Note 2 - Variable Interest Entities

6 Months Ended

Jun. 30, 2026

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, 2026 and December 31, 2025, respectively:

		June 30, 2026				December 31, 2025
		US$(’000)				US$(’000)
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	13			$	13
Accounts receivable, net			-				-
Prepayment and deposit to suppliers			1,101				1,073
Other current assets, net			1				2
Total current assets			1,115				1,088

Property and equipment, net			59				66
Total Assets		$	1,174			$	1,154

Liabilities
Current liabilities:
Accounts payable		$	98			$	95
Advance from customers			476				461
Accrued payroll and other accruals			26				26
Taxes payable			2,660				2,578
Other current liabilities			618				624
Total current liabilities			3,878				3,784

Long-term liabilities:
Deferred tax liabilities			-				-
Total Liabilities		$	3,878			$	3,784

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, 2026 and 2025, respectively:

		Six Months Ended June 30,								Three Months Ended June 30,
		2026				2025				2026				2025
		US$(’000)				US$(’000)				US$(’000)				US$(’000)
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)

Revenues		$	-			$	49			$	-			$	-
Cost of revenues			-				(39	)			-				-
Total operating income/(expenses)			148				(77	)			79				(41	)
Net profit/(loss)			148				(71	)			79				(42	)