Note 31 - Segment reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

31.   Segment reporting

The Company follows FASB ASC Topic 280, Segment Reporting, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess each operating segment’s performance.

From January 1, 2011, the Company combined the Internet Advertisement Resources Reselling segment and the Internet Information Management (“IIM”) segment with the Internet Advertisement segment, due to the fact that the relative percentages of these two combined segments’ financial performances were immaterial and will be immaterial to the Company’s consolidated financial results for each of the reporting period.   Certain prior period amounts have been re-grouped to conform to the current period presentation.  Upon the acquisition of Quanzhou Zhi Yuan, Quanzhou Tianxi Shun He and incorporation of Zhaoshangke Hubei, the Company operated in one more reportable business segment, which was Brand Management and Sales Channel Expansion.

Six Months Ended June 30, 2011 (Unaudited)

	Internet Ad.		TV Ad.		Bank kiosk		Brand management and sales channel expansion		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		12,541		2,791		275		500		-			(14	)		16,093
Cost of sales		3,105		2,186		24		157		-			(14	)		5,458
Total operating expenses		2,542		317		131		290		929	*		-			4,209
Including: Depreciation and amortization expense		92		38		96		195		49			-			470
Operating income(loss)		6,894		288		120		53		(929	)		-			6,426
Gain on deconsolidation of subsidiary		-		-		-		-		230			-			230
Share of earnings (losses) in equity investment affiliates		-		30		-		-		(135	)		-			105
Expenditure for long-term assets		37		-		111		3		1,430			-			1,581
Net income (loss)		6,144		311		120		64		(830	)		-			5,809
Total assets		46,253		4,493		807		4,815		22,737			(29,902	)		49,203

*Including approximately US$172,000 share-based compensation expenses.

Three Months Ended June 30, 2011 (Unaudited)

	Internet Ad.		TV Ad.		Bank kiosk		Brand management and sales channel expansion		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		6,457		2,073		138		427		-			(14	)		9,081
Cost of sales		1,683		1,634		13		121		-			(14	)		3,437
Total operating expenses		1,421		163		57		194		420	*		-			2,255
Including: Depreciation and amortization expense		46		19		50		132		25			-			272
Operating income(loss)		3,353		276		68		112		(420	)		-			3,389
Gain on deconsolidation of subsidiary		-		-		-		-		-			-			-
Share of earnings (losses) in equity investment affiliates		-		13		-		-		(72	)		-			(59	)
Expenditure for long-term assets		16		-		77		3		1,426			-			1,522
Net income (loss)		3,045		281		70		109		(492	)		-			3,013
Total assets		46,253		4,493		807		4,815		22,737			(29,902	)		49,203

*Including approximately US$65,000 share-based compensation expenses.

Six Months Ended June 30, 2010 (Unaudited)

	Internet Ad.		TV Ad.			Bank kiosk		Brand management and sales channel expansion		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)			US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		12,580		9,424			263		-		236			(236	)		22,267
Cost of sales		3,355		9,238			22		-		48			-			12,663
Total operating expenses		2,107		285			32		-		1,074	*		(236	)		3,262
Including: Depreciation and amortization expense		50		49			32		-		32			-			163
Operating income(loss)		7,118		(99	)		209		-		(886	)		-			6,342
Changes in fair value of warrants		-		-			-		-		1,861			-			1,861
Expenditure for long-term assets		71		-			-		-		43						114
Net income (loss)		6,841		(98	)		210		-		978			-			7,931
Total assets		20,284		6,656			303		-		10,741			(5,223	)		32,761

*Including approximately US$121,000 share-based compensation expenses.

Three Months Ended June 30, 2010 (Unaudited)

	Internet Ad.		TV Ad.		Bank kiosk		Brand management and sales channel expansion		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		7,887		4,021		132		-		236			(236	)		12,040
Cost of sales		2,143		3,733		12				48			-			5,936
Total operating expenses		1,474		145		16				509	*		(236	)		1,908
Including: Depreciation and amortization expense		25		20		16				11			-			72
Operating income(loss)		4,270		143		104				(321	)		-			4,196
Changes in fair value of warrants		-		-		-		-		-			-			-
Expenditure for long-term assets		71		-		-		-		13			-			84
Net income (loss)		4,205		143		104		-		(316	)		-			4,136
Total assets		20,284		6,656		303		-		10,741			(5,223	)		32,761

*Including approximately US$57,000 share-based compensation expenses.