Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2012

Variable Interest Entities Disclosure [Text Block]

2.   Variable Interest Entities

To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”). Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of June 30, 2012 and December 31, 2011, respectively:

	June 30, 2012		December 31, 2011
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	6,717	$	8,322
Accounts receivable, net		9,210		3,705
Other receivables, net		5,495		3,619
Prepayment and deposit to suppliers		13,483		15,360
Due from related parties		153		192
Contingent consideration receivables		160		159
Other current assets		21		23
Deferred tax assets-current		272		-
Total current assets		35,511		31,380
Investment in and advance to equity investment affiliates		1,067		1,354
Property and equipment, net		1,347		1,507
Intangible assets, net		7,658		8,111
Goodwill		11,077		10,999
Deferred tax assets-non current		187		92
Total Assets	$	56,847	$	53,443
Liabilities
Current liabilities:
Accounts payable	$	379	$	268
Advances from customers		1,800		724
Accrued payroll and other accruals		789		251
Due to equity investment affiliate		-		220
Due to related parties		-		161
Due to Control Group		11		11
Payable for acquisition		-		550
Taxes payable		5,280		4,409
Other payables		182		107
Total current liabilities		8,441		6,701
Deferred tax Liabilities-non current		1,797		1,893
Total Liabilities	$	10,238	$	8,594

All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets.

For the six months ended June 30, 2012, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$27,979,000, cost of sales of approximately US$21,897,000, operating expenses of approximately US$3,711,000 and net income before allocation to noncontrolling interests of approximately US$2,098,000.

For the three months ended June 30, 2012, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$13,083,000, cost of sales of approximately US$9,361,000, operating expenses of approximately US$2,055,000 and net income before allocation to noncontrolling interests of approximately US$1,865,000.

For the six months ended June 30, 2011, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$11,764,000 cost of sales of approximately US$5,250,000, operating expenses of approximately US$2,828,000 and net income before allocation to noncontrolling interests of approximately US$3,489,000.

For the three months ended June 30, 2011, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$7,978,000, cost of sales of approximately US$3,376,000, operating expenses of approximately US$1,585,000 and net income before allocation to noncontrolling interests of approximately US$2,713,000.