Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 15-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ChinaNet Online Holdings, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 29,230,130 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1376321 | |
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 | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited)(USD ($)) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $2,184 | $5,037 | ||
Term deposit | 3,452 | 3,465 | ||
Accounts receivable, net | 2,660 | 2,407 | ||
Other receivables, net | 8,160 | 8,392 | ||
Prepayment and deposit to suppliers | 10,235 | 8,092 | ||
Due from related parties | 59 | 51 | ||
Other current assets | 177 | 61 | ||
Deferred tax assets-current | 291 | 176 | ||
Total current assets | 27,218 | 27,681 | ||
Long-term investments | 1,089 | 909 | ||
Property and equipment, net | 853 | 943 | ||
Intangible assets, net | 8,847 | 9,238 | ||
Deposit and prepayment for purchasing of software technology | 847 | 850 | ||
Goodwill | 6,746 | 6,772 | ||
Deferred tax assets-non current | 1,106 | 1,037 | ||
Total Assets | 46,706 | 47,430 | ||
Current liabilities: | ||||
Short-term bank loan * | 814 | [1] | 817 | [1] |
Accounts payable * | 741 | [1] | 782 | [1] |
Advances from customers * | 2,108 | [1] | 832 | [1] |
Accrued payroll and other accruals * | 512 | [1] | 585 | [1] |
Due to noncontrolling interest of VIE * | 636 | [1] | 638 | [1] |
Payable for purchasing of software technology * | 2,489 | [1] | 2,826 | [1] |
Taxes payable * | 3,294 | [1] | 3,332 | [1] |
Other payables * | 626 | [1] | 602 | [1] |
Total current liabilities | 11,220 | 10,414 | ||
Long-term liabilities: | ||||
Deferred tax liability-non current * | 922 | [1] | 964 | [1] |
Long-term borrowing from director | 142 | 143 | ||
Total Liabilities | 12,284 | 11,521 | ||
ChinaNet Online Holdings, Inc.’s stockholders’ equity | ||||
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 29,080,130 shares and 29,030,130 shares at March 31, 2015 and December 31, 2014, respectively) | 29 | 29 | ||
Additional paid-in capital | 25,158 | 24,703 | ||
Statutory reserves | 2,607 | 2,607 | ||
Retained earnings | 3,434 | 5,222 | ||
Accumulated other comprehensive income | 3,504 | 3,625 | ||
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 34,732 | 36,186 | ||
Noncontrolling interests | -310 | -277 | ||
Total equity | 34,422 | 35,909 | ||
Total Liabilities and Equity | $46,706 | $47,430 | ||
[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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 29,080,130 | 29,030,130 |
Common stock, shares outstanding | 29,080,130 | 29,030,130 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Sales | ||
From unrelated parties | $5,785,000 | $5,182,000 |
From related parties | 63,000 | 1,000 |
5,848,000 | 5,183,000 | |
Cost of sales | 4,946,000 | 3,822,000 |
Gross margin | 902,000 | 1,361,000 |
Operating expenses | ||
Sales and marketing expenses | 1,203,000 | 589,000 |
General and administrative expenses | 1,302,000 | 987,000 |
Research and development expenses | 490,000 | 450,000 |
2,995,000 | 2,026,000 | |
Loss from operations | -2,093,000 | -665,000 |
Other income (expenses) | ||
Interest income | 29,000 | 31,000 |
Interest expense | -17,000 | -16,000 |
Other income/(expenses) | 32,000 | -1,000 |
44,000 | 14,000 | |
Loss before income tax expense, equity method investments and noncontrolling interests | -2,049,000 | -651,000 |
Income tax benefit/(expense) | 226,000 | -48,000 |
Loss before equity method investments and noncontrolling interests | -1,823,000 | -699,000 |
Share of income/(losses) in equity investment affiliates | 1,000 | -15,000 |
Net loss | -1,822,000 | -714,000 |
Net loss attributable to noncontrolling interests | 34,000 | 46,000 |
Foreign currency translation loss | -120,000 | -324,000 |
Comprehensive loss | -1,942,000 | -1,038,000 |
Comprehensive loss attributable to noncontrolling interests | 33,000 | 45,000 |
Comprehensive loss attributable to ChinaNet Online Holdings, Inc. | -1,909,000 | -993,000 |
Loss per common share | ||
Basic and diluted (in Dollars per share) | ($0.07) | ($0.03) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in Shares) | 26,366,797 | 22,376,540 |
Net loss attributable to ChinaNet Online Holdings, Inc. | ($1,788,000) | ($668,000) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($1,822) | ($714) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 444 | 360 |
Share-based compensation expenses | 455 | 8 |
Reverse of allowances for doubtful accounts | -220 | |
Share of (income)/losses in equity investment affiliates | -1 | 15 |
Deferred taxes | -226 | -132 |
Changes in operating assets and liabilities | ||
Accounts receivable | -42 | 520 |
Other receivables | 200 | 152 |
Prepayment and deposit to suppliers | -2,175 | -2,089 |
Due from related parties | -8 | 118 |
Other current assets | -119 | -78 |
Accounts payable | -38 | 168 |
Advances from customers | 1,279 | 134 |
Accrued payroll and other accruals | -72 | -36 |
Other payables | 42 | 71 |
Taxes payable | -25 | 152 |
Net cash used in operating activities | -2,328 | -1,351 |
Cash flows from investing activities | ||
Purchases of vehicles and office equipment | -13 | |
Long-term investment in cost/equity method investees | -183 | |
Repayment of short-term loan from unrelated entities | 250 | |
Payment for purchasing of software technology | -326 | -850 |
Net cash used in investing activities | -509 | -613 |
Cash flows from financing activities | ||
Short-term loan from noncontrolling interest of VIE | 197 | |
Net cash provided by financing activities | 197 | |
Effect of exchange rate fluctuation on cash and cash equivalents | -16 | -15 |
Net decrease in cash and cash equivalents | -2,853 | -1,782 |
Cash and cash equivalents at beginning of the period | 5,037 | 3,442 |
Cash and cash equivalents at end of the period | 2,184 | 1,660 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 1 | |
Interest expense paid | $17 | $16 |
Note_1_Organization_and_Nature
Note 1 - Organization and Nature of Operations | 3 Months Ended | |
Mar. 31, 2015 | ||
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, brand management and online-to-offline (O2O) sales channel building services for small and medium-sized enterprises (SMEs) and entrepreneurial management and networking services for entrepreneurs in the PRC. | ||
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”) (collectively the “PRC Operating Entities” or the “VIEs”), the Company, through the WFOE, secures significant rights to influence the PRC Operating Entities’ business operations, policies and management, approve all matters requiring shareholder approval, and the right to receive 100% of the income earned by the VIEs. Pursuant to the contractual agreements, all of the equity owners' rights and obligations of the VIEs were assigned to Rise King WFOE, which resulted in the equity owners lacking the ability to make decisions that have a significant effect on the VIEs, Rise King WFOE's ability to extract the profits from the operation of the VIEs and assume the residual benefits of the VIEs. Due to the fact that Rise King WFOE and its indirect parent are the sole interest holders of the VIEs, the Company included the assets, liabilities, revenues and expenses of the VIEs in its consolidated financial statements, which is consistent with the provisions of FASB Accounting Standards Codification ("ASC") Topic 810 “Consolidation”, subtopic 10. | ||
Beijing CNET Online is a 51% shareholder of Shanghai Borongdingsi Computer Technology Co., Ltd. (“Shanghai Borongdingsi”) and a 10% shareholder of Beijing Saturday Education Technology Co., Ltd. (“Beijing Saturday”). 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”) and a 25.5% shareholder of Zhao Shang Ke Network Technology (Hubei) Co., Ltd. (“Zhao Shang Ke Hubei”). | ||
In January 2015, the Company through its wholly-owned subsidiary, China Net BVI incorporated a new wholly-owned BVI company named ChinaNet Investment Holding Ltd. (“ChinaNet Investment BVI”). In March 2015, ChinaNet Investment BVI together with three individuals who were not affiliated with the Company, established ChinaNet Online Holdings Korea (“ChinaNet Korea”), a new entity incorporated in the Republic of Korea. ChinaNet Investment BVI invested US$20,000 cash and beneficially own 40% of the equity interest in ChinaNet Korea. | ||
In January 2015, the Company through one of its VIEs, Beijing CNET Online made an investment of RMB1,000,000 (approximately US$0.16 million) to Chuangshi Meiwei Food and Beverage Investment Management (Beijing) Co., Ltd. (“Chuangshi Meiwei” or “O'Yummy”). The Company beneficially owns 10% of the equity interest in Chuangshi Meiwei. | ||
The Company operated its business primarily in China through its PRC subsidiary and PRC operating entities, or VIEs as discussed above. | ||
Note_2_Variable_Interest_Entit
Note 2 - Variable Interest Entities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||
Variable Interest Entities Disclosure [Text Block] | 2. | Variable interest entities | |||||||
Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of March 31, 2015 and December 31, 2014, respectively: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 1,984 | $ | 4,239 | |||||
Term deposit | 3,452 | 3,465 | |||||||
Accounts receivable, net | 2,549 | 2,407 | |||||||
Other receivables, net | 8,132 | 8,349 | |||||||
Prepayment and deposit to suppliers | 10,234 | 8,091 | |||||||
Due from related parties | 8 | - | |||||||
Other current assets | 51 | 58 | |||||||
Deferred tax assets-current | 222 | 107 | |||||||
Total current assets | 26,632 | 26,716 | |||||||
Long-term investments | 1,025 | 865 | |||||||
Property and equipment, net | 789 | 869 | |||||||
Intangible assets, net | 8,847 | 9,238 | |||||||
Deposit and prepayment for purchasing of software technology | 847 | 850 | |||||||
Goodwill | 6,746 | 6,772 | |||||||
Deferred tax assets-non current | 864 | 795 | |||||||
Total Assets | $ | 45,750 | $ | 46,105 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 814 | $ | 817 | |||||
Accounts payable | 741 | 782 | |||||||
Advances from customers | 2,105 | 832 | |||||||
Accrued payroll and other accruals | 288 | 357 | |||||||
Due to Control Group | 11 | 11 | |||||||
Due to noncontrolling interest of VIE | 636 | 638 | |||||||
Payable for purchasing of software technology | 2,489 | 2,826 | |||||||
Taxes payable | 2,811 | 2,846 | |||||||
Other payables | 586 | 580 | |||||||
Total current liabilities | 10,481 | 9,689 | |||||||
Deferred tax Liabilities-non current | 922 | 964 | |||||||
Total Liabilities | $ | 11,403 | $ | 10,653 | |||||
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 three months ended March 31, 2015, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$5,744,000, cost of sales of approximately US$4,946,000, operating expenses of approximately US$2,277,000 and net loss before allocation to noncontrolling interests of approximately US$1,208,000. | |||||||||
For the three months ended March 31, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$5,099,000, cost of sales of approximately US$3,822,000, operating expenses of approximately US$1,612,000 and net loss before allocation to noncontrolling interests of approximately US$385,000. | |||||||||
Note_3_Summary_of_Significant_
Note 3 - Summary of Significant Accounting Policies | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Accounting Policies [Abstract] | |||||||
Significant Accounting Policies [Text Block] | 3. | Summary of significant accounting policies | |||||
a) | Basis of presentation | ||||||
The condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |||||||
