WEB NEWS Investor Alert
HUIZHOU, China, April 21, 2012 /PRNewswire-Asia / -- Qiao Xing Universal Resources, Inc. (NASDAQ: XING) (the "Company" or "XING"), announced today that its Audit Committee determined to commence an internal investigation into a transfer of funds from a Company subsidiary's bank account to an account controlled by the Company's former Chairman, Wu Rui Lin, in June 2011. The transaction was undertaken without notice to or approval of the Audit Committee or the Board of Directors, and the transaction was recently reported to the Audit Committee in connection with the preparation of the Company's year-end financial statements. The Audit Committee has ordered immediate return of the funds. In addition, the Company informed NASDAQ and the U.S. Securities and Exchange Commission (the "SEC") of the matter under investigation and will promptly report its findings back to NASDAQ and the SEC. The Audit Committee also decided to review certain transactions involving the pledge or transfer of Company assets and to confirm cash balances of the Company's bank accounts. NASDAQ has suspended trading in XING's stock as of April 16, 2012.
Also, XING announced that Dr. Edward Tsai, director and Chairman of the Audit Committee, has resigned as of April 18, 2012. Dr. Tsai's resignation is occasioned by his disagreement with the other directors of the Company on the conduct of the internal investigation referred to above. XING would like to thank Dr. Tsai for his service and regrets the loss of his contributions to the board.
Investor Alert
BEIJING , April 17, 2012 /PRNewswire-Asia-FirstCall / -- Qiao Xing Mobile Communication Co., Ltd. ("QXM" or the "Company") (NYSE: QXM), a domestic manufacturer of mobile handsets in China , noted that the trading in Qiao Xing Universal Resources, Inc. ("XING") (Nasdaq: XING), its controlling shareholder, was halted yesterday by the NASDAQ Stock Market pending the provision of "additional information requested" by XING. The NASDAQ Stock Market's website stated that trading in XING's shares will remain halted until XING has fully satisfied the NASDAQ Stock Market's request for additional information. While the release of further information by XING is pending, the board of directors and management of QXM would like to clarify that, to their knowledge, the trading halt of XING is not related to QXM or QXM's business or transactions, any of QXM's subsidiaries or any of their respective bank accounts.
XING, a public company listed on the Nasdaq Global Market, is the parent company and the controlling shareholder of QXM, and holds approximately 55.6% of the equity interests in QXM. Mr. Zhiyang Wu , the Chairman and Chief Executive Officer of QXM, also serves as the Chairman and Chief Executive Officer of XING.
Auditor trail
HUIZHOU, China , January 19, 2012 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. (NASDAQ: XING) ("XING" or the "Company"), a leading company in the molybdenum mining business as well as a company with substantial assets in the resources industry, today announced the appointment of Crowe Horwath (HK) CPA Limited as its independent registered public accounting firm. The Company's prior auditor was Crowe Horwath LLP. The engagement of Crowe Horwath (HK) CPA Limited was approved by the Company's Board on December 12, 2011 and by shareholders at the Company's Annual General Meeting on December 30, 2011 .
There were no disagreements between Crowe Horwath LLP and the Company during the term of their engagement on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Crowe Horwath LLP, would have caused them to make reference to the subject matter of the disagreements in connection with their report on the Company's financial statements.
Comments & Business Outlook
First- Half Highlights :
Net sales were RMB 387 million (US $59.9 million ), as compared to RMB 466 million in the first half of 2010
The gross loss was RMB 15.5 million (US $2.4 million ), representing a gross margin of negative 4.0%, as compared to a gross profit of RMB 77.3 million , and a gross margin of positive 16.6%, for the first half of 2010
The net loss was RMB 18.0 million (US $2.8 million ), or RMB (0.18) (US $0.03 ) per basic share, compared to a net profit of RMB 100.6 million or RMB 1.12 per basic share, in the first half of 2010
The acquisition of Balinzuo Banner Xinyuan Mining Company Ltd was completed during the first half of 2011
Aolunhua Mining Co., Ltd (the "Aolunhua") contributed a pre-tax profit of RMB 7.1 million (US $1.1 million )
The decrease in sales was due mainly to lower selling prices of molybdenum metal compared to last year and a decrease in the average selling price ("ASP"), as well as in sales volume of handsets.
