BEIJING, November 17, 2012 /PRNewswire/ -- SGOCO Group, Ltd. (Nasdaq: SGOC), ("SGOCO" or the "Company"), a company focused on product design and brand development in the Chinese flat panel display market, including computer monitors, TVs, and application specific products, today announced its unaudited operating results for the nine month period ended September 30, 2012 together with its unaudited operating results for the first two quarters.
Following the sale of its manufacturing assets in November 2011, SGOCO has been operating a "light-asset" business model with a concentration on building widely recognizable brands and developing innovative display products. The new business model outsources manufacturing and enhances the Company's flexibility in responding to rapid changes in technologies and market conditions. Without the need to invest in heavy manufacturing assets, SGOCO has strengthened its balance sheet. As of September 30, 2012, the Company's net book value per share was $4.30 with a cash position of $6.7 million.
Given the significant changes to SGOCO's business model and balance sheet in the last year, the Company considers year-over-year comparisons of financial results less relevant.
For the nine month period ended September 30, 2012, SGOCO's revenues were $103.3 million. During this period, 74% of sales were generated from the Company's own-brand products and 26% of sales were derived from OEM customers. During the transition to a "light-asset" business model, the Company has been reducing its lower-margin trading and OEM businesses. Therefore, our revenues were negatively impacted by significant reductions in our OEM and trading businesses in addition to general display market and credit conditions in China. The Company is responding to the intense competition in the Chinese display market by developing new markets, sales channels, brands and products with enhanced features, and business related services.
Gross profit for the nine month period ended September 30, 2012 was $7.6 million, or 7.3% of total revenues. Gross margin for the latest quarter was negatively impacted by increased fees charged by Chinese authorities for recycling imported monitors and price drops in smaller size monitors. SGOCO's long-term strategy is to continue to emphasize own-brand sales while boosting margins through the introduction of new personalized devices and multimedia systems and services to the Company's product portfolio.
Selling, general and administrative expenses for the nine month period ended September 30, 2012 were $4.6 million, or 4.5% of total revenues. During the period, the Company incurred approximately $2.7 million in third-party expenses including one-time expenses of over $1.6 million in professional fees related to the Company's Nasdaq trading halt as well as from a change in auditors.
Net income for the nine month period ended September 30, 2012 was $1.1 million, or 1.0% of revenues. Net income was negatively impacted by an approximately $0.7 million provision for interest accrued on a tax related to the sale of its manufacturing assets. Diluted EPS for the period was $0.06.
SGOCO reported strong liquidity ratios as of September 30, 2012. The Company's current ratio was 6.97 and the debt-to-equity ratio was 0.17. These strong ratios will support SGOCO as it completes its business model transformation focused on developing new personalized products and multimedia systems combined with related business services.
Mr. Burnette Or, Chairman and Chief Executive Officer of SGOCO, commented "We remain encouraged by the progress of our business transition and remain positive about our long-term strategy and profitability. Our new "light-asset" business model provides us with greater flexibility to adapt to challenging market conditions. The Company continues to operate free of debt, build its brand portfolio, and develop new display products. Our R&D team is developing higher-margin products including smart phones, tablet PCs, e-boards, all-in-ones (AIOs) and application specific products (ASPs) which are expected to become commercial ready within the next 1-2 years. The Company is also working on services that can be matched with these new products to further enhance their attractiveness and profitability. We are also using our U.S. office to examine opportunities to re-establish sales in North America, the largest consumer market. We anticipate our fourth quarter results will be stronger than the third quarter's."
Conference Call:
SGOCO's management will host a conference call at 8:30 am ET on Monday, November 19, 2012 to discuss these results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Listeners may access the call by dialing 1-888-466-4462 or 1-719-325-2376. A webcast will also be available via http://public.viavid.com/index.php?id=102602 or http://viavid.com. A replay of the call will be available through November 30, 2012 by dialing 1-877-870-5176 or 1-858-384-5517 access code: 8448779.
2011 Annual Report:
SGOCO's 2011 annual report has been filed with the U.S. Securities and Exchange Commission and is available online at the Company's website (www.sgocogroup.com). Shareholders may request a printed copy of the 2011 annual report free of charge by contacting ir@sgoco.com or faxing +86-10-8587-0252.