The condensed consolidated interim financial information as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 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 condensed consolidated interim 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, 2014, previously filed with the SEC (the “2014 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 March 31, 2015, its consolidated results of operations for the three months ended March 31, 2015 and 2014, and its consolidated cash flows for the three months ended March 31, 2015 and 2014, 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 condensed consolidated interim 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 condensed 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 condensed consolidated financial statements are as follows: | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Balance sheet items, except for equity accounts | 6.1422 | 6.119 | |||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.138 | 6.1199 | |||||
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 “sales and marketing expenses” in the statements of operations and comprehensive loss. For the three months ended March 31, 2015 and 2014, advertising expenses for the Company’s own brand building were approximately US$648,000 and US$31,000, 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 three months ended March 31, 2015 and 2014 were approximately US$490,000 and US$450,000, respectively. | |||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. | |||||||
Note_4_Term_Deposit
Note 4 - Term Deposit | 3 Months Ended | |
Mar. 31, 2015 | ||
Term Deposit [Abstract] | ||
Term Deposit [Text Block] | 4. | Term deposit |
Term deposit as of March 31, 2015 and December 31, 2014 represented the amount of cash placed as a term deposit by one of the Company’s operating VIEs in a major financial institution in China, which management believes is of high credit quality. The term deposit will mature on July 7, 2015. The interest rate of the term deposit is 3.3% per annual. | ||
Note_5_Accounts_Receivable_Net
Note 5 - Accounts Receivable, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Receivable Disclosure [Abstract] | |||||||||
Accounts Receivable Disclosure [Text Block] | 5. | Accounts receivable, net | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accounts receivable | 5,450 | 5,429 | |||||||
Allowance for doubtful accounts | (2,790 | ) | (3,022 | ) | |||||
Accounts receivable, net | 2,660 | 2,407 | |||||||
All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of March 31, 2015 and December 31, 2014, the Company provided approximately US$2,790,000 and US$3,022,000 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 three months ended March 31, 2015, approximately US$220,000 allowance for doubtful accounts was reversed. For the three months ended March 31, 2014, no allowance for doubtful accounts was provided or reversed. | |||||||||
Note_6_Other_Receivables_Net
Note 6 - Other Receivables, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. | Other receivables, net | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Short-term loan made for marketing campaign | - | 65 | |||||||
Term deposit interest receivable | 85 | 56 | |||||||
Staff advances for normal business purpose | 104 | 73 | |||||||
TV advertisement deposit and prepayment receivable | 7,808 | 8,034 | |||||||
Overdue deposits | 1,016 | 1,020 | |||||||
Allowance for doubtful debts | (853 | ) | (856 | ) | |||||
Other receivables, net | 8,160 | 8,392 | |||||||
TV advertisement deposit and prepayment receivable represented deposit and prepayment made to an agent of one of the provincial satellite TV stations partnered with the Company. The Company had decided to terminate its cooperation with this TV station and its agent upon expiration of the 2014 contact on December 31, 2014. In accordance with the agreement between the Company and the agent, the amount will be refunded to the Company within 2015. As of the date hereof, the Company has received in the aggregate of RMB6.2 million (approximately US$1.0 million) refund of this amount, of which RMB1.2 million (approximately US$0.2 million) was collected during the three months ended March 31, 2015. | |||||||||
For advertising resources purchase contracts signed by the Company and its resources 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 March 31, 2015 and December 31, 2014, the Company provided approximately US$853,000 and US$856,000 allowance for doubtful accounts, respectively, which was related to the deposits of its internet advertising and TV advertising business segment. For the three months ended March 31, 2015 and 2014, no allowance for doubtful accounts was provided or reversed. | |||||||||
Note_7_Prepayments_and_Deposit
Note 7 - Prepayments and Deposit to Suppliers | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Text Block] | 7. | Prepayments and deposit to suppliers | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deposits to TV advertisement and internet resources providers | 4,408 | 3,575 | |||||||
Prepayments to TV advertisement and internet resources providers | 5,755 | 4,451 | |||||||
Other deposits and prepayments | 72 | 66 | |||||||
10,235 | 8,092 | ||||||||
In order to provide advertising and marketing services, the Company partners with TV stations or its agents to obtain time slots for resale through broadcast advertisements to advertise brands, business information, products and services of its clients. 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 clients. | |||||||||
Deposits to TV advertisement and internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. | |||||||||
As of March 31, 2015, deposit to suppliers primarily consisted of the contractual deposits of approximately US$3.6 million to two of the Company’s largest internet resources suppliers and the contractual deposits of approximately US$0.8 million for the purchasing of TV advertising time slots. | |||||||||
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 March 31, 2015, prepayment to suppliers primarily consisted of approximately US$3.8 million prepayments to the Company’s internet resources suppliers and approximately US$2.0 million prepayment for the purchasing of TV advertising time slots. This US$2.0 million advanced payment was carried forward from previous years and was paid to a TV station which had been partnered with the Company for over five years. In response to the restrictions on TV shopping infomercial implemented by the related government authorities, which resulted in the decrease in the Company’s TV advertisement revenue, the Company discussed with the TV station possible alternatives of applying the balance of the advanced payment, as the amount was unlikely to be refunded to the Company, due to internal administrative policies of the TV station. The TV station and the Company agreed that the unconsumed advanced payment balance can be consumed by any third parties designated by the Company and approved by the TV station, who will broadcast advertisements or other similar TV programs using the balance of available time slots, and the Company will directly collect the amounts from the third parties for the time slots they utilized. The Company expects that the remaining advanced payment balance will be fully utilized within 2015. | |||||||||
Note_8_Due_from_Related_Partie
Note 8 - Due from Related Parties | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Due From Related Parties Disclosure [Abstract] | |||||||||
Due From Related Parties Disclosure [Text Block] | 8. | Due from related parties | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 59 | 51 | |||||||
Related parties of the Company represented direct or indirect unconsolidated investees of the Company or entities that are directly or indirectly owned by Mr. Handong Cheng or Mr. Xuanfu Liu, the owners of the Company’s PRC VIEs, Business Opportunities Online and Beijing CNET Online before the Offshore Restructuring. The Company provides advertising and marketing services to these related parties in its normal course of business on the same terms as those provided to its unrelated clients. Due from related parties represented the outstanding receivables for the advertising and marketing services that the Company provided to these related parties as of each reporting date. | |||||||||
Note_9_Longterm_Investments
Note 9 - Long-term Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 9. | Long-term investments | |||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Equity method investments: | |||||||||||||||||
Investment in equity method investees | 823 | 806 | |||||||||||||||
Advance to equity method investees | 85 | 85 | |||||||||||||||
908 | 891 | ||||||||||||||||
Cost method investments: | |||||||||||||||||
Investment in cost method investees | 181 | 18 | |||||||||||||||
Total long-term investments | 1,089 | 909 | |||||||||||||||
As of March 31, 2015, the Company beneficially owned 40%, 23.18% and 25.5% equity interest in ChinaNet Korea, Shenzhen Mingshan and Zhao Shang Ke Hubei, respectively. The Company accounts for its investments in these entities under equity method of accounting. The following table summarizes the movement of the investment in and advance to equity investment affiliates for the three months ended March 31, 2015: | |||||||||||||||||
ChinaNet Korea | Shenzhen Mingshan | Zhao Shang Ke Hubei | Total | ||||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$(’000) | ||||||||||||||
Balance as of December 31, 2014 (audited) | - | 461 | 430 | 891 | |||||||||||||
Share of income in equity investment affiliates | - | 1 | - | 1 | |||||||||||||
Investment in equity investment affiliates | 20 | - | - | 20 | |||||||||||||
Exchange translation adjustment | - | (2 | ) | (2 | ) | (4 | ) | ||||||||||
Balance as of March 31, 2015 (unaudited) | 20 | 460 | 428 | 908 | |||||||||||||
ChinaNet Korea is a new entity incorporated in March 2015 by ChinaNet Investment BVI and three other unaffiliated individuals in the Republic of Korea. The Company made an investment of US$20,000 and obtained 40% of the equity interest in ChinaNet Korea. | |||||||||||||||||
For the three months ended March 31, 2015, the Company recognized its pro-rata shares of income in Shenzhen Mingshan of approximately US$1,000. For the three months ended March 31, 2014, the Company recognized its pro-rata shares of loss in Shenzhen Mingshan of approximately US$2,000. For the three months ended March 31, 2015 and 2014, the Company recognized its pro-rata share of losses in Zhao Shang Ke Hubei of approximately US$nil and US$13,000, respectively. | |||||||||||||||||
In January 2015, the Company through one of its VIEs, Beijing CNET Online made an investment of RMB1,000,000 (approximately US$0.16 million) to Chuangshi Meiwei and obtained 10% equity interest in Chuangshi Meiwei. | |||||||||||||||||
As of March 31, 2015, the Company beneficially owns both 10% equity interest in Chuangshi Meiwei and Beijing Saturday. The Company accounts for these investments under cost method. For the three months ended March 31, 2015, the Company did not receive any distribution of earnings from Chuangshi Meiwei and Beijing Saturday. | |||||||||||||||||
Note_10_Property_and_Equipment
Note 10 - Property and Equipment, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 10. | Property and equipment, net | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Leasehold improvement | 180 | 180 | |||||||
Vehicles | 887 | 890 | |||||||
Office equipment | 1,410 | 1,415 | |||||||
Electronic devices | 1,239 | 1,244 | |||||||
Property and equipment, cost | 3,716 | 3,729 | |||||||
Less: accumulated depreciation | (2,863 | ) | (2,786 | ) | |||||
Property and equipment, net | 853 | 943 | |||||||
Depreciation expenses in the aggregate for the three months ended March 31, 2015 and 2014 were approximately US$87,000 and US$96,000, respectively. | |||||||||
Note_11_Intangible_Assets_Net
Note 11 - Intangible Assets, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Intangible Assets Disclosure [Text Block] | 11. | Intangible assets, net | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Intangible assets not subject to amortization: | |||||||||
