Monthly Archives: December 2008

China Gengsheng Minerals to get $3.54 mln order from American distributor

China Gengsheng Minerals, Inc., China-based technology company that makes its business through the British Virgin Islands-registered subsidiary Gengsheng International Corporation, announced that it has signed fracture proppant supply contracts with a distributor to supply oil fields in North America.

According to the contracts, the total value of which is $3.54 million, Gengsheng will start shipping fracture proppants – light, bauxite-based, grain-like material that has round and smooth surface and a quality of resisting high pressure and acid corrosion, immediately through the end of 2009.

Mr. Shunqing Zhang, Chairman, CEO and President of China Gengsheng Minerals, said in his comments that these orders reflect the initial success of company’s marketing efforts in North America, which is a region that has more oil fields, thus providing more market opportunities for the company.

BVI-registered China Cablecom reports pro forma financial results for the three and nine months period ended September 30, 2008

China Cablecom Holdings, Ltd., BVI-registered joint-venture provider of cable television services in China, reported the unaudited financial results for the third quarter 2008. The earnings release reflects both pro forma and actual financial results due to the completion of China Cablecom’s acquisition of a 60% interest in Hubei Chutian Video & Information Network in the end of the second quarter of 2008. The financial results of Hubei are reflected in the actual third quarter 2008 results beginning on July 1, 2008, while pro forma results of operations reflect the Hubei acquisition as well as the business deal of the BVI company with Jaguar Acquisition Corporation as if they had occurred on January 1, 2008.

Consolidated revenues for the third quarter of 2008 increased to $9.4 mln, compared to pro forma revenues of $9.1 mln for the second quarter of 2008. Consolidated operating expenses for the third quarter of 2008 were $5.6 mln, compared to pro forma operating expenses of $6.8 mln for the second quarter.

On a GAAP basis, net comprehensive loss for the third quarter of 2008 was $4.5 mln, or $0.48 per basic and fully diluted share – compared to a net comprehensive loss of $3.5 mln, or $0.38 per basic and fully diluted share in the second quarter of the year. Higher net loss for the third quarter 2008 was significantly impacted by non-cash amortization of intangible assets , and non-cash interest expense associated with original issue debt discount and deferred financing costs relating to China Cablecom’s September 2007 bridge financing and May 2008 convertible note offering in the amount of $2.69 mln.

For the nine months period ended September 30, 2008, pro forma revenues were $26.8 mln, while pro forma operating expenses made $18.1 million. Net comprehensive loss for this period was $9.6 mln, or $1.46 per basic and fully diluted share. For the nine months ended September 30, 2008 the BVI company used weighted average shares outstanding of 6.5 mln.

As of September 30, 2008, China Cablecom had $35.6 mln in cash and cash equivalents.

Among the recent highlights of the BVI company, there are manager named participation in several investor conferences, and the announcement in June 2008 of the first phase of acquisition of Hubei – a joint venture with Hubei Chutian Broadcasting and Television Network Co., Ltd.

Qiao Xing Universal Telephone, Inc. Reports Financial Results for Q3 008

British Virgin Islands company Qiao Xing Universal Telephone, Inc. announced its unaudited third quarter financial results for the three months ended September 30, 2008. Net sales of the company decreased by 31.5%, compared to the same period of 2007, and made US 102,5 mln (RMB 716.2 mln). However, gross profit increased 35.3% to the amount of US 47.7 mln (RMB 333.3 mln), the reason is the dramatic decrease of cost of sales.

Cost of sales made USD 54.8 mln (RMB 382.9 mln), representing a decrease of 52.1% from the same period of the prior year. Gross margin increased from 23.6% in the third quarter of 2007 to 46.5% for the same period of 2008. Net income was USD 2.5 mln (RMB 17.4 mln) in the third quarter of 2008, compared to net loss of RMB 9.6 mln in the third quarter of 2007.

Basic earnings per share of common stock for the third quarter of 2008 were USD 0.07 (RMB 0.49) – compared to basic loss per share in the amount of RMB 0.33 in the same period of 2007.

Commenting on the results, the Chairman of XING said they are satisfied with the results for the third quarter of 2008, namely by the increase of gross profit and net income, and the improvement in gross margin which can be attributable to the successful strategic shift to new high-end luxury VEVA brand in Qiao Xing Mobile Communication Co., Ltd., a main subsidiary of XING.

Net non-operating losses were USD 15.4 mln in the third quarter of 2008, representing an increase of 3.9% compared to the results of the third quarter 2007.

BVI-registered LJI reports financial results for the third quarter and nine months of 2008

British Virgin Islands company LJ International Inc (LJI), leading jewelry manufacturer and retailer, reported financial results for the third quarter of 2008. The announced unaudited results for the period ended September 30, 2008, include reported revenues totaling $32.9 mln – that is down 12.7% from $37.7 mln in the third quarter of 2007. It was reported by the company that year-on-year revenue decline was primarily due to worsening economic conditions at the wholesale level, connected with a global slowdown in consumer spending. Net income of the BVI company for the third quarter of 2008 made $0.4 mln, or $0.02 per diluted share, – compared to $0.5 mln in the same period a year earlier.

LJI Chairman and CEO Yu Chuan Yih commented that the results showed how LJI has held its own in an increasingly harsh environment for consumer sales of luxury goods. He said it was expected that the U.S. will report little or no growth in GDP during the third quarter of the year 2008, which also reflects results from the wholesale division of the company. Despite adverse economic conditions, the ENZO chain of retail stores is continuing to report positive and improve financial results.

For the nine months ended September 30, 2008, LJI reported revenues of $94.4 mln, compared to $104.9 mln in the same period of 2007. The year-over-year drop of revenues was due largely to lower sales in the BVI company’s wholesale operations, reflecting the impact of a slowing world economy on consumer demand, particularly in the U.S. Also, net income for the first nine months of 2008 was $1.2 mln, or $0.05 per diluted share, compared to $2.3 mln, or $0.10 per diluted share in the first nine months of 2007.

The BVI company also published guidance for the fourth quarter and full year 2008, saying it expects revenues to range from $32 mln to $33 mln, compared to $47.1 mln a year earlier. For the whole year, the company expects to achieve revenues between $126 mln and $127 mln, compared to $152 mln in fiscal 2007.