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, | |||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 100,134 | $ | 81,903 | ||||
| Term deposits with banks | 2,988 | 2,764 | ||||||
| Financial assets, available-for-sale | 7,651 | 13,250 | ||||||
| Accounts receivables | 4,197 | 4,711 | ||||||
| Receivables from sales representatives | 11,814 | 6,523 | ||||||
| Inventories | 297 | 230 | ||||||
| Prepaid expenses and other current assets | 25,573 | 20,895 | ||||||
| 152,654 | 130,276 | |||||||
| Non-current assets | ||||||||
| Property and equipment | 54,064 | 55,761 | ||||||
| Investment properties | 74,321 | 75,370 | ||||||
| Intangible assets | 34,919 | 11,946 | ||||||
| Long term investment | 100 | 100 | ||||||
| Deferred income tax assets | 311 | 325 | ||||||
| Other non-current assets | 3,363 | 2,552 | ||||||
| 167,078 | 146,054 | |||||||
| Total assets | $ | 319,732 | $ | 276,330 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 10,801 | $ | 7,698 | ||||
| Deferred income and customer prepayments | 103,589 | 101,841 | ||||||
| Accrued liabilities | 18,852 | 17,723 | ||||||
| Income tax liabilities | 2,559 | 714 | ||||||
| 135,801 | 127,976 | |||||||
| Non-current liabilities | ||||||||
| Deferred income and customer prepayments | 11,819 | 8,290 | ||||||
| Deferred income tax liabilities | 6,232 | 1,510 | ||||||
| 18,051 | 9,800 | |||||||
| Total liabilities | 153,852 | 137,776 | ||||||
| Equity attributable to Company’s shareholders | ||||||||
| Common shares | 520 | 518 | ||||||
| Treasury shares | (150,089 | ) | (150,089 | ) | ||||
| Other reserves | 155,061 | 152,591 | ||||||
| Retained earnings | 147,682 | 126,653 | ||||||
| Total Company shareholders’ equity | 153,174 | 129,673 | ||||||
| Non-controlling interests | 12,706 | 8,881 | ||||||
| Total equity | $ | 165,880 | $ | 138,554 | ||||
| Total liabilities and equity | $ | 319,732 | $ | 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 September 30, | Nine months ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue: | ||||||||||||||||
| Online and other media services (Note 1) | $ | 34,115 | $ | 36,669 | $ | 103,748 | $ | 104,612 | ||||||||
| Exhibitions | 23,342 | 9,006 | 56,066 | 42,498 | ||||||||||||
| Miscellaneous | 1,646 | 1,305 | 4,984 | 3,948 | ||||||||||||
| $ | 59,103 | $ | 46,980 | $ | 164,798 | $ | 151,058 | |||||||||
| Operating Expenses: | ||||||||||||||||
| Sales (Note 2) | 18,686 | 17,249 | 57,252 | 55,058 | ||||||||||||
| Event production | 6,548 | 2,616 | 16,534 | 13,364 | ||||||||||||
| Community and content (Note 2) | 8,172 | 7,859 | 24,068 | 24,648 | ||||||||||||
| General and administrative (Note 2) | 10,647 | 10,315 | 32,225 | 28,939 | ||||||||||||
| Information and technology (Note 2) | 3,326 | 3,294 | 9,965 | 9,537 | ||||||||||||
| Total Operating Expenses | $ | 47,379 | $ | 41,333 | $ | 140,044 | $ | 131,546 | ||||||||
| Profit from Operations | $ | 11,724 | $ | 5,647 | $ | 24,754 | $ | 19,512 | ||||||||
| Interest income | 300 | 83 | 732 | 199 | ||||||||||||
| Share of loss of associate | - | - | (24 | ) | - | |||||||||||
| Impairment loss on investment in associate | - | - | (302 | ) | - | |||||||||||
| Profit before Income Taxes | $ | 12,024 | $ | 5,730 | $ | 25,160 | $ | 19,711 | ||||||||
| Income tax expense | (1,514 | ) | (633 | ) | (2,050 | ) | (1,157 | ) | ||||||||
| Net Profit | $ | 10,510 | $ | 5,097 | $ | 23,110 | $ | 18,554 | ||||||||
| Net profit attributable to non-controlling interests | (2,305 | ) | (1,134 | ) | (2,081 | ) | (967 | ) | ||||||||
| Net profit attributable to the Company’s shareholders | $ | 8,205 | $ | 3,963 | $ | 21,029 | $ | 17,587 | ||||||||
| Basic net profit per share attributable to the Company’s shareholders | $ | 0.24 | $ | 0.12 | $ | 0.62 | $ | 0.52 | ||||||||
| Shares used in basic net profit per share calculations | 34,040,137 | 33,764,651 | 34,001,395 | 33,725,639 | ||||||||||||
| Diluted net profit per share attributable to the Company’s shareholders | $ | 0.23 | $ | 0.11 | $ | 0.59 | $ | 0.50 | ||||||||
| Shares used in diluted net profit per share calculations | 35,862,759 | 35,482,592 | 35,718,965 | 35,387,418 | ||||||||||||
| Note: | 1. Online and other media services consists of: |
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Online services | $ | 29,975 | $ | 30,378 | $ | 90,897 | $ | 87,480 | ||||||||
| Print services | 4,140 | 6,291 | 12,851 | 17,132 | ||||||||||||
| $ | 34,115 | $ | 36,669 | $ | 103,748 | $ | 104,612 | |||||||||
| 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 September 30, | Nine months ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Sales | $ | 175 | $ | 186 | $ | 412 | $ | 530 | ||||||||
| Community and content | 23 | 56 | 39 | 173 | ||||||||||||
| General and administrative | 424 | 434 | 1,159 | 1,053 | ||||||||||||
| Information and technology | 61 | 64 | 197 | 207 | ||||||||||||
| $ | 683 | $ | 740 | $ | 1,807 | $ | 1,963 | |||||||||
