Note 8 - Prepayments and deposit to suppliers

9 Months Ended

Sep. 30, 2011

Prepayments And Deposits ToSuppliers Disclosure [Text Block]

8.     Prepayments and deposit to suppliers

	September 30, 2011		December 31, 2010
	US$(’000)		US$(’000)
	(Unaudited)
Contract execution guarantees to TV advertisement  and internet resources providers		2,292		2,778
Prepayments to TV advertisement and internet resources providers		980		413
Prepayment to online game operating service provider		-		91
Other deposits and prepayments		62		43
		3,334		3,325

Contract execution guarantee to TV advertisement and internet resources providers are paid as a contractual deposit to the Company’s service providers.  These amounts will be used to offset the service fee that needs to be paid to the service providers in the last month of each contract period.

According to the contracts signed between the Company and its suppliers, the Company is normally required to pay the contract amount in advance.  These prepayments will be transferred to cost of sales when the related services are provided.