Monthly Archives: December 2009

BVI-registered companies allowed to be listed on HKSE

It was announced by the British Virgin Islands Financial Services Commission that BVI-incorporated companies are now allowed to be listed on the Hong Kong Stock Exchange. This possibility was considered already for certain time, in November HKSE has issued a guidance letter which included this development, and now it has determined that BVI companies were quailified enough to be listed on the exchange.

In fact, many private equity firms have incorporated companies in the British Virgin Islands for the purpose of investing into China, and now they get the possibility to list in such an effective jurisdiction as Hong Kong, thus receiving an exit which has not yet been available without a significant restructurization.

Among the main reasons to allow the listing of the BVI companies on the HK Stock Exchange, there is the strong legal system of the BVI, and the fact that more than 60 BVI companies are listed on major stock exchanges in the world, including NYSE, Nasdaq, London’s Alternative Market (AIM), the Toronto Stock Exchange and the Singapore Stock Exchange.

Qiao Xing reported unaudited interim financial results and announced name change

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.

BVI-domiciled CNC Development announced conclusion of exchange offer

CNC Development Ltd., a British Virgin Islands company formed as a result of business combination between InterAmerican Acquisition Group Inc. and BVI holding Sing Kung Ltd, made an announcement that all shareholders of Sing Kung who were not parties to the stock purchase agreement have subscribed to the exchange offer for CNC shares. As a result, BVI corporation becomes the owner of full stock of Sing Kung.

Also, the majority of CNC Preferred shareholders appointed by written resolution two new members to CNC’s board of directors – Steven Klein and David Miller, who are Partners with a privately held investment company Apple Core Holdings.

CNC Development has initiated a new business acquisition program, in accordance with it the BVI company is seeking to identify and acquire one or more profitable businesses with enterprise values from US$100 million to US$500 million. The company is also considering acquisitions of companies domiciled outside of China and not involved in the infrastructure or construction sectors. By words of Mr. Morro, Interim Chief Executive Officer of CNC, the company decided to expand the investment focus to other business areas because projected returns on private capital investments in the infrastructure and construction sectors in China have been dramatically reduced due to the recent increase in liquidity in the China market.

CNC also informed shareholders about the change in the trading symbols for its securities that was initiated in November 2009. The shares of the company are quoted on the OTCBB.

China Natural Resources publishes financial results for the period ended June 30, 2009

China Natural Resources, Inc. (CHNR), a British Virgin Islands corporation, through its operating subsidiaries in China engaged in the acquisition and exploration of mining rights for nonferrous metals and coal resources, announced unaudited interim financial results for the three and six month periods ended June 30, 2009. The reported results are as follows:

For the three months ended June 30, 2009, BVI company’s net sales were US$1,9 million, and for the six months period net sales amounted to US$2,57 million. Gross profit for three months made 92%. Also, for the three months period CHNR reported net loss of US$2,3 million, and US$6,75 million for the six months of 2009. Net loss per share, basic or diluted, was 0,10 for the three months period, and 0.27 for six months ended June 30, 2009. The average number of shares outstanding was 21,123,416 for the three months period and 20,883,085 for the six months period.  

 As of June 30, 2009, the BVI company had total assets in the amount of US$137,8 million.

Company’s Chairman and CEO Mr. Feilie Li in his comments on the financial results for the three and six month periods of 2009 stated that “the first half of 2009 posted a challenge to the operation of China Natural Resources. The global financial crisis caused the PRC economy to slow down sharply.  Base metal prices fell in general as compared to the first half of 2008 amid slowing industrial production.” However, he said that company’s mining operations are to benefit from mainland China’s growth prospects and supportive policies. China Natural Resources will continue to expand its coal and base metal resources in the PRC.