Note 8 - Prepayments and deposit to suppliers

12 Months Ended

Dec. 31, 2011

Prepayments And Deposits To Suppliers Disclosure [Text Block]

8.   Prepayments and deposit to suppliers

	As of December 31,
	2011		2010
	US$(’000)		US$(’000)
Contract execution guarantees to TV advertisement and internet resources providers		10,050		2,778
Prepayments to TV advertisement and internet resources providers		5,285		413
Prepayment to online game operating service provider		-		91
Other deposits and prepayments		25		43
		15,360		3,325

Contract execution guarantees to TV advertisement and internet resource providers are paid as contractual deposits to the Company’s resources and services providers.  These amounts will be used to offset the contact amount and service fee need to be paid for the resources and services provided in the last month of each contract period or refunded to the Company upon expiration of the purchase contracts.

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.