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is a technology company focused on product design and brand development in the Chinese flat panel display market, including computer monitors, TVs, and application specific products. The Company sells its products and services in the Chinese market and around the world.
For more information about SGOCO, please visit our investor relations website http://www.sgocogroup.com. Product information can be found at http://www.sgoco.com.
Safe Harbor and Informational Statement
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the effectiveness of the Company's multiple-brand, multiple channel strategy, the transitioning of its product focus, and the reasonableness of the increases in notes payable, and restricted cash. Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation, requirements or changes adversely affecting the LCD and LED market in China; fluctuations in customer demand for LCD and LED products generally; our success in promoting our brand of LCD and LED products in China and elsewhere; our success in expanding our "SGOCO Image" program; our ability to maintain effective internal control over financial reporting; our success in manufacturing and distributing products under brands licensed from others; management of rapid growth; changes in government policy including policy regarding subsidies for purchase of consumer electronic products and local production of consumer goods in China; the fluctuations in sales of LCD and LED products in China; China's overall economic conditions and local market economic conditions; our ability to expand through strategic acquisitions and establishment of new locations; changing principles of generally accepted accounting principles; compliance with government regulations; legislation or regulatory environments; geopolitical events and other events and factors described in the "Key Information - Risk Factors" section in the Company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on August 30, 2012. The Company assumes no obligation to update any of the information contained or referenced in this press release.
For investor and media inquiries, please contact:
SGOCO Group, Ltd. (China) | ICR, LLC |
Bill Krolicki, VP of Finance | William Zima |
Tel: +86-10-8587-0170 ext. 826 | Phone: +86-10-6583-7511 |
Email: ir@sgoco.com | |
SGOCO Group Investor Relations Department | |
US: +1-646-328-2533 |
(Financial Tables on Following Pages)
SGOCO GROUP LTD. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
AS OF SEPTEMBER 30, 2012 | |||||||
September 30, | December 31, | ||||||
2012 | 2011 | ||||||
(USD) | (USD) | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash | $ | 6,747,787 | $ | 534,501 | |||
Restricted cash | 253,335 | - | |||||
Accounts receivable, trade | 25,090,529 | 19,680,682 | |||||
Other receivables and prepayments | 960,484 | 756,763 | |||||
Consideration receivable from Sale of Honesty Group | - | 57,477,790 | |||||
Notes receivable | 3,664,554 | - | |||||
Inventories | 6,693,437 | 1,864,011 | |||||
Advances to Honesty Group | 26,429,418 | - | |||||
Advances to suppliers | 17,453,325 | 4,609,506 | |||||
Other current assets | 128,303 | 60,548 | |||||
Total current assets | 87,421,172 | 84,983,801 | |||||
PLANT AND EQUIPMENT, NET | 272,017 | 217,586 | |||||
Total assets | $ | 87,693,189 | $ | 85,201,387 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable, trade | $ | 3,851,944 | $ | 4,608,600 | |||
Accrued liabilities | 209,948 | 353,147 | |||||
Notes payable | 253,335 | - | |||||
Short-term loan - shareholder | 208,958 | 208,958 | |||||
Other payables | 456,569 | 343,883 | |||||
Customer deposits | 553,451 | 153,436 | |||||
Taxes payable | 7,005,750 | 5,552,293 | |||||
