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 June 30,			As at December 31,
	2015			2014
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	86,614		$	90,223
Term deposits with banks		8,387			4,285
Financial assets, available-for-sale		-			3,952
Accounts receivables, net		879			2,269
Receivables from sales representatives		11,145			7,900
Inventories		151			154
Prepaid expenses and other current assets		29,155			17,027
		136,331			125,810
Non-current assets
Property and equipment		61,799			63,519
Investment properties		84,453			85,546
Intangible assets		29,484			37,732
Long term investment		100			100
Deferred income tax assets		323			196
Other non-current assets		1,920			1,108
		178,079			188,201
Total assets	$	314,410		$	314,011
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	7,459		$	9,418
Deferred income and customer prepayments		81,501			84,869
Accrued liabilities		17,277			19,100
Income tax liabilities		3,223			3,848
		109,460			117,235
Non-current liabilities
Accounts payable		294			889
Deferred income and customer prepayments		4,712			3,971
Deferred income tax liabilities		5,407			6,842
		10,413			11,702
Total liabilities		119,873			128,937
Equity attributable to Company’s shareholders
Common shares		532			529
Treasury shares		(200,089	)		(200,089	)
Other reserves		162,225			161,242
Retained earnings		224,419			209,924
Total Company shareholders’ equity		187,087			171,606
Non-controlling interests		7,450			13,468
Total equity	$	194,537		$	185,074
Total liabilities and equity	$	314,410		$	314,011

GLOBAL SOURCES LTD. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue:
Online and other media services (Note 2)	$	17,721		$	21,022		$	35,730		$	42,381
Exhibitions		46,096			32,412			46,171			41,272
Miscellaneous		2,137			2,051			4,015			3,813
		65,954			55,485			85,916			87,466
Operating Expenses:
Sales (Note 3)		18,798			18,270			24,693			26,506
Event production		12,197			8,991			12,224			10,742
Community and content (Note 3)		6,677			5,919			10,203			10,335
General and administrative (Note 3 & 4)		10,635			12,819			20,752			26,004
Information and technology (Note 3)		3,245			2,939			6,452			6,012
Total Operating Expenses		51,552			48,938			74,324			79,599
Profit on sale of subsidiary		6,159			-			6,159			-
Profit from Operations		20,561			6,547			17,751			7,867
Interest income		273			311			566			707
Gain on sale of available-for-sale securities		90			-			136			10
Interest expenses		(13	)		(45	)		(59	)		(92	)
Profit before Income Taxes		20,911			6,813			18,394			8,492
Income tax expense		(2,684	)		(440	)		(2,549	)		(830	)
Net Profit from continuing operations	$	18,227		$	6,373		$	15,845		$	7,662
Net Profit/(loss) from discontinued operations, net of income tax		(187	)		(293	)		(392	)		(699	)
Net profit	$	18,040		$	6,080		$	15,453		$	6,963
Net (profit)/loss attributable to non-controlling interests from:
Continuing operations		(1,562	)		712			(1,222	)		(242	)
Discontinued operations		144			195			264			411
Total		(1,418	)		907			(958	)		169
Net profit/(loss) attributable to the Company’s shareholders from:
Continuing operations	$	16,665		$	7,085		$	14,623		$	7,420
Discontinued operations		(43	)		(98	)		(128	)		(288	)
Total	$	16,622		$	6,987		$	14,495		$	7,132
Basic net profit/(loss) per share attributable to the Company’s shareholders from:
Continuing operations	$	0.55		$	0.21		$	0.48		$	0.22
Discontinued operations		*			*			*			(0.01	)
Total	$	0.55		$	0.21		$	0.48		$	0.21
Shares used in basic net profit per share calculations		30,232,115			33,422,850			30,164,037			34,052,107
Diluted net profit/(loss) per share attributable to the Company’s shareholders from:
Continuing operations	$	0.52		$	0.20		$	0.46		$	0.21
Discontinued operations		*			*			*			(0.01	)
Total	$	0.52		$	0.20		$	0.46		$	0.20
Shares used in diluted net profit per share calculations		31,743,270			35,183,171			31,534,448			35,672,551

* Diluted net loss per share attributable to the Company’s shareholders from discontinued operations is less than $0.01

GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

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

Note: 1. Total revenue from both the continuing operations and discontinued operations during the three months and six months ended June 30, 2015 and 2014 was as follows:

	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Continuing operations	$	65,954	$	55,485	$	85,916	$	87,466
Discontinued operations		2,535		2,852		4,776		5,341
	$	68,489	$	58,337	$	90,692	$	92,807

Note: 2. Online and other media services consists of:

	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Online services	$	16,440	$	19,293	$	33,201	$	39,200
Print services		1,281		1,729		2,529		3,181
	$	17,721	$	21,022	$	35,730	$	42,381

Note: 3. 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 June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Sales	$	141	$	139	$	178	$	146
Community and content		31		27		41		(32	)
General and administrative		404		347		768		530
Information and technology		56		50		133		120
	$	632	$	563	$	1,120	$	764

Note: 4. General and administrative expenses consist of:

	Three months ended June 30,					Six months ended June 30,
	2015		2014			2015		2014
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
General and administrative expenses before amortization of intangible assets, impairment charge on intangible assets and foreign exchange losses (gains)	$	9,627	$	9,395		$	18,305	$	17,692
Amortization of intangible assets		989		1,354			2,107		4,659
Impairment charge on intangible assets		-		2,238			-		2,238
Foreign exchange losses (gains)		19		(168	)		340		1,415
	$	10,635	$	12,819		$	20,752	$	26,004