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, | |||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 83,218 | $ | 81,903 | ||||
| Term deposits with banks | 2,043 | 2,764 | ||||||
| Financial assets, available-for-sale | 7,999 | 13,250 | ||||||
| Accounts receivables | 4,279 | 4,711 | ||||||
| Receivables from sales representatives | 10,573 | 6,523 | ||||||
| Inventories | 363 | 230 | ||||||
| Prepaid expenses and other current assets | 27,912 | 20,895 | ||||||
| 136,387 | 130,276 | |||||||
| Non-current assets | ||||||||
| Property and equipment | 55,443 | 55,761 | ||||||
| Investment properties | 75,111 | 75,370 | ||||||
| Intangible assets | 36,568 | 11,946 | ||||||
| Long term investment | 413 | 100 | ||||||
| Deferred income tax assets | 330 | 325 | ||||||
| Other non-current assets | 3,049 | 2,552 | ||||||
| 170,914 | 146,054 | |||||||
| Total assets | $ | 307,301 | $ | 276,330 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 10,771 | $ | 7,698 | ||||
| Deferred income and customer prepayments | 118,104 | 101,841 | ||||||
| Accrued liabilities | 14,843 | 17,723 | ||||||
| Income tax liabilities | 631 | 714 | ||||||
| 144,349 | 127,976 | |||||||
| Non-current liabilities | ||||||||
| Deferred income and customer prepayments | 11,274 | 8,290 | ||||||
| Deferred income tax liabilities | 4,986 | 1,510 | ||||||
| 16,260 | 9,800 | |||||||
| Total liabilities | 160,609 | 137,776 | ||||||
| Equity attributable to Company’s shareholders | ||||||||
| Common shares | 520 | 518 | ||||||
| Treasury shares | (150,089 | ) | (150,089 | ) | ||||
| Other reserves | 153,332 | 152,591 | ||||||
| Retained earnings | 129,758 | 126,653 | ||||||
| Total Company shareholders’ equity | 133,521 | 129,673 | ||||||
| Non-controlling interests | 13,171 | 8,881 | ||||||
| Total equity | $ | 146,692 | $ | 138,554 | ||||
| Total liabilities and equity | $ | 307,301 | $ | 276,330 | ||||
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, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenue | ||||||||
| Online and other media services (Note 1) | $ | 35,223 | $ | 31,982 | ||||
| Exhibitions | 2,217 | 4,381 | ||||||
| Miscellaneous | 1,477 | 1,173 | ||||||
| 38,917 | 37,536 | |||||||
| Operating Expenses: | ||||||||
| Sales (Note 2) | 15,034 | 14,439 | ||||||
| Event production | 326 | 1,052 | ||||||
| Community and content (Note 2) | 6,928 | 7,022 | ||||||
| General and administrative (Note 2) | 10,174 | 8,243 | ||||||
| Information and technology (Note 2) | 3,391 | 3,173 | ||||||
| Total Operating Expenses | 35,853 | 33,929 | ||||||
| Profit from Operations | 3,064 | 3,607 | ||||||
| Interest income | 186 | 48 | ||||||
| Share of loss of associate | (14 | ) | - | |||||
| Profit before income taxes | 3,236 | 3,655 | ||||||
| Income tax expense | (163 | ) | (55 | ) | ||||
| Net profit | $ | 3,073 | $ | 3,600 | ||||
| Net profit attributable to non-controlling interests | 32 | (64 | ) | |||||
| Net profit attributable to the Company’s shareholders | $ | 3,105 | $ | 3,536 | ||||
| Basic net profit per share attributable to the Company’s shareholders | $ | 0.09 | $ | 0.10 | ||||
| Shares used in basic net profit per share calculations | 33,978,792 | 33,704,140 | ||||||
| Diluted net profit per share attributable to the Company’s shareholders | $ | 0.09 | $ | 0.10 | ||||
| Shares used in diluted net profit per share calculations | 35,573,189 | 35,349,989 | ||||||
Note: 1. Online and other media services consists of:
| Three months ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Online services | $ | 30,877 | $ | 27,239 | ||||
| Print services | 4,346 | 4,743 | ||||||
| $ | 35,223 | $ | 31,982 | |||||
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, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Sales | $ | 62 | $ | 118 | ||||
| Community and content | (35 | ) | 27 | |||||
| General and administrative | 265 | 146 | ||||||
| Information and technology | 72 | 79 | ||||||
| $ | 364 | $ | 370 | |||||
