BVI Company Financial News

China GengSheng Minerals, Inc., a leading China-based industrial materials manufacturer conducting its business through the BVI-registered Gengsheng International Corporation, reported financial results for the second quarter ended June 30, 2010. In this period, company’s sales revenue was approximately US$15.0 million – 4.3% increase, compared with US$14.4 million in the same period of the previous year.

Gross profit for the second quarter, 2010, was approximately US$4.9 million, or 32.8% of revenue, compared with gross profit of approximately US$4.4 million in the second quarter of 2009. The reason for the increase in gross profit in the second quarter was the growth of sales prices of the company’s products, decrease in cost of raw materials, and increased revenues from full-service programs.

Total operating expenses of the company were approximately US$3.5 million, compared with US$2.5 million in the second quarter of 2009. Company’s selling expenses were US$1.8 million, an increase of $0.4 million, compared with selling expenses in the second quarter of 2009. The increase in selling expenses was related to increase in export sales of company’s fracture proppant products and activities associated with the launch of Gengsheng’s fine precision abrasives.

In the reported period, Company’s general and administrative expenses were US$1.4 million, compared with US$1.0 million in the second quarter of 2009. Research and development expenses made US$0.3 million – a US$0.1 million increase from the second quarter of 2009.

For the second quarter of 2010, the company reported decrease of income tax expense to approximately US$121,000, from US$282,000 million in the second quarter of 2009. Net income attributable to China Gengsheng’s common stockholders was approximately US$1.0 million, or US$0.04 per share, compared with net income of approximately US$2.0 million, or US$0.09 per share, in the second quarter of 2009.

British Virgin Islands-registered corporation Nam Tai Electronics, Inc. reported its unaudited financial results for the second quarter of 2010. For the period ended June 30, 2010, net sales of the company were US$113.9 million. This is 11.9% more than the results of the second quarter of 2009. According to Nam Tai’s statement, the improvement is due to varying degrees in each of business segments of the BVI company, over results of the second quarter of 2009.

The company reported gross profit of US$12.7 million, this is a 21.9% increase as compared to US$10.4 million in the second quarter of 2009. This is primarily the result of increase of sales and the effects of costs savings. Gross profit margin of the company was 11.2% in the reported period, compared to 10.2% in the same quarter of 2009.

In the period ended June 30, 2010, net income attributable to Nam Tai shareholders was US$3.2 million (2.8% of sales), as compared to net income of US$0.6 million (0.6% of sales) in the same period of 2009. Company’s operating income was US$3,8 million (compared to US$1,4 million in the second quarter of 2009). Company’s profit in Q2 2010 was primarily the result of the overall increase of sales.

In the reported period, company’s earnings per share (basic and diluted) were $0.07, as compared to $0.01 in the second quarter of 2009. 

According to the operations review of Nam Tai Electronics, the growth and improvement of company’s performance in the second quarter of 2010 was attributable to the simplification of corporate and organization structures, and strengthening of management controls and enterprise efficiencies. However, the overall instability of the global economy affected the demand for and sales of company’s consumer products.