BVI Company Financial News

Qiao Xing Universal Telephone, Inc., BVI-registered manufacturer and distributor of telecommunications terminal products in PRC, announced its financial results for the year 2008, and the filing of its 2008 Annual Report. The company reported the decline of net sales revenue from Rmb3,874.1 million for the year 2007 to Rmb2,594.9 million (US$380.4 million) in 2008, due to the global economic downturn and the earthquake in the Sichuan Province of China. Gross profit of the company decreased by 10.2% from the year 2007, and made to Rmb875.9 million (US$128.4 million) in the reported year.

BVI company’s major subsidiary, Qiao Xing Mobile Communication Co., Ltd., a domestic manufacturer of mobile phone handsets in China, strategically shifted its products portfolio to target upper-middle-income customers, and by this significantly increased its gross margin from 28.2% in 2007 to 40.2% in 2008.  Also, QXMC reported net income of Rmb423.8 million (US$62.1million) and basic earnings per share after extraordinary gains of Rmb7.52 (US$1.10).

Another subsidiary of Qiao Xing Universal Telephone, Qiao Xing Communication Holdings Limited,
engaged in the lower-end mobile phone handset business and indoor phone business, reported a net loss of Rmb291.0 million (US$42.7 million) for 2008. The reasons for the decrease are the economic recession and increased provisions for doubtful debts on accounts receivable in the amount of Rmb232.8 million (US$34.1 million) (compared with Rmb3.0 million in fiscal year 2007).

As a result of the material loss from Qiao Xing Communication Holdings and significant interest expenses which made Rmb146.2 million (US$21.4 million) at the parent company level, the net loss for Qiao Xing Universal Telephone in 2008 made Rmb136.8 million (US$20.0 million), and basic loss per share made Rmb4.42 (US$0.65).

The BVI company continues its diversification strategy and anticipates that its molybdenum business will generate substantial revenues, income and cash flow to the Group starting from the second half of 2009.

Deswell Industries, Inc., a manufacturing company incorporated in the British Virgin Islands, announced its financial results for the fourth quarter and year ended March 31, 2009.

For Q4 of the year, net sales made $27.4 mln, – a 13.2% decrease compared to the same period of 2008. The reason is the continuing decline of demand from the professional audio and instrument equipment market. Also, the company reported a decline in the operating income, which was $0.21 mln in the fourth quarter of 2009 compared to $0.65 mln in the same period of 2008.

In Q4 2009, net income was $0.59 mln ($1.04 mln in the quarter ended March 31, 2008). In this period, gross profit in the plastic segment decreased to 18.9% of net sales for the fourth quarter, from 21.4% of net sales in the same quarter of last year. This became mainly the effect of an increase in material cost. Gross margin in the electronic and metallic segment increased to 12.4% of net sales for the fourth quarter ended March 31, 2009, due to the decrease in raw materials cost and in labor cost due to headcount reduction.

For the year period ended March 31, 2009, Deswell reported net sales of $131.7 mln, – a decrease of 8.4% compared to $143.8 mln in 2008. Operating income decreased from $8.7 mln in the previous year to $0.75 mln this year. Net income decreased to $1.20 mln ($8.86 mln for the year ended March 31, 2008). In 2009, basic and diluted net income per share fell to $0.08, compared to $0.57 in the previous year. Company’s working capital totaled $51.6 mln as of March 31, 2009, compared to $54.8 mln as of March 31, 2008. Also, by the end of this year period the company has no long-term or short-term borrowings.

Emerging Metals Limited, a British Virgin Islands company focused on minor and emerging metals, announced its financial results for the year ended 31 March 2009. According to the published information, equity shareholder funds increased by 93% compared to the year 2008 and made GBP26,652,271.

During the year 2009, the BVI corporation acquired 8.04 per cent stake of Kalahari Minerals Plc and  0.17 per cent of Extract Resources Limited; holdings in both these companies valued at GBP17,627,774 – 139% rise against a purchase price of GBP7,368,281. Non-current assets valuation in 2009  increased to GBP5,319,860 (2008: GBP4,818,455); current assets valuation increased to GBP21,392,111 (2008: GBP9,092,516).

Emerging Metals reported net profit for the year 2009 in the amount of GBP10,005,933 (loss of  GBP1,498,576 compared to the previous year). Cash reserves remained at  GBP3,757,960 – a 59% decrease. The BVI company also reported an interest income of GBP266,423 – an increase of 53%. Operating expenses made GBP973,230. This was the first year of company’s listing on AIM.

On June 26, 2009, China Technology Development Group Corporation, a British Virgin Islands-registered corporation providing solar energy products and solutions in China, focusing on a-Si thin film technology, announced that it has filed its annual report for the year ended December 31, 2008.

The consolidated statement for the year 2008 included following operations data: interest income  US$12,000, net income per share from discontinued operations in the amount of US$0.01. According to the consolidated balance sheet for this year, total assets made US$9,177,000, shareholders’ equity was US$6,189,000.

The annual report on Form 20-F is filed with the U.S. Securities and Exchange Commission, and its full version can be accessed on the investor relations section of company’s website.