s Court of Beijing. Business Opportunity Online is awaiting a hearing date from the Haidian District People’s Court of Beijing. | |||||
Rise King WFOE, Handong Cheng, Zhige Zhang, CFO of the Company and Xuanfu Liu, have been named as defendants in a civil lawsuit filed in the PRC. The action was filed by Shanghai Pan Gu Investment Management Co., Ltd. (the “Shanghai Pan Gu”), on December 17, 2013, in the Haidian District People’s Court of Beijing, China. The complaint alleges that the defendants breached a consulting agreement entered into on April 22, 2011 by and among Shanghai Pan Gu and the defendants. The complaint seeks a court order for liquidated damages in the amount of RMB0.56 million (equal to approximately US$92,100) under the consulting agreement. The Company denies all of the allegations against it and intends to defend vigorously against the lawsuit. | |||||
Business Opportunity Online has been named as a defendant in another civil lawsuit filed in the PRC. The action was filed by Haifeng Wang in the Haidian District People’s Court, Beijing, PRC, on April 29, 2014. The complaint alleges that the plaintiff neither attended any shareholders meeting in respect of the transfer of the plaintiff’s investment in Business Opportunity Online to another party, nor executed any written shareholders resolutions approving such transfer. The complaint seeks a court order to declare such shareholders resolutions 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 the litigations described above. | |||||
Note_25_Segment_Reporting
Note 25 - Segment Reporting | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 (Unaudited) | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 11,808 | 2,994 | 138 | 604 | - | - | 15,544 | ||||||||||||||||||||||
Cost of sales | 9,395 | 2,772 | 5 | 315 | - | - | 12,487 | ||||||||||||||||||||||
Total operating expenses | 3,850 | 222 | 63 | 283 | 578 | * | - | 4,996 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 489 | 22 | 63 | 100 | 41 | - | 715 | ||||||||||||||||||||||
Operating income (loss) | (1,437 | ) | - | 70 | 6 | (578 | ) | - | (1,939 | ) | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (56 | ) | (2 | ) | - | (58 | ) | |||||||||||||||||||
Expenditure for long-term assets | 850 | - | - | 1 | 12 | - | 863 | ||||||||||||||||||||||
Net income (loss) | (1,493 | ) | (32 | ) | 70 | (57 | ) | (580 | ) | - | (2,092 | ) | |||||||||||||||||
Total assets – June 30, 2014 | 50,301 | 16,486 | 355 | 4,482 | 6,465 | (22,809 | ) | 55,280 | |||||||||||||||||||||
Total assets – December 31, 2013 | 51,324 | 17,022 | 420 | 4,524 | 7,065 | (23,521 | ) | 56,834 | |||||||||||||||||||||
*Including approximately US$17,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 (Unaudited) | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 8,228 | 1,812 | 67 | 254 | - | - | 10,361 | ||||||||||||||||||||||
Cost of sales | 6,853 | 1,677 | 5 | 130 | - | - | 8,665 | ||||||||||||||||||||||
Total operating expenses | 2,325 | 128 | 32 | 143 | 342 | * | - | 2,970 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 242 | 11 | 32 | 50 | 20 | - | 355 | ||||||||||||||||||||||
Operating income (loss) | (950 | ) | 7 | 30 | (19 | ) | (342 | ) | - | (1,274 | ) | ||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (43 | ) | - | - | (43 | ) | ||||||||||||||||||||
Expenditure for long-term assets | - | - | - | - | - | - | - | ||||||||||||||||||||||
Net income (loss) | (994 | ) | (10 | ) | 30 | (62 | ) | (342 | ) | - | (1,378 | ) | |||||||||||||||||
*Including approximately US$9,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 9,247 | 5,127 | 140 | 1,427 | - | - | 15,941 | ||||||||||||||||||||||
Cost of sales | 4,264 | 4,743 | - | 750 | - | - | 9,757 | ||||||||||||||||||||||
Total operating expenses | 3,274 | 755 | 105 | 551 | 763 | * | - | 5,448 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 516 | 25 | 105 | 109 | 85 | - | 840 | ||||||||||||||||||||||
Operating income (loss) | 1,709 | (371 | ) | 35 | 126 | (763 | ) | - | 736 | ||||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (90 | ) | (35 | ) | - | (125 | ) | |||||||||||||||||||
Expenditure for long-term assets | 853 | - | - | - | 7 | - | 860 | ||||||||||||||||||||||
Net income (loss) | 1,510 | (431 | ) | 35 | 5 | (714 | ) | - | 405 | ||||||||||||||||||||
*Including approximately US$21,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 5,436 | 2,489 | 71 | 896 | - | - | 8,892 | ||||||||||||||||||||||
Cost of sales | 2,620 | 2,243 | - | 427 | - | - | 5,290 | ||||||||||||||||||||||
Total operating expenses | 1,691 | 373 | 52 | 307 | 386 | * | - | 2,809 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 259 | 13 | 52 | 55 | 43 | - | 422 | ||||||||||||||||||||||
Operating income (loss) | 1,125 | (127 | ) | 19 | 162 | (386 | ) | - | 793 | ||||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (45 | ) | (9 | ) | - | (54 | ) | |||||||||||||||||||
Expenditure for long-term assets | 847 | - | - | - | 2 | - | 849 | ||||||||||||||||||||||
Net income (loss) | 845 | (172 | ) | 19 | 77 | (353 | ) | - | 416 | ||||||||||||||||||||
*Including approximately US$11,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Note_26_Earnings_Per_Share
Note 26 - Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
26 | Earnings per share | ||||||||||||||||
Basic and diluted earnings per share for each of the periods presented are calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of US dollars): | |||||||||||||||||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$('000) | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net (loss)/income attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | (1,999 | ) | $ | 464 | $ | (1,331 | ) | $ | 434 | |||||||
Weighted average number of common shares outstanding - Basic | 22,376,540 | 22,193,391 | 22,376,540 | 22,200,166 | |||||||||||||
Effect of diluted securities: | |||||||||||||||||
Warrants and options | - | - | - | - | |||||||||||||
Weighted average number of common shares outstanding -Diluted | 22,376,540 | 22,193,391 | 22,376,540 | 22,200,166 | |||||||||||||
(Loss)/earnings per share-Basic | $ | (0.09 | ) | $ | 0.02 | $ | (0.06 | ) | $ | 0.02 | |||||||
(Loss)/earnings per share-Diluted | $ | (0.09 | ) | $ | 0.02 | $ | (0.06 | ) | $ | 0.02 | |||||||
For the six and three months ended June 30, 2014, the diluted earnings per share calculation both did not include the warrants and options to purchase up to 2,363,456 and 939,440 shares of common stock, respectively, because their effect was anti-dilutive, as the Company incurred a loss during the periods. | |||||||||||||||||
For the six and three months ended June 30, 2013, the diluted earnings per share calculation both 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. | |||||||||||||||||
Note_27_ShareBased_Compensatio
Note 27 - Share-Based Compensation Expenses | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||
27 | Share-based compensation expenses | ||||||||||||||||||||||||
