Note 29 - Subsequent Event

12 Months Ended

Dec. 31, 2014

29.	Subsequent event

On January 12, 2015, the Company through its wholly-owned subsidiary, China Net BVI incorporated a new wholly-owned BVI company named ChinaNet Investment Holding Ltd. (“ChinaNet Investment BVI”).

On January 29, 2015, the Company through one of its VIEs, Beijing CNET Online made an investment of RMB1,000,000 (approximately US$0.16 million) to Chuangshi Meiwei Food and Beverage Investment Management (Beijing) Co., Ltd. (“Chuangshi Meiwei” or “O'Yummy”). The Company beneficially owns 10% of the equity interest in Chuangshi Meiwei.

In January 2015, the Company granted 50,000 shares of the Company’s restricted common stock each year to its investor relations services provider, in exchange for its services to the Company for the years ended December 31, 2015 and 2016, respectively. These shares will be valued at US$1.2 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense of both approximately US$60,000 will be recognized in 2015 and 2016, respectively. The shares attributable to fiscal 2015 were issued in March 2015.

In April 2015, the Company issued 150,000 shares of the Company’s restricted common stock to a technical service provider in exchange for its services to the Company in 2015. These shares will be valued at US$0.67 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense of approximately US$100,500 will be recognized for these shares in 2015.

In February 2015, the Company paid RMB2 million (approximately US$0.33 million) as a deposit for purchasing TV advertising time slots from a TV station with a preliminary contract amount of RMB20.4 million (approximately US$3.33 million).

In March 2015, the Company was required to pay RMB3.2 million (approximately US$0.52 million) as a deposit to continue purchasing resources from one of the Company’s major internet resources suppliers in 2015. As of the date hereof, the Company is finalizing the formal purchase agreement with the counter party, which agreement is expected to be formally signed by the end of April 2015.