Note 12 - Deposit for Purchasing of Software Technology

3 Months Ended

Mar. 31, 2014

Deposits For Purchasing Assets [Abstract]

Deposits For Purchasing Assets [Text Block]

12. Deposit and prepayment for purchasing of software technology

For further development of comprehensive value-added services to its customers, which are mostly SMEs, the Company made a deposit to an unrelated technical consulting entity of RMB15 million (approximately US$2.43 million) for the purchasing of software technology related to operation management applications for SMEs. As of the date hereof, the Company is trial testing these software applications, and is in the process of negotiations and determination of the transaction details. The Company expects to consummate the transaction in 2014.

In October 2013, the Company entered into a contract to engage an unrelated third party to develop several software systems related to internet environment monitoring and system optimization to enhance the overall safety and efficiency of the Company’s network system. The total contract amount was RMB13 million (approximately US$2.11 million). The Company paid the first installment of RMB5.2 million (approximately US$0.84 million) during the three months ended March 31, 2014. The transaction as contemplated under the contract is expected to be consummated in 2014.