BVI Company Financial News

British Virgin Islands-registered mineral exploration company Talon Metals Corp. reported financial results for the period ended September 30, 2008. For the third quarter 2008 the company reported net loss in the amount of $4,185,194 or $0.16 per share (basic and diluted), while by the results for the second quarter 2008 its net earnings were US$1,023,538, or US$0.04 per share. The third quarter net loss also compares to earnings of $8,171 or $0.00 per share for the same period of 2007, and earnings in the amount of $8,476,072 or $0.31 per share for the first nine months of 2007.

Capitalized exploration for the three and nine month periods ended September 30, 2008, was $343,399 and $1,279,240 respectively, relating mainly to the Agua Branca and Sao Jorge projects. These amounts compare to  $307,415 and $1,364,137 respectively for the same periods of 2007.

By the end of the period ended September 30, $3 million loan of Talon Metals to another BVI corporation, Saber Energy Corp., was advanced to $6 million. Talon’s due diligence review of Saber is in progress, and both companies are planning to negotiate a pre-merger agreement on or before March 24 of the next year.

BVI-registered Yucheng Technologies Limited announced the unaudited financial results for the three-month period ended June 30, 2008.

In the financial report for the second quarter 2008, the company has presented the profit and loss accounts separately for the established core business that included IT Solutions and Services and System Integration, and its future POS business.

According to the highlights for the period ended June 30, 2008, core business revenue was US$24.6 mln – a 136% increase if compared to the second quarter of the previous year. IT Solutions and Services revenue was US$9.2 mln, which is 97% increase; IT Solutions and Services business continued to realize gross margins in excess of 60%.

Yucheng’s total second quarter revenues were USD 25.0 mln, an increase of 140%. Gross margin for BVI company’s consolidated business was 31.8% in the second quarter, compared to 35.7% for the same period 2007. Company’s cash increased to US$26.0 mln by the end of the second quarter, from US$14.5 mln at the end of the first quarter of 2008. Management raised the revenue guidance for the fiscal year 2008 to USD 88 mln, and maintained the original Non-GAAP net income guidance for the fiscal year 2008 of USD 14.7 mln to USD 15.2 mln.

Yucheng’s net revenue was USD 0.4 mln in the second quarter, compared to USD 0.3 mln in the first quarter of the year. Average gross revenue per terminal of company’s entire merchant base was USD 12.0 per month both in the first and second quarters. Operating expenses were USD 0.76 million, a slight increase from USD 0.71 million in the first quarter of 2008.

BVI corporation OpenTV Corp., a leading provider of advanced television and advanced advertising services, announced financial results for the third quarter ended September 30, 2008. Company’s CEO, Ben Bennett, noticed company’s good performance in this period.

For the third quarter ended September 30, 2008, OpenTV’s revenues made $26.9 mln, - a 14%  increase over revenues of $23.7 million for the third quarter of 2007. Royalties and licenses revenues increased 2% and reached $16.5 mln. Services and other revenues increased 39% to $10.4 mln. Net income for the third quarter of 2008 was $1.0 million, or $0.01 per diluted share, compared to a net loss of $8.2 mln, or $0.06 per diluted share, for the third quarter of 2007.

As of September 30, 2008, the BVI company recorded a balance of $30.5 mln in deferred revenue, compared to $24.1 million by December 31, 2007. By the same date, cash and cash equivalents, as well as short and long-term marketable debt securities totaled $98.7 mln, compared to $81.8 mln as of December 31, 2007.

By segments, revenues from the Middleware Solutions segment in the third quarter of 2008 made $23.9 mln, compared to $20.7 mln for the same period of the prior year, and revenues from the Advertising Solutions segment were $3.0 million, the amount which was consistent with the same period in the year 2007.

The BVI corporation also provided a summary of key press releases issued by the company since its last earnings announcement, among which there was the acquisition of Ruzz TV, the Australian privately held company providing software solutions for television broadcasters, and the introduction of an advanced video-on-demand solution for cable operators that will allow them to differentiate their service offerings through advanced features such as high-definition, start-over TV and catch-up TV.

BVI-registered Qiao Xing Universal Telephone, Inc. announced the unaudited operating results for the second quarter of the year, ended June 30, 2008. The company only reports its second quarter operating results because a third party valuation is being conducted for the purposes of accounting for the $70 million convertible notes issued on May 15, 2008 by company’s major subsidiary, Qiao Xing Mobile Communication Co., Ltd.