Total current liabilities | 12,539,955 | 11,220,317 | |||||
OTHER LIABILITIES | |||||||
Warrant derivative liability | 17,740 | 92,966 | |||||
Total other liabilities | 17,740 | 92,966 | |||||
Total liabilities | 12,557,695 | 11,313,283 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, $0.001 par value, 1,000,000 shares authorized, | |||||||
nil issued and outstanding as of September 30, 2012 and | |||||||
December 31, 2011, respectively | - | - | |||||
Ordinary shares, $0.001 par value, 50,000,000 shares authorized, | |||||||
17,465,356 and 17,258,356 issued and outstanding as of | |||||||
September 30, 2012 and December 31, 2011, respectively | 17,465 | 17,258 | |||||
Additional paid-in-capital | 24,828,448 | 24,555,415 | |||||
Statutory reserves | 54,031 | 54,031 | |||||
Retained earnings | 50,237,046 | 49,177,643 | |||||
Accumulated other comprehensive income | (1,496) | 83,757 | |||||
Total shareholders' equity | 75,135,494 | 73,888,104 | |||||
Total liabilities and shareholders' equity | $ | 87,693,189 | $ | 85,201,387 | |||
SGOCO GROUP LTD. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | ||||||||||
FOR SEPTEMBER 30, 2012 AND 2011 (UNAUDITED) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2012 | 2011 | 2012 | 2011 | |||||||
(USD) | (USD) | (USD) | (USD) | |||||||
REVENUES: | ||||||||||
Revenues | $ | 26,047,267 | $ | 71,565,279 | $ | 103,271,709 | $ | 244,121,724 | ||
Total revenues | 26,047,267 | 71,565,279 | 103,271,709 | 244,121,724 | ||||||
COST OF GOODS SOLD: | ||||||||||
Cost of goods sold | 25,105,616 | 63,677,293 | 95,691,861 | 218,188,315 | ||||||
Total cost of goods sold | 25,105,616 | 63,677,293 | 95,691,861 | 218,188,315 | ||||||
GROSS PROFIT | 941,651 | 7,887,986 | 7,579,848 | 25,933,409 | ||||||
OPERATING EXPENSES: | ||||||||||
Selling expenses | 212,290 | 647,930 | 459,509 | 1,134,426 | ||||||
General and administrative expenses | 1,481,641 | 1,115,858 | 4,166,058 | 4,027,265 | ||||||
Total operating expenses | 1,693,931 | 1,763,788 | 4,625,567 | 5,161,691 | ||||||
(LOSS) INCOME FROM OPERATIONS | (752,280) | 6,124,198 | 2,954,281 | 20,771,718 | ||||||
OTHER INCOME (EXPENSES): | ||||||||||
Interest income | 1,338 | 170,397 | 2,961 | 231,202 | ||||||
Interest expense | (12,519) | (564,121) | (51,480) | (1,497,171) | ||||||
Other income (expenses), net | (23,129) | (550,810) | (35,109) | (134,857) | ||||||
Change in fair value of warrant derivative liability | 27,249 | 741,641 | 75,226 | 873,986 | ||||||
Total other income (expenses), net | (7,061) | (202,893) | (8,402) | (526,840) | ||||||
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES | (759,341) | 5,921,305 | 2,945,879 | 20,244,878 | ||||||
PROVISION FOR INCOME TAXES | 331,089 | 683,743 | 1,886,476 | 2,726,468 | ||||||
NET (LOSS) INCOME | (1,090,430) | 5,237,562 | 1,059,403 | 17,518,410 | ||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||
Foreign currency translation adjustment | (2,676) | 697,619 | (85,253) | 2,082,582 | ||||||
COMPREHENSIVE (LOSS) INCOME | $ | (1,093,106) | $ | 5,935,181 | $ | 974,150 | $ | 19,600,992 | ||
(LOSS) EARNINGS PER SHARE: | ||||||||||
Basic | $ | (0.06) | $ | 0.33 | $ | 0.06 | $ | 1.09 | ||
Diluted | $ | (0.06) | $ | 0.33 | $ | 0.06 | $ | 1.09 | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES: | ||||||||||
Basic | 17,059,860 | 16,032,343 | 17,059,860 | 16,077,451 | ||||||
Diluted | 17,059,860 | 16,032,343 | 17,059,860 | 16,114,299 | ||||||
SGOCO GROUP LTD. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 1,059,403 | $ | 17,518,410 | ||||
Adjustments to reconcile net income to cash provided by | ||||||||
(used in) operating activities: | ||||||||
Depreciation and amortization | 48,927 | 1,410,897 | ||||||
