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Note 6 - Other receivables, net
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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| Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
Short-term
loan for marketing campaign: for one of the major marketing
campaigns, the Company made a marketing-related loan of
RMB25,000,000 (approximately US$3,952,757) to a TV series of
36 episodes, called “Xiao Zhang Feng Yun”. This
TV series was produced for the commemoration of “The
Republican Revolution of 1911” (the Chinese bourgeois
democratic revolution led by Dr. Sun Yat-sen which overthrew
the Qing Dynasty). By participating in this TV series, the
Company will be shown during the credit at the closing of
each episode with its logo presented and also shown as a
separate card during the closing before the credit screen.
This TV series has been broadcasted on CCTV 8 and www.sina.com.cn
from September 2011 and is continually selling its
broadcasting rights to other provincial TV channels for
additional exposure. In November and December,
2011, the Company collected its first two repayments of
RMB6,000,000 (approximately US$948,662) in the aggregate from
the borrower. In accordance with the communication between
the Company and the debtor, the Company has extended the term
of this loan from December 31, 2011 to December 31, 2012, as
this TV series had only completed its first round selling
broadcasting rights. The Company will continue to assess the
collectability of this loan and if an event occurs or
circumstances change that could indicate that the
collectability of this loan is remote, a full allowance of
bad debts provision will be provided for the remaining
outstanding balance of this loan.
As
of March 31, 2012, the Company made a project development
deposit to a third party project development and management
company for the participation of the TMT (“Technology,
Media and Telecom”) Zone development and management in
Xiaogan City, Hubei Province, the PRC (the “Xiaogan TMT
Zone”). This TMT zone is intended to become the
headquarters for the SMEs, especially the small and medium
sized franchising business, with all the supporting TMT
services. The deposit is refundable subject to upcoming
planning and further evaluation of the development of the
Xiaogan TMT Zone. If after evaluation, further involvement in
the development and management is not economical or efficient
for the Company and the Company decides to exit, the deposit
will be refunded within the current calendar year.
For
all advertising resources purchase contracts signed by the
Company with its resources providers, the Company is required
to deposit contract execution guarantees, the contract
execution guarantees will be used to offset the contact
amount need to be paid for the resources provided in the last
month of each contract period or refunded to the company upon
expiration of the purchase contract. Overdue contract
execution deposits represented the portion of the contract
execution deposits, which related advertising resources
purchase contracts had been completed as of each of the
reporting dates. Based on the assessment of the
collectability of these overdue contract execution deposits
as of March 31, 2012, the Company provided approximately
US$528,000 allowance for doubtful debts, which was related to
the contract execution deposits of its TV advertising
business segment. For the three months ended March 31, 2012,
no additional allowance for doubtful debts was
provided.
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