The Company renewed its engagement with MZHCI, LLP (“MZ-HCI”) to provide investor relations services for a twelve-month period commencing on January 1, 2014. As additional compensation, the Company granted 40,000 restricted shares of the Company’s common stock to MZ-HCI. These shares were valued at $0.84 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 services provided by MZ-HCI was US$16,800 and US$21,000 for the six months ended June 30, 2014 and 2013, respectively. Total compensation expenses recognized for the services provided by MZ-HCI was US$8,400 and US$10,500 for the three months ended June 30, 2014 and 2013, 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 June 30, 2014 and their movements during the six 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, 2013 (audited) | 939,440 | 7.51 | $ | 1.42 | 939,440 | 7.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, June 30, 2014 (unaudited) | 939,440 | 7.01 | $ | 1.42 | 939,440 | 7.01 | $ | 1.42 | |||||||||||||||||
The aggregate unrecognized share-based compensation expenses as of June 30, 2014 and 2013 is approximately US$17,000 and US$21,000, respectively. | |||||||||||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Accounting, Policy [Policy 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 June 30, 2014 and for the six and three months ended June 30, 2014 and 2013 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, 2013, previously filed with the SEC (the “2013 Form 10-K”). | |||||||||
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 June 30, 2014, its consolidated results of operations for the six and three months ended June 30, 2014 and 2013, and its consolidated cash flows for the six months ended June 30, 2014 and 2013, 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. | |||||||||
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. | |||||||||
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 | |||||||||
The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the consolidated financial statements are as follows: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Balance sheet items, except for equity accounts | 6.1577 | 6.114 | |||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1441 | 6.2479 | |||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1681 | 6.2105 | |||||||
No representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates. | |||||||||
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 operations and comprehensive (loss)/income. For the six months ended June 30, 2014 and 2013, advertising expenses for the Company’s own brand building were approximately US$973,000 and US$144,000, respectively. For the three months ended June 30, 2014 and 2013, advertising expenses for the Company’s own brand building were approximately US$942,000 and US$120,000, 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 six months ended June 30, 2014 and 2013 were approximately US$892,000 and US$912,000, respectively. Expenses for research and development for the three months ended June 30, 2014 and 2013 were approximately US$442,000 and US$463,000, respectively. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
Recent accounting standards | |||||||||
In April 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. 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 May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU supercedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605-Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. For all other entities (nonpublic entities), the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. A nonpublic entity may elect to apply this guidance earlier, however, only as prescribed in this ASU. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and 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) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Variable Interest Entities Disclosure [Abstract] | ' | ||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 2,585 | $ | 3,326 | |||||
Term deposit | 3,443 | 3,467 | |||||||
Accounts receivable, net | 5,046 | 7,637 | |||||||
Other receivables, net | 2,138 | 3,416 | |||||||
Prepayment and deposit to suppliers | 18,039 | 14,690 | |||||||
Due from related parties | 260 | 174 | |||||||
Other current assets | 72 | 27 | |||||||
Deferred tax assets-current | 134 | 118 | |||||||
Total current assets | 31,717 | 32,855 | |||||||
Investment in and advance to equity investment affiliates | 737 | 801 | |||||||
Property and equipment, net | 766 | 918 | |||||||
Intangible assets, net | 5,447 | 6,013 | |||||||
Deposit and prepayment for purchasing of software technology | 3,281 | 2,453 | |||||||
Goodwill | 11,368 | 11,450 | |||||||
Deferred tax assets-non current | 606 | 482 | |||||||
Total Assets | $ | 53,922 | $ | 54,972 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 812 | $ | 818 | |||||
Accounts payable | 412 | 421 | |||||||
Advances from customers | 1,012 | 995 | |||||||
Accrued payroll and other accruals | 373 | 279 | |||||||
Due to Control Group | 11 | 11 | |||||||
Due to noncontrolling interest of VIE | 715 | - | |||||||
Taxes payable | 6,668 | 6,542 | |||||||
Other payables | 415 | 142 | |||||||
Total current liabilities | 10,418 | 9,208 | |||||||
Deferred tax Liabilities-non current | 1,317 | 1,439 | |||||||
Total Liabilities | $ | 11,735 | $ | 10,647 |
Note_3_Summary_of_Significant_1
Note 3 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Note 3 - Summary of Significant Accounting Policies (Tables) [Line Items] | ' | ||||||||
Foreign Currency Exchange Rates [Table Text Block] | ' | ||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Balance sheet items, except for equity accounts | 6.1577 | 6.114 | |||||||
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] | ' | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1441 | 6.2479 | |||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1681 | 6.2105 |
Note_5_Accounts_Receivable_Net1
Note 5 - Accounts Receivable, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable Disclosure [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accounts receivable | 10,784 | 13,358 | |||||||
Allowance for doubtful accounts | (5,615 | ) | (5,685 | ) | |||||
Accounts receivable, net | 5,169 | 7,673 |
Note_6_Other_Receivables_Net_T
Note 6 - Other Receivables, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Other Receivables [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Short-term loan made for marketing campaign | 697 | 1,636 | |||||||
Short-term loans to unrelated entities | 400 | 790 | |||||||
Term deposit interest receivable | 114 | 57 | |||||||
Receivable on disposal of fixed assets | 97 | 98 | |||||||
Receivable on disposal of subsidiaries | 1,186 | 1,611 | |||||||
Staff advances for normal business purpose | 109 | 107 | |||||||
Overdue deposits | 961 | 968 | |||||||
Allowance for doubtful accounts | (961 | ) | (968 | ) | |||||
Other receivables, net | 2,603 | 4,299 |
Note_7_Prepayments_and_Deposit1
Note 7 - Prepayments and Deposit to Suppliers (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | ' | ||||||||
Schedule Of Prepayments And Deposit To Suppliers [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deposits to TV advertisement and internet resources providers | 10,367 | 8,907 | |||||||
Prepayments to TV advertisement and internet resources providers | 7,268 | 5,292 | |||||||
Other deposits and prepayments | 406 | 493 | |||||||
18,041 | 14,692 |
Note_8_Due_from_Related_Partie1
Note 8 - Due from Related Parties (Tables) (Due From Related Parties [Member]) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Due From Related Parties [Member] | ' | ||||||||
Note 8 - Due from Related Parties (Tables) [Line Items] | ' | ||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Beijing Fengshangyinli Technology Co., Ltd. | - | 36 | |||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 267 | 295 | |||||||
