Note 8 - Long-term Investments

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

8. Long-term investments

	As of December 31,
	2015			2014
	US$(’000)			US$(’000)
Equity method investments:
Investment in equity method investees		778			806
Advance to equity method investees		80			85
Impairment on equity method investments		(838	)		-
Total equity method investments		20			891
Cost method investments:
Investment in cost method investees		1,113			18
Total long-term investments		1,133			909

Equity method investments

As of December 31, 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 companies under equity method of accounting. The following table summarizes the movement of the investments in equity method investees for the two years then ended December 31, 2015:

	ChinaNet Korea		Shenzhen Mingshan			Zhao Shang Ke Hubei			Total
	US$(’000)		US$(’000)			US$(’000)			US$(’000)
Balance as of December 31, 2013		-		466			379			845
Share of (loss)/income in equity method investees		-		(4	)		51			47
Exchange translation adjustment		-		(1	)		-			(1	)
Balance as of December 31, 2014		-		461			430			891
Share of losses in equity investment affiliates		-		(2	)		-			(2	)
Investment in equity investment affiliates		20		-			-			20
Exchange translation adjustment		-		(26	)		(25	)		(51	)
Impairment on equity method investments		-		(433	)		(405	)		(838	)
Balance as of December 31, 2015		20		-			-			20

For the years ended December 31, 2015 and 2014, the Company recognized its pro-rata shares of loss in Shenzhen Mingshan of approximately US$2,000 and US$4,000, respectively. For the year ended December 31, 2015, the Company did not recognize any of its pro-rata shares of loss in Zhao Shang Ke Hubei, as the amount was immaterial. For the year ended December 31, 2014, the Company recognized its pro-rata share of income in Zhao Shang Ke Hubei of approximately US$51,000.

As of December 31, 2015, based on the facts of the significant decline in level of business activities during 2015, insufficient amount of working capital and the lack of commitment from majority shareholders, these two investment affiliates had become dormant and the possibility of the business recovery is remote. As a result, the Company reduced the carrying value of these investments to zero as of December 31, 2015 by recognizing approximately US$874,000 impairment loss for the year ended December 31, 2015.

Cost method investments

As of December 31, 2015, the Company beneficially owned a 19% equity interest in ChinaNet Chuang Tou and Guohua Shiji, respectively, and a 10% equity interest in Chuangshi Meiwei and Beijing Saturday, respectively. The Company accounts for its investments in these companies under cost method of accounting. The following table summarizes the movement of the investments in cost method investees for the two years then ended December 31, 2015:

	Beijing Saturday			Chuangshi Meiwei		Guohua Shiji		ChinaNet Chuang Tou		Total
	US$(’000)			US$(’000)		US$(’000)		US$(’000)		US$(’000)
Balance as of December 31, 2013		-			-		-		-		-
Investment during the year		18			-		-		-		-
Balance as of December 31, 2014		18			-		-		-		18
Investment during the year		-			154		3		939		1,096
Exchange translation adjustment		(1	)		-		-		-		(1	)
Balance as of December 31, 2015		17			154		3		939		1,113

ChinaNet Chuang Tou was incorporated in November 2015, which is currently in its setup period.

The Company assessed the fair value of its cost method investments and determined no other-than temporary impairment exist as of December 31 2015, or 2014.