Prepayments and deposit to suppliers

	March 31, 2017		December 31, 2016
	US$(’000)		US$(’000)
	(Unaudited)

Deposits to internet resources providers		1,152		1,074
Prepayments to internet resources providers		5,893		2,874
Deposits to other services providers		726		721
Other deposits and prepayments		157		85
		7,928		4,754

he Company purchases internet resources from large internet search engines and technical services from suppliers to attract more internet traffic to its advertising portals and provide value-added services to its clients.

Deposits to internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. As of

March

31,

2017

and

December

31,

2016,

deposit to internet resources providers primarily consisted of the contractual deposits paid for purchasing internet resources from

two

of the Company’s largest internet resources suppliers.

According to the contracts signed between the Company and its suppliers, the Company is normally required to pay the contract amounts in advance. These prepayments will be transferred to cost of revenues when the related services are provided. As of

March

31,

2017

and

December

31,

2016,

prepayments to internet resources providers primarily consisted of advance payments paid for purchasing internet resources from

two

of the Company’s largest internet resources suppliers.

As of

March

31,

2017

and

December

31,

2016,

deposits to other service provider represented the deposit for an advisory contract related to finding new investors for the Company, which will expire on

December

31,

2017.