Beijing Telijie Century Environmental Technology Co., Ltd. | 145 | 171 | |||||||
412 | 502 |
Note_9_Investment_in_and_Advan1
Note 9 - Investment in and Advance to Equity Investment Affiliates (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Schedule of Investment in and Advance to Equity Investment Affiliates [Table Text Block] | ' | ||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
(Unaudited) | |||||||||||||
Investment in equity investment affiliates | 696 | 760 | |||||||||||
Advance to equity investment affiliates | 85 | 85 | |||||||||||
781 | 845 | ||||||||||||
Equity Method Investments [Table Text Block] | ' | ||||||||||||
Shenzhen | Zhao Shang | Total | |||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2013 (audited) | 466 | 379 | 845 | ||||||||||
Share of losses in equity investment affiliates | (2 | ) | (56 | ) | (58 | ) | |||||||
Exchange translation adjustment | (3 | ) | (3 | ) | (6 | ) | |||||||
Balance as of June 30, 2014 (unaudited) | 461 | 320 | 781 |
Note_10_Property_and_Equipment1
Note 10 - Property and Equipment, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Vehicles | 859 | 865 | |||||||
Office equipment | 1,437 | 1,433 | |||||||
Electronic devices | 1,236 | 1,245 | |||||||
Property and equipment, cost | 3,532 | 3,543 | |||||||
Less: accumulated depreciation | (2,657 | ) | (2,486 | ) | |||||
Property and equipment, net | 875 | 1,057 |
Note_11_Intangible_Assets_Net_
Note 11 - Intangible Assets, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Intangible assets not subject to amortization: | |||||||||
Domain name | 1,569 | 1,580 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 201 | 203 | |||||||
Customer relationship | 3,522 | 3,548 | |||||||
Non-compete agreements | 1,393 | 1,403 | |||||||
Software technologies | 333 | 335 | |||||||
Cloud-computing based software platforms | 1,507 | 1,518 | |||||||
Other computer software | 78 | 78 | |||||||
Intangible assets, cost | 8,603 | 8,665 | |||||||
Less: accumulated amortization | (3,156 | ) | (2,650 | ) | |||||
Intangible assets, net | 5,447 | 6,015 |
Note_13_Goodwill_Tables
Note 13 - Goodwill (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of Goodwill [Table Text Block] | ' | ||||
Amount | |||||
US$(’000) | |||||
Balance as of December 31, 2013 (audited) | 11,450 | ||||
Exchange translation adjustment | (82 | ) | |||
Balance as of June 30, 2014 (unaudited) | 11,368 |
Note_15_Accrued_Payroll_and_Ot1
Note 15 - Accrued Payroll and Other Accruals (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accrued payroll and staff welfare | 450 | 382 | |||||||
Accrued operating expenses | 73 | 294 | |||||||
523 | 676 |
Note_17_Taxation_Tables
Note 17 - Taxation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Taxation Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Taxes Payable [Table Text Block] | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Turnover tax and surcharge payable | 2,327 | 2,343 | |||||||||||||||
Enterprise income tax payable | 4,825 | 4,686 | |||||||||||||||
7,152 | 7,029 | ||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||||||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$(’000) | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Current-PRC | (377 | ) | (705 | ) | (197 | ) | (475 | ) | |||||||||
Current-PRC-adjustment due to new tax rate enactment | - | - | - | (131 | ) | ||||||||||||
Deferred-PRC | 257 | 437 | 125 | 252 | |||||||||||||
(120 | ) | (268 | ) | (72 | ) | (354 | ) | ||||||||||
Schedule of Deferred Tax Liabilities [Table Text Block] | ' | ||||||||||||||||
Amount | |||||||||||||||||
US$(’000) | |||||||||||||||||
Balance as of December 31, 2013 (audited) | 1,439 | ||||||||||||||||
Reversal during the period | (112 | ) | |||||||||||||||
Exchange translation adjustment | (10 | ) | |||||||||||||||
Balance as of June 30, 2014 (unaudited) | 1,317 | ||||||||||||||||
Schedule of Deferred Tax Assets [Table Text Block] | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Tax effect of net operating losses carried forward | 4,650 | 3,899 | |||||||||||||||
Bad debts provision | 1,616 | 1,594 | |||||||||||||||
Valuation allowance | (5,217 | ) | (4,581 | ) | |||||||||||||
1,049 | 912 | ||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Deferred tax assets reclassified as current asset | 168 | 153 | |||||||||||||||
Deferred tax assets reclassified as non-current asset | 881 | 759 | |||||||||||||||
1,049 | 912 |
Note_18_LongTerm_Borrowing_fro1
Note 18 - Long-Term Borrowing from Director (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Long Term Borrowing From Director Disclosure [Abstract] | ' | ||||||||
Long-term Borrowing from Director [Table Text Block] | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Long-term borrowing from director | 142 | 143 |
Note_19_Warrants_Tables
Note 19 - Warrants (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Warrants Disclosure [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, 2013 (audited) | 2,363,456 | $ | 3.52 | 0.63 | 2,363,456 | $ | 3.52 | 0.63 | ||||||||||||||||||
Granted / Vested | - | - | ||||||||||||||||||||||||
Forfeited | - | - | ||||||||||||||||||||||||
Exercised | - | - | ||||||||||||||||||||||||
Balance, June 30, 2014 (unaudited) | 2,363,456 | $ | 3.52 | 0.14 | 2,363,456 | $ | 3.52 | 0.14 |
Note_21_Related_Party_Transact1
Note 21 - Related Party Transactions (Tables) (Revenue from Related Parties [Member]) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Revenue from Related Parties [Member] | ' | ||||||||
Note 21 - Related Party Transactions (Tables) [Line Items] | ' | ||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 182 | 122 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 1 | 6 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | - | 46 | |||||||
183 | 174 | ||||||||
Three Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 182 | 78 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | - | 4 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | - | 33 | |||||||
182 | 115 |
Note_24_Commitments_Tables
Note 24 - Commitments (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Office Rental | |||||
US$(’000) | |||||
(Unaudited) | |||||
Six months ending December 31, | |||||
-2014 | 196 | ||||
Year ending December 31, | |||||
-2015 | 343 | ||||
-2016 | 83 | ||||
Total | 622 |
Note_25_Segment_Reporting_Tabl
Note 25 - Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 11,808 | 2,994 | 138 | 604 | - | - | 15,544 | ||||||||||||||||||||||
Cost of sales | 9,395 | 2,772 | 5 | 315 | - | - | 12,487 | ||||||||||||||||||||||
Total operating expenses | 3,850 | 222 | 63 | 283 | 578 | * | - | 4,996 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 489 | 22 | 63 | 100 | 41 | - | 715 | ||||||||||||||||||||||
Operating income (loss) | (1,437 | ) | - | 70 | 6 | (578 | ) | - | (1,939 | ) | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (56 | ) | (2 | ) | - | (58 | ) | |||||||||||||||||||
Expenditure for long-term assets | 850 | - | - | 1 | 12 | - | 863 | ||||||||||||||||||||||
Net income (loss) | (1,493 | ) | (32 | ) | 70 | (57 | ) | (580 | ) | - | (2,092 | ) | |||||||||||||||||
Total assets – June 30, 2014 | 50,301 | 16,486 | 355 | 4,482 | 6,465 | (22,809 | ) | 55,280 | |||||||||||||||||||||
Total assets – December 31, 2013 | 51,324 | 17,022 | 420 | 4,524 | 7,065 | (23,521 | ) | 56,834 | |||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 8,228 | 1,812 | 67 | 254 | - | - | 10,361 | ||||||||||||||||||||||
