Note 2 - Variable Interest Entities

9 Months Ended

Sep. 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 September 30, 2013 and December 31, 2012, respectively:

	September 30, 2013		December 31, 2012
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	3,931	$	4,275
Term deposit		3,446		3,357
Accounts receivable, net		10,621		8,392
Other receivables, net		2,171		2,921
Prepayment and deposit to suppliers		15,113		14,587
Due from related parties		143		49
Other current assets		27		35
Deferred tax assets-current		35		50
Total current assets		35,487		33,666
Investment in and advance to equity investment affiliates		801		916
Property and equipment, net		1,123		1,389
Intangible assets, net		6,556		7,152
Deposit for purchasing of software technology		2,438		-
Goodwill		11,380		11,083
Deferred tax assets-non current		949		511
Total Assets	$	58,734	$	54,717
Liabilities
Current liabilities:
Short-term bank loan	$	813	$	-
Accounts payable		402		110
Advances from customers		1,485		1,065
Accrued payroll and other accruals		366		455
Due to Control Group		11		11
Payable for acquisition		488		1,266
Taxes payable		7,694		6,136
Other payables		151		196
Total current liabilities		11,410		9,239
Deferred tax Liabilities-non current		1,566		1,689
Total Liabilities	$	12,976	$	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 nine months ended September 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$23,120,000, cost of sales of approximately US$13,121,000, operating expenses of approximately US$6,482,000 and net income before allocation to noncontrolling interests of approximately US$2,824,000.

For the three months ended September 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$7,380,000, cost of sales of approximately US$3,365,000, operating expenses of approximately US$2,160,000 and net income before allocation to noncontrolling interests of approximately US$1,579,000.

For the nine months ended September 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$38,201,000, cost of sales of approximately US$28,057,000, operating expenses of approximately US$5,475,000 and net income before allocation to noncontrolling interests of approximately US$3,943,000.

For the three months ended September 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$10,222,000, cost of sales of approximately US$6,160,000, operating expenses of approximately US$1,764,000 and net income before allocation to noncontrolling interests of approximately US$1,845,000.