Category Archives: BVI company financial forecasts

Origin Agritech Ltd announces financial results for the year period ended June 30 2008

Origin Agritech Limited (BVI), a technology-focused supplier of crop seeds having main part of its business in China and registered in the British Virgin Islands, announced the unaudited financial results for the third  quarter of the year 2008.

The company reported revenues in the amount of US$71.54 mln – that is an increase of 7.73% from US$59.84 mln for the three months period ended June 30, 2007. The financial results were mainly due to a 6.2% increase in average sales price of the products, with volumes also increasing 2.2%.

Total operating expenses for the three months period ended June 30, 2008 were US$6.66 million, a decrease of 7.79% from US$6.51 million in the same period of the prior year – mainly due to the effective internal controls over daily operating costs and expenses. Selling and marketing expenses were US$2.45 mln for the third quarter of 2008, representing a decrease of 7.95% from the financial results of the same quarter of 2007, mainly due to the decrease in advertising expenses.

Income from operations for the third quarter of 2008 amounted to US$14.34 mln, compared with an operating income of US$7.80 million in the same period of 2007, reflecting a 65.77% increase from the previous year. Net income for the third quarter of 2008 reached US$8.77 mln and rose by 62.98%, as compared to net income of US$4.85 million in the same period a year ago. Earnings per share on a fully diluted basis were US$0.38, as compared to US$0.20 per diluted share in the same period a year ago.

In the company update, Origin announced that it entered into a Notes Repurchase Agreement with Citadel Equity Fund Ltd. on July 28, 2008, concerning the repurchase by the BVI company from Citadel of a part of its outstanding 1% guaranteed senior secured convertible notes due 2012. The deal provides Origin with the opportunity to increase equity shareholder value, providing flexibility to its operations.

The company published its expectations concerning the total revenues for the year ending September 30, 2008, which will be approximately US$75 – US$80 mln. Net income for the year ending September 30, 2008 will be aproximately US$0.5 – US$2 mln.

Chinese-BVI company affirms its profit guidance for 2Q and full year following the earthquake

China-based designer of precious metal jewelry Fuqi International Inc. affirmed its 2nd quarter and full year profit guidance and said that decrease of demand related to last month’s earthquake in China will not affect its sales in the long term.

Fuqi International, which is operating through its BVI-registered subsidiary Fuqi International Holdings Co., Ltd. (Fuqi BVI), and China-based wholly owned subsidiary, Shenzhen Fuqi Jewelry Co., Ltd. (Fuqi China), is expecting to earn US$0.2-0.21 per share for the quarter, and between US$0.98 and US$1.04 per share for the year.

Wholesale demand for company’s products has slowed in Sichuan province, which received worst damages from the earthquake which happened on May 12. The region represents 5% of its wholesale jewelry sales. However, the company said it does not expect any long-term slowdown in sales from this region.

Having published its preliminary financial results for the first quarter, the company gave raised financial forecast for the fiscal year 2008, with total wholesale revenue expected at the level of approximately US$290-$300 mln. Now the BVI company said it still expects wholesale revenue between US$62 mln and US$64 mln for the second quarter, and US$305 mln for the year period.

Chinese-BVI jewelry designer presents preliminary financial results for the first quarter 2008

Fuqi International, Inc., a Chinese designer of precious metal jewelry, operating through its wholly owned BVI-registered subsidiary Fuqi International Holdings Co., Ltd. (Fuqi BVI), and China-based wholly owned subsidiary, Shenzhen Fuqi Jewelry Co., Ltd. (Fuqi China), has announced its preliminary first quarter 2008 financial results. After initial review of operating results of the Fuqi International, its management reported that they are much better than those provided at the time when the Chinese company reported its financial results of Q4 and fiscal year 2007.

Now the company expects Q1 2008 revenue in the amount of US$76-$77 million, net income of $5.7-$5.8 million, and earnings per share diluted – about $0.27-$0.28. The preliminary financial results for the period include an expected contribution of approximately $1.0-$1.1 million from two jewelry retail counters of the BVI company. The new guidance replaces Chinese company management’s previous forecast of wholesale revenue of approximately US$62 million, net income between $4.0 and $4.4 million, and diluted EPS of $0.19-$0.21. Q1 2008 gross margin is expected to be approximately 11%, net margin – about 7.5%.

Fuqi International, which expects to report final financial results for Q1 2008 during the first half of May 2008, has also given raised financial forecast for the fiscal year 2008. The company expects total wholesale revenue of approximately US$290-$300 million, net income of $18.9-$19.5 million, and diluted EPS of $0.85-$0.90. In 2008, the company expects to continue to sustain long term wholesale gross margins in the 10.5% range, in line with its historical average.

Fuqi International, Inc., based in Shenzhen, is  focused on developing, promoting and selling wide range of products made of precious metals and stones in the Chinese luxury goods market. The design database of the company operating through its BVI- and China-based subsidiaries includes more than 28,000 products, making it the leading designer of high quality precious metal jewelry in China.

BVI-registered UTi Worldwide announces major restructuring plan and cost reduction measures

Shares of BVI registered UTi Worldwide Inc., global integrated logistics and freight forwarding company, fell 12.6% after the company released information about its plans to implement cost reduction measures, and lowered its 2008 adjusted profit forecast. The company has already reorganized its leadership around its freight forwarding and contract logistics and distribution, and decreased its earnings guidance for fiscal 2008. Other measures planned are seven per cent staff reduction, in order to to streamline company’s operations by exiting underperforming businesses, canceling long-term initiatives and realigning corporate and regional functions.

The BVI company explained these measures are needed due to slower than expected revenue growth due to the slowing economy, and the deterioration of underperforming businesses. To reduce costs, UTi Worldwide will exit its retail distribution business in Africa, the distribution operations in America and other underperforming operations which are not the main. The company will also cancel various long-term initiatives, scale back airfreight charters, and loss-bringing contracts. In order to reduce overhead costs, the company will realign corporate and regional functions.

UTi Worldwide said it has also realigned its executive management structure, with Chief Executive Officer Roger MacFarlane also taking on the function of chief operating officer, John S. Hextall becoming president of the global Freight Forwarding operations, William T. Gates becoming president of the global Contract Logistics and Distribution operations, and some other re-appointments.

In the press release, the BVI company said it expects all the above measures to reduce annual operating costs by the amount about $105-110 million, and net revenues – by $30-40 million. Also, cost cuts are expected to reduce annual net revenues by $75 million to $85 million, and boost earnings per share by 21 cents to 28 cents per year. The company expects a pre-tax restructuring charge of about $15-20 million with the above measures.

It was noted by some analysts that restructuring and management reshuffle planned by the company could make UTi more of a buyout target, yet the increased potential of an acquisition makes the stock more appealing.

While some of these measures have already been implemented and will lead to some immediate cost savings, the main financial benefits are expected to be phased in during the first six months of fiscal year 2009. UTi plans to report its results for the 2008 fourth quarter and fiscal year on March 27, 2008.