Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

a) Basis of presentation

The condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The condensed consolidated interim financial information as of

June 30, 2017

and for the

six

and

three

months ended

June 30, 2017

and

2016

have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The condensed consolidated interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the

2016

Form

10

-K.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of

June 30, 2017,

its consolidated results of operations for the

six

and

three

months ended

June 30, 2017

and

2016,

and its consolidated cash flows for the

six

months ended

June 30, 2017

and

2016,

as applicable, have been made. The interim results of operations are

not

necessarily indicative of the operating results for the full fiscal year or any future periods.

Consolidation, Policy [Policy Text Block]

b) Principles of consolidation

The condensed consolidated interim financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation.

Use of Estimates, Policy [Policy Text Block]

c) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

d) Foreign currency translation

The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows:

	June 30, 2017		December 31, 2016
Balance sheet items, except for equity accounts		6.7744		6.9370

	Six Months Ended June 30,
	2017		2016
Items in the statements of operations and comprehensive loss, and statements of cash flows		6.8697		6.5303

	Three Months Ended June 30,
	2017		2016
Items in the statements of operations and comprehensive loss, and statements of cash flows		6.8536		6.5317

No

representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates.

Advertising Costs, Policy [Policy Text Block]

e) Advertising costs

Advertising costs for the Company’s own brand building are

not

includable in cost of revenues, they are expensed when incurred or amortized over the estimated beneficial period and are included in “sales and marketing expenses” in the statements of operations and comprehensive loss. For the

six

months ended

June 30, 2017

and

2016,

advertising expenses for the Company’s own brand building were approximately

US$1,103,000

and

US$960,000,

respectively. For the

three

months ended

June 30, 2017

and

2016,

advertising expenses for the Company’s own brand building were approximately

US$593,000

and

US$537,000,

respectively.

Research and Development Expense, Policy [Policy Text Block]

f) Research and development expenses

The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the

six

months ended

June 30, 2017

and

2016

were approximately

US$700,000

and

US$1,016,000,

respectively. Expenses for research and development for the

three

months ended

June 30, 2017

and

2016

were approximately

US$305,000

and

US$590,000,

respectively.