Note 8 - Long-term Investments

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

8. Long-term investments

As of

September 30, 2020,

the Company's long-term investments consisted of an investment of approximately

RMB0.25

million (approximately

US$0.03

million) and an investment of

RMB0.19

million (approximately

US$0.03

million) in cash to

two

of its indirect equity ownership investee entities, Local Chain Xi'an Information Technology Co., Ltd. (“Local Chain Xi'an”) and Business Opportunity Chain (Guangzhou) Technology Co., Ltd. (“Business Opportunity Chain Guangzhou”), respectively. The Company beneficially owns a

4.9%

and a

19%

equity interest in Local Chain Xi'an and Business Opportunity Chain Guangzhou, respectively.

The Company measures these investments which do

not

have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the Company.

In

July 2020,

due to the facts that

Shenzhen City Mingshan Network Technology Co., Ltd. (“Shenzhen Mingshan”) and ChinaNet Chuang Tou (Shenzhen) Co., Ltd. (“ChinaNet Chuang Tou”) had become dormant since

2015

and

2018,

respectively,

as approved by all the respective shareholders of

these

two

entities, ChinaNet Chuang Tou and Shenzhen Mingshan were officially closed and deregistered with the competent local authorities. The Company used to own a

19%

and a

23.18%

equity interest in ChinaNet Chuang Tou and Shenzhen Mingshan, respectively. The Company's equity investments in these entities had been fully impaired in previous years before the deregistration.