Note 28 - Subsequent Event

12 Months Ended

Dec. 31, 2013

28.	Subsequent event

In the first quarter of 2014, the Company made payment for software system development in accordance with the contract entered into before the balance sheet date as disclosed in Note 24.

The Company entered into resources purchase framework agreements with each of two major internet resources suppliers of the Company, pursuant to which the Company agreed to purchase Internet resources from each supplier of RMB35 million (approximately US$5.7 million) and RMB180 million (approximately US$29.4 million), respectively, for a one-year period commencing on January 1, 2014 and April 1, 2014, respectively. The Company made an aggregate of approximately RMB11 million (approximately US$1.8 million) deposit pursuant to these agreements in February 2014 and April 2014.

In mid-April 2014, the Company incorporated two majority-owned entities, which were Beijing Chuang Shi Xin Qi Advertising Media Co., Ltd. (“Beijing Chuang Shi Xin Qi”) and Beijing Hong Da Shi Xing Network Technology Co., Ltd. (“Beijing Hong Da Shi Xing”) with two individuals who were not affiliated with the Company, respectively. In mid-May 2014, the Company acquired the noncontrolling interests in these two entities and became the sole shareholder of these subsidiaries. In May 2014, the Company incorporated a wholly-owned subsidiary, Beijing Shi Ji Cheng Yuan Advertising Media Co., Ltd. (“Beijing Shi Ji Cheng Yuan”). Beijing Chuang Shi Xin Qi, Beijing Hong Da Shi Xing and Beijing Shi Ji Cheng Yuan are all dormant since incorporation.

Business Opportunity Online has been named as a defendant in another civil lawsuit filed in the PRC. The action was filed by Haifeng Wang in the Haidian District People’s Court, Beijing, PRC, on April 29, 2014. The complaint alleges that the plaintiff neither attended any shareholders meeting in respect of the transfer of the plaintiff’s investment in Business Opportunity Online to another party, nor executed any written shareholders resolutions approving such transfer. The complaint seeks a court order to declare such shareholders resolutions null and void. The Company denies all of the allegations against it and intends to defend vigorously against the lawsuit. The Company currently cannot estimate the amount or range of possible losses from this litigation.