Global Sources LTD /bermuda 6K Current report | SEC 21 Mar 16

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 December 31,			As at December 31,
	2015			2014
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	70,356		$	90,223
Term deposits with banks		9,097			4,285
Financial assets, available-for-sale		-			3,952
Accounts receivables, net		849			2,269
Receivables from sales representatives		8,802			7,900
Inventories		176			154
Prepaid expenses and other current assets		16,268			17,027
		105,548			125,810
Non-current assets
Property and equipment		59,064			63,519
Investment properties		69,726			85,546
Intangible assets		26,309			37,732
Long term investment		100			100
Deferred income tax assets		389			196
Other non-current assets		951			1,108
		156,539			188,201
Total assets	$	262,087		$	314,011

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	7,383		$	9,418
Deferred income and customer prepayments		75,265			84,869
Accrued liabilities		15,183			19,100
Income tax liabilities		2,990			3,848
		100,821			117,235
Non-current liabilities
Accounts payable		289			889
Deferred income and customer prepayments		2,917			3,971
Deferred income tax liabilities		4,493			6,842
		7,699			11,702
Total liabilities		108,520			128,937

Equity attributable to Company’s shareholders			��
Common shares		533			529
Treasury shares		(250,089	)		(200,089	)
Other reserves		157,562			161,242
Retained earnings		239,812			209,924
Total Company shareholders’ equity		147,818			171,606
Non-controlling interests		5,749			13,468
Total equity	$	153,567		$	185,074
Total liabilities and equity	$	262,087		$	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 December 31,						Year ended December 31,
	2015			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue:
Exhibitions	$	41,629		$	38,157		$	91,854		$	88,941
Online and other media services (Note 2)		17,295			19,738			70,242			82,430
Miscellaneous		2,693			2,210			8,929			7,911
		61,617			60,105			171,025			179,282
Operating Expenses:
Sales (Note 3)		17,898			19,906			50,231			56,095
Event production		10,871			9,751			24,533			23,333
Community and content (Note 3)		5,879			6,753			20,535			22,267
General and administrative (Note 3 & 4)		11,625			11,603			43,697			48,004
Information and technology (Note 3)		3,495			3,075			13,348			12,126
Total Operating Expenses		49,768			51,088			152,344			161,825
Profit on sale of property		9,791			-			9,791			-
Profit from Operations		21,640			9,017			28,472			17,457
Interest income		103			244			792			1,223
Gain on sale of available-for-sale securities		39			-			188			11
Interest expenses		(12	)		(47	)		(83	)		(186	)
Profit before Income Taxes		21,770			9,214			29,369			18,505
Income tax expense		(2,187	)		(534	)		(4,609	)		(1,646	)
Net Profit from continuing operations	$	19,583		$	8,680		$	24,760		$	16,859
Net Profit / (loss) from discontinued operations, net of income tax (Note 5)		-			(40	)		5,629			1,982
Net profit	$	19,583		$	8,640		$	30,389		$	18,841
Net (profit)/loss attributable to non-controlling interests from:
Continuing operations		434			499			(765	)		548
Discontinued operations		-			142			264			(1,059	)
Total		434			641			(501	)		(511	)
Net profit attributable to the Company’s shareholders from:
Continuing operations	$	20,017		$	9,179		$	23,995		$	17,407
Discontinued operations		-			102			5,893			923
Total	$	20,017		$	9,281		$	29,888		$	18,330
Basic net profit per share attributable to the Company’s shareholders from:
Continuing operations	$	0.85		$	0.31		$	0.87		$	0.54
Discontinued operations		-			*			0.22			0.03
Total	$	0.85		$	0.31		$	1.09		$	0.57
Shares used in basic net profit per share calculations		23,612,637			29,905,850			27,404,537			31,953,136
Diluted net profit per share attributable to the Company’s shareholders from:
Continuing operations	$	0.79		$	0.29		$	0.83		$	0.52
Discontinued operations		-			*			0.20			0.03
Total	$	0.79		$	0.29		$	1.03		$	0.55
Shares used in diluted net profit per share calculations		25,185,321			31,516,581			28,820,976			33,482,371

* Basic and diluted net profit 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:

Total revenue from both the continuing operations and discontinued operations during the three months and year ended December 31, 2015 and 2014 was as follows:

	Three months ended December 31,				Year ended December 31,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Continuing operations	$	61,617	$	60,105	$	171,025	$	179,282
Discontinued operations		-		2,762		4,776		18,930
	$	61,617	$	62,867	$	175,801	$	198,212

Note:

Online and other media services consists of:

	Three months ended December 31,				Year ended December 31,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Online services	$	15,296	$	17,983	$	64,421	$	75,895
Print services		1,999		1,755		5,821		6,535
	$	17,295	$	19,738	$	70,242	$	82,430

Note:

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 December 31,				Year ended December 31,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Sales	$	116	$	123	$	418	$	409
Community and content		23		21		88		16
General and administrative		316		319		1,418		1,215
Information and technology		44		45		225		217
	$	499	$	508	$	2,149	$	1,857

Note:

General and administrative expenses consist of:

	Three months ended December 31,				Year ended December 31,
	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	$	9,890	$	9,345	$	37,290	$	36,343
Amortization of intangible assets		1,250		994		4,314		6,873
Impairment charge on intangible assets		-		4		-		2,242
Foreign exchange losses		485		1,260		2,093		2,546
	$	11,625	$	11,603	$	43,697	$	48,004

Note:

Net Profit / (loss) from discontinued operations, net of income tax consist of:

	Three months ended December 31,					Year ended December 31,
	2015		2014			2015			2014
	(Unaudited)		(Unaudited)			(Unaudited)			(Unaudited)
Profit on sale of subsidiary	$	-	$	-		$	6,382		$	-
Income tax expense		-		-			(361	)		-
Profit on sale of subsidiary, net of income tax		-		-			6,021			-
Profit /(loss) from discontinued operations, net of income tax		-		(40	)		(392	)		1,982
	$	-	$	(40	)	$	5,629		$	1,982

Global Sources LTD /bermuda Inactive 6-KCurrent report (foreign)