Note 7 - Due From Related Parties, Net

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Due from Related Parties Disclosure [Text Block]

7. Due from related parties, net

	June 30, 2018			December 31, 2017
	US$(’000)			US$(’000)
	(Unaudited)
Chuangshi Meiwei (Beijing) International Investment Management Co., Ltd.		151			156
Guohua Shiji (Beijing) Communication Co., Ltd.		209			184
Beijing Saimeiwei Food Equipment Technology Co., Ltd.		-			33
ChinaNet Chuang Tou (Shenzhen) Co., Ltd.		-			14
		360			387
Allowance for doubtful accounts		(360	)		(373	)
Due from related parties, net		-			14

The above related parties of the Company represented the Company’s direct or indirect unconsolidated investee companies. As of

June 30, 2018

and

December 31, 2017,

due from related parties primarily included a total amount of short-term working capital loans of

RMB2.38

million (approximately

US$0.36

million) and

RMB2.2

million (approximately

US$0.34

million) to Chuangshi Meiwei and Guohua Shiji, respectively. The working capital loans are advanced to supplement the short-term operational needs of these related parties to assist certain of their business developing projects. The working capital loans are non-interest bearing and needs to be repaid to the Company within

one

year.

As of

December 31, 2017,

based on the assessment of the collectability of these related party balances, the Company provided full allowance for doubtful accounts against its service fee receivables due from Saimeiwei, Chuangshi Meiwei and Guohua Shiji and its short-term working capital loans advanced to Guohua Shiji and Chuangshi Meiwei, as a result of the unfavorable facts related to the business status of these related parties, as discussed in Note

9

to the audited financial statements in the Company’s

2017

Form

10

-K.

For the

six

and

three

months ended

June 30, 2018,

the Company reversed approximately

US$0.01

million and

US$0.02

million allowance for doubtful accounts against the Company’s balances due from related parties, respectively, because of subsequent collection of service fee receivables. For the

six

and

three

months ended

June 30, 2017,

no

allowance for doubtful accounts related to the Company’s balances due from related parties was provided or reversed.