Domain name | 1,572 | 1,579 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 202 | 202 | |||||||
Customer relationship | 3,531 | 3,545 | |||||||
Non-compete agreements | 1,397 | 1,402 | |||||||
Software technologies | 334 | 335 | |||||||
SMEs operation management applications | 5,257 | 5,277 | |||||||
Cloud-computing based software platforms | 1,511 | 1,517 | |||||||
Other computer software | 78 | 78 | |||||||
Intangible assets, cost | 13,882 | 13,935 | |||||||
Less: accumulated amortization | (4,046 | ) | (3,704 | ) | |||||
Less: accumulated impairment losses | (989 | ) | (993 | ) | |||||
Intangible assets, net | 8,847 | 9,238 | |||||||
Amortization expenses in aggregate for the three months ended March 31, 2015 and 2014 were approximately US$357,000 and US$264,000, respectively. | |||||||||
Based on the carrying value of the finite-lived intangible assets recorded as of March 31, 2015, and assuming no subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately US$1,068,000 for the nine months ended December 31, 2015, approximately US$1,418,000 for the year ended December 31, 2016, approximately US$917,000 for the year ended December 31, 2017, approximately US$865,000 for the year ended December 31, 2018 and approximately US$808,000 for the year ended December 31, 2019. | |||||||||
Note_12_Deposit_and_Prepayment
Note 12 - Deposit and Prepayment for Purchasing of Software Technology | 3 Months Ended | |
Mar. 31, 2015 | ||
Deposits For Purchasing Assets [Abstract] | ||
Deposits For Purchasing Assets [Text Block] | 12. | Deposit and prepayment for purchasing of software technology |
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, network security 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 million). The Company has paid a first installment of RMB5.2 million (approximately US$0.85 million). As of the date hereof, the Company is trial testing these software applications. The transaction as contemplated under the contract is expected to be consummated in the first half of 2015. | ||
Note_13_Goodwill
Note 13 - Goodwill | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Goodwill Disclosure [Text Block] | 13. | Goodwill | |||
Amount | |||||
US$(’000) | |||||
Balance as of December 31, 2014 (audited) | 6,772 | ||||
Exchange translation adjustment | (26 | ) | |||
Balance as of March 31, 2015 (unaudited) | 6,746 | ||||
Note_14_Shortterm_Bank_Loan
Note 14 - Short-term Bank Loan | 3 Months Ended | |
Mar. 31, 2015 | ||
Disclosure Text Block [Abstract] | ||
Short-term Debt [Text Block] | 14. | Short-term bank loan |
Short-term bank loan as of March 31, 2015 and December 31, 2014 represented a short-term bank loan of approximately RMB5.0 million (approximately US$0.8 million) borrowed by one of the Company’s VIEs from a major financial institution in China to supplement its short-term working capital needs. The short-term loan will mature on September 29, 2015. The interest rate of the short-term bank loan is a floating lending rate, which is 40% over the benchmark rate of the People’s Bank of China (the “PBOC”). As of March 31, 2015 and December 31, 2014, the interest rate of the short-term loan was 8.4%. | ||
Note_15_Accrued_Payroll_and_Ot
Note 15 - Accrued Payroll and Other Accruals | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 15. | Accrued payroll and other accruals | |||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accrued payroll and staff welfare | 319 | 388 | |||||||
Accrued operating expenses | 193 | 197 | |||||||
512 | 585 | ||||||||
Note_16_Due_to_Noncontrolling_
Note 16 - Due to Noncontrolling Interest of VIE | 3 Months Ended | |
Mar. 31, 2015 | ||
Due To Noncontrolling Interest Of VIE [Abstract] | ||
Due To Noncontrolling Interest Of VIE [Text Block] | 16. | Due to noncontrolling interest of VIE |
As of March 31, 2015 and December 31, 2014, due to noncontrolling interest of VIE represented the outstanding balance of the 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. The Company expects to repay the balance within fiscal 2015. | ||
Note_17_Payable_for_Purchasing
Note 17 - Payable for Purchasing of Software Technology | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounts Payable And Accrued Liabilities For Software Disclosure [Abstract] | ||
Accounts Payable And Accrued Liabilities For Software Disclosure [Text Block] | 17. | Payable for purchasing of software technology |
Payable for purchasing of software technology as of March 31, 2015 represented the outstanding balance payment of approximately RMB15.29 million (approximately US$2.5 million) for purchasing of software technology, which transaction consummated in December 2014. As of the date hereof, the Company has made an additional payment of RMB5,000,000 (approximately US$0.8 million) subsequently to the counter party. In accordance with the agreement signed between the Company and the counter party, the remaining unpaid balance will be paid before July 31, 2015. | ||
Note_18_Taxation
Note 18 - Taxation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | 18. | 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 three months ended March 31, 2015, 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 three months ended March 31, 2015 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. | |||||||||
● | 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. 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 is currently in the process of applying for the High and New Technology Enterprise qualification with the related government authorities and 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. Therefore, for the three months ended March 31, 2015 and 2014, the Company used 15% as the applicable income tax rate for Business Opportunity Online. | ||||||||
● | 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 both 12.5% for the three months ended March 31, 2015 and 2014. After fiscal 2015, the applicable income tax rate for Business Opportunity Online Hubei will be 25% under the current EIT law of PRC. | ||||||||
● | The applicable income tax rate for other PRC operating entities of the Company was 25% for both the three months ended March 31, 2015 and 2014. | ||||||||
● | 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 three months ended March 31, 2015 and 2014, all of the preferential income tax treatments enjoyed by the Company’s PRC 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 VIEs operate in. 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 three months ended March 31, 2015 and 2014, 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 March 31, 2015 and December 31, 2014, taxes payable consists of: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Turnover tax and surcharge payable | 1,144 | 1,173 | |||||||
Enterprise income tax payable | 2,150 | 2,159 | |||||||
3,294 | 3,332 | ||||||||
For the three months ended March 31, 2015 and 2014, the Company’s income tax benefit/(expense) consisted of: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Current-PRC | - | (180 | ) | ||||||
Deferred-PRC | 226 | 132 | |||||||
226 | (48 | ) | |||||||
The Company’s deferred tax liabilities at March 31, 2015 and changes for the three months then ended were as follows: | |||||||||
Amount | |||||||||
US$(’000) | |||||||||
Balance as of December 31, 2014 (audited) | 964 | ||||||||
Reversal during the period | (38 | ) | |||||||
Exchange translation adjustment | (4 | ) | |||||||
Balance as of March 31, 2015 (unaudited) | 922 | ||||||||
Deferred tax liabilities arose on the recognition of the identifiable intangible assets acquired from acquisition transactions and deconsolidation of VIEs consummated in previous years. Reversal for the three months ended March 31, 2015 of approximately US$38,000 was due to amortization of the acquired intangible assets. | |||||||||
The Company’s deferred tax assets at March 31, 2015 and December 31, 2014 were as follows: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Tax effect of net operating losses carried forward | 7,099 | 6,655 | |||||||
Bad debts provision | 885 | 943 | |||||||
Valuation allowance | (6,587 | ) | (6,385 | ) | |||||
1,397 | 1,213 | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deferred tax assets reclassified as current asset | 291 | 176 | |||||||
Deferred tax assets reclassified as non-current asset | 1,106 | 1,037 | |||||||
1,397 | 1,213 | ||||||||
The net operating losses carried forward incurred by the Company (excluding its PRC operating subsidiary and VIEs) were approximately US$12,690,000 and US$12,161,000 at March 31, 2015 and December 31, 2014, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2035. 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$13,970,000 and US$12,401,000 at March 31, 2015 and December 31, 2014, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2020. 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$80,000 and US$239,000 valuation allowance for the three months ended March 31, 2015 and 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_19_Longterm_Borrowing_fro
Note 19 - Long-term Borrowing from Director | 3 Months Ended | |
Mar. 31, 2015 | ||
Long Term Borrowing From Director Disclosure [Abstract] | ||
Long Term Borrowing From Director Disclosure [Text Block] | 19. | Long-term borrowing from director |
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_20_Restricted_Net_Assets
Note 20 - Restricted Net Assets | 3 Months Ended | ||
Mar. 31, 2015 | |||
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 March 31, 2015 and December 31, 2014, 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. | |||
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: | |||
● | Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules; | ||
● | 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 March 31, 2015 and December 31, 2014, there was approximately US$29.4 million and US$30.8 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 March 31, 2015 and December 31, 2014, 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$7.3 million restricted net assets as of March 31, 2015 and December 31, 2014, as discussed above. | |||
Note_21_Related_Party_Transact
Note 21 - Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions Disclosure [Text Block] | 21. | Related party transactions | |||||||
Revenue from related parties: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 37 | - | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | - | 1 | |||||||
-Beijing Saturday Education Technology Co., Ltd. | 26 | - | |||||||
63 | 1 | ||||||||
Note_22_Employee_Defined_Contr
Note 22 - Employee Defined Contribution Plan | 3 Months Ended | |
Mar. 31, 2015 | ||
Compensation and Retirement Disclosure [Abstract] | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | 22. | Employee defined contribution plan |
Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as incurred. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits were approximately US$144,000 and US$129,000 for the three months ended March 31, 2015 and 2014, respectively. | ||
Note_23_Concentration_of_Risk
Note 23 - Concentration of Risk | 3 Months Ended | |
Mar. 31, 2015 | ||
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 March 31, 2015 and December 31, 2014, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China, 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 three months ended March 31, 2015, two customers individually accounted for 27% and 25% of the Company’s sales, respectively. For the three months ended March 31, 2014, one customer accounted for 23% of the Company’s sales. Except for the afore-mentioned, there was no other single customer who accounted for more than 10% of the Company’s sales for the three months ended March 31, 2015 or 2014. | ||
As of March 31, 2015, two customers individually accounted for 15% and 19% of the Company’s accounts receivables, respectively. As of December 31, 2014, the same two customers individually accounted for 19% and 18% 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 March 31, 2015 or December 31, 2014. | ||
