| Prepayments and Other Current Assets |
| 5. |
PREPAYMENTS AND OTHER
CURRENT ASSETS |
Prepayments and
other current assets consist of the following:
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December 31, |
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2010 |
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2011 |
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(RMB) |
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(RMB) |
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(US$) |
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Prepaid expenses
(1)
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9,934,564 |
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10,658,844 |
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1,693,520 |
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Staff advances
(2)
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6,768,392 |
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5,012,447 |
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796,398 |
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Advances to
suppliers
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12,081,460 |
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4,046,085 |
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642,858 |
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Rental deposits
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1,814,117 |
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1,985,049 |
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315,393 |
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Prepaid game distribution
license fee (3)
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12,914,265 |
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14,392,878 |
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2,286,798 |
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Tax receivable
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950,286 |
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2,333,537 |
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370,762 |
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VAT refundable
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22,705,555 |
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24,802,871 |
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3,940,779 |
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Interest
receivable
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18,792,361 |
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6,721,682 |
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1,067,968 |
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Proceeds receivable on
deconsolidation of a subsidiary (4)
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28,625,000 |
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28,625,000 |
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4,548,054 |
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Advances to shareholder of
Huayi Giant Information
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7,500,000 |
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7,500,000 |
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1,191,630 |
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Others
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10,641,408 |
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5,873,435 |
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933,194 |
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Total
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132,727,408 |
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111,951,828 |
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17,787,354 |
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| (1) |
Prepaid expenses mainly
relate to prepayments for insurance fee and Internet Data Center
(“IDC”) services or space rental and
facilities. |
| (2) |
Staff advances mainly
relate to cash advances given to certain employees for use during
business operations and are recognized as sales and marketing
expenses when expensed. |
| (3) |
In January 2010, and
February 2010, respectively, the Group entered into agreements with
third parties to license online games. As part of the agreements,
the Group is required to make upfront payments for the licenses. As
of December 31, 2011, the Group has paid RMB14,392,878
(US$2,286,798) in upfront payments, which is being recorded as a
prepaid game distribution license fee. |
| (4) |
The Group had a receivable
due from the shareholder of Huayi Giant Information amounting to
RMB 28,625,000 (US$4,548,054) due to the disposition of Huayi Giant
Information in 2010. According to the disposition agreement, the
settlement of the remaining consideration is subject to the
completion of legal and administrative procedures by Huayi Giant
Information, including obtaining of an Internet Content Provider
certificate, Internet Publishing License and Internet Operation
License. |
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