Note 9 - Long-term Investments

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

9. Long-term investment

	Amount
	US$(’000)
Balance as of January 1, 2021		67
Exchange translation adjustment		1
Cash investments during the year		2,250
Disposed during the year		(38	)
Balance as of December 31, 2021		2,280
Exchange translation adjustment		(88	)
Impairment losses provided during the year		(596	)
Balance as of December 31, 2022		1,596

As of December 31, 2022, except for long-term investments which were fully impaired, the Company beneficially owned a 15.38%, 10%, 9.9%, 9% and 19% equity interest in each New Business Holdings Limited (“New Business”), Guang Dong WeFriend Co., Ltd. (“Guangdong WeFriend”), Guangdong Yong Fu Xiang Health Management Co., Ltd (“Yong Fu Xiang”); Guangzhou Yuan Qi Man Man Technology Co., Ltd. (“Yuan Qi Man Man") and Business Opportunity Chain (Guangzhou) Technology Co., Ltd. (“Business Opportunity Chain Guangzhou”), respectively.

In August 2022, the Company obtained a 9.9% equity interest in Yong Fu Xiang, through subscription of a RMB6.73 million (approximately US$0.97 million) registered capital of the entity in cash, which amount was committed to be paid up before December 31, 2065. Yong Fu Xiang is primarily engaged in providing health care consultancy and health management services.

In September 2022, the Company obtained a 9% equity interest in Yuan Qi Man Man, through subscription of a RMB0.09 million (approximately US$0.01 million) registered capital of the entity in cash, which amount was committed to be paid up before December 31, 2040. Yuan Qi Man Man is primarily engaged in providing franchise consultancy and marketing services.

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.

For the year ended December 31 2022, the Company provided full impairment loss provision against its investments in Shenzhen Global Best Products Import & Export Co., Ltd. (“Shenzhen Global Best Products”), Guangzhou Gong Xiang Technology Co., Ltd. (“Gong Xiang Technology”) and Xiao Peng Education Technology (Hubei) Co., Ltd. (“Xiao Peng Education”) with an aggregate amount of approximately US$0.60 million, as the business activities of these entities had become dormant as of December 31, 2022.