Bad debt provision | - | 77,017 | ||||||
Change in fair value of warrant derivative liability | (75,226) | (873,986) | ||||||
Share-based compensation expenses | 273,240 | - | ||||||
Change in operating assets and liabilities | ||||||||
Accounts receivable, trade | (5,555,976) | (491,185) | ||||||
Accounts receivable - related parties | - | 49,559 | ||||||
Other receivables | (209,323) | (343,138) | ||||||
Notes receivable | (3,679,233) | - | ||||||
Inventories | 34,131,709 | 3,057,666 | ||||||
Advances to Honsty Group | (26,535,286) | - | ||||||
Advances to suppliers | (12,924,417) | (93,534,354) | ||||||
Other current assets | (68,230) | (332,828) | ||||||
Change in operating liabilities | ||||||||
Accounts payables, trade | (730,542) | 6,500,296 | ||||||
Accrued liabilities | (141,539) | 74,626 | ||||||
Notes payable | 254,350 | 41,567,751 | ||||||
Other payables | 116,920 | 468,299 | ||||||
Customer deposits | 402,588 | 6,473,017 | ||||||
Taxes payable | 1,494,391 | 452,181 | ||||||
Net cash used in operating activities | (12,138,244) | (17,925,772) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Settlement of consideration received from disposal of subsidiaries | 18,733,669 | - | ||||||
Purchase of equipment and construction-in-progress | (105,131) | (1,371,515) | ||||||
Purchase of intangible assets | - | (1,566) | ||||||
Net cash provided by (used in) investing activities | 18,628,538 | (1,373,081) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Increase in restricted cash | (254,349) | (22,293,466) | ||||||
Bank overdraft | - | 27,611 | ||||||
Proceeds from short-term loan | - | 89,906,005 | ||||||
Payments on short-term loan | - | (66,550,397) | ||||||
Proceeds from shareholder loan | - | (2,545,439) | ||||||
Payments on repurchase of put option | - | (2,000,000) | ||||||
Payments on repurchase of warrants | - | (512,158) | ||||||
Shares issued for exercise of over-allotment related to secondary offering | - | 373,242 | ||||||
Net cash used in financing activities | (254,349) | (3,594,602) | ||||||
EFFECT OF EXCHANGE RATE ON CASH | (22,659) | 3,046,527 | ||||||
INCREASE(DECREASE) IN CASH | 6,213,286 | (19,846,928) | ||||||
CASH, beginning of period | 534,501 | 23,493,805 | ||||||
CASH, end of period | $ | 6,747,787 | $ | 3,646,877 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
Cash paid for interest | $ | 51,480 | $ | 564,121 | ||||
Cash paid for income taxes | $ | 431,594 | $ | 934,554 | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
Settlement of consideration receivable - received in finished goods | $ | 38,992,268 | $ | - | ||||
SGOCO GROUP LTD. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
AS OF JUNE 30, 2012 | |||||||
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
(USD) | (USD) | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash | $ | 713,944 | $ | 534,501 | |||
Restricted cash | 318,788 | - | |||||
Accounts receivable, trade | 38,493,508 | 19,680,682 | |||||
Other receivables and prepayments | 815,990 | 756,763 | |||||
Consideration receivable from Sale of Honesty Group | - | 57,477,790 | |||||
Notes receivable | 94,863 | - | |||||
Inventories | 1,707,445 | 1,864,011 | |||||
Advances to Honesty Group | 21,896,826 | - | |||||
Advances to suppliers | 26,647,857 | 4,609,506 | |||||
Other current assets | 181,233 | 60,548 | |||||
Total current assets | 90,870,454 | 84,983,801 | |||||
PLANT AND EQUIPMENT, NET | 254,057 | 217,586 | |||||
Total assets | $ | 91,124,511 | $ | 85,201,387 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable, trade | $ | 4,470,910 | $ | 4,608,600 | |||
Accrued liabilities | 434,573 | 353,147 | |||||
Notes payable | 318,788 | - | |||||
Short-term loan - shareholder | 208,958 | 208,958 | |||||
