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 September 30,			As at December 31,
	2011			2010
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	77,110		$	101,298
Term deposits with banks		1,786			1,411
Financial assets, available-for-sale		10,250			-
Accounts receivables		4,382			3,919
Receivables from sales representatives		7,253			8,248
Inventories		301			435
Prepaid expenses and other current assets		25,967			20,269
		127,049			135,580
Non-current assets
Property and equipment		130,498			76,514
Intangible assets		12,953			10,449
Long term investment		100			100
Deferred income tax assets		314			504
Other non-current assets		3,941			2,556
		147,806			90,123
Total assets	$	274,855		$	225,703
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	6,776		$	9,600
Deferred income and customer prepayments		112,221			90,617
Accrued liabilities		13,629			14,269
Income tax liabilities		1,458			650
		134,084			115,136
Non-current liabilities
Deferred income and customer prepayments		14,438			6,710
Deferred income tax liabilities		1,877			1,397
		16,315			8,107
Total liabilities		150,399			123,243
Equity attributable to Company’s shareholders
Common shares		518			516
Treasury shares		(150,089	)		(150,089	)
Other reserves		150,426			146,691
Retained earnings		114,764			97,177
Total Company shareholders’ equity		115,619			94,295
Non-controlling interests		8,837			8,165
Total equity	$	124,456		$	102,460
Total liabilities and equity	$	274,855		$	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 September 30,						Nine months ended September 30,
	2011			2010			2011			2010
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue:
Online and other media services (Note 1)	$	36,669		$	30,584		$	104,612		$	90,489
Exhibitions		9,006			7,674			42,498			39,554
Miscellaneous		1,305			1,203			3,948			3,597
	$	46,980		$	39,461		$	151,058		$	133,640
Operating Expenses:
Sales (Note 2)		17,249			15,522			55,058			48,516
Event production		2,616			2,635			13,364			13,576
Community and content (Note 2)		7,859			6,769			24,648			23,194
General and administrative (Note 2)		10,315			8,182			28,939			24,174
Information and technology (Note 2)		3,294			3,087			9,537			8,897
Total Operating Expenses	$	41,333		$	36,195		$	131,546		$	118,357
Profit from Operations	$	5,647		$	3,266		$	19,512		$	15,283
Interest income		83			67			199			425
Profit before Income Taxes	$	5,730		$	3,333		$	19,711		$	15,708
Income Tax Expense		(633	)		(407	)		(1,157	)		(636	)
Net Profit	$	5,097		$	2,926		$	18,554		$	15,072
Net profit attributable to non-controlling interests		(1,134	)		(841	)		(967	)		(1,127	)
Net profit attributable to the Company’s shareholders	$	3,963		$	2,085		$	17,587		$	13,945
Basic net profit per share attributable to the Company’s shareholders	$	0.12		$	0.05		$	0.52		$	0.33
Shares used in basic net profit per share calculations		33,764,651			38,401,239			33,725,639			42,544,789
Diluted net profit per share attributable to the Company’s shareholders	$	0.11		$	0.05		$	0.50		$	0.32
Shares used in diluted net profit per share calculations		35,482,592			39,873,952			35,387,418			43,919,109

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

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Online services	$	30,378	$	24,817	$	87,480	$	70,659
Print services		6,291		5,767		17,132		19,830
	$	36,669	$	30,584	$	104,612	$	90,489

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

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Sales	$	186	$	192	$	530	$	351
Community and content		56		79		173		211
General and administrative		434		367		1,053		1,096
Information and technology		64		57		207		196
	$	740	$	695	$	1,963	$	1,854