The second quarter operating results of BVI company’s subsidiary represented a large decrease from the same period of 2007, which leads to a drop of operating result in Xing also. Both companies experienced negative impact of the macro-economic recession and slowing down of consumption in Chinese consumer market.

The reported revenue in the second quarter of the year made RMB509.4 million (USD74.3 million) – compared to  RMB 1,001.1 million for the second quarter 2007. Sales revenue was mainly contributed by company’s major subsidiary CECT, whose handset shipments represented a decrease of 46.4% compared to 1,055,000 units in the same period of 2007. The decrease was primarily due to lower demand caused by the earthquake in Sichuan and a delay in new product launch.

Gross profit decreased from RMB312.2 million in the second quarter of 2007 to RMB148.7 million  in 2008 – mainly because of the decrease of the sale of CECT-branded mobile phone handsets. Selling, general and administrative expenses in the second quarter of 2008 made RMB78.5 million (US$11.4 million) – an increase from RMB75.2 million in 2007, primarily due to airtime costs incurred on the sale of a range of models through the info-commercial arrangement. Income from operations was RMB 70.2 million (USD 10.2 million) in the second quarter of 2008, compared to RMB 237.0 in the same period of 2007.

Qiao Xing reported that, despite the significant decline in mobile phone sales over the period, there was a 50% increase in the indoor phone sales revenue, due to the increase of sales to overseas. For the company’s mobile phone business (COSUN) the whole year growth will be adjusted from 40% to around 15%. A significant increase in company’s indoor phone business is expected, compared to 2007.

British Virgin Islands-based affiliate of the Giant Group Ltd., which has worked in Malaysia, is now seeking the approval of the Vietnam government to build a complex of hotels, golf resorts and residential areas in the country, close to the border with Cambodia. Information about this was given by Vietnam officials on Monday, October 6.

The complex $4 billion worth will occupy 200 hectares in the Border Economic Zone in Dong Thap province, 150 km west of Ho Chi Minh City. After the approval, the work on the project will start in 2009 and be completed by 2013. One of the proposed projects was building a casino and a helipad in the complex, but both these proposals were turned down by the province.

Huynh Van Sang, the director of the Planning and Investment Department of Dong Thap province, said that they are going to check the financial capability of Giant Group, which is the owner of the BVI company seeking to get the investment license. The Group is asked to send to the province the financial reports for the last three years as well as information about other projects they have invested in.

By words of Dang Van Hoang, director of Tourism Department of the province, this complex may contribute to the cross-border tourism activities between Vietnam and Cambodia.

BVI-registered China Technology Development Group Corporation has announced its unaudited consolidated financial results for the six month period ended June 30, 2008.

The BVI Group decided to focus on the strategic expansion in the solar business, and proposed to dispose of its equity interest of Jingle Technology Co Ltd. and its subsidiaries. The disposal of Jingle was approved by the written resolution of the Board passed in May, 2008.

As at June 30, 2008, company’s first solar base plate production line in the factory in Fujian Province of Prc, concluded its installation and testing, but no revenues have been generated, and company’s revenues were contributed solely from IT operations in 2008 period. BVI company’s IT operations were classified as held for sale in the six months ended June 30, 2008, and the gain  from this discontinued operation represented as the below:

- Decrease of revenues from US$336,000 in the six months period ended June 30, 2007 to US$249,000 by the same period of 2008 – meaning the decrease of 25.89%.
- Cost of sales decrease by US$97,000, or 61.78%, from the same period of 2007, which is actually in line with the decrease of company’s revenues.
- Increase of gross profit by US$10,000, or 5.59%, from US$179,000 to US$189,000 in 2008 period. By percentage of sales, the gross profit margin of IT operations increased by 22.63bps, and reached 75.90% in the 2008 period. T
- Decrease of selling expenses by US$25,000, or 43.10% - from US$58,000 in 2007 period to  US$33,000 in 2008 Period, due to downsize of certain technical support staffs.
- General and administrative expenses decrease by US$39,000, or 15.48% - from US$252,000 in 2007 to US$213,000 in 2008 period.

General and administrative expenses of the company in the same period increased by US$700,000, or 102.94%, from US$680,000 in 2007 Period to US$1,380,000 in 2008.