Concentration of suppliers | ||
For the three months ended March 31, 2015, one supplier accounted for 84% of the Company’s cost of sales. For the three months ended March 31, 2014, two suppliers individually accounted for 47% and 29% 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 three months ended March 31, 2015 or 2014. | ||
Note_24_Commitments_and_Contin
Note 24 - Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 24. | Commitments and contingencies | |||
The following table sets forth the Company’s operating lease commitment as of March 31, 2015: | |||||
Office Rental | |||||
US$(’000) | |||||
(Unaudited) | |||||
Nine months ending December 31, | |||||
-2015 | 283 | ||||
Year ending December 31, | |||||
-2016 | 134 | ||||
Total | 417 | ||||
For the three months ended March 31, 2015 and 2014, rental expenses under operating leases were approximately US$110,000 and US$144,000, respectively. | |||||
In December 2014, the Company entered into a purchase agreement of RMB32.29 million (approximately US$5 million) with an unrelated counter party for the purchasing of software applications related to operation management applications for SMEs. As of March 31, 2015 and the date hereof, the Company had paid in the aggregate of RMB17 million (approximately US$2.8 million) and RMB22 million (approximately US$3.6 million), respectively. The remaining unpaid contract amount needs to be paid before July 31, 2015. | |||||
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, network security 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$2.1 million) and a first installment of RMB5.2 million (approximately US$0.85 million) was paid in 2014. The transaction as contemplated under the contract is expected to be consummated in the first half of 2015 and the remaining unpaid contract amount is expected to be paid in the first half of 2015. | |||||
Legal Proceedings | |||||
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 denied all of the allegations against it and defended vigorously against the lawsuit. The Company currently cannot estimate the amount or range of possible losses from this litigation. | |||||
Note_25_Segment_Reporting
Note 25 - Segment Reporting | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
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”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance. | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 (Unaudited) | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and reconciling item | |||||||||||||||||||||||||
and sales | |||||||||||||||||||||||||||||
channel | |||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 5,598 | 58 | 69 | 123 | - | - | 5,848 | ||||||||||||||||||||||
Cost of sales | 4,755 | 109 | 3 | 79 | - | - | 4,946 | ||||||||||||||||||||||
Total operating expenses | 2,097 | 98 | 30 | 74 | 696 | * | - | 2,995 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 388 | 1 | 30 | 16 | 9 | - | 444 | ||||||||||||||||||||||
Operating loss | (1,254 | ) | (149 | ) | 36 | (30 | ) | (696 | ) | - | (2,093 | ) | |||||||||||||||||
Share of income in equity investment affiliates | - | - | - | - | 1 | - | 1 | ||||||||||||||||||||||
Expenditure for long-term assets | 326 | - | - | - | - | - | 326 | ||||||||||||||||||||||
Net income (loss) | (988 | ) | (150 | ) | 36 | (25 | ) | (695 | ) | - | (1,822 | ) | |||||||||||||||||
Total assets – March 31, 2015 | 43,799 | 12,275 | 265 | 2,907 | 6,077 | (18,617 | ) | 46,706 | |||||||||||||||||||||
Total assets – December 31, 2014 | 43,851 | 13,228 | 296 | 2,989 | 6,558 | (19,492 | ) | 47,430 | |||||||||||||||||||||
*Including approximate US$455,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 (Unaudited) | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and reconciling item | |||||||||||||||||||||||||
and sales | |||||||||||||||||||||||||||||
channel | |||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 3,580 | 1,182 | 71 | 350 | - | - | 5,183 | ||||||||||||||||||||||
Cost of sales | 2,542 | 1,095 | - | 185 | - | - | 3,822 | ||||||||||||||||||||||
Total operating expenses | 1,525 | 94 | 31 | 140 | 236 | * | - | 2,026 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 247 | 11 | 31 | 50 | 21 | - | 360 | ||||||||||||||||||||||
Operating income (loss) | (487 | ) | (7 | ) | 40 | 25 | (236 | ) | - | (665 | ) | ||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (13 | ) | (2 | ) | - | (15 | ) | |||||||||||||||||||
Expenditure for long-term assets | 850 | - | - | 1 | 12 | - | 863 | ||||||||||||||||||||||
Net income (loss) | (499 | ) | (22 | ) | 40 | 5 | (238 | ) | - | (714 | ) | ||||||||||||||||||
*Including approximate US$8,400 share-based compensation expenses. | |||||||||||||||||||||||||||||
Note_26_Loss_Per_Share
Note 26 - Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | 26. | Loss per share | |||||||
Basic and diluted loss per share for each of the periods presented are calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of U.S. dollars): | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | (1,788 | ) | $ | (668 | ) | |||
Weighted average number of common shares outstanding - Basic | 26,366,797 | 22,376,540 | |||||||
Effect of diluted securities: | |||||||||
Unvested restricted common stocks | - | - | |||||||
Warrants and Options | - | - | |||||||
Weighted average number of common shares outstanding -Diluted | 26,366,797 | 22,376,540 | |||||||
Loss per share-Basic and diluted | $ | (0.07 | ) | $ | (0.03 | ) | |||
For the three months ended March 31, 2015, the diluted loss per share calculation did not include the 2,666,667 shares of unvested restricted common stock and the options to purchase up to 894,940 shares of the Company’s common stock, respectively, because their effect was anti-dilutive, as the Company incurred a loss during the period. | |||||||||
For the three months ended March 31, 2014, the diluted loss per share calculation did not include the warrants and options to purchase up to 2,363,456 and 939,440 shares of the Company’s common stock, respectively, because their effect was anti-dilutive, as the Company incurred a loss during the period. | |||||||||
Note_27_Sharebased_Compensatio
Note 27 - Share-based Compensation Expenses | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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 granted 50,000 shares and 40,000 shares of the Company’s restricted common stock to its investor relations services provider, in exchange for its services to the Company for the years ended December 31, 2015 and 2014, respectively. These shares were valued at US$1.20 per share and US$0.84 per share, the closing bid price of the Company’s common stock on the date of grant, respectively. Total compensation expense recognized for the services was US$15,000 and US$8,400 for the three months ended March 31, 2015 and 2014, respectively. The shares attributable to fiscal 2015 were issued in March 2015. | |||||||||||||||||||||||||
The Company granted 300,000 shares of the Company’s restricted common stock to a technical service provider in exchange for its services to the Company for a 12-month period commencing on August 1, 2014, of which 150,000 restricted shares was vested on August 1, 2014, and 150,000 restricted shares were vested on February 1, 2015. These shares were valued at US$0.67 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense recognized for the three months ended March 31, 2015 was US$50,250. | |||||||||||||||||||||||||
On December 30, 2014, the Company granted 4,200,000 shares of the Company’s restricted common stock to its executive officers, of which 1,533,333 restricted shares was vested upon issuance, 1,333,333 restricted shares will be vested on December 30, 2015 and the remaining 1,333,334 restricted shares will be vested on December 30, 2016. The restricted stock was valued at $1.17 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation cost recognized for the three months ended March 31, 2015 was US$390,000. | |||||||||||||||||||||||||
Under the Company’s 2011 Omnibus Securities and Incentive Plan, the Company granted common stock purchase options to its management, employees and directors. Options issued and outstanding at March 31, 2015 and their movements during the three months then ended are as follows: | |||||||||||||||||||||||||
Option Outstanding | Option Exercisable | ||||||||||||||||||||||||
Number of underlying shares | Weighted | Weighted | Number of underlying shares | Weighted | Weighted | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||||
Remaining | Exercise | Remaining | Exercise | ||||||||||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||||||||
Life (Years) | Life (Years) | ||||||||||||||||||||||||
Balance, December 31, 2014 (audited) | 894,940 | 6.48 | $ | 1.21 | 894,940 | 6.48 | $ | 1.21 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, March 31, 2015 (unaudited) | 894,940 | 6.24 | $ | 1.21 | 894,940 | 6.24 | $ | 1.21 | |||||||||||||||||
The aggregate unrecognized share-based compensation expenses as of March 31, 2015 and 2014 is approximately US$2,842,000 and US$25,000, respectively. | |||||||||||||||||||||||||
Note_28_Subsequent_Event
Note 28 - Subsequent Event | 3 Months Ended | |
Mar. 31, 2015 | ||
Subsequent Events [Abstract] | ||
Subsequent Events [Text Block] | 28. | Subsequent event |
The Company has performed an evaluation of subsequent events through the date the financial statements were issued, and has determined that there are no such events that are material to the financial statements, except as disclosed below. | ||
In April 2015, the Company made an investment of RMB0.02 million (approximately US$0.003 million) to Guohua Shiji (Beijing) Communication Co., Ltd. (“Guohua Shiji”) and obtained 19% equity interest in Guohua Shiji. | ||
In April 2015, as disclosed in Note 27, the Company issued the remaining 150,000 shares of the Company’s restricted common stock to a technical service provider, which shares were vested on February 1, 2015. | ||
On May 5, 2015, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Beijing Jinrun Fangzhou Science & Technology Co, Ltd., a public company listed on the Shenzhen Stock Exchange of the PRC (the “Purchaser”), pursuant to which the Purchaser agreed to purchase 2,800,000 shares of common stock of the Company (the “Shares”) for an aggregate purchase price of US$3,500,000 (the “Purchase Price”). The Purchaser made a 10% non-refundable guarantee payment to the Company in an amount equal to US$350,000 on May 7, 2015. The Purchaser shall pay an additional 15% of the Purchase Price by June 4, 2015. The Purchaser shall pay the remaining 75% of the Purchase Price at the closing which shall take place on the date mutually agreed to by the parties, subject to the closing conditions contained in the Agreement. On the date the Agreement was signed, the Purchaser also entered into a Lock-Up Agreement with the Company, whereby the Purchaser agreed not to transfer the Shares until May 5, 2017. Upon the Company’s prior written approval, the lock-up restriction may be waived after May 5, 2016. | ||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Accounting Policies [Abstract] | |||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation | ||||||
The condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |||||||
The condensed consolidated interim financial information as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 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 condensed consolidated interim 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, 2014, previously filed with the SEC (the “2014 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 March 31, 2015, its consolidated results of operations for the three months ended March 31, 2015 and 2014, and its consolidated cash flows for the three months ended March 31, 2015 and 2014, 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 condensed consolidated interim 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 condensed 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 condensed consolidated financial statements are as follows: | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Balance sheet items, except for equity accounts | 6.1422 | 6.119 | |||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.138 | 6.1199 | |||||