The decrease in non-operating income was mainly due to:
A decrease in interest income, owing to a decrease in the Company's overall cash balance;
A goodwill write-off of RMB 19.8 million , arising from the acquisition of subsidiary Balinzuo Banner Xinyuan Company, Ltd. This figure was determined based on the preliminary purchase price allocation, which will be finalized by the end of 2011. As of today, the mine has not yet commenced operation; and
A decrease in a valuation gain on derivatives, as compared to first half of 2010, since certain financial instruments expired during the first half of 2011.
Acquisition Activity
HUIZHOU, China , November 29, 2011 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. (NASDAQ: XING) ("XING" or the "Company"), a leading company in the molybdenum mining business as well as a company with substantial assets in the resources industry, today announced that it has signed a letter of intent ("LOI") to acquire a 100% equity interest in a company (the "Target Company") that owns an open-pit marble mine (the "Mine") located in Guzhang County, Hunan province, China , from an independent third party (the "Vendor").
According to the geological technical report, the Mine covers an area of approximately 0.43 square kilometers and has approximately 60.82 million cubic meters of measured and indicated marble resources (331 + 332 according to Chinese standards). This marble reserve is of a high-grade, black wood-grain type, whose supply is relatively limited in the Chinese market. At present, commercial mining has yet to commence at the Mine.
Under the terms of the LOI, the cash consideration for the acquisition will be determined by a third-party appraisal of the equity value of the Target Company as of October 31, 2011 . The Company will pay an upfront refundable deposit of RMB 400 million to the Vendor (the "Deposit") to secure an exclusivity period of 120 days in which to complete the proposed acquisition. To secure the Deposit, the Vendor will pledge 60% of its equity interests in the Target Company to XING. Upon completion of the proposed acquisition, the Deposit will be applied towards the cash consideration. If the proposed acquisition cannot be completed for any reason, the Vendor will refund the Deposit to XING. The completion of the proposed acquisition is subject to, amongst other things, the satisfactory completion of due diligence by the Company and the signing of a definitive sales and purchase agreement. There is no guarantee that, after completion of diligence, XING will proceed with the acquisition on the present terms or at all.
Investor Alert
HUIZHOU, China , November 4, 2011 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. (NASDAQ: XING) ("XING" or the "Company") received a letter from The Nasdaq Global Market on October 31, 2011 stating that for the previous 30 consecutive business days, the bid price of the Company's common stock closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq Global Market pursuant to Nasdaq Marketplace Rule 5450(a)(1) (the "Minimum Bid Price Rule"). The Nasdaq letter has no immediate effect on the listing of the Company's common stock.
In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), XING has 180 calendar days from the date of the Nasdaq letter, or until April 30, 2012, to regain compliance by maintaining a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days. If at any time before April 30, 2012, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of ten consecutive business days, Nasdaq will notify the Company that it has achieved compliance with the Minimum Bid Price Rule.
If the Company does not regain compliance by April 30, 2012 , Nasdaq will provide written notification to the Company that the Company's common stock is subject to delisting. If the Company receives notice that its common stock is being delisted from The Nasdaq Global Market, Nasdaq rules permit the Company to appeal any delisting determination by the Nasdaq staff to a Nasdaq Hearings Panel. Alternatively, Nasdaq may permit the Company to transfer its common stock to The Nasdaq Capital Market if it satisfies the requirements for initial inclusion set forth in Marketplace Rule 5505, except for the bid price requirement. If its application for transfer is approved, the Company would have an additional 180 calendar days to comply with the Minimum Bid Price Rule in order to remain on The Nasdaq Capital Market.
Liquidity Requirements
For the year ended December 31, 2010, we financed our operations and investments principally through cash generated from operating activities. Outstanding bank borrowings accounted for 15.0% and 8.5% of our total assets as of December 31, 2009 and December 31, 2010, respectively. Seasonal working capital needs have been met through short-term borrowings under revolving lines of credit. As of December 31, 2010, our consolidated working capital was Rmb2,864.4 million (US$ 434.0 million) as compared to Rmb3,400.8 million as of December 31, 2009. We believe that our working capital is
sufficient for our present requirements .
Investor Alert
HUIZHOU, China, June 30, 2011 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. (Nasdaq: XING or the "Company"), a leading company in the molybdenum mining business as well as a company with substantial assets in the resources industry, today announced that the Company will file a Form 12b-25 Extension for the filing of its Annual Report on Form 20-F for the year ended December 31, 2010.