Cost of sales | 6,853 | 1,677 | 5 | 130 | - | - | 8,665 | ||||||||||||||||||||||
Total operating expenses | 2,325 | 128 | 32 | 143 | 342 | * | - | 2,970 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 242 | 11 | 32 | 50 | 20 | - | 355 | ||||||||||||||||||||||
Operating income (loss) | (950 | ) | 7 | 30 | (19 | ) | (342 | ) | - | (1,274 | ) | ||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (43 | ) | - | - | (43 | ) | ||||||||||||||||||||
Expenditure for long-term assets | - | - | - | - | - | - | - | ||||||||||||||||||||||
Net income (loss) | (994 | ) | (10 | ) | 30 | (62 | ) | (342 | ) | - | (1,378 | ) | |||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 9,247 | 5,127 | 140 | 1,427 | - | - | 15,941 | ||||||||||||||||||||||
Cost of sales | 4,264 | 4,743 | - | 750 | - | - | 9,757 | ||||||||||||||||||||||
Total operating expenses | 3,274 | 755 | 105 | 551 | 763 | * | - | 5,448 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 516 | 25 | 105 | 109 | 85 | - | 840 | ||||||||||||||||||||||
Operating income (loss) | 1,709 | (371 | ) | 35 | 126 | (763 | ) | - | 736 | ||||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (90 | ) | (35 | ) | - | (125 | ) | |||||||||||||||||||
Expenditure for long-term assets | 853 | - | - | - | 7 | - | 860 | ||||||||||||||||||||||
Net income (loss) | 1,510 | (431 | ) | 35 | 5 | (714 | ) | - | 405 | ||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and | |||||||||||||||||||||||||
and sales | reconciling | ||||||||||||||||||||||||||||
channel | item | ||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 5,436 | 2,489 | 71 | 896 | - | - | 8,892 | ||||||||||||||||||||||
Cost of sales | 2,620 | 2,243 | - | 427 | - | - | 5,290 | ||||||||||||||||||||||
Total operating expenses | 1,691 | 373 | 52 | 307 | 386 | * | - | 2,809 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 259 | 13 | 52 | 55 | 43 | - | 422 | ||||||||||||||||||||||
Operating income (loss) | 1,125 | (127 | ) | 19 | 162 | (386 | ) | - | 793 | ||||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (45 | ) | (9 | ) | - | (54 | ) | |||||||||||||||||||
Expenditure for long-term assets | 847 | - | - | - | 2 | - | 849 | ||||||||||||||||||||||
Net income (loss) | 845 | (172 | ) | 19 | 77 | (353 | ) | - | 416 |
Note_26_Earnings_Per_Share_Tab
Note 26 - Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$('000) | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net (loss)/income attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | (1,999 | ) | $ | 464 | $ | (1,331 | ) | $ | 434 | |||||||
Weighted average number of common shares outstanding - Basic | 22,376,540 | 22,193,391 | 22,376,540 | 22,200,166 | |||||||||||||
Effect of diluted securities: | |||||||||||||||||
Warrants and options | - | - | - | - | |||||||||||||
Weighted average number of common shares outstanding -Diluted | 22,376,540 | 22,193,391 | 22,376,540 | 22,200,166 | |||||||||||||
(Loss)/earnings per share-Basic | $ | (0.09 | ) | $ | 0.02 | $ | (0.06 | ) | $ | 0.02 | |||||||
(Loss)/earnings per share-Diluted | $ | (0.09 | ) | $ | 0.02 | $ | (0.06 | ) | $ | 0.02 |
Note_27_ShareBased_Compensatio1
Note 27 - Share-Based Compensation Expenses (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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, 2013 (audited) | 939,440 | 7.51 | $ | 1.42 | 939,440 | 7.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, June 30, 2014 (unaudited) | 939,440 | 7.01 | $ | 1.42 | 939,440 | 7.01 | $ | 1.42 |
Note_1_Organization_and_Nature1
Note 1 - Organization and Nature of Operations (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ' |
Number of Variable Interest Entities | 3 |
Income Earned Percentage | 100.00% |
Beijing Chuang Fu Tian Xia [Member] | ' |
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ' |
Consolidated Subsidiary Ownership Percentage | 51.00% |
Shenzhen Mingshan [Member] | ' |
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ' |
Equity Method Investment, Ownership Percentage | 23.18% |
Zhao Shang Ke Hubei [Member] | ' |
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ' |
Equity Method Investment, Ownership Percentage | 25.50% |
Note_2_Variable_Interest_Entit2
Note 2 - Variable Interest Entities (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 2 - Variable Interest Entities (Details) [Line Items] | ' | ' | ' | ' |
Sales Revenue, Services, Net | $10,361,000 | $8,892,000 | $15,544,000 | $15,941,000 |
Cost of Services | 8,665,000 | 5,290,000 | 12,487,000 | 9,757,000 |
Operating Expenses | 2,970,000 | 2,809,000 | 4,996,000 | 5,448,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -1,378,000 | 416,000 | -2,092,000 | 405,000 |
VIEs [Member] | ' | ' | ' | ' |
Note 2 - Variable Interest Entities (Details) [Line Items] | ' | ' | ' | ' |
Sales Revenue, Services, Net | 10,208,000 | 8,790,000 | 15,307,000 | 15,740,000 |
Cost of Services | 8,664,000 | 5,289,000 | 12,486,000 | 9,756,000 |
Operating Expenses | 2,725,000 | 2,232,000 | 4,337,000 | 4,322,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $1,283,000 | $845,000 | $1,668,000 | $1,245,000 |
Note_2_Variable_Interest_Entit3
Note 2 - Variable Interest Entities (Details) - The Consolidated VIEs’ Assets and Liabilities | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | VIEs [Member] | VIEs [Member] | ||
USD ($) | USD ($) | |||||||||
Current assets: | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | $2,723 | ' | $3,442 | ' | $3,392 | $5,483 | $2,585 | $3,326 | ||
Term deposit | 3,443 | ' | 3,467 | ' | ' | ' | 3,443 | 3,467 | ||
Accounts receivable, net | 5,169 | ' | 7,673 | ' | ' | ' | 5,046 | 7,637 | ||
Other receivables, net | 2,603 | ' | 4,299 | ' | ' | ' | 2,138 | 3,416 | ||
Prepayment and deposit to suppliers | 18,041 | ' | 14,692 | ' | ' | ' | 18,039 | 14,690 | ||
Due from related parties | 412 | ' | 502 | ' | ' | ' | 260 | 174 | ||
Other current assets | 88 | ' | 27 | ' | ' | ' | 72 | 27 | ||
Deferred tax assets-current | 168 | ' | 153 | ' | ' | ' | 134 | 118 | ||
Total current assets | 32,647 | ' | 34,255 | ' | ' | ' | 31,717 | 32,855 | ||
Investment in and advance to equity investment affiliates | 781 | ' | 845 | ' | ' | ' | 737 | 801 | ||
Property and equipment, net | 875 | ' | 1,057 | ' | ' | ' | 766 | 918 | ||
Intangible assets, net | 5,447 | ' | 6,015 | ' | ' | ' | 5,447 | 6,013 | ||
Deposit and prepayment for purchasing of software technology | 3,281 | ' | 2,453 | ' | ' | ' | 3,281 | 2,453 | ||
Goodwill | 11,368 | ' | 11,450 | ' | ' | ' | 11,368 | 11,450 | ||
Deferred tax assets-non current | 881 | ' | 759 | ' | ' | ' | 606 | 482 | ||
Total Assets | 55,280 | ' | 56,834 | ' | ' | ' | 53,922 | 54,972 | ||
Current liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ||
Short-term bank loan | 812 | [1] | 5,000 | 818 | [1] | 5,000 | ' | ' | 812 | 818 |
Accounts payable | 412 | [1] | ' | 421 | [1] | ' | ' | ' | 412 | 421 |
Advances from customers | 1,012 | [1] | ' | 995 | [1] | ' | ' | ' | 1,012 | 995 |
Accrued payroll and other accruals | 523 | [1] | ' | 676 | [1] | ' | ' | ' | 373 | 279 |
Due to Control Group | ' | ' | ' | ' | ' | ' | 11 | 11 | ||
Due to noncontrolling interest of VIE | 715 | [1] | ' | ' | [1] | ' | ' | ' | 715 | ' |
Taxes payable | 7,152 | [1] | ' | 7,029 | [1] | ' | ' | ' | 6,668 | 6,542 |
Other payables | 526 | [1] | ' | 288 | [1] | ' | ' | ' | 415 | 142 |
Total current liabilities | 11,152 | ' | 10,227 | ' | ' | ' | 10,418 | 9,208 | ||
Deferred tax Liabilities-non current | 1,317 | [1] | ' | 1,439 | [1] | ' | ' | ' | 1,317 | 1,439 |