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 “sales and marketing expenses” in the statements of operations and comprehensive loss. For the three months ended March 31, 2015 and 2014, advertising expenses for the Company’s own brand building were approximately US$648,000 and US$31,000, 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 three months ended March 31, 2015 and 2014 were approximately US$490,000 and US$450,000, respectively. |
Note_2_Variable_Interest_Entit1
Note 2 - Variable Interest Entities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||
Schedule of Variable Interest Entities [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 1,984 | $ | 4,239 | |||||
Term deposit | 3,452 | 3,465 | |||||||
Accounts receivable, net | 2,549 | 2,407 | |||||||
Other receivables, net | 8,132 | 8,349 | |||||||
Prepayment and deposit to suppliers | 10,234 | 8,091 | |||||||
Due from related parties | 8 | - | |||||||
Other current assets | 51 | 58 | |||||||
Deferred tax assets-current | 222 | 107 | |||||||
Total current assets | 26,632 | 26,716 | |||||||
Long-term investments | 1,025 | 865 | |||||||
Property and equipment, net | 789 | 869 | |||||||
Intangible assets, net | 8,847 | 9,238 | |||||||
Deposit and prepayment for purchasing of software technology | 847 | 850 | |||||||
Goodwill | 6,746 | 6,772 | |||||||
Deferred tax assets-non current | 864 | 795 | |||||||
Total Assets | $ | 45,750 | $ | 46,105 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 814 | $ | 817 | |||||
Accounts payable | 741 | 782 | |||||||
Advances from customers | 2,105 | 832 | |||||||
Accrued payroll and other accruals | 288 | 357 | |||||||
Due to Control Group | 11 | 11 | |||||||
Due to noncontrolling interest of VIE | 636 | 638 | |||||||
Payable for purchasing of software technology | 2,489 | 2,826 | |||||||
Taxes payable | 2,811 | 2,846 | |||||||
Other payables | 586 | 580 | |||||||
Total current liabilities | 10,481 | 9,689 | |||||||
Deferred tax Liabilities-non current | 922 | 964 | |||||||
Total Liabilities | $ | 11,403 | $ | 10,653 |
Note_3_Summary_of_Significant_1
Note 3 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Note 3 - Summary of Significant Accounting Policies (Tables) [Line Items] | |||||||
Foreign Currency Exchange Rates [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||
Balance sheet items, except for equity accounts | 6.1422 | 6.119 | |||||
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] | Three Months Ended March 31, | ||||||
2015 | 2014 | ||||||
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.138 | 6.1199 |
Note_5_Accounts_Receivable_Net1
Note 5 - Accounts Receivable, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Receivable Disclosure [Abstract] | |||||||||
Schedule Of Accounts Receivable [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accounts receivable | 5,450 | 5,429 | |||||||
Allowance for doubtful accounts | (2,790 | ) | (3,022 | ) | |||||
Accounts receivable, net | 2,660 | 2,407 |
Note_6_Other_Receivables_Net_T
Note 6 - Other Receivables, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Schedule of Other Receivables [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Short-term loan made for marketing campaign | - | 65 | |||||||
Term deposit interest receivable | 85 | 56 | |||||||
Staff advances for normal business purpose | 104 | 73 | |||||||
TV advertisement deposit and prepayment receivable | 7,808 | 8,034 | |||||||
Overdue deposits | 1,016 | 1,020 | |||||||
Allowance for doubtful debts | (853 | ) | (856 | ) | |||||
Other receivables, net | 8,160 | 8,392 |
Note_7_Prepayments_and_Deposit1
Note 7 - Prepayments and Deposit to Suppliers (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | |||||||||
Schedule Of Prepayments And Deposit To Suppliers [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deposits to TV advertisement and internet resources providers | 4,408 | 3,575 | |||||||
Prepayments to TV advertisement and internet resources providers | 5,755 | 4,451 | |||||||
Other deposits and prepayments | 72 | 66 | |||||||
10,235 | 8,092 |
Note_8_Due_from_Related_Partie1
Note 8 - Due from Related Parties (Tables) (Due From Related Parties [Member]) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Due From Related Parties [Member] | |||||||||
Note 8 - Due from Related Parties (Tables) [Line Items] | |||||||||
Schedule of Related Party Transactions [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 59 | 51 |
Note_9_Longterm_Investments_Ta
Note 9 - Long-term Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||
Schedule of Investment in and Advance to Equity Investment Affiliates [Table Text Block] | March 31, | December 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
US$(’000) | US$(’000) | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Equity method investments: | |||||||||||||||||
Investment in equity method investees | 823 | 806 | |||||||||||||||
Advance to equity method investees | 85 | 85 | |||||||||||||||
908 | 891 | ||||||||||||||||
Cost method investments: | |||||||||||||||||
Investment in cost method investees | 181 | 18 | |||||||||||||||
Total long-term investments | 1,089 | 909 | |||||||||||||||
Equity Method Investments [Table Text Block] | ChinaNet Korea | Shenzhen Mingshan | Zhao Shang Ke Hubei | Total | |||||||||||||
US$(’000) | US$(’000) | US$(’000) | US$(’000) | ||||||||||||||
Balance as of December 31, 2014 (audited) | - | 461 | 430 | 891 | |||||||||||||
Share of income in equity investment affiliates | - | 1 | - | 1 | |||||||||||||
Investment in equity investment affiliates | 20 | - | - | 20 | |||||||||||||
Exchange translation adjustment | - | (2 | ) | (2 | ) | (4 | ) | ||||||||||
Balance as of March 31, 2015 (unaudited) | 20 | 460 | 428 | 908 |
Note_10_Property_and_Equipment1
Note 10 - Property and Equipment, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Leasehold improvement | 180 | 180 | |||||||
Vehicles | 887 | 890 | |||||||
Office equipment | 1,410 | 1,415 | |||||||
Electronic devices | 1,239 | 1,244 | |||||||
Property and equipment, cost | 3,716 | 3,729 | |||||||
Less: accumulated depreciation | (2,863 | ) | (2,786 | ) | |||||
Property and equipment, net | 853 | 943 |
Note_11_Intangible_Assets_Net_
Note 11 - Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Intangible assets not subject to amortization: | |||||||||
Domain name | 1,572 | 1,579 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 202 | 202 | |||||||
Customer relationship | 3,531 | 3,545 | |||||||
Non-compete agreements | 1,397 | 1,402 | |||||||
Software technologies | 334 | 335 | |||||||
SMEs operation management applications | 5,257 | 5,277 | |||||||
Cloud-computing based software platforms | 1,511 | 1,517 | |||||||
Other computer software | 78 | 78 | |||||||
Intangible assets, cost | 13,882 | 13,935 | |||||||
Less: accumulated amortization | (4,046 | ) | (3,704 | ) | |||||
Less: accumulated impairment losses | (989 | ) | (993 | ) | |||||
Intangible assets, net | 8,847 | 9,238 |
Note_13_Goodwill_Tables
Note 13 - Goodwill (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Schedule of Goodwill [Table Text Block] | Amount | ||||
US$(’000) | |||||
Balance as of December 31, 2014 (audited) | 6,772 | ||||
Exchange translation adjustment | (26 | ) | |||
Balance as of March 31, 2015 (unaudited) | 6,746 |
Note_15_Accrued_Payroll_and_Ot1
Note 15 - Accrued Payroll and Other Accruals (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Accrued payroll and staff welfare | 319 | 388 | |||||||
Accrued operating expenses | 193 | 197 | |||||||
512 | 585 |
Note_18_Taxation_Tables
Note 18 - Taxation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Taxes Payable [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Turnover tax and surcharge payable | 1,144 | 1,173 | |||||||
Enterprise income tax payable | 2,150 | 2,159 | |||||||
3,294 | 3,332 | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Current-PRC | - | (180 | ) | ||||||
Deferred-PRC | 226 | 132 | |||||||
226 | (48 | ) | |||||||
Schedule of Deferred Tax Liabilities [Table Text Block] | Amount | ||||||||
US$(’000) | |||||||||
Balance as of December 31, 2014 (audited) | 964 | ||||||||
Reversal during the period | (38 | ) | |||||||
Exchange translation adjustment | (4 | ) | |||||||
Balance as of March 31, 2015 (unaudited) | 922 | ||||||||
Schedule of Deferred Tax Assets [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Tax effect of net operating losses carried forward | 7,099 | 6,655 | |||||||
Bad debts provision | 885 | 943 | |||||||
Valuation allowance | (6,587 | ) | (6,385 | ) | |||||
1,397 | 1,213 | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | |||||||||
Deferred tax assets reclassified as current asset | 291 | 176 | |||||||
Deferred tax assets reclassified as non-current asset | 1,106 | 1,037 | |||||||
1,397 | 1,213 |
Note_21_Related_Party_Transact1
Note 21 - Related Party Transactions (Tables) (Revenue from Related Parties [Member]) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Revenue from Related Parties [Member] | |||||||||
Note 21 - Related Party Transactions (Tables) [Line Items] | |||||||||
Schedule of Related Party Transactions [Table Text Block] | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 37 | - | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | - | 1 | |||||||
-Beijing Saturday Education Technology Co., Ltd. | 26 | - | |||||||
63 | 1 |
Note_24_Commitments_and_Contin1
Note 24 - Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Office Rental | ||||
US$(’000) | |||||
(Unaudited) | |||||
Nine months ending December 31, | |||||
-2015 | 283 | ||||
Year ending December 31, | |||||
-2016 | 134 | ||||
Total | 417 |
Note_25_Segment_Reporting_Tabl
Note 25 - Segment Reporting (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Internet | TV | Bank | Brand | Others | Inter- | Total | ||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and reconciling item | |||||||||||||||||||||||||
and sales | |||||||||||||||||||||||||||||
channel | |||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 5,598 | 58 | 69 | 123 | - | - | 5,848 | ||||||||||||||||||||||
Cost of sales | 4,755 | 109 | 3 | 79 | - | - | 4,946 | ||||||||||||||||||||||
Total operating expenses | 2,097 | 98 | 30 | 74 | 696 | * | - | 2,995 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 388 | 1 | 30 | 16 | 9 | - | 444 | ||||||||||||||||||||||
Operating loss | (1,254 | ) | (149 | ) | 36 | (30 | ) | (696 | ) | - | (2,093 | ) | |||||||||||||||||
Share of income in equity investment affiliates | - | - | - | - | 1 | - | 1 | ||||||||||||||||||||||
Expenditure for long-term assets | 326 | - | - | - | - | - | 326 | ||||||||||||||||||||||
Net income (loss) | (988 | ) | (150 | ) | 36 | (25 | ) | (695 | ) | - | (1,822 | ) | |||||||||||||||||
Total assets – March 31, 2015 | 43,799 | 12,275 | 265 | 2,907 | 6,077 | (18,617 | ) | 46,706 | |||||||||||||||||||||
Total assets – December 31, 2014 | 43,851 | 13,228 | 296 | 2,989 | 6,558 | (19,492 | ) | 47,430 | |||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | segment and reconciling item | |||||||||||||||||||||||||
and sales | |||||||||||||||||||||||||||||
channel | |||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 3,580 | 1,182 | 71 | 350 | - | - | 5,183 | ||||||||||||||||||||||
Cost of sales | 2,542 | 1,095 | - | 185 | - | - | 3,822 | ||||||||||||||||||||||
Total operating expenses | 1,525 | 94 | 31 | 140 | 236 | * | - | 2,026 | |||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 247 | 11 | 31 | 50 | 21 | - | 360 | ||||||||||||||||||||||