XING is requesting an extension because the Company was unable to file its 2010 Form 20-F by the initial filing deadline ofJune 30, 2011. On January 8, 2011, the Company completed the acquisition of the 100% equity interest in Chifeng Xinyuan Mining Co., Ltd. The acquisition required an extraordinary amount of time and effort by the Company's management. Accordingly, the Company's management has been unable to devote the time and effort necessary to complete the preparation of the Form 20-F and the audited financial statements of the Company for the fiscal year ended December 31, 2010 by the filing deadline. The Company anticipates that the Form 20-F will be filed on or before July 15, 2011.
Comments & Business Outlook
HUIZHOU, China, May 31, 2011 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. today announced its unaudited consolidated financial results for the fiscal year ended December 31, 2010.
"Our mining operations grew significantly in 2010 as our mining operations began to contribute significantly to our financial results. Furthermore, we completed two additional mine acquisitions at the end of 2010 and these two operational and producing mines will contribute substantially in 2011 ," stated Mr. Ruilin Wu, the Company's Chairman and Chief Executive Officer. "As seen by the impressive rise in revenue and net income in 2010, we are continuing to implement our strategy of becoming a pure-play resources company even as we work to finalize our options as relates to our remaining telecommunications business ."
In fiscal 2010, the Company generated strong results from its mining business with
revenues of RMB300.4 million (US$45.5 million ), compared to RMB193.9 million in fiscal 2009, and
net income in fiscal 2010 of RMB 90.6 million (US$13.7 million ) compared to RMB64.2 million in fiscal 2009. This represents an increase in mining revenues and net income of 55% and 41%, respectively. Meanwhile, the Company's 56% owned subsidiary, Qiao Xing Mobile Communication Co., Ltd. ("QXM"), strategically contracted its mobile phone business due to an unfavorable competition environment so as to limit its operating losses as it assesses its corporate options.
Due to the operating losses attributable to its QXM subsidiary, the Company recorded a net loss of RMB 57.3 million (US$8.7 million ) on a consolidated basis, compared to a consolidated net loss of RMB 259.9 million in 2009.
As of December 31, 2010, the Company had cash and equivalents of RMB 3,178.1 million (US$481.5 million ) on its consolidated balance sheet.
EPS loss of ($.10) vs. ($0.29)
Comments & Business Outlook
HUIZHOU, China, May 18, 2011 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. today announced unaudited results of its mining business for the fiscal year 2010 ended December 31, 2010 and for the three months ended December 31, 2010.
For the fiscal year 2010, sales revenues and net income generated from the mining business were RMB300.4 million (US$45.5 million) and RMB90.6 million (US$13.7 million), compared to RMB193.9 million and RMB64.2 million, respectively, for the fiscal year 2009. During the fourth quarter of 2010, the Company's Chifeng Haozhou Mining Company Ltd. ("Haozhou") conducted comprehensive plant maintenance and improvements which caused a slight decline in molybdenum concentrate production in the fourth quarter of 2010. However, this was offset by higher quarter-over-quarter average selling prices, resulting in net income of RMB22.4 million (US$3.4 million) in the fourth quarter, consistent with the third quarter of 2010. Following these improvements, Haozhou has now reached its full production capacity of 1,800 tons of ore per day, or 540,000 tons of ore on an annual basis.
"Our mining operations achieved significant growth in 2010. With our newly acquired Xinyuan lead-zinc mine and Aolunhua copper-molybdenum mine starting to contribute to our financial results this year, we expect the growth of our mining business to continue to accelerate in 2011 and beyond," commented Mr. Ruilin Wu, the Company's Chairman and Chief Executive Officer. "We continue to implement our strategy of becoming a pure-play resources company and are currently considering options to divest of our remaining telecommunications business. We expect to formalize and announce our final decision in June 2011."
CFO Trail
HUIZHOU, China, May 2, 2011 /PRNewswire-Asia-FirstCall / -- Qiao Xing Universal Resources, Inc. (NASDAQ: XING) ("XING" or the "Company"), one of the leading players in the molybdenum mining business as well as a company with meaningful size in the resources industry, today announced the appointment of Mr. Jiujiu Jiang to the position of Chief Financial Officer, effective immediately.
