Note 15 - Prepayment for purchase of intangibles

6 Months Ended

Jun. 30, 2011

Prepayment For Purchase OfIntangibles Disclosure [Text Block]

15.   Prepayment for purchase of intangibles

June 30, 2011		December 31, 2010
US$(’000)		US$(’000)
(Unaudited)
	1,436		-

On June 14, 2011, one of the Company’s PRC operating subsidiaries, Business Opportunity Online Hubei, and an individual who was not affiliated with the Company, filed an application for incorporation of a new company, Sheng Tian Network Technology (Hubei) Co., Ltd (“Sheng Tian Hubei”), which was 51% owned by Business Opportunity Online Hubei and 49% owned by this co-founder individual, the incorporation of this new company was subsequently approved and registered by the related local government authorities on July 1, 2011(see Note 34).

In addition, on June 15, 2011, Business Opportunity Online Hubei entered into a software and technology purchase agreement with this individual. The agreement provides that the purchase price shall be based on the valuation of RMB18,200,000 (approximately US$2,816,000), and Business Opportunity Online shall pay RMB9,282,000 (approximately US$1,436,000) and hence own 51% of these technology and related software. The agreement stipulates that the seller shall transfer all technology and related documentations to Sheng Tian Hubei and provide assistance for the registration of the technology and software in the name of Sheng Tian Hubei. The agreement also provides that the seller shall dismiss all human resources for the business activities related to the software from the date of this agreement and provide assistance for Sheng Tian Hubei to re-employ the necessary technology staff from the seller upon establishment of Sheng Tian Hubei to ensure a smooth transitioning of the activities related to the software.

These technology and software will be further consolidated and integrated into the Company’s advertising and marketing platform and mainly, management tools platform and packed into different value-added services to be provided to its clients.

As the application for incorporation of Sheng Tian Hubei had not been approved and registered by the related local government authorities as of June 30, 2011, the payment for purchase of the 51% ownership of the software and technology was recorded as prepayment for purchase of intangibles.