Operating income (loss) | (487 | ) | (7 | ) | 40 | 25 | (236 | ) | - | (665 | ) | ||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (13 | ) | (2 | ) | - | (15 | ) | |||||||||||||||||||
Expenditure for long-term assets | 850 | - | - | 1 | 12 | - | 863 | ||||||||||||||||||||||
Net income (loss) | (499 | ) | (22 | ) | 40 | 5 | (238 | ) | - | (714 | ) |
Note_26_Loss_Per_Share_Tables
Note 26 - Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 31, | ||||||||
2015 | 2014 | ||||||||
US$(’000) | US$(’000) | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | (1,788 | ) | $ | (668 | ) | |||
Weighted average number of common shares outstanding - Basic | 26,366,797 | 22,376,540 | |||||||
Effect of diluted securities: | |||||||||
Unvested restricted common stocks | - | - | |||||||
Warrants and Options | - | - | |||||||
Weighted average number of common shares outstanding -Diluted | 26,366,797 | 22,376,540 | |||||||
Loss per share-Basic and diluted | $ | (0.07 | ) | $ | (0.03 | ) |
Note_27_Sharebased_Compensatio1
Note 27 - Share-based Compensation Expenses (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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 underlying shares | Weighted | Weighted | Number of underlying shares | Weighted | Weighted | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||||
Remaining | Exercise | Remaining | Exercise | ||||||||||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||||||||
Life (Years) | Life (Years) | ||||||||||||||||||||||||
Balance, December 31, 2014 (audited) | 894,940 | 6.48 | $ | 1.21 | 894,940 | 6.48 | $ | 1.21 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, March 31, 2015 (unaudited) | 894,940 | 6.24 | $ | 1.21 | 894,940 | 6.24 | $ | 1.21 |
Note_1_Organization_and_Nature1
Note 1 - Organization and Nature of Operations (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jan. 30, 2015 | Jan. 30, 2015 |
USD ($) | USD ($) | PRC Operating Entities Business Operations, VIE [Member] | Shanghai Borongdingsi [Member] | Beijing Chuang Fu Tian Xia [Member] | Shenzhen Mingshan [Member] | Zhao Shang Ke Hubei [Member] | ChinaNet Korea [Member] | Chuangshi Meiwei [Member] | Chuangshi Meiwei [Member] | |
Beijing CNET Online [Member] | USD ($) | USD ($) | CNY | |||||||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | ||||||||||
Income Earned Percentage | 100.00% | |||||||||
Consolidated Subsidiary Ownership Percentage | 51.00% | 51.00% | ||||||||
Cost Method Investment, Ownership Percentage | 10.00% | 10.00% | 10.00% | |||||||
Equity Method Investment, Ownership Percentage | 23.18% | 25.50% | 40.00% | |||||||
Number of Unaffiliated Investors in Business Entity | 3 | |||||||||
Equity Method Investment, Aggregate Cost (in Dollars) | $20,000 | |||||||||
Cost Method Investments | $181,000 | $18,000 | $160,000 | 1,000,000 |
Note_2_Variable_Interest_Entit2
Note 2 - Variable Interest Entities (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Note 2 - Variable Interest Entities (Details) [Line Items] | ||
Sales Revenue, Services, Net | $5,848,000 | $5,183,000 |
Cost of Services | 4,946,000 | 3,822,000 |
Operating Expenses | 2,995,000 | 2,026,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -1,822,000 | -714,000 |
VIEs [Member] | ||
Note 2 - Variable Interest Entities (Details) [Line Items] | ||
Sales Revenue, Services, Net | 5,744,000 | 5,099,000 |
Cost of Services | 4,946,000 | 3,822,000 |
Operating Expenses | -2,277,000 | 1,612,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $1,208,000 | $385,000 |
Note_2_Variable_Interest_Entit3
Note 2 - Variable Interest Entities (Details) - Consolidated VIEs’ Assets and Liabilities | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | VIEs [Member] | VIEs [Member] | ||
USD ($) | USD ($) | |||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $2,184 | $5,037 | $1,660 | $3,442 | $1,984 | $4,239 | ||||
Term deposit | 3,452 | 3,465 | 3,452 | 3,465 | ||||||
Accounts receivable, net | 2,660 | 2,407 | 2,549 | 2,407 | ||||||
Other receivables, net | 8,160 | 8,392 | 8,132 | 8,349 | ||||||
Prepayment and deposit to suppliers | 10,235 | 8,092 | 10,234 | 8,091 | ||||||
Due from related parties | 59 | 51 | 8 | |||||||
Other current assets | 177 | 61 | 51 | 58 | ||||||
Deferred tax assets-current | 291 | 176 | 222 | 107 | ||||||
Total current assets | 27,218 | 27,681 | 26,632 | 26,716 | ||||||
Long-term investments | 1,089 | 909 | 1,025 | 865 | ||||||
Property and equipment, net | 853 | 943 | 789 | 869 | ||||||
Intangible assets, net | 8,847 | 9,238 | 8,847 | 9,238 | ||||||
Deposit and prepayment for purchasing of software technology | 847 | 850 | 847 | 850 | ||||||
Goodwill | 6,746 | 6,772 | 6,746 | 6,772 | ||||||
Deferred tax assets-non current | 1,106 | 1,037 | 864 | 795 | ||||||
Total Assets | 46,706 | 47,430 | 45,750 | 46,105 | ||||||
Current liabilities: | ||||||||||
Short-term bank loan | 814 | [1] | 5,000 | 817 | [1] | 5,000 | 814 | 817 | ||
Accounts payable | 741 | [1] | 782 | [1] | 741 | 782 | ||||
Advances from customers | 2,108 | [1] | 832 | [1] | 2,105 | 832 | ||||
Accrued payroll and other accruals | 512 | [1] | 585 | [1] | 288 | 357 | ||||
Due to Control Group | 11 | 11 | ||||||||
Due to noncontrolling interest of VIE | 636 | [1] | 638 | [1] | 636 | 638 | ||||
Payable for purchasing of software technology | 2,489 | [1] | 2,826 | [1] | 2,489 | 2,826 | ||||
Taxes payable | 3,294 | [1] | 3,332 | [1] | 2,811 | 2,846 | ||||
Other payables | 626 | [1] | 602 | [1] | 586 | 580 | ||||
Total current liabilities | 11,220 | 10,414 | 10,481 | 9,689 | ||||||
Deferred tax Liabilities-non current | 922 | [1] | 964 | [1] | 922 | 964 | ||||
Total Liabilities | $12,284 | $11,521 | $11,403 | $10,653 | ||||||
[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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Accounting Policies [Abstract] | ||
Advertising Expense | $648,000 | $31,000 |
Research and Development Expense | $490,000 | $450,000 |
Note_3_Summary_of_Significant_3
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ (Balance Sheet Items Except Equity Accounts [Member]) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 6.1422 | 6.119 |
Note_3_Summary_of_Significant_4
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ (Statements of Income, Comprehensive Income and Cash Flows [Member]) | Mar. 31, 2015 | Mar. 31, 2014 |
Statements of Income, Comprehensive Income and Cash Flows [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.138 | 6.1199 |
Note_4_Term_Deposit_Details
Note 4 - Term Deposit (Details) | Mar. 31, 2015 | Dec. 31, 2014 |
Term Deposit [Abstract] | ||
Time Deposits, Weighted Average Interest Rate, Maturities Year One | 3.30% | 3.30% |
Note_5_Accounts_Receivable_Net2
Note 5 - Accounts Receivable, Net (Details) (Internet Advertising and TV Advertising [Member], USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Internet Advertising and TV Advertising [Member] | |||
Note 5 - Accounts Receivable, Net (Details) [Line Items] | |||
Allowance for Doubtful Accounts Receivable, Current | $2,790,000 | $3,022,000 | |
Number of Months Past Due | 6 months | ||
Provision for Doubtful Accounts, Reversal | $220,000 | $0 |
Note_5_Accounts_Receivable_Net3
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net [Line Items] | ||
Accounts receivable | $5,450,000 | $5,429,000 |
Accounts receivable, net | 2,660,000 | 2,407,000 |
Internet Advertising and TV Advertising [Member] | ||
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net [Line Items] | ||
Allowance for doubtful accounts | ($2,790,000) | ($3,022,000) |
Note_6_Other_Receivables_Net_D
Note 6 - Other Receivables, Net (Details) | 3 Months Ended | 16 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | 15-May-15 | 15-May-15 | Mar. 31, 2015 | Dec. 31, 2014 | |
USD ($) | CNY | Subsequent Event [Member] | Subsequent Event [Member] | Internet Advertising And TV Advertising Contractual Deposit [Member] | Internet Advertising And TV Advertising Contractual Deposit [Member] | |
USD ($) | CNY | USD ($) | USD ($) | |||
Note 6 - Other Receivables, Net (Details) [Line Items] | ||||||
Proceeds from Refunds from Suppliers | $200,000 | 1,200,000 | $1,000,000 | 6,200,000 | ||
Allowance for Doubtful Accounts Receivable | 853,000 | 856,000 | ||||
Provision for Doubtful Accounts | ($220,000) | $0 | $0 |
Note_6_Other_Receivables_Net_D1
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Allowance for doubtful debts | ($853) | ($856) |
Other receivables, net | 8,160 | 8,392 |
Term deposit interest receivable | 85 | 56 |
Short-term Loan Made for Marketing Campaign [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 65 | |
Staff Advances [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 104 | 73 |
TV Advertisement Deposit and Prepayment [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 7,808 | 8,034 |
Overdue Deposits [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | $1,016 | $1,020 |
Note_7_Prepayments_and_Deposit2
Note 7 - Prepayments and Deposit to Suppliers (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | $10,235 | $8,092 |
Number of Largest Internet Resources Suppliers | 2 | |
Two Largest Internet Resources Suppliers [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | 3,600 | |
TV Advertising Time Supplier [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | 800 | |
Internet Resources Suppliers Prepayment [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | 3,800 | |
Number of Years TV Station Partnered with Company | 5 years | |
Purchasing TV Time Slots [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | $2,000 |
Note_7_Prepayments_and_Deposit3
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayments and deposit to suppliers | $10,235 | $8,092 |
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] | ||
Prepayments and deposit to suppliers | 4,408 | 3,575 |
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] | ||
Prepayments and deposit to suppliers | 5,755 | 4,451 |
Other Deposits and Prepayments [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayments and deposit to suppliers | $72 | $66 |
Note_8_Due_from_Related_Partie2
Note 8 - Due from Related Parties (Details) - Due from Related Parties (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | $59 | $51 |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | $59 | $51 |
Note_9_Longterm_Investments_De
Note 9 - Long-term Investments (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 | Jan. 30, 2015 | Jan. 30, 2015 | Mar. 31, 2015 | |
USD ($) | USD ($) | USD ($) | ChinaNet Korea [Member] | Shenzhen Mingshan [Member] | Shenzhen Mingshan [Member] | Zhao Shang Ke Hubei [Member] | Zhao Shang Ke Hubei [Member] | Chuangshi Meiwei [Member] | Chuangshi Meiwei [Member] | Beijing Saturday and Chuangshi Meiwei [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | |||||
Note 9 - Long-term Investments (Details) [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 23.18% | 25.50% | ||||||||
Number of Unaffiliated Investors in Business Entity | 3 | ||||||||||
Equity Method Investment, Aggregate Cost | $20,000 | ||||||||||
Income (Loss) from Equity Method Investments | 1,000 | -15,000 | 1,000 | -2,000 | -13,000 | ||||||
Cost Method Investments | 181,000 | 18,000 | 160,000 | 1,000,000 | |||||||
Cost Method Investment, Ownership Percentage | 10.00% | 10.00% | 10.00% | ||||||||
Income (Loss) from Cost Method Investments Distributions | $0 |
Note_9_Longterm_Investments_De1
Note 9 - Long-term Investments (Details) - Summary of Investment in and Advance to Equity Investment Affiliates (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Equity method investments: | ||
Investment in equity method investees | $823 | $806 |
Advance to equity method investees | 85 | 85 |
908 | 891 | |
Cost method investments: | ||
Investment in cost method investees | 181 | 18 |
Total long-term investments | $1,089 | $909 |
Note_9_Longterm_Investments_De2
