Monthly Archives: October 2009

BVI-registered Eastern Property Holdings published interim financial results

Eastern Property Holdings Ltd., an investment company domiciled in the British Virgin Islands, focused on activities with investments in real estate, development and other transactions with real estate primarily in Russia, announced its financial results for the first half of 2009. For the period ended 30 June 2009, the BVI company reported total assets in the amount of US$458,9 million – a little decrease compared to the period ended 31 December 2008 when the company reported assets of US$478,49 million. Total liabilities in the end of this period made US$101,34 million (US$62,72 million in the end of 2008).

Also, for the first half of 2009 Eastern Property Holdings reported net operating loss of US$25,24 million (US$15,06 million in the second half of 2008). Total comprehensive loss for the period was US$44,48 million. Market capitalization of the company in the reported period made US$111,36 million, compared to US$95,36 million in the previous period.

The company reported total administrative expenses in the amount of US$1,63 million, compared to US$7,90 million in the second half of 2008. Income taxes of the company made US$790,896.

As of June 30 2009, BVI company’s share capital consisted of 5,338,132 registered shares with one vote per share and no par value. Earnings per share for profit attributable to equity holders of Eastern Property during the first half of 2009 were US$6 (basic and diluted).

Total cash and cash equivalents of the company were US$16,19 million in the first half of 2009, and US$8,97 million in the second half of 2008.

Canadian company closes non-brokered private placement through BVI-registered LLCs

Minco Gold Corporation, a Canadian mining company involved in the direct acquisition and development of high-grade, advanced stage gold properties in PRC, announced that it has closed private placement financing previously announced on September 24, 2009. The financing placed 5,000,000 common shares in the capital stock of the corporation, at a price of $0.88 per share for gross proceeds of $4,400,000 with IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P.

IDG-Accel Fund acquired indirectly the ownership of 4,622,000 common shares through Blue Sky Strategic Holdings I, Ltd., a limited liability company organized under the laws of the British Virgin Islands, and IDG-Accel China Investors II L.P. acquired indirectly the ownership of  378,000 common shares through Blue Sky Strategic Holdings II, Ltd., also registered in BVI.

5,000,000 common shares of the company represent approximately 10.40% of its outstanding common shares. The net proceeds from the offering will be used for the continued exploration and development of Minco Gold’s properties in China and for general corporate purposes.

IDG-Accel Fund and IDG-Accel Investors are limited partnerships based in the Cayman Islands. General partner of IDG-Accel Fund is IDG-Accel China Growth Fund II Associates L.P., also registered in the Cayman Islands. The general partner of IDG-Accel Investors, as well as of IDG-Accel China Growth Fund II Associates L.P., is the Cayman Islands-based IDG-Accel China Growth Fund GP II Associates Ltd.

Both BVI companies, Blue Sky Strategic Holdings I, Ltd. and Blue Sky Strategic Holdings II, Ltd., are  wholly owned by IDG-Accel Fund and IDG-Accel Investors.

China Technology Development Group reported fiscal results for six months period

BVI-registered China Technology Development Group Corporation, working in China in the solar energy industry, announced in September its unaudited financial results for the six months period ended June 30, 2009.

As of June 30, 2009, CTDC had cash and cash equivalents in the amount of US$8,599,000, representing a US$7,607,000 increase from US$992,000 in the beginning of the year. The cash amount increase was primarily due to the proceeds from the convertible notes issue in May 2009.

In the reported period, general and administrative expenses of the BVI company increased by 26%  – from US$1,380,000 in the six months period of 2008 to US$1,739,000 in 2009. This sum comprises increased salaries and benefits expenses, legal and professional fees, depreciation charges. There was however a decrease in audit fees and in rental charges. Other expenses included US$168,000 of convertible note interest expenses, US$193,000 of loss on disposal of available-for-sale securities, US$5,000 of interest expenses related to overdraft from security account. Other income mainly consisted of US$97,000 of change in fair value of warrant liabilities and US$53,000 of subsidiaries from government. As a result of all the above expenses, for the six months of 2009 CTDC reported a net loss of US$1,352,000, as compared to a net loss of US$1,418,000 in the same period of 2008.

The operation results for the six months period ended June 30, 2008 and 2009 of CTDC’s subsidiary Jingle Group, which the BVI company sold in December 2008 in order to concentrate all of its resources on the strategic expansion in its core solar business, are included in “Income from discontinued operations”.

BVI-registered Deswell Industries announced fiscal results for the first quarter

The British Virgin Islands-registered manufacturing company Deswell Industries, Inc. announced in September its financial results for the first quarter of the year ended June 30, 2009. For the reported period, company’s sales made US$22.7mln – a 35.1% decrease compared to the sales in the amount of $35 mln for the same quarter ended June 30, 2008. This may be attributed to the continuing decline in demand from the professional audio and instrument equipment market as well as lower sales at one of BVI company’s subsidiaries.

Also, Deswell Industries reported operating loss during this period in the amount of $0.27 mln, compared to operating income of $1.31 mln for the same quarter of 2008. Net loss for the first quarter ended June 30, 2009 was $0.25 mln – compared to net income of $1.29 mln for the same period of 2008. Net loss per share (both basic and diluted) was $0.02 (net income of $0.08 per share for the quarter ended June 30, 2008).

In the first quarter ended June 30, 2009 total gross margin was 15.8%, compared to 16.8% in the same quarter last year. Gross profit in the plastic segment increased to 20.8% of net sales, while in the first quarter of 2008 it was 15.4%. At the same time, gross margin in the electronic and metallic segment decreased in the period ended June 30, 2009 and made just 10% of net sales compared to 18.6% for the first quarter of 2008.

At the end of the first fiscal quarter, the financial position of the BVI company remained strong, with $29.4 mln cash and cash equivalents at June 30, 2009  compared to $23.1 mln at March 31, 2009. Working capital made $54.3 mln. By the end of this period the BVI company had no long-term or short-term borrowings.