24.

Discontinued operation

The Company exited its brand management and sales channel building business segment in the fourth fiscal quarter of 2015, operated by one of its VIEs, Quanzhou City Zhilang Network Technology Co., Ltd. (“Quanzhou Zhi Lang”), which qualified for presentation as a discontinued operation. In June 2016, the Company disposed Quanzhou Zhi Lang to an unaffiliated third-party, the loss incurred from the disposal was also included in results of operations of discontinued operation, presented as a separate component in the condensed consolidated statements of operations and comprehensive loss for all periods presented. Major classes of line items constituting pre-tax net loss and net loss of the discontinued operation for the six and three months ended June 30, 2016 and 2015, respectively, are as follows:

	Six Months Ended June 30,						Three Months Ended June 30,
	2016			2015			2016			2015
	US$(’000)			US$(’000)			US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Revenues		-			167			-			44
Cost of revenues		-			104			-			25
Total operating expenses		51			188			5			114
Not loss before income tax benefit		(51	)		(125	)		(5	)		(95	)
Income tax benefit		-			16			-			11
Loss from discontinued operation, net of income tax		(51	)		(109	)		(5	)		(84	)
Loss on disposal of discontinued operation, net of income tax		(9	)		-			(9	)		-
Loss from and on disposal of discontinued operation, net of income tax		(60	)		(109	)		(14	)		(84	)

For the six and three months ended June 30, 2016 and 2015, depreciation and amortization expenses included in operating expenses of the discontinued operation were immaterial. There were no significant capital expenditures, operating or investing noncash items incurred in the discontinued operation for the six and three months ended June 30, 2016 or 2015.