BVI Company Financial News

UTi Worldwide Inc., an international supply chain services and solutions company registered in the British Virgin Islands, reported financial results for the fourth quarter period ended January 31, 2010. In this period, company’s revenues were $991.5 million – an 11 percent increase from $894.1 million in fiscal fourth quarter period ended January 31, 2009. Net revenues were $350.6 million – a 5 percent increase from $332.7 million in Q4 2009. Net income was $1.5 million, or $0.02 per diluted share (compared to a net loss of $89.8 million, or $0.90 per diluted share). Adjusted net income attributable to UTi Worldwide Inc. for the reported period was $10.9 million, or $0.11 per diluted share. Operating expenses in the fourth quarter of fiscal 2010, excluding purchased transportation costs, were $338.8 million. Operating income reported by the company made $11.8 million. UTi Worldwide Inc. recorded an effective tax rate of 79 percent in the fourth quarter, and 35 percent for the year 2009.

According to company’s CEO Eric W. Kirchner, financial results in the fourth quarter were severely affected by sharply higher transportation costs. He said that the circumstances leading to the industry-wide yield contraction are to stabilize over time and this will allow the company to pass through higher prevailing transportation rates to clients.

Origin Agritech Limited, a technology-focused supplier of hybrid and genetically modified crop seeds in China, incorporated in BVI, announced the unaudited financial results for the first quarter of fiscal year, ended December 31, 2009. The company reported the increase of deferred revenues by 24.8%.

For the first quarter of the year, BVI company’s revenues made US$5.65 million, a 31.5% decrease from US$8.24 million reported for the first quarter of the last year. The revenues were mainly from the sales of higher margin canola seed products for the quarter period. Gross profit for the three-months ended December 31, 2009 was US$3.01 million – this is a 33.6% increase from US$2.25 million reported for the same period of the prior year. Gross margins for this quarter were 53.3% versus 47.9% for the canola seed sales for Q109 (exclusive of scrap sales).

Origin Agritech reported total operating expenses for the period in the amount of US$5.71 million, compared to US$5.85 million reported for the same period of 2008. Selling and marketing expenses decreased by 20.8% and were US$1.53 million in the first quarter of 2010, compared to US$1.94 million for the same period of the last year. There was a 14.0% increase of general and administrative expenses, which made US$2.99 million against US$2.62 million for the three months ended December 31, 2008. The company noted that differences in operating expenses just represent small variations year over year, and the expenses are expected to be relatively flat annually, across all operating expenses and within each separate category.

Operating loss for the first quarter period was US$2.69 million, compared with an operating loss of US$3.59 million for the same period of 2008. Net loss for the first quarter was  US$1.98 million, or US$0.09 per diluted share, while in the first quarter of the last year it was US$2.87 million, or US$0.13 per diluted share.

EuroTech Holdings Company Limited, incorporated in the British Virgin Islands and engaged in manufacturing of instruments and equipment in the area of water and waste water treatment, announced its unaudited financial results for the six months period ended June 30, 2009.

For the reported period, BVI company’s revenues were approximately $14,122,000, 5% more than in the same period ended June 30, 2008 when EuroTech reported revenues of  $13,389,000. The net income for six months ended June 30, 2009 was approximately $11,000, as compared to $4,000 for the six months ended June 30, 2008. Company’s net income per ordinary share, basic or diluted, was US$0.0009 in the reported period, while in the same period of 2008 it was US$0.0003. The increase in revenues and income was principally due to the contribution from BVI company’s affiliates Blue Sky and Jia Huan.

For the six months period ended June 30, 2009, Eurotech reported gross profit of $3,080, 000, compared to $3,187 for the same period of 2008. Total assets of the BVI company were $27,010,000 as of June 30, 2009 ($28,278,000 as of December 31, 2008)

Chairman and CEO of Eurotech, Mr. T.C. Leung, commented the unaudited results, saying that 2009 was “a tough year” for the company, as the global financial crisis affected most of its customers, including multinational companies, and Chinese small and medium enterprises, in their investment decisions. He also said that during the reported period, the company has been spending more resources to develop more new environmental protection instruments and equipment, working on a number of engineering projects to be launched in early and mid 2010, and taking part in more related exhibitions to promote their products in China and in the other markets.

Qiao Xing Universal Telephone, Inc. in the mid of December published its unaudited financial results for the six months ended June 30, 2009.

Qiao Xing is a British Virgin Islands-registered company which was previously one of the leading manufacturers and distributors of telecommunications terminal products in China, but after making the strategic decision to diversify into the resources industry has become an emerging Chinese resources company. On December 18, following its strategy to become a pure resources company, Qiao Xing Universal Telephone, Inc. announced the change of its name to Qiao Xing Universal Resources, Inc.

The financial results for the six months period were commented by Mr. Wu, Chairman and CEO of Qiao Xing, who said that fiscal 2009 was a year of transition for the company, as it focused its efforts and management attention in the resources industry in China. In April 2009, the BVI company purchased 100% interest in China Luxuriance Jade Company, Ltd, together with the right to explore a large copper-molybdenum mine in Inner Mongolia. In the near future, the company is planning to complete the transition into a natural resources business. Also, the company is seeking additional acquisition objects in the resources industry.

In the first half of 2009, net sales of the company were US$168.5 million, this is an 8 per cent decrease from the same period of 2008, primarily due to lower average selling price of products sold in the first half of 2009. Gross profit of Qiao Xing made US$32.6 million in the first half of 2009 – a 36.3% decrease compared to the gross profit in the first half of 2008. Total operating expenses were US$39.6 million, which represented a dramatic increase of 75.1% from the same period of 2008. Net non-operating losses were US$17.2 million, which is also a significant increase compared to the first half of 2008. This increase is mainly due to non-cash interest expenses related to convertible notes issued by BVI company’s main subsidiary by Qiao Xing Mobile Communication Co., Ltd. In the first six months of 2009, the company reported operating loss in the amount of US$24.2 million. Net loss was US$26.9 million, and basic loss per share was US$0.53.