Note 30 - Earnings per share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Text Block]

30.   Earnings per share

Basic and diluted earnings per share for each of the periods presented are calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of US dollars):

	Year ended December 31,
	2012		2011
	US$(’000)		US$(’000)
	(Amount in thousands except for the number of shares and per share data)
Net income attributable to ChinaNet Online Holdings, Inc.	$	2,996	$	2,995
Less: Dividend for Series A convertible preferred stock		-		407
Net income attributable to common shareholders of ChinaNet Online Holdings, Inc. (numerator for basic earnings per share)		2,996		2,588
Add: Dividend for Series A convertible preferred stock		-		-
Net income attributable to common shareholders of ChinaNet Online Holdings, Inc. (numerator for diluted earnings per share)	$	2,996	$	2,588
Weighted average number of common shares outstanding - Basic		22,185,556		18,545,609
Effect of diluted securities:
Series A Convertible preferred stock		-		-
Warrants		-		213,631
Weighted average number of common shares outstanding -Diluted		22,185,556		18,759,240
Earnings per share-Basic	$	0.14	$	0.14
Earnings per share-Diluted	$	0.14	$	0.14

For the year ended December 31, 2012, the diluted earnings per share calculation did not include the warrants and options to purchase up to 2,772,161 and 939,440 shares of common stock, respectively, because their effect was anti-dilutive.

For the year ended December 31, 2011, the diluted earnings per share calculation did not include the effect of the 1,625,526 incremental shares resulted from assumed conversion of the convertible preferred stock, because their effect were anti-dilutive. For the year ended December 31, 2011, the diluted earnings per share calculation also did not include the warrants and options to purchase up to 3,072,411 and 129,202 shares of common stock, respectively, because their effect was anti-dilutive.