Mr. Jiang has extensive experience in the exploration and mining industry. Most recently, Mr. Jiang was the General Manager of Guangxi Jinding Mining Co. Limited, which acquired the exploration rights of 14 gold mines in Guangxi Province. Mr. Jiang was responsible for all affairs relating to the inspection and exploration of the mines. Previous to that, Mr. Jiang founded a private equity fund that invests purely in mining businesses. The fund invested in a number of companies in which Mr. Jiang held senior management positions and sat on their boards of directors. Mr. Jiang has extensive knowledge of accounting and corporate finance. He previously served as the Vice President and Chief Financial Officer of Beijing Xinwei Telecom Technology Inc., a joint venture between Datang Telecom Technology & Industry Group and Cwill Telecommunications Inc. Mr. Jiang also spent six years at both the provincial branch and the head office of China Construction Bank. Mr. Jiang has a CPA qualification and a Ph.D. in Economics from Zhongnan University of Economics and Law.
"We are delighted to have Mr. Jiang on board as our new Chief Financial Officer with his deep experience in accounting and corporate finance as well as in the mining industry," said Mr. Wu Rui Lin, Chairman and Chief Executive Officer of XING. "We believe that Mr. Jiang will leverage his experience and expertise to drive XING forward and improve our practices in our financial operations as well as in procedures to meet the expectations of the US capital markets so as to strengthen our profile as a US-listed company."
CFO Trail
XING recently appointed Mr. Luo Zhaoyang as Financial Controller to strengthen its accounting department. Mr. Luo, has a CPA qualification and a Master's degree in finance from Jiangxi University of Finance and Economics. Mr. Luo's previous experience includes two years as financial manager with Qiao Xing Mining & Advisory Co., Ltd., and five years as financial manager with Qiao Xing Communication Industry Co., Ltd., a former subsidiary of XING. Mr. Luo is now primarily responsible for the accounting for XING's domestic subsidiaries. Also today, XING announced that its Chief Financial Officer ("CFO"), Mr. Jiang Aijun, resigned as the Company's CFO effective immediately . The Company is seeking a new CFO to replace Mr. Jiang.
Comments & Business Outlook
Third-Quarter Highlights
The Company reported net sales of RMB366.6 million (US$54.8 million ) compared to RMB508.1 million in the third quarter of 2009.
Gross profit was RMB43.0 million (US$6.4 million ) compared to RMB112.2 million in the third quarter of 2009. Gross margin was 11.7% compared to 22.1% in the third quarter of 2009.
Net income was RMB1.9 million (US$0.3 million ), or RMB0.02 per basic share, compared to a net loss of RMB130.2 million , or RMB2.23 per basic share, in the third quarter of 2009 (after the attribution of the non-controlling interests).
"During the third quarter of 2010, molybdenum concentrate production in our Chifeng Haozhou Mining Co., Ltd., ("Haozhou") increased by 5.6% from 930 metric tons in the second quarter of 2010 to 982 metric tons in the third quarter. Despite a 9.2% decline in the average selling price of molybdenum concentrate from the second quarter, Haozhou still recorded net income of RMB22.8 million ( US$3.4 million ). With the continuous improvement in production volumes and the rebound in the selling price of molybdenum concentrate in the fourth quarter, we estimate that in the fourth quarter, the net profit from our Haozhou Molybdenum mining operations will increase sequentially from the third quarter. Our telecommunications business, which we operate through our 61%-owned subsidiary Qiao Xing Mobile Communication Co., Ltd (NYSE: QXM, or "QXMC"), continued its declining trend driven by difficult market conditions in the mobile handset business. However, we remain confident about its financial condition," commented Mr. Ruilin Wu , the Company's Chairman and Chief Executive Officer.
"As we continue to work on completing our proposal to privatize QXMC, we have also made steady progress in our proposed acquisitions of molybdenum, copper, lead and zinc mines. These developments demonstrate our clear strategy and our confidence in the long-term growth of the resources industry."
Business Outlook
XING continues to expect that its molybdenum business in Chifeng, Inner Mongolia will contribute a net profit of more than US$24 million in the 2011 fiscal year.
The Company also continues to expect that the acquisition of Balinzuo Banner Xinyuan Mining Co., Ltd, which owns a relatively large-scale lead-zinc mine in Balinzuo Banner, Chifeng, Inner Mongolia, will be completed in the fourth quarter of 2010. In addition, the Company expects to increase this lead-zinc mine's production capacity to extract 2,000 metric tons of ore per day after completion of the acquisition and remains optimistic that it will be a major source of cash and net income.
The Company is now in the process of acquiring another large molybdenum mine in Inner Mongolia.
With the expected completion of the proposed privatization of QXMC, XING expects to have strong financial resources for the future acquisition of more mines and ultimately become a "Pure Resources, Bigger Player".
