Qiao Xing Universal Resources, Inc. Reports First Quarter 2010 Financial Results
HUIZHOU, China, Aug. 23 /PRNewswire-Asia-FirstCall/ -- Qiao Xing Universal Resources, Inc. (Nasdaq: XING) ("the Company" or "XING"), an emerging Chinese resources company headquartered in Huizhou, Guangdong Province, today announced its unaudited results for the three months ended March 31, 2010.
First Quarter Highlights
-- The Company reported net income of RMB73.0 million (US$10.7 million),
or RMB0.81 (US$0.12) per basic share, compared to a net loss of RMB21.5
million or RMB0.69 per basic share in the first quarter of 2009.
-- Net sales were RMB195.4 million (US$28.6 million) compared to RMB460.8
million in the first quarter of 2009.
-- Gross profit was RMB27.4 million (US$4.0 million) compared to RMB82.3
million in the first quarter of 2009. Gross margin was 14.1% compared
to 17.9% in the first quarter of 2009.
Financial Review of Operations for the Molybdenum Mine Business
-- Consolidated revenue from the mining business for the first quarter of
2010 totaled RMB58.0 million (US$8.5 million). Gross profit was RMB26.5
million (US$3.9 million), resulting in gross margin of 45.7%. Net
income totaled RMB17.9 million (US$2.6 million) in the first quarter of
2010, a decrease of 47.3% from the fourth quarter of 2009, primarily
due to seasonal factors related to the long Chinese New Year holiday
in February 2010, when most mining businesses in North China shut down
operations
-- Molybdenum concentrate production in the first quarter of 2010 was
620.3 tons, equivalent to 298.1 tons (0.66 million pounds) of
molybdenum metal.
-- Average cost of sales per ton of molybdenum metal produced in the first
quarter of 2010 was RMB105,647 (US$15,478), or RMB47.91 (US$7.02) per
pound. Average cash cost of sales per ton of molybdenum metal produced
in the first quarter of 2010 was RMB66,004 (US$9,670), or RMB29.93
(US$4.38) per pound (The Company produces molybdenum concentrate and
does not engage in smelting operations, so the cash cost does not
include the cost of smelting.)
-- Capital expenditures for the mining business in the first quarter of
2010 totaled RMB33.6 million (US$4.9 million). These capital
expenditures were all used for the construction of the mine.
Financial Conditions
As of March 31, 2010, XING and its subsidiary held $554.4 million in cash and cash equivalents and $515.9 million in working capital. Shareholders' equity was $643.3 million as of March 31, 2010.
Upcoming Events
The Company is close to coming up with a proposal on sorting out its relationship with its subsidiary Qiao Xing Mobile Communication Co., Ltd. (NYSE: QXM) and expects to announce the proposal once it is approved by the Board of Directors.
The Company will release its earnings results for the second quarter and six months ended June 30, 2010 by September 15. The Company expects that earnings from its mining business in the second quarter will be better than the first quarter.
FINANCIAL TABLES FOLLOW
Qiao Xing Universal Resources Inc. and its Subsidiaries
Condensed Consolidated Profit and Loss Account
For three months ended March 31
2009 2010
RMB'000 RMB'000 US$'000
Net sales 460,756 195,427 28,631
Cost of goods sold (378,498) (167,978) (24,609)
Gross profit 82,258 27,449 4,021
Total operating expenses (42,037) (42,373) (6,208)
Income from operation 40,221 (14,924) (2,186)
Net non-operating income (loss) (38,280) 90,520 13,261
Income before income tax 1,941 75,596 11,075
Provision for income tax (12,665) (7,993) (1,171)
Net income from continuing
operations, net of tax (10,724) 67,603 9,904
Discontinued operations, net of tax (7,984) -- --
Net income (loss) for the
period (18,708) 67,603 9,904
Net loss (income) attributable to the
noncontrolling interest (2,800) 5,374 787
Net income (loss) after
attribution of the
noncontrolling interest (21,508) 72,977 10,691
To participatory convertible notes -- (1,605) (235)
To common stock (21,508) 71,372 10,456
Basic earnings (loss) per common
share:
Before extraordinary gain (0.69) 0.81 0.12
Extraordinary gain -- -- --
After extraordinary gain (0.69) 0.81 0.12
Weighted average number of shares
outstanding
Basic 30,948,836 87,725,193 87,725,193
Qiao Xing Universal Resources Inc. and its Subsidiaries
Condensed Consolidated Balance Sheet
December 31, March 31,
2009 2010
RMB'000 RMB'000 US$'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents 3,709,503 3,784,205 554,397
Restricted cash 251,720 204,090 29,900
Bills receivable -- 24,000 3,516
Accounts receivable, net 123,082 208,801 30,590
Inventories 98,012 156,174 22,880
Prepaid expenses 184,339 165,191 24,201
Other current assets 37,025 39,061 5,723
Due from related parties 25 1,136 166
Deferred income taxes 15,942 13,089 1,918
Deferred debt issuance costs, net -- -- --
Assets held for sale 163,000 548 80
Due from discontinued operations 200,000 200,000 29,301
TOTAL CURRENT ASSETS 4,782,648 4,796,294 702,671
NON-CURRENT ASSETS
