Note 8 - Prepayments and deposit to suppliers

3 Months Ended

Mar. 31, 2013

Prepayments And Deposits To Suppliers Disclosure [Text Block]

8.   Prepayments and deposit to suppliers

	March 31, 2013		December 31, 2012
	US$(’000)		US$(’000)
	(Unaudited)
Contract execution guarantees to TV advertisement and internet resources providers		8,367		9,463
Prepayments to TV advertisement and internet resources providers		6,372		5,069
Other deposits and prepayments		83		64
		14,822		14,596

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 needed 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.