Note 11 - Contingent consideration receivables

12 Months Ended

Dec. 31, 2012

Contingent Consideration Receivable Disclosure [Text Block]

11.   Contingent consideration receivables

	Amount
	US$(’000)
Balance as of December 31, 2011		159
Changes in fair value of contingent consideration receivables recognized		(160	)
Exchange translation adjustment		1
Balance as of December 31, 2012		-

Contingent consideration receivables arose from certain “make good” provisions entered into by and between the Company and former stockholders of the VIEs upon the acquisition of the Company’s consolidated VIEs. These “make good” provisions provide that if the acquired VIEs’ audited pretax profit or after tax profit for the year ended December 31, 2012 increases by less than a certain amount or percentage as compared to that of the prior year, then the former VIE stockholders will be required to compensate the Company in cash for the difference between target pretax profit or after tax profit and the actual pretax profit or after tax profit, as applicable.

The related VIEs acquired in 2011 which subject to the “make good” provisions discussed above have all achieved its respective target pre-tax or after tax profit for the year ended December 31, 2012 and the former stockholders of these VIEs will not compensate the Company any cash in accordance with the acquisition agreement. Therefore, any remaining balance of contingent consideration receivables was charged against earnings as charge in fair value of contingent consideration receivables in the Company’s consolidated statements of income and comprehensive income for the year ended December 31, 2012.