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 December 31,			As at December 31,
	2016			2015
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	88,749		$	70,356
Term deposits with banks		9,919			9,097
Financial assets, available-for-sale		11,234			-
Accounts receivables, net		838			849
Receivables from sales representatives		4,962			8,802
Inventories		111			176
Prepaid expenses and other current assets		14,129			16,268
		129,942			105,548
Non-current assets
Property and equipment		71,604			59,064
Investment properties		47,955			69,726
Intangible assets		16,907			26,309
Financial assets, available-for-sale		257			-
Long term investment		-			100
Deferred income tax assets		2,669			389
Other non-current assets		2,118			951
		141,510			156,539
Total assets	$	271,452		$	262,087
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	5,681		$	7,383
Deferred income and customer prepayments		77,450			75,265
Accrued liabilities		14,917			15,183
Income tax liabilities		934			2,990
		98,982			100,821
Non-current liabilities
Accounts payable		-			289
Deferred income and customer prepayments		4,040			2,917
Deferred income tax liabilities		2,453			4,493
		6,493			7,699
Total liabilities	$	105,475		$	108,520
Equity attributable to Company’s shareholders
Common shares		536			533
Treasury shares		(250,089	)		(250,089	)
Other reserves		153,181			157,562
Retained earnings		258,293			239,812
Total Company shareholders’ equity		161,921			147,818
Non-controlling interests		4,056			5,749
Total equity	$	165,977		$	153,567
Total liabilities and equity	$	271,452		$	262,087

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

	Six months ended December 31,						Year ended December 31,
	2016			2015			2016			2015
	(Unaudited)			(Unaudited)			(Unaudited)
Revenue:
Exhibitions	$	44,968		$	45,683		$	92,381		$	91,854
Online and other media services (Note 1)		27,646			34,512			58,340			70,242
Miscellaneous		3,235			4,914			6,946			8,929
		75,849			85,109			157,667			171,025
Operating Expenses:
Sales (Note 2)		21,858			25,538			44,767			50,231
Event production		12,018			12,309			25,084			24,533
Community and content (Note 2)		8,152			10,332			17,163			20,535
General and administrative (Note 2 & 3)		20,685			22,945			43,019			43,697
Information and technology (Note 2)		5,541			6,896			11,315			13,348
Total Operating Expenses		68,254			78,020			141,348			152,344
Profit on sale of property		-			9,791			-			9,791
Profit from Operations		7,595			16,880			16,319			28,472
Interest income		265			226			558			792
Gain on sale of available-for-sale securities		26			52			93			188
Profit on sale of long term investment		-			-			43			-
Interest expenses		(7	)		(24	)		(23	)		(83	)
Profit before Income Taxes		7,879			17,134			16,990			29,369
Income tax credit / (expense)		752			(2,421	)		1,328			(4,609	)
Net Profit from continuing operations	$	8,631		$	14,713		$	18,318		$	24,760
Net Profit from discontinued operations, net of income tax (Note 4)		-			223			-			5,629
Net profit	$	8,631		$	14,936		$	18,318		$	30,389
Net loss / (profit) attributable to non-controlling interests from:
Continuing operations		913			457			51			(765	)
Discontinued operations		-			-			-			264
Total		913			457			51			(501	)
Net profit attributable to the Company’s shareholders from:
Continuing operations	$	9,544		$	15,170		$	18,369		$	23,995
Discontinued operations		-			223			-			5,893
Total	$	9,544		$	15,393		$	18,369		$	29,888
Basic net profit per share attributable to the Company’s shareholders from:
Continuing operations	$	0.40		$	0.61		$	0.77		$	0.87
Discontinued operations		-			0.01			-			0.22
Total	$	0.40		$	0.62		$	0.77		$	1.09
Shares used in basic net profit per share calculations		23,928,270			24,690,029			23,897,328			27,404,537
Diluted net profit per share attributable to the Company’s shareholders from:
Continuing operations	$	0.38		$	0.58		$	0.73		$	0.83
Discontinued operations		-			0.01			-			0.20
Total	$	0.38		$	0.59		$	0.73		$	1.03
Shares used in diluted net profit per share calculations		25,397,702			26,249,657			25,305,261			28,820,976

GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

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

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

	Six months ended December 31,				Year ended December 31,
	2016		2015		2016		2015
	(Unaudited)		(Unaudited)		(Unaudited)
Online services	$	25,064	$	31,220	$	52,750	$	64,421
Print services		2,582		3,292		5,590		5,821
	$	27,646	$	34,512	$	58,340	$	70,242

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:

	Six months ended December 31,				Year ended December 31,
	2016		2015		2016		2015
	(Unaudited)		(Unaudited)		(Unaudited)
Sales	$	206	$	240	$	279	$	418
Community and content		44		47		62		88
General and administrative		624		650		1,360		1,418
Information and technology		85		92		204		225
	$	959	$	1,029	$	1,905	$	2,149

Note: 3. General and administrative expenses consist of:

	Six months ended December 31,				Year ended December 31,
	2016		2015		2016		2015
	(Unaudited)		(Unaudited)		(Unaudited)
General and administrative expenses before amortization of intangible assets, impairment charge on intangible assets and foreign exchange losses	$	15,331	$	18,984	$	33,310	$	37,289
Amortization of intangible assets		1,639		2,207		3,681		4,314
Impairment charge on intangible assets		2,889		-		4,791		-
Foreign exchange losses		826		1,754		1,237		2,094
	$	20,685	$	22,945	$	43,019	$	43,697

Note: 4. Net Profit from discontinued operations, net of income tax consist of:

	Six months ended December 31,				Year ended December 31,
	2016		2015		2016		2015
	(Unaudited)		(Unaudited)		(Unaudited)
Profit on sale of subsidiary	$	-	$	223	$	-	$	6,382
Income tax expense		-		-		-		(361	)
Profit on sale of subsidiary, net of income tax		-		223		-		6,021
Loss from discontinued operations, net of income tax		-		-		-		(392	)
	$	-	$	223	$	-	$	5,629