Total Liabilities | $12,611 | ' | $11,809 | ' | ' | ' | $11,735 | $10,647 | ||
[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) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Advertising Expense | $942,000 | $120,000 | $973,000 | $144,000 |
Research and Development Expense | $442,000 | $463,000 | $892,000 | $912,000 |
Note_3_Summary_of_Significant_3
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ (Balance Sheet Items Except Equity Accounts [Member]) | Jun. 30, 2014 | Dec. 31, 2013 |
Balance Sheet Items Except Equity Accounts [Member] | ' | ' |
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ [Line Items] | ' | ' |
Balance sheet items, except for equity accounts | 6.1577 | 6.114 |
Note_3_Summary_of_Significant_4
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ | Jun. 30, 2014 | Jun. 30, 2013 |
Items in Income Statements and Comprehensive Income and Statements of Cash Flows 6 Months Ended [Member] | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1441 | 6.2479 |
Items in Income Statements and Comprehensive Income and Statements of Cash Flows Three Months Ended [Member] | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1681 | 6.2105 |
Note_4_Term_Deposit_Details
Note 4 - Term Deposit (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
Note 4 - Term Deposit (Details) [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 7.80% | 7.80% |
Sou Yi Lian Mei [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 $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
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 | ' | ' | $5,615,000 | $5,615,000 | $5,685,000 |
Number of Months Past Due | ' | ' | ' | '6 months | ' |
Provision for Doubtful Accounts | ($30,000) | $787,000 | $30,000 | $30,000 | ' |
Note_5_Accounts_Receivable_Net3
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $10,784,000 | $13,358,000 |
Accounts receivable, net | 5,169,000 | 7,673,000 |
Internet Advertising and TV Advertising [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowance for doubtful accounts | ($5,615,000) | ($5,685,000) |
Note_6_Other_Receivables_Net_D
Note 6 - Other Receivables, Net (Details) | 6 Months Ended | 1 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | |
USD ($) | CNY | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | CNY | |||
Note 6 - Other Receivables, Net (Details) [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Net Amount | $4,060,000 | 25,000,000 | ' | ' |
Proceeds from Collection of Loans Receivable | $927,000 | 5,710,000 | $739,000 | 4,550,000 |
Note_6_Other_Receivables_Net_D1
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ' | ' |
Allowance for doubtful accounts | ($961) | ($968) |
Other receivables, net | 2,603 | 4,299 |
Short-term loans to unrelated entities | 400 | 790 |
Term deposit interest receivable | 114 | 57 |
Short-term Loan Made for Marketing Campaign [Member] | ' | ' |
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ' | ' |
Other receivables, gross | 697 | 1,636 |
Disposal of Fixed Assets [Member] | ' | ' |
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ' | ' |
Other receivables, gross | 97 | 98 |
Disposal of Subsidiaries [Member] | ' | ' |
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ' | ' |
Other receivables, gross | 1,186 | 1,611 |
Staff Advances [Member] | ' | ' |
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ' | ' |
Other receivables, gross | 109 | 107 |
Overdue Deposits [Member] | ' | ' |
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ' | ' |
Other receivables, gross | $961 | $968 |
Note_7_Prepayments_and_Deposit2
Note 7 - Prepayments and Deposit to Suppliers (Details) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
USD ($) | CNY | USD ($) | Deposits To TV Ad And Internet Ad Resources Providers [Member] | Internet Ad [Member] | TV Ad [Member] | |
USD ($) | USD ($) | USD ($) | ||||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Subsequent Utilization of Advanced Payments | $680,000 | 4,200,000 | ' | ' | ' | ' |
$3,460,000 | ' | ($258,000) | $1,400,000 | $1,400,000 | $600,000 |
Note_7_Prepayments_and_Deposit3
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | $18,041 | $14,692 |
Deposits To TV Ad And Internet Ad Resources Providers [Member] | ' | ' |
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ' | ' |
Prepayment and deposit to suppliers | 10,367 | 8,907 |
Prepayment to TV Ad and Internet Ad Resources Providers [Member] | ' | ' |
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ' | ' |
Prepayment and deposit to suppliers | 7,268 | 5,292 |
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 | $406 | $493 |
Note_8_Due_from_Related_Partie2
Note 8 - Due from Related Parties (Details) - Due from Related Parties (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | $412 | $502 |
Beijing Fengshangyinli Technology [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | ' | 36 |
Beijing Saimeiwei Food Equipment Technology [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | 267 | 295 |
Beijing Telijie Century Environmental Technology [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due from related parties, current | $145 | $171 |
Note_9_Investment_in_and_Advan2
Note 9 - Investment in and Advance to Equity Investment Affiliates (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 9 - Investment in and Advance to Equity Investment Affiliates (Details) [Line Items] | ' | ' | ' | ' |
Income (Loss) from Equity Method Investments | ($43,000) | ($54,000) | ($58,000) | ($125,000) |
Shenzhen Mingshan [Member] | ' | ' | ' | ' |
Note 9 - Investment in and Advance to Equity Investment Affiliates (Details) [Line Items] | ' | ' | ' | ' |
Income (Loss) from Equity Method Investments | ' | -9,000 | -2,000 | -35,000 |
Zhao Shang Ke Hubei [Member] | ' | ' | ' | ' |
Note 9 - Investment in and Advance to Equity Investment Affiliates (Details) [Line Items] | ' | ' | ' | ' |
Income (Loss) from Equity Method Investments | ($43,000) | ($45,000) | ($56,000) | ($90,000) |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Investment in and Advance to Equity Investment Affiliates [Abstract] | ' | ' |
Investment in equity investment affiliates | $696 | $760 |
Advance to equity investment affiliates | 85 | 85 |
$781 | $845 |
Note_9_Investment_in_and_Advan4
Note 9 - Investment in and Advance to Equity Investment Affiliates (Details) - Movement of Investment in and Advance to Equity Investment Affiliates (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Balance | $781,000 | ' | $781,000 | ' | $845,000 |
Share of losses in equity investment affiliates | -43,000 | -54,000 | -58,000 | -125,000 | ' |
Exchange translation adjustment | ' | ' | -6,000 | ' | ' |
Shenzhen Mingshan [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Balance | 461,000 | ' | 461,000 | ' | 466,000 |
Share of losses in equity investment affiliates | ' | -9,000 | -2,000 | -35,000 | ' |
Exchange translation adjustment | ' | ' | -3,000 | ' | ' |
Zhao Shang Ke Hubei [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Balance | 320,000 | ' | 320,000 | ' | 379,000 |
Share of losses in equity investment affiliates | -43,000 | -45,000 | -56,000 | -90,000 | ' |
Exchange translation adjustment | ' | ' | ($3,000) | ' | ' |
Note_10_Property_and_Equipment2
Note 10 - Property and Equipment, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation | $93,000 | $156,000 | $189,000 | $311,000 |
Note_10_Property_and_Equipment3
