9.	Long-term investments

	September 30, 2017			December 31, 2016
	US$(’000)			US$(’000)
	(Unaudited)

Equity method investments:
Investment in equity method investees		741			709
Advance to equity method investees		78			75
Impairment on equity method investments		(819	)		(784	)
Total equity method investments		-			-

Cost method investments:
Investment in cost method investees		1,108			1,492
Impairment on cost method investments		(159	)		(152	)
Total cost method investments		949			1,340

Total long-term investments		949			1,340

Equity method investments

As of

September 30, 2017,

the Company beneficially owned

23.18%

and

25.5%

equity interest in Shenzhen Mingshan and Zhao Shang Ke Hubei, respectively. The Company accounts for its investments in these companies under equity method of accounting. Based on the facts of the significant decline in level of business activities from

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 the end of

2015.

Cost method investments

As of

September 30, 2017,

the Company beneficially owned a

19%

equity interest in ChinaNet Chuang Tou and Guohua Shiji, respectively, a

10%

equity interest in Chuangshi Meiwei and Beijing Saturday, respectively, and a

15%

equity interest in ChinaNet Korea. The Company accounts for its investments in these companies under cost method of accounting. As the business plan of ChinaNet Korea and Chuangshi Meiwei were

not

implemented smoothly and based on the facts of the significant decline in level of business activities, insufficient amount of working capital and the lack of commitment from majority shareholders, the possibility of the business recovery of these

two

companies is remote. As a result, the Company reduced the carrying value of these investments to

zero

as of the end of

2016.

The following table summarizes the movement of the investments in cost method investees for the

nine

months ended

September 30, 2017:

	Beijing Saturday		Guohua Shiji		ChinaNet Chuang Tou			Total
	US$(’000)		US$(’000)		US$(’000)			US$(’000)

Balance as of December 31, 2016		16		27		1,297			1,340
Withdraw of cash investment		-		-		(452	)		(452	)
Exchange translation adjustment		1		1		59			61
Balance as of September 30, 2017 (Unaudited)		17		28		904			949

The Company contributed

RMB9,000,000

(approximately

US$1.35

million) in cash upon incorporation of ChinaNet Chuang Tou in

November 2015.

During the

three

months ended

September 30, 2017,

as approved by the shareholders of ChinaNet Chuang Tou, the Company withdrew

RMB3,000,000

(approximately

US$0.45

million) cash investment from ChinaNet Chuang Tou. This transaction does

not

have any impact on the shareholding and other shareholders’ rights of the Company in ChinaNet Chuang Tou.