Note 31 - Earnings Loss per share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Text Block]

31.  Earnings per share

Basic and diluted earnings per share for each of the periods presented are calculated as follows:

		Nine months ended September 30,						Three months ended September 30,
		2011			2010			2011			2010
	$	US(’000)		$	US(’000)		$	US(’000)		$	US(’000)
		(Unaudited)						(Unaudited)
		(Amount in thousands except for the number of shares and per share data)						(Amount in thousands except for the number of shares and per share data)
Net income attributable to ChinaNet Online Holdings, Inc.	$	6,943		$	11,882		$	1,111		$	3,877
Dividend on Series A convertible preferred stock		(407	)		(612	)		(85	)		(190	)
Net income attributable to common shareholders of ChinaNet Online Holdings, Inc.- Basic		6,536			11,270			1,026			3,687
Add: Dividend for Series A convertible preferred stock		407			612			-	(1)		190
Net income attributable to common shareholders of ChinaNet Online Holdings, Inc.-Diluted		6,943			11,882			1,026			3,877
Weighted average number of common shares outstanding - Basic		17,806,818			16,676,752			18,632,103			16,939,961
Effect of diluted securities:
Series A Convertible preferred stock		2,173,322			3,274,981			-	(2)		3,015,339
Warrants		285,624	(1)		954,063	(3)		-	(2)		961,163	(3)
Weighted average number of common shares outstanding -Diluted		20,265,764			20,905,796			18,632,103			20,916,463
Earnings per share-Basic	$	0.37		$	0.68		$	0.06		$	0.22
Earnings per share-Diluted	$	0.34		$	0.57		$	0.06		$	0.19

All share and per share data have been retroactively adjusted to reflect the reverse acquisition on June 26, 2009 whereby the 13,790,800 shares of common stock issued by the Company (nominal acquirer) to the shareholders of China Net BVI (nominal acquiree) are deemed to be the number of shares outstanding for the period prior to the reverse acquisition.  For the period after the reverse acquisition, the number of shares considered to be outstanding is the actual number of shares outstanding during that period.

(1)   The diluted earnings per share calculation for the nine months ended September 30, 2011 did not include the effect of the warrants and options to purchase up to 3,148,974 shares of common stock in the aggregate, because their effect was anti-dilutive.

(2)   The diluted earnings per share calculation for the three months ended September 30, 2011 did not include the effect of the 1,348,469 incremental shares resulted from assumed conversion of the convertible preferred stock and the warrants and options to purchase up to 4,835,056 shares of common stock in the aggregate, because their effect was anti-dilutive.

(3)   The diluted earnings per share calculation for the nine and three months ended September 30, 2010 did not include the effect of  the options to purchase up to 54,000 shares of common stock, because their effect was anti-dilutive.