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ' | ' |
Property and equipment, gross | $3,532 | $3,543 |
Less: accumulated depreciation | -2,657 | -2,486 |
Property and equipment, net | 875 | 1,057 |
Vehicles [Member] | ' | ' |
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ' | ' |
Property and equipment, gross | 859 | 865 |
Office Equipment [Member] | ' | ' |
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ' | ' |
Property and equipment, gross | 1,437 | 1,433 |
Electronic Devices [Member] | ' | ' |
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ' | ' |
Property and equipment, gross | $1,236 | $1,245 |
Note_11_Intangible_Assets_Net_1
Note 11 - Intangible Assets, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Amortization of Intangible Assets | $262,000 | $266,000 | $526,000 | $529,000 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 524,000 | ' | 524,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,048,000 | ' | 1,048,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,008,000 | ' | 1,008,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 508,000 | ' | 508,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $310,000 | ' | $310,000 | ' |
Note_11_Intangible_Assets_Net_2
Note 11 - Intangible Assets, Net (Details) - Intangible Assets, Net (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | $8,603 | $8,665 |
Less: accumulated amortization | -3,156 | -2,650 |
Intangible assets, net | 5,447 | 6,015 |
Domain Name [Member] | ' | ' |
Intangible assets not subject to amortization: | ' | ' |
Domain name | 1,569 | 1,580 |
Contract Backlog [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | 201 | 203 |
Customer Relationships [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | 3,522 | 3,548 |
Noncompete Agreements [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | 1,393 | 1,403 |
Software Technologies [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | 333 | 335 |
Cloud-computing Based Software Platforms [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | 1,507 | 1,518 |
Other Computer Software [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Finite-lived intangible assets | $78 | $78 |
Note_12_Deposit_for_Purchasing1
Note 12 - Deposit for Purchasing of Software Technology (Details) | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
USD ($) | CNY | USD ($) | CNY | Computer Software, Intangible Asset [Member] | |
USD ($) | |||||
Note 12 - Deposit for Purchasing of Software Technology (Details) [Line Items] | ' | ' | ' | ' | ' |
Deposits Assets, Noncurrent | ' | ' | $2.44 | 15 | ' |
Software Technology Contract | ' | ' | ' | 13 | 2.11 |
Payments for Software | $0.84 | 5.2 | ' | ' | ' |
Note_13_Goodwill_Details_Goodw
Note 13 - Goodwill (Details) - Goodwill (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
US$(’000) | ' |
Balance | $11,450 |
Exchange translation adjustment | -82 |
Balance | $11,368 |
Note_14_ShortTerm_Bank_Loan_De
Note 14 - Short-Term Bank Loan (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | Peoples Republic of China [Member] | ||
Note 14 - Short-Term Bank Loan (Details) [Line Items] | ' | ' | ' | ' | ' | ||
Short-term Bank Loans and Notes Payable | $812 | [1] | 5,000 | $818 | [1] | 5,000 | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | 30.00% | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.80% | 7.80% | 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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
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 | $523 | [1] | $676 | [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 | 450 | 382 | ||
Accrued Operating Expenses [Member] | ' | ' | ||
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | ' | ' | ||
Accrued payroll and other accruals | $73 | $294 | ||
[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
Note 17 - Taxation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
British Virgin Islands [Member] | Hong Kong [Member] | Hong Kong [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | Amortization of Acquired Intangible Assets [Member] | Tax Treaty Agreement [Member] | Rise King WFOE [Member] | Parent Company [Member] | Parent Company [Member] | PRC Subsidiary and VIEs [Member] | PRC Subsidiary and VIEs [Member] | PRC Subsidiary and VIEs [Member] | Maximum [Member] | Minimum [Member] | |||||
Provision of Modern Services Small Scale Tax Payer [Member] | After 2015 [Member] | Scenario, After Deducting the VAT Paid for the Services from Suppliers [Member] | Scenario, After Deducting the VAT Paid for the Services from Suppliers [Member] | Scenario, Without Any Deduction of VAT Paid for the Services from Suppliers [Member] | Scenario, Without Any Deduction of VAT Paid for the Services from Suppliers [Member] | Standard Rate [Member] | Preferential EIT Rate [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Rise King WFOE [Member] | Business Opportunity Online [Member] | Business Opportunity Online [Member] | Business Opportunity Online Hubei [Member] | Business Opportunity Online Hubei [Member] | Business Opportunity Online Hubei [Member] | Business Opportunity Online Hubei [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | |||||||||||||||||||||||
Business Opportunity Online Hubei [Member] | Business Opportunity Online Hubei [Member] | Business Opportunity Online Hubei [Member] | Business Opportunity Online [Member] | Business Opportunity Online [Member] | |||||||||||||||||||||||||||||||||||||||||
Note 17 - Taxation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profits, Assessable (in Dollars) | 0 | ' | 0 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Tax Expense (Benefit) (in Dollars) | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Enterprise Income Tax Rate in PRC | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | 25.00% | 12.50% | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | 25.00% | ' | 25.00% | ' | ' | 25.00% | 25.00% | 15.00% | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Years Entitled to EIT Exemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Reduction in Applicable EIT Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Years Entitled to EIT Reduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable Income Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 12.50% | 25.00% | 12.50% | 25.00% | 15.00% | 15.00% | 12.50% | ' | 12.50% | ' | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) (in Dollars) | 72,000 | 354,000 | 120,000 | 268,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 Value Added Tax Rate For Modern Service Provided | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRC Value Added Tax Rate For Modern Service Provided Small Scale Tax Payer | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PRC Value Added Tax Surcharge Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 12.00% |
Deferred Tax Liabilities Reversal (in Dollars) | ' | ' | -112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -56,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,973,000 | 6,840,000 | 11,268,000 | 11,268,000 | 7,253,000 | ' | ' |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $333,000 | $572,000 | ' | ' | ' |
Note_17_Taxation_Details_Taxes
Note 17 - Taxation (Details) - Taxes Payable (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Note 17 - Taxation (Details) - Taxes Payable [Line Items] | ' | ' | ||
Taxes payable | $7,152 | [1] | $7,029 | [1] |
