Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2013

Variable Interest Entities Disclosure [Abstract]

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, 2013 and December 31, 2012, respectively:

	June 30, 2013		December 31,  2012
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,381	$	4,275
Term deposit		3,426		3,357
Accounts receivable, net		10,349		8,392
Other receivables, net		2,952		2,921
Prepayment and deposit to suppliers		14,635		14,587
Due from related parties		118		49
Other current assets		45		35
Deferred tax assets-current		23		50
Total current assets		33,929		33,666
Investment in and advance to equity investment affiliates		808		916
Property and equipment, net		1,231		1,389
Intangible assets, net		6,778		7,152
Deposit for purchasing of software technology		808		-
Goodwill		11,312		11,083
Deferred tax assets-non current		793		511
Total Assets	$	55,659	$	54,717
Liabilities
Current liabilities:
Accounts payable	$	257	$	110
Advances from customers		810		1,065
Accrued payroll and other accruals		460		455
Due to Control Group		11		11
Payable for acquisition		-		1,266
Taxes payable		7,052		6,136
Other payables		178		196
Total current liabilities		8,768		9,239
Deferred tax Liabilities-non current		1,612		1,689
Total Liabilities	$	10,380	$	10,928

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, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$15,740,000, cost of sales of approximately US$9,756,000, operating expenses of approximately US$4,322,000 and net income before allocation to noncontrolling interests of approximately US$1,245,000.

For the three months ended June 30, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of income and comprehensive income includes sales of approximately US$8,790,000, cost of sales of approximately US$5,289,000, operating expenses of approximately US$2,232,000 and net income before allocation to noncontrolling interests of approximately US$845,000.

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.