Note 30 - Segment reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting Disclosure [Text Block]

30.  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.

Beginning on 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 the incorporation of Zhao Shang Ke Hubei, the Company operates in one more reportable business segment, which was Brand Management and Sales Channel Building.

	Internet Ad.		TV Ad.		Bank kiosk		Brand management and sales channel building		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		16,434		4,756		415		943		-			(14	)		22,534
Cost of sales		4,711		3,847		36		288		-			(14	)		8,868
Total operating expenses		3,645		394		155		523		1,307	*		-			6,024
Including: Depreciation and amortization expense		183		75		120		275		74			-			727
Operating income(loss)		8,078		515		224		132		(1,307	)		-			7,642
Gain on deconsolidation of subsidiary		-		-		-		-		232			-			232
Share of earnings (losses) in equity investment affiliates		-		26		-		-		(206	)		-			180
Expenditure for long-term assets		1,477		1		185		7		13			-			1,683
Net income (loss)		7,291		502		224		106		(1,276	)		-			6,847
Total assets		49,474		3,681		866		4,916		20,941			(30,210	)		49,668

*Including approximately US$237,000share-based compensation expenses.

Three Months Ended September 30, 2011 (Unaudited)

	Internet Ad.		TV Ad.			Bank kiosk		Brand management and sales channel building		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)			US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		3,860		1,972			140		446		-			-			6,418
Cost of sales		1,605		1,669			12		132		-			-			3,418
Total operating expenses		1,102		76			24		234		376	*		-			1,812
Including: Depreciation and amortization expense		91		37			24		80		25			-			257
Operating income(loss)		1,153		227			104		80		(376	)		-			1,188
Gain on deconsolidation of subsidiary		-		-			-		-		-			-			-
Share of earnings (losses) in equity investment affiliates		-		(4	)		-		-		(71	)		-			(75	)
Expenditure for long-term assets		13		1			74		4		1			-			93
Net income (loss)		1,119		191			105		42		(446	)		-			1,011
Total assets		49,474		3,681			866		4,916		20,941			(30,210	)		49,668

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

	Internet Ad.		TV Ad.			Bank kiosk		Brand management and sales channel building		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)			US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		19,736		11,044			396		-		593			(593	)		31,176
Cost of sales		5,000		10,709			34		-		48			-			15,791
Total operating expenses		3,777		379			63		-		1,576	*		(593	)		5,202
Including: Depreciation and amortization expense		92		58			63		-		62			-			275
Operating income(loss)		10,959		(44	)		299		-		(1,031	)		-			10,183
Changes in fair value of warrants		-		-			-		-		1,861			-			1,861
Expenditure for long-term assets		264		-			-		-		184			-			448
Net income (loss)		10,661		(42	)		299		-		837			-			11,755
Total assets		24,080		6,642			276		-		13,211			(8,438	)		35,771

*Including approximately US$177,000 share-based compensation expenses.

Three Months Ended September 30, 2010 (Unaudited)

	Internet Ad.		TV Ad.		Bank kiosk		Brand management and sales channel building		Others			Inter- segment and reconciling item			Total
	US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)		US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenue		7,160		1,603		133		-		358			(358	)		8,896
Cost of sales		1,646		1,453		11		-		-			-			3,110
Total operating expenses		1,673		94		31		-		502	*		(358	)		1,942
Including: Depreciation and amortization expense		42		8		31		-		29			-			110
Operating income(loss)		3,841		56		91		-		(144	)		-			3,844
Changes in fair value of warrants		-		-		-		-		-			-			-
Expenditure for long-term assets		193		-		-		-		142			-			335
Net income (loss)		3,821		57		90		-		(141	)		-			3,827
Total assets		24,080		6,642		276		-		13,211			(8,438	)		35,771

*Including approximately US$56,000 share-based compensation expenses.