Note 9 - Long-term Investments (Details) - Movement of Investment in and Advance to Equity Investment Affiliates (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Balance | $891,000 | |
Share of income in equity investment affiliates | 1,000 | -15,000 |
Investment in equity investment affiliates | 20,000 | |
Exchange translation adjustment | -4,000 | |
Balance | 908,000 | |
ChinaNet Korea [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in equity investment affiliates | 20,000 | |
Balance | 20,000 | |
Shenzhen Mingshan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Balance | 461,000 | |
Share of income in equity investment affiliates | 1,000 | -2,000 |
Exchange translation adjustment | -2,000 | |
Balance | 460,000 | |
Zhao Shang Ke Hubei [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Balance | 430,000 | |
Share of income in equity investment affiliates | -13,000 | |
Exchange translation adjustment | -2,000 | |
Balance | $428,000 |
Note_10_Property_and_Equipment2
Note 10 - Property and Equipment, Net (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $87,000 | $96,000 |
Note_10_Property_and_Equipment3
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $3,716 | $3,729 |
Less: accumulated depreciation | -2,863 | -2,786 |
Property and equipment, net | 853 | 943 |
Leaseholds and Leasehold Improvements [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 180 | 180 |
Vehicles [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 887 | 890 |
Office Equipment [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 1,410 | 1,415 |
Electronic Devices [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $1,239 | $1,244 |
Note_11_Intangible_Assets_Net_1
Note 11 - Intangible Assets, Net (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ||
Amortization of Intangible Assets | $357,000 | $264,000 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 1,068,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,418,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 917,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 865,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $808,000 |
Note_11_Intangible_Assets_Net_2
Note 11 - Intangible Assets, Net (Details) - Intangible Assets, Net (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | $13,882 | $13,935 |
Less: accumulated amortization | -4,046 | -3,704 |
Less: accumulated impairment losses | -989 | -993 |
Intangible assets, net | 8,847 | 9,238 |
Domain Name [Member] | ||
Intangible assets not subject to amortization: | ||
Domain name | 1,572 | 1,579 |
Contract Backlog [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 202 | 202 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 3,531 | 3,545 |
Noncompete Agreements [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 1,397 | 1,402 |
Software Technologies [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 334 | 335 |
SMEs Operation Management Applications [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 5,257 | 5,277 |
Cloud-computing Based Software Platforms [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 1,511 | 1,517 |
Other Computer Software [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | $78 | $78 |
Note_12_Deposit_and_Prepayment1
Note 12 - Deposit and Prepayment for Purchasing of Software Technology (Details) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
USD ($) | CNY | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | |
USD ($) | CNY | |||
Note 12 - Deposit and Prepayment for Purchasing of Software Technology (Details) [Line Items] | ||||
Software Technology Contract | $2 | 13 | ||
Payments for Software | $0.85 | 5.2 |
Note_13_Goodwill_Details_Goodw
Note 13 - Goodwill (Details) - Goodwill (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
US$(’000) | |
Balance as of December 31, 2014 (audited) | $6,772 |
Exchange translation adjustment | -26 |
Balance as of March 31, 2015 (unaudited) | $6,746 |
Note_14_Shortterm_Bank_Loan_De
Note 14 - Short-term Bank Loan (Details) | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | Peoples Republic of China [Member] | ||
Note 14 - Short-term Bank Loan (Details) [Line Items] | |||||||
Short-term Bank Loans and Notes Payable | $814 | [1] | 5,000 | $817 | [1] | 5,000 | |
Debt Instrument, Basis Spread on Variable Rate | 40.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.40% | 8.40% | 8.40% | 8.40% | |||
[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 $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
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 | $512 | [1] | $585 | [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 | 319 | 388 | ||
Accrued Operating Expenses [Member] | ||||
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | ||||
Accrued payroll and other accruals | $193 | $197 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Note_17_Payable_for_Purchasing1
Note 17 - Payable for Purchasing of Software Technology (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | 15-May-15 | 15-May-15 | ||
USD ($) | USD ($) | Payable for Purchasing Software [Member] | Payable for Purchasing Software [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
USD ($) | CNY | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | |||||
USD ($) | CNY | |||||||
Note 17 - Payable for Purchasing of Software Technology (Details) [Line Items] | ||||||||
Accounts Payable, Current | $741,000 | [1] | $782,000 | [1] | $2,500,000 | 15,290,000 | ||
Payments to Acquire Intangible Assets | $800,000 | 5,000,000 | ||||||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company's general assets (Note 2). |
Note_18_Taxation_Details
Note 18 - Taxation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | |
Note 18 - Taxation (Details) [Line Items] | ||||
Profits, Assessable (in Dollars) | $0 | |||
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | 0 | |||
Income Tax Withholding Rate Pursuant to EIT Law | 10.00% | |||
Preferential Withholding Tax Rate | 5.00% | |||
Deferred Tax Liabilities Reversal (in Dollars) | -38,000 | |||
Standard Rate [Member] | PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
Preferential EIT Rate [Member] | PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 12.50% | |||
Tax Treaty Agreement [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Income Tax Withholding Rate Pursuant to EIT Law | 5.00% | |||
British Virgin Islands [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Other Tax Expense (Benefit) (in Dollars) | 0 | |||
Hong Kong [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Profits, Assessable (in Dollars) | 0 | |||
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | 0 | |||
Other Tax Expense (Benefit) (in Dollars) | 0 | |||
PRC [Member] | After 2015 [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
PRC [Member] | Scenario, After Deducting the VAT Paid for the Services from Suppliers [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Rate For Modern Service Provided | 6.00% | |||
PRC [Member] | Provision of Modern Services Small Scale Tax Payer [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Rate For Modern Service Provided Small Scale Tax Payer | 3.00% | |||
PRC [Member] | Maximum [Member] | Business Opportunity Online [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
PRC [Member] | Minimum [Member] | Business Opportunity Online [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 15.00% | |||
PRC [Member] | Business Opportunity Online [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 15.00% | |||
Applicable Income Tax Rate | 15.00% | 12.50% | 15.00% | |
PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Applicable Income Tax Rate | 12.50% | |||
Reduction in Applicable EIT Rate | 50.00% | |||
PRC [Member] | Other PRC Operating Entities [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Applicable Income Tax Rate | 25.00% | 25.00% | ||
PRC [Member] | Rise King WFOE [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Preferential Withholding Tax Rate | 5.00% | |||
PRC [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
PRC Value Added Tax Rate For Modern Service Provided | 6.00% | |||
Amortization of Acquired Intangible Assets [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Deferred Tax Liabilities Reversal (in Dollars) | 38,000 | |||
Beijing Chuang Fu Tian Xia [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Rate For Modern Service Provided Small Scale Tax Payer | 3.00% | |||
Maximum [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Surcharge Rate | 14.00% | |||
Minimum [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Surcharge Rate | 12.00% | |||
Parent Company [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Operating Loss Carryforwards (in Dollars) | 12,690,000 | 12,161,000 | ||
PRC Subsidiary and VIEs [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Operating Loss Carryforwards (in Dollars) | 13,970,000 | 12,401,000 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | $80,000 | 239,000 |
Note_18_Taxation_Details_Taxes
Note 18 - Taxation (Details) - Taxes Payable (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Note 18 - Taxation (Details) - Taxes Payable [Line Items] | ||||
Taxes payable | $3,294 | [1] | $3,332 | [1] |
Turnover Tax and Surcharge Payable [Member] | ||||
Note 18 - Taxation (Details) - Taxes Payable [Line Items] | ||||
Taxes payable | 1,144 | 1,173 | ||
Enterprise Income Tax Payable [Member] | ||||
Note 18 - Taxation (Details) - Taxes Payable [Line Items] | ||||
Taxes payable | $2,150 | $2,159 | ||
[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_18_Taxation_Details_Incom
Note 18 - Taxation (Details) - Income Tax Expense (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Expense [Abstract] | ||
Current-PRC | ($180) | |
Deferred-PRC | 226 | 132 |
$226 | ($48) |
Note_18_Taxation_Details_Defer
Note 18 - Taxation (Details) - Deferred Tax Liabilities (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
US$(’000) | |
Balance | $964 |
Reversal during the period | -38 |
Exchange translation adjustment | -4 |
Balance | $922 |
Note_18_Taxation_Details_Defer1
Note 18 - Taxation (Details) - Deferred Tax Assets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets [Abstract] | ||
Tax effect of net operating losses carried forward | $7,099 | $6,655 |
Bad debts provision | 885 | 943 |
Valuation allowance | -6,587 | -6,385 |
$1,397 | $1,213 |
Note_18_Taxation_Details_Defer2
Note 18 - Taxation (Details) - Deferred Tax Assets - Reclassification (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets - Reclassification [Abstract] | ||
Deferred tax assets reclassified as current asset | $291 | $176 |
Deferred tax assets reclassified as non-current asset | 1,106 | 1,037 |
$1,397 | $1,213 |
Note_20_Restricted_Net_Assets_
Note 20 - Restricted Net Assets (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Note 20 - Restricted Net Assets (Details) [Line Items] | ||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries (in Dollars) | $7,300,000 | |
Withholding Tax Rate Pursuant To EIT Law | 10.00% | |
Preferential Withholding Tax Rate | 5.00% | |
Retained Earnings (Accumulated Deficit) (in Dollars) | 3,434,000 | 5,222,000 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in Dollars) | 2,607,000 | 2,607,000 |
WFOE [Member] | ||
Note 20 - Restricted Net Assets (Details) [Line Items] | ||
Minimum Percentage of Annual After-tax Profit for General Reserve | 10.00% | |
Minimum Required Reserve as Percent of Registered Capital | 50.00% | |
Domestic Enterprise [Member] | ||
Note 20 - Restricted Net Assets (Details) [Line Items] | ||
Minimum Percentage of Annual After-tax Profit for General Reserve | 10.00% | |
Minimum Required Reserve as Percent of Registered Capital | 50.00% | |
PRC Subsidiary and VIEs [Member] | ||
Note 20 - Restricted Net Assets (Details) [Line Items] | ||
Retained Earnings (Accumulated Deficit) (in Dollars) | 29,400,000 | 30,800,000 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in Dollars) | 2,800,000 | $30,800,000 |
Note_21_Related_Party_Transact2
