Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Variable Interest Entities Disclosure [Text Block]

2. Variable interest entities

The Company is not an operating company in China, but a Nevada holding company with no equity ownership in the VIEs. The Company primarily conducts its operations in China through its Hong Kong subsidiaries, mainland China subsidiaries, the VIEs, with which the Company has entered into contractual arrangements, and their subsidiaries in China. Summarized below is the information related to the VIEs’ assets and liabilities reported in the Company’s condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively:

	June 30, 2025		December 31, 2024
	US$(’000)		US$(’000)
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	74	$	24
Accounts receivable, net		3		34
Prepayment and deposit to suppliers		1,065		1,189
Other current assets, net		1		2
Total current assets		1,143		1,249
Property and equipment, net		73		85
Total Assets	$	1,216	$	1,334
Liabilities
Current liabilities:
Accounts payable	$	110	$	93
Advance from customers		454		489
Accrued payroll and other accruals		16		14
Taxes payable		2,531		2,521
Other current liabilities		583		546
Total current liabilities		3,694		3,663
Long-term liabilities:
Deferred tax liabilities		-		-
Total Liabilities	$	3,694	$	3,663

Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets.

Summarized below is the information related to the financial performance of the VIEs reported in the Company’s condensed consolidated statements of operations and comprehensive loss for the six and three months ended June 30, 2025 and 2024, respectively:

	Six Months Ended June 30,						Three Months Ended June 30,
	2025			2024			2025			2024
	US$(’000)			US$(’000)			US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues	$	49		$	9,201		$	-		$	5,670
Cost of revenues		(39	)		(9,131	)		-			(5,672	)
Total operating expenses		(77	)		(1,112	)		(41	)		(615	)
Net loss		(71	)		(1,067	)		(42	)		(623	)