Other payables | 1,018,926 | 343,883 | |||||
Customer deposits | 1,586,038 | 153,436 | |||||
Taxes payable | 6,812,729 | 5,552,293 | |||||
Total current liabilities | 14,850,922 | 11,220,317 | |||||
OTHER LIABILITIES | |||||||
Warrant derivative liability | 44,989 | 92,966 | |||||
Total other liabilities | 44,989 | 92,966 | |||||
Total liabilities | 14,895,911 | 11,313,283 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, $0.001 par value, 1,000,000 shares authorized, | |||||||
nil issued and outstanding as of June 30, 2012 and | |||||||
December 31, 2011, respectively | - | - | |||||
Ordinary shares, $0.001 par value, 50,000,000 shares authorized, | |||||||
17,465,356 and 17,258,356 issued and outstanding as of | |||||||
June 30, 2012 and December 31, 2011, respectively | 17,465 | 17,258 | |||||
Additional paid-in-capital | 24,828,448 | 24,555,415 | |||||
Statutory reserves | 54,031 | 54,031 | |||||
Retained earnings | 51,327,476 | 49,177,643 | |||||
Accumulated other comprehensive income | 1,180 | 83,757 | |||||
Total shareholders' equity | 76,228,600 | 73,888,104 | |||||
Total liabilities and shareholders' equity | $ | 91,124,511 | $ | 85,201,387 | |||
SGOCO GROUP LTD. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | ||||||||||
FOR JUNE 30, 2012 AND 2011 (UNAUDITED) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2012 | 2011 | 2012 | 2011 | |||||||
(USD) | (USD) | (USD) | (USD) | |||||||
REVENUES: | ||||||||||
Revenues | $ | 42,702,117 | $ | 85,580,821 | $ | 77,224,442 | $ | 172,556,445 | ||
Total revenues | 42,702,117 | 85,580,821 | 77,224,442 | 172,556,445 | ||||||
COST OF GOODS SOLD: | ||||||||||
Cost of goods sold | 38,745,777 | 74,834,917 | 70,586,245 | 154,511,022 | ||||||
Total cost of goods sold | 38,745,777 | 74,834,917 | 70,586,245 | 154,511,022 | ||||||
GROSS PROFIT | 3,956,340 | 10,745,904 | 6,638,197 | 18,045,423 | ||||||
OPERATING EXPENSES: | ||||||||||
Selling expenses | 129,817 | 270,124 | 247,219 | 486,496 | ||||||
General and administrative expenses | 1,772,241 | 1,548,481 | 2,684,417 | 2,911,407 | ||||||
Total operating expenses | 1,902,058 | 1,818,605 | 2,931,636 | 3,397,903 | ||||||
INCOME FROM OPERATIONS | 2,054,282 | 8,927,299 | 3,706,561 | 14,647,520 | ||||||
OTHER INCOME (EXPENSES): | ||||||||||
Interest income | 1,214 | 45,966 | 1,623 | 60,805 | ||||||
Interest expense | (24,406) | (536,898) | (38,961) | (933,050) | ||||||
Other income (expenses), net | 2,418 | 651,902 | (11,980) | 415,955 | ||||||
Change in fair value of warrant derivative liability | 47,371 | (596,040) | 47,977 | 132,345 | ||||||
Total other income (expenses), net | 26,597 | (435,070) | (1,341) | (323,945) | ||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,080,879 | 8,492,229 | 3,705,220 | 14,323,575 | ||||||
PROVISION FOR INCOME TAXES | 849,539 | 1,348,785 | 1,555,387 | 2,042,725 | ||||||
NET INCOME | 1,231,340 | 7,143,444 | 2,149,833 | 12,280,850 | ||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||
Foreign currency translation adjustment | (10,694) | 1,044,966 | (82,577) | 1,384,963 | ||||||
COMPREHENSIVE INCOME | $ | 1,220,646 | $ | 8,188,410 | $ | 2,067,256 | $ | 13,665,813 | ||
EARNINGS PER SHARE: | ||||||||||
Basic | $ | 0.07 | $ | 0.45 | $ | 0.12 | $ | 0.76 | ||
Diluted | $ | 0.07 | $ | 0.45 | $ | 0.12 | $ | 0.76 | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES: | ||||||||||
Basic | 17,059,860 | 16,032,343 | 17,059,860 | 16,100,378 | ||||||
Diluted | 17,059,860 | 16,032,343 | 17,059,860 | 16,216,126 | ||||||
SGOCO GROUP LTD. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
AS OF MARCH 31, 2012 | |||||||
March 31, | December 31, | ||||||
2012 | 2011 | ||||||
(USD) | (USD) | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash | $ | 6,782,742 | $ | 534,501 | |||
