BVI Company Financial News

China Natural Resources, Inc., the British Virgin Islands-incorporated company based in China, released results of operations for the year ended December 31, 2010, derived from the company’s audited financial statements.

In the reported year, China Natural Resources recorded total sales revenue of US$15.26 million, down by 6.44% from the year 2009. In 2010, company’s income attributable to shareholders was US$86.94 million, almost two times higher than last year, of which US$94.47 million was derived from the bargain purchase gain relating to Guizhou Puxin’s acquisition.

The BVI company reported net income per share (basic) in the amount of US$3.87, net income for diluted share was US$3.82.

The company announced that its prime focus now is coal mining business, the sales of coal to become the main source of revenue in the next years.

China Natural Resources, Inc. is currently engaged in the acquisition and exploitation of mining rights, including the exploration, mineral extraction, processing and sale of iron, zinc and other nonferrous metals, located in Anhui Province in the People’s Republic of China, and acquisition, development and production of coal resources in Guizhou Province in the PRC.

British Virgin Islands-incorporated company CIC Energy Corp., focused on operations in South Africa, announced the results for the fiscal year ended November 30, 2010. For the year ended November 30, 2010, the company reported net loss of US$11,179,777 or US$0.21 per share (basic and diluted), as compared to a loss of US$5,655,181 pr US$0.11 per share (basic and diluted) for the previous year. The higher year-over-year net loss was primarily because of reduced interest received on lower cash balances. This year, there was also negative foreign exchange impact due to the strengthening of the South African and Botswana currencies, while in 2009 there was positive foreign exchange impact.

Another factor that influenced the higher net loss of the BVI company in the year period ended November 30, 2010, is an increase in corporate expenses including staff severance costs that occurred at the beginning of the reported year.

Capitalized project costs amounted to US$175,185,200, as compared to capitalized project costs for the year ended November 30, 2010 totaling US$8,360,605.

British Virgin Islands-incorporated company Yucheng Technologies Limited, a leading provider of IT Solutions to the financial services industry in China, announced financial results for the fourth quarter and full year ended December 31, 2010. In this period, company’s software and solutions revenues were US$18.7 million – an increase of 151.6% compared to the year 2009. The fourth quarter net income from continuing operations was US$3.2 million, or US$0.16 per share, as compared to US$-6.1 million, or US$-0.33 per share in the year-ago period.

Full year total revenue and EPS guidance for the year 2011 is between US$70.0 million and US$72.0 million and US$0.43-0.45. Total revenues for the fourth quarter of 2010 were US$21.9 million, an increase of 212.8% year-over-year, and 39.0% sequentially. The year-over-year increase was mainly due to the increase of software and solutions revenues.

Gross margin for the fourth quarter of 2010 was 50.6%, compared to 27.4% in the last year period and 48.4% in the previous quarter of the reported year. Gross margin of net revenues was 50.7% in the fourth quarter of 2010, compared to 20.1% in the year-ago period and 48.4% in the previous quarter. The increase in gross margin year-over-year was a combined result of the increases in gross margin of both software & solutions business and platform business.

Total operating expenses in the fourth quarter of 2010 decreased 14.5% year-over-year and increased 48.4% to US$8.4 million. Total operating expenses for the fourth quarter of 2010 decreased 19.5% year-over-year and increased 48.7% sequentially to US$7.6 million.

Income from operations for the fourth quarter of 2010 was US$2.7 million. Income from operations for the fourth quarter of 2010 was US$3.5 million, compared to US$ -7.5 million in the year-ago period and US$2.5 million in the previous quarter.

As of December 31, 2010, cash and cash equivalents and restricted cash of the BVI company totaled US$24.5 million.