Global Sources LTD /bermuda 6-K Global Sources LTD.

EXHIBIT 2

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

	At			At
	March 31			December 31
	2009			2008
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	116,054		$	70,225
Available-for-sale securities		20,674			60,786
Accounts receivable, net		5,019			6,025
Receivables from sales representatives		4,517			5,574
Inventory		996			1,306
Prepaid expenses and other current assets		20,177			16,513
Deferred tax assets		28			28
Total Current Assets		167,465			160,457
Property and equipment, net		81,650			82,657
Long term investments		100			100
Deferred tax assets		328			323
Other noncurrent assets		1,646			1,561
Total Assets	$	251,189		$	245,098
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	8,032		$	10,117
Deferred income and customer prepayments		81,544			73,636
Accrued liabilities		9,270			11,579
Income taxes payable		360			261
Total Current Liabilities		99,206			95,593
Deferred income and customer prepayments		3,536			3,044
Deferred tax liability		251			318
Total Liabilities		102,993			98,955
Shareholders’ equity:
Common shares, US$0.01 par value; 75,000,000 shares authorized;
51,416,300 (2008: 51,376,335) shares issued and 44,541,300 (2008: 44,501,335) shares outstanding		514			514
Additional paid in capital		134,448			133,922
Treasury shares, at cost – 6,875,000 (2008: 6,875,000) shares		(50,000	)		(50,000	)
Retained earnings		56,456			55,259
Accumulated other comprehensive income		1,934			2,225
Total Company Shareholders’ Equity		143,352			141,920
Non-controlling interest		4,844			4,223
Total Equity		148,196			146,143
Total Liabilities and Equity	$	251,189		$	245,098

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

	Three months ended March 31,
	2009			2008
	(Unaudited)			(Unaudited)
Revenue:
Online and other media services (Note 1)	$	29,495		$	33,532
Exhibitions		4,488			5,961
Miscellaneous		805			1,121
		34,788			40,614
Operating Expenses:
Sales (Note 2)		13,738			12,316
Event production		821			1,005
Community (Note 2)		5,197			6,043
General and administrative (Note 2)		11,595			11,228
Online services development (Note 2)		1,411			1,479
Amortization of software costs		42			40
Total Operating Expenses		32,804			32,111
Income from Operations		1,984			8,503
Interest and dividend income		65			1,297
Foreign exchange losses, net		(93	)		(256	)
Income before Income Taxes		1,956			9,544
Income Tax Expense		(138	)		(233	)
Net Income	$	1,818		$	9,311
Net income attributable to non-controlling interest		(621	)		(1,106	)
Net Income Attributable to the Company	$	1,197		$	8,205
Basic net income per share attributable to the Company’s shareholders	$	0.03		$	0.16
Shares used in basic net income per share calculations		44,541,722			51,281,797
Diluted net income per share attributable to the Company’s shareholders	$	0.03		$	0.16
Shares used in diluted net income per share calculations		45,671,181			52,064,034
Note : 1. Online and other media services consists of:
	Three months ended March 31,
	2009			2008
	(Unaudited)			(Unaudited)
Online services	$	21,970		$	21,930
Print services		7,525			11,602
	$	29,495		$	33,532
Note : 2. Non-cash compensation expenses associated with the employee equity compensation plans and Directors Purchase Plan included under various categories of expenses are as follows:
	Three months ended March 31,
	2009			2008
	(Unaudited)			(Unaudited)
Sales	$	9		$	(1,393	)
Community		7			15
General administrative		436			(247	)
Online services development		74			48
	$	526		$	(1,577	)