Restricted cash | 65,122 | - | |||||
Accounts receivable, trade | 29,211,944 | 19,680,682 | |||||
Other receivables and prepayments | 365,713 | 756,763 | |||||
Consideration receivable from Sale of Honesty Group | 33,873,594 | 57,477,790 | |||||
Inventories | 4,396,592 | 1,864,011 | |||||
Advances to Honesty Group | 5,017,489 | - | |||||
Advances to suppliers | 7,913,646 | 4,609,506 | |||||
Other current assets | 18,164 | 60,548 | |||||
Total current assets | 87,645,006 | 84,983,801 | |||||
PLANT AND EQUIPMENT, NET | 270,314 | 217,586 | |||||
Total assets | $ | 87,915,320 | $ | 85,201,387 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable, trade | $ | 4,889,942 | $ | 4,608,600 | |||
Accrued liabilities | 335,129 | 353,147 | |||||
Notes payable | 65,122 | - | |||||
Short-term loan - shareholder | 208,958 | 208,958 | |||||
Other payables | 1,133,006 | 343,883 | |||||
Customer deposits | 113,498 | 153,436 | |||||
Taxes payable | 6,069,351 | 5,552,293 | |||||
Total current liabilities | 12,815,006 | 11,220,317 | |||||
OTHER LIABILITIES | |||||||
Warrant derivative liability | 92,360 | 92,966 | |||||
Total other liabilities | 92,360 | 92,966 | |||||
Total liabilities | 12,907,366 | 11,313,283 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, $0.001 par value, 1,000,000 shares authorized, | |||||||
nil issued and outstanding as of March 31, 2012 and | |||||||
December 31, 2011, respectively | - | - | |||||
Ordinary shares, $0.001 par value, 50,000,000 shares authorized, | |||||||
17,465,356 and 17,258,356 issued and outstanding as of | |||||||
March 31, 2012 and December 31, 2011, respectively | 17,465 | 17,258 | |||||
Additional paid-in-capital | 24,828,448 | 24,555,415 | |||||
Statutory reserves | 54,031 | 54,031 | |||||
Retained earnings | 50,096,136 | 49,177,643 | |||||
Accumulated other comprehensive income | 11,874 | 83,757 | |||||
Total shareholders' equity | 75,007,954 | 73,888,104 | |||||
Total liabilities and shareholders' equity | $ | 87,915,320 | $ | 85,201,387 | |||
SGOCO GROUP LTD. AND SUBSIDIARIES | ||||||
CONDENSDED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | ||||||
FOR MARCH 31, 2012 AND 2011 (UNAUDITED) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
(USD) | (USD) | |||||
REVENUES: | ||||||
Revenues | $ | 34,522,325 | $ | 86,975,624 | ||
Total revenues | 34,522,325 | 86,975,624 | ||||
COST OF GOODS SOLD: | ||||||
Cost of goods sold | 31,840,468 | 79,676,105 | ||||
Total cost of goods sold | 31,840,468 | 79,676,105 | ||||
GROSS PROFIT | 2,681,857 | 7,299,519 | ||||
OPERATING EXPENSES: | ||||||
Selling expenses | 117,402 | 216,372 | ||||
General and administrative expenses | 912,176 | 1,362,926 | ||||
Total operating expenses | 1,029,578 | 1,579,298 | ||||
INCOME FROM OPERATIONS | 1,652,279 | 5,720,221 | ||||
OTHER INCOME (EXPENSES): | ||||||
Interest income | 409 | 14,840 | ||||
Interest expense | (14,555) | (396,151) | ||||
Other income (expenses), net | (14,398) | (235,949) | ||||
Change in fair value of warrant derivative liability | 606 | 728,384 | ||||
Total other income (expenses), net | (27,938) | 111,124 | ||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,624,341 | 5,831,345 | ||||
PROVISION FOR INCOME TAXES | 705,848 | 693,939 | ||||
NET INCOME | 918,493 | 5,137,406 | ||||
OTHER COMPREHENSIVE INCOME: | ||||||
Foreign currency translation adjustment | (71,883) | 339,998 | ||||
COMPREHENSIVE INCOME | $ | 846,610 | $ | 5,477,404 | ||
EARNINGS PER SHARE: | ||||||
Basic | $ | 0.05 | $ | 0.32 | ||
Diluted | $ | 0.05 | $ | 0.32 | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES: | ||||||
Basic | 17,053,036 | 16,169,170 | ||||
Diluted | 17,053,036 | 16,280,942 | ||||