Turnover Tax and Surcharge Payable [Member] | ' | ' | ||
Note 17 - Taxation (Details) - Taxes Payable [Line Items] | ' | ' | ||
Taxes payable | 2,327 | 2,343 | ||
Enterprise Income Tax Payable [Member] | ' | ' | ||
Note 17 - Taxation (Details) - Taxes Payable [Line Items] | ' | ' | ||
Taxes payable | $4,825 | $4,686 | ||
[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 | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 17 - Taxation (Details) - Income Tax Expense [Line Items] | ' | ' | ' | ' |
Current-PRC | ($197,000) | ($475,000) | ($377,000) | ($705,000) |
Deferred-PRC | 125,000 | 252,000 | 257,000 | 437,000 |
-72,000 | -354,000 | -120,000 | -268,000 | |
Adjustment Due to New Tax Rate Enactment [Member] | ' | ' | ' | ' |
Note 17 - Taxation (Details) - Income Tax Expense [Line Items] | ' | ' | ' | ' |
Current-PRC | ' | ($131,000) | ' | ' |
Note_17_Taxation_Details_Defer
Note 17 - Taxation (Details) - Deferred Tax Liabilities (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
US$(’000) | ' | ' |
Balance | $1,317,000 | $1,439,000 |
Reversal during the period | -112,000 | ' |
Exchange translation adjustment | ($10,000) | ' |
Note_17_Taxation_Details_Defer1
Note 17 - Taxation (Details) - Deferred Tax Assets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets [Abstract] | ' | ' |
Tax effect of net operating losses carried forward | $4,650 | $3,899 |
Bad debts provision | 1,616 | 1,594 |
Valuation allowance | -5,217 | -4,581 |
$1,049 | $912 |
Note_17_Taxation_Details_Defer2
Note 17 - Taxation (Details) - Deferred Tax Assets - Reclassification (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets - Reclassification [Abstract] | ' | ' |
Deferred tax assets reclassified as current asset | $168 | $153 |
Deferred tax assets reclassified as non-current asset | 881 | 759 |
$1,049 | $912 |
Note_18_LongTerm_Borrowing_fro2
Note 18 - Long-Term Borrowing from Director (Details) - Long-term Borrowing from Director (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Borrowing from Director [Abstract] | ' | ' |
Long-term borrowing from director | $142 | $143 |
Note_19_Warrants_Details_Warra
Note 19 - Warrants (Details) - Warrants Issued and Outstanding (USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Warrants Outstanding [Member] | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Number of underlying shares | ' | 2,363,456 | 2,363,456 |
Weighted Average Exercise Price | $3.52 | $3.52 | ' |
Average Remaining Contractual Life (years) | '229 days | '51 days | ' |
Warrants Exercisable [Member] | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Number of underlying shares | ' | 2,363,456 | 2,363,456 |
Weighted Average Exercise Price | $3.52 | $3.52 | ' |
Average Remaining Contractual Life (years) | '229 days | '51 days | ' |
Note_20_Restricted_Net_Assets_
Note 20 - Restricted Net Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
PRC Subsidiary and VIEs [Member] | PRC Subsidiary and VIEs [Member] | WFOE [Member] | Domestic Enterprise [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 | $7,300,000 | $7,300,000 | ' | ' | ' | ' |
Withholding Tax Rate Pursuant To EIT Law | 10.00% | ' | ' | ' | ' | ' |
Preferential Withholding Tax Rate | 5.00% | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | 16,966,000 | 18,965,000 | 37,200,000 | 39,300,000 | ' | ' |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends | $2,602,000 | $2,602,000 | $2,800,000 | $2,800,000 | ' | ' |
Note_21_Related_Party_Transact2
Note 21 - Related Party Transactions (Details) - Revenue from Related Parties (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from Related Parties | $182 | $115 | $183 | $174 |
Beijing Saimeiwei Food Equipment Technology [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from Related Parties | 182 | 78 | 182 | 122 |
Beijing Fengshangyinli Technology [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from Related Parties | ' | 4 | 1 | 6 |
Beijing Telijie Century Environmental Technology [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Revenue from Related Parties | ' | $33 | ' | $46 |
Note_22_Employee_Defined_Contr1
Note 22 - Employee Defined Contribution Plan (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | $136,000 | $111,000 | $265,000 | $231,000 |
Note_23_Concentration_of_Risk_
Note 23 - Concentration of Risk (Details) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Supplier 1 [Member] | Supplier 1 [Member] | Supplier 1 [Member] | Supplier 1 [Member] | Supplier 2 [Member] | Supplier 2 [Member] | Supplier 2 [Member] | Supplier 2 [Member] | Supplier 3 [Member] | Supplier 3 [Member] | Customer 1 [Member] | Customer 1 [Member] | Customer 1 [Member] | Customer 1 [Member] | Customer 2 [Member] | Customer 2 [Member] | Customer 2 [Member] | Customer 2 [Member] | Customer 3 [Member] | |
Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Cost of Sales, Total [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Supplier Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |
Note 23 - Concentration of Risk (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 71.00% | 34.00% | 64.00% | 34.00% | 19.00% | 23.00% | 22.00% | 29.00% | 19.00% | 14.00% | 30.00% | 20.00% | 16.00% | 13.00% | 17.00% | 19.00% | 12.00% | 12.00% | 10.00% |
Note_24_Commitments_Details
Note 24 - Commitments (Details) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 19, 2013 | |
USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | CNY | Xuanfu Liu [Member] | |
Note 24 - Commitments (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | $117,000 | ' | ' | $112,000 | $261,000 | $249,000 | ' | ' | ' |
Contractual Obligation | ' | ' | ' | ' | ' | ' | ' | ' | 2,110,000 | 13,000,000 | ' |
Contractual Obligation Amount Paid | ' | ' | ' | 840,000 | 5,200,000 | ' | ' | ' | ' | ' | ' |
Minority Interest Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34.00% |
Loss Contingency, Damages Sought, Value | $92,100 | 560,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_24_Commitments_Details_Th
Note 24 - Commitments (Details) - The Company’s Contractual Obligations | Oct. 31, 2013 | Oct. 31, 2013 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY | Office Rental [Member] |
USD ($) | |||
Note 24 - Commitments (Details) - The Company’s Contractual Obligations [Line Items] | ' | ' | ' |
-2014 | ' | ' | $196 |
-2015 | ' | ' | 343 |
-2016 | ' | ' | 83 |
Total | $2,110 | 13,000 | $622 |
Note_25_Segment_Reporting_Deta
Note 25 - Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Share-based Compensation | $9,000 | $11,000 | $17,000 | $21,000 |
Note_25_Segment_Reporting_Deta1
Note 25 - Segment Reporting (Details) - Summary of Segment Reporting Information (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | $10,361,000 | $8,892,000 | $15,544,000 | $15,941,000 | ' | ||||
Cost of sales | 8,665,000 | 5,290,000 | 12,487,000 | 9,757,000 | ' | ||||
Total operating expenses | 2,970,000 | 2,809,000 | 4,996,000 | 5,448,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | ' | ' | 715,000 | 840,000 | ' | ||||
Operating income (loss) | -1,274,000 | 793,000 | -1,939,000 | 736,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -43,000 | -54,000 | -58,000 | -125,000 | ' | ||||
Net income (loss) | -1,378,000 | 416,000 | -2,092,000 | 405,000 | ' | ||||
Total assets | 55,280,000 | ' | 55,280,000 | ' | 56,834,000 | ||||
Internet Ad [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 8,228,000 | 5,436,000 | 11,808,000 | 9,247,000 | ' | ||||
