Note 9 - Long-term Investments

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

9. Long-term investments

	September 30, 2015		December 31, 2014
	US$(’000)		US$(’000)
	(Unaudited)
Equity method investments:
Investment in equity method investees		793		806
Advance to equity method investees		82		85
Total equity method investments		875		891
Cost method investments:
Investment in cost method investees		177		18
Total long-term investments		1,052		909

As of September 30, 2015, the Company beneficially owned 40%, 23.18% and 25.5% equity interest in ChinaNet Korea, Shenzhen Mingshan and Zhao Shang Ke Hubei, respectively. The Company accounts for its investments in these entities under equity method of accounting. The following table summarizes the movement of the investment in and advance to equity investment affiliates for the nine months ended September 30, 2015:

	ChinaNet Korea		Shenzhen Mingshan			Zhao Shang Ke Hubei			Total
	US$(’000)		US$(’000)			US$(’000)			US$(’000)
Balance as of December 31, 2014 (audited)		-		461			430			891
Share of losses in equity investment affiliates		-		(2	)		-			(2	)
Investment in equity investment affiliates		20		-			-			20
Exchange translation adjustment		-		(18	)		(16	)		(34	)
Balance as of September 30, 2015 (unaudited)		20		441			414			875

ChinaNet Korea is a new entity incorporated in March 2015 by ChinaNet Investment BVI and three other unaffiliated individuals in the Republic of Korea. The Company made an investment of US$20,000 and obtained 40% of the equity interest in ChinaNet Korea. As of the date hereof, ChinaNet Korea has not started its operations.

For the nine and three months ended September 30, 2015, the Company recognized its pro-rata shares of loss in Shenzhen Mingshan of approximately US$2,000 and US$4,000, respectively. For the nine and three months ended September 30, 2014, the Company recognized its pro-rata shares of loss in Shenzhen Mingshan of approximately US$2,000 and US$nil, respectively. For the nine and three months ended September 30, 2015, the Company did not recognized any of its pro-rata shares of loss in Zhao Shang Ke Hubei, as the amounts were immaterial. For the nine and three months ended September 30, 2014, the Company recognized its pro-rata shares of income in Zhao Shang Ke Hubei of approximately US$51,000 and US$107,000, respectively.

In January 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 and obtained 10% equity interest in Chuangshi Meiwei. In April 2015, the Company made an investment of RMB0.02 million (approximately US$0.003 million) to Guohua Shiji (Beijing) Communication Co., Ltd. (“Guohua Shiji”) and obtained 19% equity interest in Guohua Shiji.

As of September 30, 2015, the Company beneficially owns 19%, 10% and 10% equity interest in Guohua Shijie, Chuangshi Meiwei and Beijing Saturday. The Company accounts for these investments under cost method. For the nine and three months ended September 30, 2015, the Company did not receive any distribution of earnings from these entities.