Note 6 - Due From Related Parties, Net

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Due from Related Parties Disclosure [Text Block]

6. Due from related parties, net

	September 30, 2019			December 31, 2018
	US$(’000)			US$(’000)
	(Unaudited)
An officer of the Company		-			200
Guohua Shiji (Beijing) Communication Co., Ltd.		170			201
		170			401
Allowance for doubtful accounts		(170	)		(175	)
Due from related parties, net		-			226

Related parties of the Company represented the Company’s direct or indirect unconsolidated investee companies, entities that the Company’s officers or directors can exercise significant influence, as well as an officer of the Company.

Due from an officer of the Company as of

December 31, 2018

represented a

US$0.20

million fund advanced to

one

of the Company’s officers during the

third

fiscal quarter of

2018

for the purpose of setting up and providing finance to a proposed business entity in Taiwan. The Company intended to set up and expand its business in Taiwan through establishing the VIE arrangements with this Taiwan entity. This Taiwan entity was incorporated in

September 2017

and is wholly-owned by the officer referred above, and has

no

fund and business activities since incorporation. Based on the fact that there are still legal obstacles to establish the VIE agreements between an entity that is ultimately controlled by the PRC citizens with an entity duly organized under the law of Taiwan, the Company terminated the plan, and the

US$0.2

million fund advanced was fully returned to the Company in

April 2019.

As of

September 30, 2019

and

December 31, 2018,

due from related parties also included a short-term working capital loan to Guohua Shiji (Beijing) Communication Co., Ltd. (“Guohua Shiji”). As of

December 31, 2018,

the outstanding amount of the loan was

RMB1.38

million (approximately

US$0.20

million), of which

RMB0.18

million (approximately

US$0.03

million) was collected by the Company during the

first

fiscal quarter of

2019,

and the Company had provided full allowance to against the remaining amount of this loan as of

September 30, 2019

and

December 31, 2018,

as the business activities of Guohua Shiji had significantly declined in recent years.