Note 21 - Related Party Transactions (Details) - Revenue from Related Parties (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | $63 | $1 |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | 37 | |
Beijing Fengshangyinli Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | 1 | |
Beijing Saturday Education Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | $26 |
Note_22_Employee_Defined_Contr1
Note 22 - Employee Defined Contribution Plan (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Cost Recognized | $144,000 | $129,000 |
Note_23_Concentration_of_Risk_
Note 23 - Concentration of Risk (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Supplier 1 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 47.00% | ||
Supplier 2 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 29.00% | ||
Customer 1 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 27.00% | ||
Customer 1 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 19.00% | |
Customer 2 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 25.00% | ||
Customer 2 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 18.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Number of Major Customers | 1 | 2 | |
Concentration Risk, Percentage | 23.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Number of Major Customers | 2 | 2 | |
Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | |||
Note 23 - Concentration of Risk (Details) [Line Items] | |||
Concentration Risk, Percentage | 84.00% | ||
Number of Major Suppliers | 2 |
Note_24_Commitments_and_Contin2
Note 24 - Commitments and Contingencies (Details) | 3 Months Ended | 1 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | 15-May-15 | 15-May-15 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | CNY | |||||||||
Note 24 - Commitments and Contingencies (Details) [Line Items] | ||||||||||
Operating Leases, Rent Expense | $110,000 | $144,000 | ||||||||
Purchase Obligation | 5,000,000 | 32,290,000 | ||||||||
Contractual Obligation Amount Paid | 2,800,000 | 17,000,000 | 850,000 | 5,200,000 | 3,600,000 | 22,000,000 | ||||
Contractual Obligation | $2,100,000 | 13,000,000 |
Note_24_Commitments_and_Contin3
Note 24 - Commitments and Contingencies (Details) - Contractual Obligations | Oct. 31, 2013 | Oct. 31, 2013 | Mar. 31, 2015 |
In Thousands, unless otherwise specified | USD ($) | CNY | Office Rental [Member] |
USD ($) | |||
Note 24 - Commitments and Contingencies (Details) - Contractual Obligations [Line Items] | |||
-2015 | $283 | ||
Year ending December 31, | |||
-2016 | 134 | ||
Total | $2,100 | 13,000 | $417 |
Note_25_Segment_Reporting_Deta
Note 25 - Segment Reporting (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting [Abstract] | ||
Allocated Share-based Compensation Expense | $455,000 | $8,400 |
Note_25_Segment_Reporting_Deta1
Note 25 - Segment Reporting (Details) - Summary of Segment Reporting Information (Unaudited) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||
Revenue | $5,848,000 | $5,183,000 | |||
Cost of sales | 4,946,000 | 3,822,000 | |||
Total operating expenses | 2,995,000 | 2,026,000 | |||
Depreciation and amortization expense included in total operating expenses | 444,000 | 360,000 | |||
Operating income (loss) | -2,093,000 | -665,000 | |||
Share of income/(losses) in equity investment affiliates | 1,000 | -15,000 | |||
Net income (loss) | -1,822,000 | -714,000 | |||
Total assets | 46,706,000 | 47,430,000 | |||
Internet Ad [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 5,598,000 | 3,580,000 | |||
Cost of sales | 4,755,000 | 2,542,000 | |||
Total operating expenses | 2,097,000 | 1,525,000 | |||
Depreciation and amortization expense included in total operating expenses | 388,000 | 247,000 | |||
Operating income (loss) | -1,254,000 | -487,000 | |||
Expenditure for long-term assets | 326,000 | 850,000 | |||
Net income (loss) | -988,000 | -499,000 | |||
Total assets | 43,799,000 | 43,851,000 | |||
TV Ad [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 58,000 | 1,182,000 | |||
Cost of sales | 109,000 | 1,095,000 | |||
Total operating expenses | 98,000 | 94,000 | |||
Depreciation and amortization expense included in total operating expenses | 1,000 | 11,000 | |||
Operating income (loss) | -149,000 | -7,000 | |||
Net income (loss) | -150,000 | -22,000 | |||
Total assets | 12,275,000 | 13,228,000 | |||
Bank Kiosk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 69,000 | 71,000 | |||
Cost of sales | 3,000 | ||||
Total operating expenses | 30,000 | 31,000 | |||
Depreciation and amortization expense included in total operating expenses | 30,000 | 31,000 | |||
Operating income (loss) | 36,000 | 40,000 | |||
Net income (loss) | 36,000 | 40,000 | |||
Total assets | 265,000 | 296,000 | |||
Brand Management and Sales Channel Building [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 123,000 | 350,000 | |||
Cost of sales | 79,000 | 185,000 | |||
Total operating expenses | 74,000 | 140,000 | |||
Depreciation and amortization expense included in total operating expenses | 16,000 | 50,000 | |||
Operating income (loss) | -30,000 | 25,000 | |||
Share of income/(losses) in equity investment affiliates | -13,000 | ||||
Expenditure for long-term assets | 1,000 | ||||
Net income (loss) | -25,000 | 5,000 | |||
Total assets | 2,907,000 | 2,989,000 | |||
Others [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total operating expenses | 696,000 | [1] | 236,000 | [2] | |
Depreciation and amortization expense included in total operating expenses | 9,000 | 21,000 | |||
Operating income (loss) | -696,000 | -236,000 | |||
Share of income/(losses) in equity investment affiliates | 1,000 | -2,000 | |||
Expenditure for long-term assets | 12,000 | ||||
Net income (loss) | -695,000 | -238,000 | |||
Total assets | 6,077,000 | 6,558,000 | |||
Inter Segment and Reconciling Item [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | -18,617,000 | -19,492,000 | |||
Report Total [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 5,848,000 | 5,183,000 | |||
Cost of sales | 4,946,000 | 3,822,000 | |||
Total operating expenses | 2,995,000 | 2,026,000 | |||
Depreciation and amortization expense included in total operating expenses | 444,000 | 360,000 | |||
Operating income (loss) | -2,093,000 | -665,000 | |||
Share of income/(losses) in equity investment affiliates | 1,000 | -15,000 | |||
Expenditure for long-term assets | 326,000 | 863,000 | |||
Net income (loss) | -1,822,000 | -714,000 | |||
Total assets | $46,706,000 | $47,430,000 | |||
[1] | Including approximate US$455,000 share-based compensation expenses. | ||||
[2] | Including approximate US$8,400 share-based compensation expenses |
Note_26_Loss_Per_Share_Details
Note 26 - Loss Per Share (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Note 26 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,666,667 | |
Equity Option [Member] | ||
Note 26 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 894,940 | 939,440 |
Warrant [Member] | ||
Note 26 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,363,456 |
Note_26_Loss_Per_Share_Details1
Note 26 - Loss Per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic and Diluted Earnings Per Share [Abstract] | ||
Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) (in Dollars) | ($1,788) | ($668) |
Weighted average number of common shares outstanding - Basic | 26,366,797 | 22,376,540 |
Weighted average number of common shares outstanding -Diluted | 26,366,797 | 22,376,540 |
Loss per share-Basic and diluted (in Dollars per share) | ($0.07) | ($0.03) |
Note_27_Sharebased_Compensatio2
Note 27 - Share-based Compensation Expenses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Allocated Share-based Compensation Expense (in Dollars) | $455,000 | $8,400 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 2,842,000 | 25,000 | |
Restricted Stock [Member] | Vested on August 1, 2014 [Member] | Technical Services Provider [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 150,000 | ||
Restricted Stock [Member] | Vested on February 1, 2015 [Member] | Technical Services Provider [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 150,000 | ||
Restricted Stock [Member] | Upon Issuance [Member] | Executive Officer [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,533,333 | ||
Restricted Stock [Member] | This Year [Member] | Executive Officer [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,333,333 | ||
Restricted Stock [Member] | Next Year [Member] | Executive Officer [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,333,334 | ||
Restricted Stock [Member] | Executive Officer [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share Price (in Dollars per share) | $1.17 | ||
Allocated Share-based Compensation Expense (in Dollars) | 390,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,200,000 | ||
Restricted Stock [Member] | Investor Relations Services Provider [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 50,000 | 40,000 | |
Share Price (in Dollars per share) | $1.20 | $0.84 | |
Allocated Share-based Compensation Expense (in Dollars) | 15,000 | 8,400 | |
Restricted Stock [Member] | Technical Services Provider [Member] | |||
Note 27 - Share-based Compensation Expenses (Details) [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 300,000 | ||
Share Price (in Dollars per share) | $0.67 | ||
Allocated Share-based Compensation Expense (in Dollars) | $50,250 |
Note_27_Sharebased_Compensatio3
Note 27 - Share-based Compensation Expenses (Details) - Options Issued and Outstanding (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Options Issued and Outstanding [Abstract] | ||
Option outstanding, Number of underlying shares | 894,940 | 894,940 |
Option outstanding, Weighted average remaining contractual life (Years) | 6 years 87 days | 6 years 175 days |
Option outstanding, Weighted average exercise price | $1.21 | $1.21 |
Option exercisable, Number of underlying shares | 894,940 | 894,940 |
Option exercisable, Weighted average remaining contractual life (Years) | 6 years 87 days | 6 years 175 days |
Option exercisable, Weighted average exercise price | $1.21 | $1.21 |
Note_28_Subsequent_Event_Detai
Note 28 - Subsequent Event (Details) | Mar. 31, 2015 | Dec. 31, 2014 | 7-May-15 | 7-May-15 | 7-May-15 | 7-May-15 | 5-May-15 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 |
USD ($) | USD ($) | Purchase Agreement May 2015 [Member] | Purchase Agreement May 2015 [Member] | Purchase Agreement May 2015 [Member] | Purchase Agreement May 2015 [Member] | Purchase Agreement May 2015 [Member] | Restricted Stock [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Guohua Shiji Communication Company [Member] | Guohua Shiji Communication Company [Member] | |||
Purchase by June 4, 2015 [Member] | Date Mutually Agreed Upon by Both Parties [Member] | Beijing Jinrun Fangzhou Science and Technology Company [Member] | Beijing Jinrun Fangzhou Science and Technology Company [Member] | Beijing Jinrun Fangzhou Science and Technology Company [Member] | Vested on February 1, 2015 [Member] | USD ($) | CNY | |||
Beijing Jinrun Fangzhou Science and Technology Company [Member] | Beijing Jinrun Fangzhou Science and Technology Company [Member] | USD ($) | USD ($) | Technical Services Provider [Member] | ||||||
Note 28 - Subsequent Event (Details) [Line Items] | ||||||||||
Cost Method Investments | $181,000 | $18,000 | $3,000 | 20,000 | ||||||
Cost Method Investment, Ownership Percentage | 19.00% | 19.00% | ||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | 150,000 | |||||||||
Equity Purchase Agreement, Number of Shares (in Shares) | 2,800,000 | |||||||||
Equity Purchase Agreement, Value of Shares Purchased (in Dollars) | 3,500,000 | |||||||||
Equity Purchase Agreement, Non-Refundable Gauruntee Payment Percentage | 10.00% | |||||||||
Proceeds from Issuance of Common Stock (in Dollars) | $350,000 | |||||||||
Equity Purchase Agreement, Percentage of Shares in Agreement to be Purchased | 15.00% | 75.00% |