Property, machinery and
equipment, net 170,485 226,460 33,177
Proven and probable reserves 712,121 705,059 103,293
Construction-in-progress 86,591 37,231 5,454
Investment at cost 5,000 5,000 733
Goodwill 82,058 82,058 12,022
Value beyond proven and probable
reserves 67,295 67,295 9,859
Other acquired intangible assets,
net 4,433 3,325 487
Deferred income taxes -
noncurrent -- 2,272 333
TOTAL NON-CURRENT ASSETS 1,127,983 1,128,698 165,358
TOTAL ASSETS 5,910,631 5,924,993 868,029
LIABILITIES, MINORITY INTERESTS AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short term bank borrowings 884,708 924,430 135,432
Accounts payable 60,750 70,358 10,308
Other payables 57,238 8,953 1,312
Accrued liabilities 40,472 42,053 6,161
Deposits received 1,310 1,310 192
Deferred revenues 16,370 47,986 7,030
Due to related parties 5,118 -- --
Taxation payable 15,016 14,421 2,113
Convertible notes 233,716 139,604 20,452
Embedded derivatives liabilities 63,096 20,698 3,032
Assets retirement obligation 4,013 5,212 764
TOTAL CURRENT LIABILITIES 1,381,807 1,275,026 186,795
LONG-TERM LIABILITIES
Shareholders loans 6,732 6,732 986
Warrants liabilities 148,921 76,637 11,228
Deferred tax liabilities 175,281 175,435 25,702
TOTAL NON-CURRENT LIABILITIES 330,934 258,804 37,916
TOTAL LIABILITIES 1,712,741 1,533,830 224,711
SHAREHOLDERS' EQUITY
XING equity
Common stock, par value RMB0.008
(equivalent of US$0.001);
authorised 200,000,000 shares as
of December 31, 2009 and March
31, 2010; outstanding and fully
paid - 82,327,993 shares as of
December 31, 2009 and
90,294,134 shares as of March
31, 2010 602 657 96
Additional paid-in capital 2,404,998 2,528,186 370,387
Cumulative translation
adjustments (160,352) 869,713 127,416
Retained earnings 796,736 (160,236) (23,475)
TOTAL XING EQUITY 3,041,984 3,238,321 474,424
NONCONTROLLING INTEREST 1,156,086 1,152,843 168,895
TOTAL EQUITY 4,198,070 4,391,163 643,318
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY 5,910,631 5,924,993 868,029
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc. is an emerging Chinese resources company headquartered in Huizhou, Guangdong Province, China. The Company was previously one of the leading players of telecommunication terminal products in China, but made the strategic decision to diversify into the resources industry in 2007. In April 2009, the Company acquired the 100% equity interest in China Luxuriance Jade Company, Ltd ("CLJC"). CLJC, through its wholly owned Chinese subsidiaries, owns the rights to receive the expected residual returns from Chifeng Haozhou Mining Co., Ltd. ("Haozhou Mining"), a large copper- molybdenum poly-metallic mining company in Inner Mongolia, China. Since then, the Company has further refined its strategy to become a pure resources company and is actively seeking additional acquisition targets in the resources industry.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties. These include statements about our expectations, plans, objectives, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "estimate," "plans," "potential," "projects," "continuing," "ongoing," "expects," "management believes," "we believe," "we intend" and similar expressions. These statements involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed. You should not place undue reliance on these forward-looking statements.
Forward-looking statements include all statements other than statements of historical facts, such as statements regarding anticipated mining production volumes, unit net costs of mining production, mining sales volumes, ore grades, molybdenum and other commodity prices, mine development and capital expenditures, mine production and development plans, availability of power, water, labor and equipment, environmental reclamation and closure costs and plans, environmental liabilities and expenditures, litigation liabilities and expenses, dividend payments, estimates of proven and probable reserves and other mineralized material, political, economic and social conditions in the areas of the Company's operations and exploration efforts and results. Readers are cautioned that forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected, anticipated or assumed in the forward-looking statements. Important factors that could cause the Company's actual results to differ materially from those anticipated in the forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Information regarding these factors is included in our filings with the Securities and Exchange Commission. Qiao Xing Universal Resources, Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of August 23, 2010.
For more information, please contact:
Company Contact:
Mr. Rick Xiao, Vice President
Email: [email protected]
Tel: +86-752-282-0268
CCG Investor Relations Contact:
Mr. Ed Job, Account Manager
Email: [email protected]
Tel: +1-646-213-1914 (NY office)
SOURCE Qiao Xing Universal Resources, Inc.
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