Yucheng Technologies Limited, the BVI-registered company providing IT and outsourced services to the Chinese banking industry, reported its financial results for the fourth quarter and fiscal year 2009. According to Chairman and CEO of Yucheng Weidong Hong, the year brought great achievements and challenges for the company, and the shifts in the banking industry were the reason for a revenue shortfall in the last quarter of 2009.
The banking environment changes in the fourth quarter of 2009 impacted the sales of the BVI company in this period. Company’s gross profit was $4.0mln as compared to $12.2mln in the fourth quarter of 2009, caused by the fall of revenues in the reported period. Sales, General and Administrative Expenses remained flat and were $7.8mln in Q4 2009 as compared to $7.5mln in the same period of 2008, – as a result of strict SG&A controls implemented in the third quarter of 2009.
In the fourth quarter of 2009, non-GAAP net income of the company was $-4.9mln, compared to $4.7mln in the same period of 2008, and net income on a GAAP basis was -$5.2mln, compared to $4.4mln in the fourth quarter of 2008. Company’s earnings per share (fully diluted) made USD-0.26 (non-GAAP) and USD -0.28 (GAAP), compared to USD 0.26 (non-GAAP) and USD 0.24 (GAAP) in the fourth quarter of 2008. Although expense controls gave positive effect on the fourth quarter financials, the costs related to unsigned contracts and lower revenues caused Yucheng to generate a loss.
By the end of 2009, cash position of Yucheng was $36.3mln, compared to $35.1mln for the same period last year. Total net revenues of the company for the year 2009 totaled $54.8mln, while in 2008 they were $54.8mln. Total assets in the end of the reported year were $130.54mln, compared to $136,27mln in 2008.
Blandings Capital Limited, TSX-listed capital pool company incorporated in December 2006 and listed on the Exchange in October 2007, provided an update on proposed acquisition of all the outstanding shares of the British Virgin Islands company AMG Bioenergy Resources Holdings Ltd. AMG is working in China and other Asian markets in the area of bio fuel feedstock and biodiesel. It is anticipated that this will be Blandings’ qualifying transaction.
Also, Blandings has determined not to proceed with the proposed private placement of common shares which was intended to close concurrently with completion of the acquisition transaction. It has signed an amended and restated share exchange agreement with the BVI company. Pursuant to this agreement, signed on December 31, 2009, the date for closing of the acquisition has been extended to March 31, 2010.
Under the terms of the acquisition, Blandings will acquire from the shareholders of AMG the 15,000,000 of its common shares currently issued and outstanding, each share at a deemed value of $0.33, and will issue, subject to the approval of the exchange transaction, 25,000,000 Blandings common shares in exchange for each issued AMG common share.
Following the completion of the acquisition transaction, the Capital Pool Company will have 45,296,555 common shares outstanding. Blandings also currently has outstanding director and employee share options to acquire 812,500 common shares at a price of $0.10 per share.
The former shareholders of the BVI company and the current shareholders of Blandings will own approximately 72.96% and 27.04% respectively of the issued Blandings common shares.
Last week, the controlling shareholder of British Virgin Islands-registered OpenTV and some of its affiliates notified the company of their intent to give written instructions directing it to redeem all of the Class A ordinary shares that are not owned by Kudelski SA and its affiliates. This is permitted under the laws of the British Virgin Islands, where OpenTV is incorporated.
The BVI corporation has already filed the preliminary redemption notice/transaction statement with the Securities and Exchange Commission relating to the proposed sale of shares. Kudelski SA, which together with its affiliates is the owner of more than 90 per cent of OpenTV, anticipates giving definitive written as the SEC has completed its review of the statements. Upon receipt of definitive written instructions, the board of directors of OpenTV will distribute a definitive redemption notice/transaction statement to its shareholders setting forth the redemption date and the redemption price, as required by the laws of the British Virgin Islands.
BVI company’s shareholder also said that it expects that the definitive written instructions will include a recommendation that OpenTV redeem the class A ordinary shares for $1.55 per share.
Currently, Kudelski is the owner of 13.4 per cent of OpenTV’s Class A shares.
Origin Agritech Limited, an agricultural biotechnology company operating in China and based in the British Virgin Islands, announced the completion of the Second Notes Repurchase Agreement with Citadel Equity Fund Ltd. According to the Second Notes Repurchase Agreement as of December 30, 2009, the BVI company repurchased the remaining part of the outstanding 1% Guaranteed Senior Secured Convertible Notes from Citadel due 2012, by full repayment in cash of the agreed upon purchase price due to Citadel.
Origin Agritech issued the Notes to Citadel in an aggregate principle amount of US$40 million in June 2008, and repurchased $23.4 million in principle of these notes in July 2008 and January 2009. This is the last tranche of the aggregate principle amount of the remaining US$16.6 million, for a repurchase price of US$104,000 for each principal amount of US$100,000 of such Notes. These repurchased notes have been cancelled.
The Note repurchase provides the BVI company with an opportunity to eliminate expensive debt on its balance sheet, receive favorable financial terms, and provide it with significant flexibility for future growth and capital opportunities.