Monthly Archives: August 2009

Origin Agritech reported financial results for the third quarter ended June 30, 2009

Origin Agritech Limited, a technology-focused supplier of crop seeds in China, incorporated in the British Virgin Islands, announced the unaudited financial results for three months ended June 30, 2009. During this period, the company generated revenues of US$69.84 mln, a 2.76% decrease from US$71.54 mln for the three months ended June 30, 2008.
Gross profit for the three-months ended June 30, 2009 was US$22.18 mln, compared to US$21.01 mln in the same period of 2008, mainly due to increased demand and pricing in all product categories. Total operating expenses for the three-months ended June 30, 2009 were US$4.77 million, compared with US$6.66 million reported for the same period in 2008. The 28.18% decrease in selling and marketing expenses compared to the third quarter of 2008 was mainly due to lower transportation costs. The 36.11% decrease of research and development costs, which made just US$0.92 mln during the three months ended June 30, 2009, was due to lower charges for scientific co-operation projects of this year. The reported period is the third quarter of lower year-over-year expenses for Origin.
The BVI company reported income for operations for the third quarter of 2009 amounting to  US$17.41 mln, compared with US$14.34 mln for the same period of 2008. Net income for the reported period was US$10.98 mln, or  US$0.48 per diluted share, as compared to a net income of US$8.77 mln (or US$0.38 per diluted share) in the same period a year ago.
For the nine months ended June 30, 2009, Origin Agritech’s revenue made US$78.26 mln. Gross profit for this period was US$23.94 mln, compared to US$21.01 mln in the first nine months of 2008. The gains in revenue and gross profit were a result of stronger product demand and revenue pricing recognized in 3Q 2009 across all product categories. Total operating expenses made US$ 15.20 mln, compared with US$ 18.45 mln reported for the same period of 2008.
Among the main achievements the company named the repurchase of outstanding convertible notes from Citadel Investment Group (CIG). This event had no material impact on company’s third quarter financial results, it affects the year-to-date financial figures.

Nam Tai reported financial results for the second quarter of 2009

The British Virgin Islands-registered Nam Tai Electronics, Inc., the company working in the sphere of electronics manufacturing and design services, published its unaudited results for the second quarter ended June 30, 2009, and reported that the business environment in Nam Tai’s product sectors remained difficult and highly competitive

In the period of the second quarter of 2009 Nam Tai reported net sales of $101.8 mln, more than 30% lower than in the same period of the last year, as compared to $146.2 mln sales level in the same quarter of 2008. 

The reported gross profit was $10.4 mln, a decrease of 49.8% as compared to $20.8 mln in the second quarter of 2008. Net income attributable to Nam Tai shareholders in the second quarter of 2009 was $0.6mln, as compared to the net income of $11.8 mln in the same quarter of 2008. Basic and diluted earnings per share were $0.01, compared to $0.26 in Q2 2008.

The weak demand in the market negatively affected sales of all company’s end-user consumer products, including mobile phone accessories, optical products and home entertainment devices. In the second quarter 2009, company’s gross profit margin made 10.2% as compared to 14.2% in the same period 2008. This became the result of the decline in sales as well as the shift of sales mix.

For the six months ended June 30, 2009, Nam Tai reported $204 mln, a decrease of 30.5% as compared to $293.3 mln in the same period last year. BVI company’s gross profit margin in the first six months of 2009 was 8.6% as compared to 13.7% in the same period of 2008. Gross profit in the six months period was $17.5 mln – a 56.5% decrease as compared to $40.3 mln in first half of 2008.  For the first six months of 2009, the BVI company reported an operating loss of $5.1 mln, compared to operating income of $16.4 mln in the same period last year.

China Cablecom announced going concern qualification

China Cablecom Holdings, Ltd., a BVI-registered and China-based cable network operator, made an announcement that the audit report of its independent accounting firm, UHY Advisors Inc., included in the BVI company’s Annual Report filed with the Securities and Exchange Commission on July 15, 2009, contained a going concern qualification. The issues of the audit report were the consolidated financial statements for the fiscal years 2008 and 2007, the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity and cash flows for 2008 and 2007.

China Cablecom announced going concern qualification in compliance with Nasdaq rules which require public disclosure of the receipt of an audit opinion containing a going concern qualification.
The announcement of the BVI company does not change or amend its financial statements for the year 2008.

This announcement does not represent any change or amendment to the company’s financial statements for the year ended December 31, 2008.

Qiao Xing Universal Telephone, Inc. reported financial results for the year 2008

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.