Global Sources LTD /bermuda 6-K Current report (foreign)

 EXHIBIT 2

GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

	As at March 31,			As at December 31,
	2011			2010
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	121,777		$	101,298
Term deposits with banks		1,038			1,411
Accounts receivables		3,869			3,919
Receivables from sales representatives		8,939			8,248
Inventories		426			435
Prepaid expenses and other current assets		26,191			20,269
		162,240			135,580
Non-current assets
Property and equipment		77,177			76,514
Intangible assets		10,161			10,449
Long term investment		100			100
Deferred income tax assets		509			504
Other non-current assets		3,275			2,556
		91,222			90,123
Total assets	$	253,462		$	225,703
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	7,865		$	9,600
Deferred income and customer prepayments		113,730			90,617
Accrued liabilities		12,755			14,269
Income tax liabilities		646			650
		134,996			115,136
Non-current liabilities
Deferred income and customer prepayments		10,264			6,710
Deferred income tax liabilities		1,371			1,397
		11,635			8,107
Total liabilities		146,631			123,243
Equity attributable to Company’s shareholders
Common shares		517			516
Treasury shares		(150,089	)		(150,089	)
Other reserves		147,461			146,691
Retained earnings		100,713			97,177
Total Company shareholders’ equity		98,602			94,295
Non-controlling interests		8,229			8,165
Total equity	$	106,831		$	102,460
Total liabilities and equity	$	253,462		$	225,703

EXHIBIT 2

GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

	Three months ended March 31,
	2011			2010
	(Unaudited)			(Unaudited)
Revenue
Online and other media services (Note 1)	$	31,982		$	29,921
Exhibitions		4,381			4,505
Miscellaneous		1,173			1,111
		37,536			35,537
Operating Expenses:
Sales (Note 2)		14,439			12,960
Event production		1,052			1,184
Community and content (Note 2)		7,022			7,317
General and administrative (Note 2)		8,243			7,336
Information and technology (Note 2)		3,173			2,849
Total Operating Expenses		33,929			31,646
Profit from Operations		3,607			3,891
Interest income		48			259
Profit before income taxes		3,655			4,150
Income tax expense		(55	)		(104	)
Net profit	$	3,600		$	4,046
Net profit attributable to non-controlling interests		(64	)		(351	)
Net profit attributable to the Company’s shareholders	$	3,536		$	3,695
Basic net profit per share attributable to the Company’s shareholders	$	0.10		$	0.08
Shares used in basic net profit per share calculations		33,704,140			44,647,907
Diluted net profit per share attributable to the Company’s shareholders	$	0.10		$	0.08
Shares used in diluted net profit per share calculations		35,349,989			46,135,941

Note:  1.    Online and other media services consists of:

	Three months ended March 31,
	2011		2010
	(Unaudited)		(Unaudited)
Online services	$	27,239	$	23,230
Print Services		4,743		6,691
	$	31,982	$	29,921

Note: 2.    Non-cash compensation expenses associated with the several equity compensation plans and Global Sources Directors Share Grant Award Plan included under various categories of expenses are as follows:

	Three months ended March 31,
	2011		2010
	(Unaudited)		(Unaudited)
Sales	$	118	$	(39	)
Community and content		27		47
General and administrative		146		282
Information and technology		79		76
	$	370	$	366