Non-operating expenses mainly represented US$99,000 of loss on disposal of available-for-sale securities and US$13,000 of exchange loss on bank account denominated in Hong Kong dollars in 2008 Period.

The BVI company also maintained a deposit of  US$770,000 with its main shareholder China Biotech Holdings Limited, for the purpose of financing potential investments. Additionally, the BVI company had received US$1,154,000 from China Biotech Holdings Limited for assignment agreement relating to disposal of its interests in BVI registered China Natures Technology Inc. China Technology recorded it as shareholders’ contribution in the additional paid-up capital in shareholders’ equity in 2008 period. The additional paid-in capital did not have any dilution to shareholders.
As a result of this, China Technology Development Group Corporation reported a net loss of US$1,418,000 in 2008 period as compared to a net income of  US$796,000 in 2007 period.

The holding corporation S3 Investment Company, Inc. and its wholly owned Redwood Capital subsidiary that now trades in the U.S. as Energroup Holdings Corporation , assisting private Chinese companies in accessing the U.S. capital markets through reverse mergers into public companies, on October 15 has informed shareholders on the updated status of financial filings originally planned to be filed by S3 this week, and of the expected timeline for closing of Redwood Capital’s reverse merger transaction. After filing the documents which will include the annual reports with audited financials for the 2007 and 2008 fiscal years, the company will apply to be reinstated to the Over-the-Counter Bulletin Board market.

Chairman and CEO of S3 Investment Company, Jim Bickel, also commented on the status of Redwood Capital reverse merger transactions, saying that they are expecting for two of the transactions to close by the end of the calendar year.

Redwood Capital participated in a transaction involving BVI-controlled Dalian Chuming: Nevada-based Energroup Holdings had acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited, a British Virgin Islands corporation which is the whole owner of China-based Dalian Chuming. Redwood Capital was issued 428,095 shares of ENHD as the equity portion of its payment for advisory services provided for the transaction.

In the recent financial reports for Energroup Holdings Corporation, it is seen that through its direct and indirect subsidiaries (known as Chuming), supermarket and franchise stores increased sales 57.8% up for the first six months of 2008 versus prior year, and net income increased 70% to $9.9 million for the 6 months ended June 30, 2008.

China Technology Development Group Corporation, the BVI-registered company providing solar energy products and solutions in China, announced recently that it has executed a Securities Purchase Agreement with several U.S. institutional accredited investors. Under the terms of this Agreement, the BVI company will raise $1,500,000 through private placement of common equity and warrants, by issuing 498,338 shares of its common stock at the price of $3.01 per share with 50% warrant coverage at exercise price of $6.00 per share through a private placement.

The warrants will have a five-year term following the closing of this transaction, and the proceeds are intended to be used by the China Technology Development Group Corporation (BVI) for preparing of the manufacturing band expansion of the SnO2 solar base plates, for working capital and for general corporate purposes.

British Virgin Islands-registered corporation Everbright Development Overseas Ltd., providing financial and logistical services for manufacturers and merchants involved in trade between United States and China, is investing $30 million in Gottschalks Inc. - a regional retail chain headquartered in Fresno, California. By this investment, the Fresno department store chain will receive cash infusion, along with greater access to overseas manufacturers and a larger product line.

Under the terms of the letter of intent signed between the BVI company and Gottschalks Inc., Everbright will purchase about 29% of the company’s common stock - 5.6 million shares, for $10 million at $1.80 per share. Gottschalks also plans to issue a five-year convertible secured note to Everbright for $20 million.

BVI-registered A-Power Energy Generation Systems, Ltd. announced that it had signed sales contract with China National Automation Control System Corp. (CACS) for the sale of five 2.7 MW wind turbines.

Delivery of the five units, which will be the first ones produced at BVI company’s recently completed wind turbine production facility in Shenyang, is planned to occur in Q4 2008. This facility consists of two production lines with a designed annual capacity of 300 units of 2.7MW wind turbines and 420 units of 750kW wind turbines, totaling over 1.1GW in annual output.

CACS is a subsidiary of China National Machinery & Equipment Group, and a leading provider of power generation solutions to both China and the international markets since 1981. The BVI company will supply wind turbines to CACS’ wind farm projects in the Gansu province and the Inner Mongolia Autonomous Region.

Currently, the BVI company is in late-stage discussion to sign additional contracts with CACS and the other parties that had signed letters of intent with A-Power in Q1 2008, and which in aggregate provide for additional 375 wind turbines.