Cost of sales | 6,853,000 | 2,620,000 | 9,395,000 | 4,264,000 | ' | ||||
Total operating expenses | 2,325,000 | 1,691,000 | 3,850,000 | 3,274,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 242,000 | 259,000 | 489,000 | 516,000 | ' | ||||
Operating income (loss) | -950,000 | 1,125,000 | -1,437,000 | 1,709,000 | ' | ||||
Expenditure for long-term assets | ' | 847,000 | 850,000 | 853,000 | ' | ||||
Net income (loss) | -994,000 | 845,000 | -1,493,000 | 1,510,000 | ' | ||||
Total assets | 50,301,000 | ' | 50,301,000 | ' | 51,324,000 | ||||
TV Ad [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 1,812,000 | 2,489,000 | 2,994,000 | 5,127,000 | ' | ||||
Cost of sales | 1,677,000 | 2,243,000 | 2,772,000 | 4,743,000 | ' | ||||
Total operating expenses | 128,000 | 373,000 | 222,000 | 755,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 11,000 | 13,000 | 22,000 | 25,000 | ' | ||||
Operating income (loss) | 7,000 | -127,000 | ' | -371,000 | ' | ||||
Net income (loss) | -10,000 | -172,000 | -32,000 | -431,000 | ' | ||||
Total assets | 16,486,000 | ' | 16,486,000 | ' | 17,022,000 | ||||
Bank Kiosk [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 67,000 | 71,000 | 138,000 | 140,000 | ' | ||||
Cost of sales | 5,000 | ' | 5,000 | ' | ' | ||||
Total operating expenses | 32,000 | 52,000 | 63,000 | 105,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 32,000 | 52,000 | 63,000 | 105,000 | ' | ||||
Operating income (loss) | 30,000 | 19,000 | 70,000 | 35,000 | ' | ||||
Net income (loss) | 30,000 | 19,000 | 70,000 | 35,000 | ' | ||||
Total assets | 355,000 | ' | 355,000 | ' | 420,000 | ||||
Brand Management and Sales Channel Building [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 254,000 | 896,000 | 604,000 | 1,427,000 | ' | ||||
Cost of sales | 130,000 | 427,000 | 315,000 | 750,000 | ' | ||||
Total operating expenses | 143,000 | 307,000 | 283,000 | 551,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 50,000 | 55,000 | 100,000 | 109,000 | ' | ||||
Operating income (loss) | -19,000 | 162,000 | 6,000 | 126,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -43,000 | -45,000 | -56,000 | -90,000 | ' | ||||
Expenditure for long-term assets | ' | ' | 1,000 | ' | ' | ||||
Net income (loss) | -62,000 | 77,000 | -57,000 | 5,000 | ' | ||||
Total assets | 4,482,000 | ' | 4,482,000 | ' | 4,524,000 | ||||
Others [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total operating expenses | 342,000 | [1] | 386,000 | [2] | 578,000 | [3] | 763,000 | [4] | ' |
Depreciation and amortization expense included in total operating expenses | 20,000 | 43,000 | 41,000 | 85,000 | ' | ||||
Operating income (loss) | -342,000 | -386,000 | -578,000 | -763,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | ' | -9,000 | -2,000 | -35,000 | ' | ||||
Expenditure for long-term assets | ' | 2,000 | 12,000 | 7,000 | ' | ||||
Net income (loss) | -342,000 | -353,000 | -580,000 | -714,000 | ' | ||||
Total assets | 6,465,000 | ' | 6,465,000 | ' | 7,065,000 | ||||
Inter Segment and Reconciling Item [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Total assets | -22,809,000 | ' | -22,809,000 | ' | -23,521,000 | ||||
Report Total [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | 10,361,000 | 8,892,000 | 15,544,000 | 15,941,000 | ' | ||||
Cost of sales | 8,665,000 | 5,290,000 | 12,487,000 | 9,757,000 | ' | ||||
Total operating expenses | 2,970,000 | 2,809,000 | 4,996,000 | 5,448,000 | ' | ||||
Depreciation and amortization expense included in total operating expenses | 355,000 | 422,000 | 715,000 | 840,000 | ' | ||||
Operating income (loss) | -1,274,000 | 793,000 | -1,939,000 | 736,000 | ' | ||||
Share of earnings (losses) in equity investment affiliates | -43,000 | -54,000 | -58,000 | -125,000 | ' | ||||
Expenditure for long-term assets | ' | 849,000 | 863,000 | 860,000 | ' | ||||
Net income (loss) | -1,378,000 | 416,000 | -2,092,000 | 405,000 | ' | ||||
Total assets | $55,280,000 | ' | $55,280,000 | ' | $56,834,000 | ||||
[1] | Including approximately US$9,000 share-based compensation expenses. | ||||||||
[2] | Including approximately US$11,000 share-based compensation expenses. | ||||||||
[3] | Including approximately US$17,000 share-based compensation expenses. | ||||||||
[4] | Including approximately US$21,000 share-based compensation expenses. |
Note_26_Earnings_Per_Share_Det
Note 26 - Earnings Per Share (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Warrant [Member] | ' | ' | ' | ' |
Note 26 - Earnings Per Share (Details) [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,363,456 | 2,363,456 | 2,363,456 | 2,363,456 |
Equity 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 | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Basic and Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net (loss)/income attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | ($1,331) | $434 | ($1,999) | $464 |
Weighted average number of common shares outstanding - Basic | 22,376,540 | 22,200,166 | 22,376,540 | 22,193,391 |
Weighted average number of common shares outstanding -Diluted | 22,376,540 | 22,200,166 | 22,376,540 | 22,193,391 |
(Loss)/earnings per share-Basic | ($0.06) | $0.02 | ($0.09) | $0.02 |
(Loss)/earnings per share-Diluted | ($0.06) | $0.02 | ($0.09) | $0.02 |
Note_27_ShareBased_Compensatio2
Note 27 - Share-Based Compensation Expenses (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||||
Nov. 30, 2009 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 30, 2009 | Nov. 30, 2009 | Nov. 30, 2011 | |
MZ-HCI [Member] | MZ-HCI [Member] | MZ-HCI [Member] | MZ-HCI [Member] | Options Issued to Three Directors [Member] | Options Vesting Quarterly [Member] | The 2011 Omnibus Securities and Incentive Plan [Member] | ||||||
Note 27 - Share-Based Compensation Expenses (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued (in Shares) | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | $0.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Stock and Warrants for Services or Claims | ' | ' | $17,000 | $21,000 | ' | $8,400 | $10,500 | $16,800 | $21,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Independent Directors | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 885,440 |
Share-based Compensation Arrangements by Share-based Payment Award Options Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.20 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | $17,000 | ' | ' | $21,000 | ' | ' | ' | ' | ' | ' | ' |
Note_27_ShareBased_Compensatio3
Note 27 - Share-Based Compensation Expenses (Details) - Options Issued and Outstanding (USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Options Outstanding [Member] | ' | ' | ' |
Note 27 - Share-Based Compensation Expenses (Details) - Options Issued and Outstanding [Line Items] | ' | ' | ' |
Option Outstanding, Number of underlying shares | ' | 939,440 | 939,440 |
Option Outstanding, Weighted Average Remaining Contractual Life (Years) | '7 years 186 days | '7 years 3 days | ' |
Option Outstanding, Weighted Average Exercise Price | ' | $1.42 | $1.42 |
Options Exercisable [Member] | ' | ' | ' |
Note 27 - Share-Based Compensation Expenses (Details) - Options Issued and Outstanding [Line Items] | ' | ' | ' |
Option Exercisable, Number of underlying shares | ' | 939,440 | 939,440 |
Option Exercisable, Weighted Average Remaining Contractual Life (Years) | '7 years 186 days | '7 years 3 days | ' |
Option Exercisable, Weighted Average Exercise Price | ' | $1.42 | $1.42 |