HUIZHOU, Guangdong, China, July
16 /PRNewswire-Asia-FirstCall/ -- Qiao Xing Universal
Resources, Inc. (Nasdaq: XING) (the "Company" or "XING"), an
emerging Chinese resources company headquartered in Huizhou, Guangdong
Province, today announced that the Company has filed its
2009 Annual Report on Form 20-F with the Securities and Exchange
Commission.
The Company's consolidated financial results filed with its 2009
Annual Report on Form 20-F are consistent with the unaudited
results announced on June 30, 2010,
except that, primarily for the revised accounting treatment of the
change in its equity interest in Qiao Xing Mobile Communication Co.
Ltd ("QXM"), a controlled subsidiary of the company, as well as a
downward revision in the Company's deferred income tax expense.
In the previously released unaudited financial results, the
unaudited consolidated net loss of Rmb364.3
million (US$53.4 million)
included a loss on issue/repurchase of stocks by subsidiaries of
Rmb98.1 million (US$14.4 million). In previous years, the Company
accounted for the change in equity interest in QXM as a gain or
loss on issue/repurchase of stocks by subsidiaries in the income
statement, as was permitted by accounting standards in effect at
that time. In 2009, with the effectiveness of Statement of
Financial Accounting Standard No.160 ("FAS160") as of January 1, 2009,the Company is required to
account for the change in equity interest in controlled
subsidiaries as an equity transaction. The Company reviewed FAS
160, and had concluded that the Company should account for the
change in equity interest in QXM as a gain or loss on
issue/repurchase of stocks by subsidiaries in the income statement
for prudence and consistency. However, in the audited consolidated
financial results, the Company revised such treatment and accounted
for the change in equity interest as an equity transaction, which
decreased the net loss by Rmb98.1
million (US$14.4 million). In
addition, the audited deferred income tax expense was Rmb6.3 million (US$0.9
million) lower than the unaudited figure. As a result of
these revisions, the audited consolidated net loss was Rmb259.9 million (US$38.1
million) for the fiscal year ended in December 31, 2009 which is Rmb104.4 million (US$15.3
million) less than the previously released unaudited figure
of Rmb364.3 million (US$53.4 million). The audited net loss per share
for fiscal year 2009, on a consolidated basis, is US$0.61 versus the previously released unaudited
loss per share of US$0.85.
Consolidated revenues from the molybdenum mining business for
2009 were Rmb193.9 million
(US$28.4 million); the mining
business generated a gross profit of Rmb100.6 million (US$14.7
million) and net income of Rmb64.2
million (US$9.4 million),
which are all the same as the previously released unaudited
figures.
The Company expects that the demand and sales price for
molybdenum will continue to trend up within the next 18 months and,
for this reason among others, the Company has decided to seek
additional molybdenum acquisition opportunities in the PRC.
For 2010, the Company expects molybdenum concentrate production
volume to be in the range of 3,600 to 3,800 metric tons ("tonnes"),
representing approximately 1,740 tonnes to 1,820 tonnes of
molybdenum metal. For 2010, anticipated average cost per tonne of
molybdenum metal produced (excluding the cost of smelting) is
expected to be Rmb100,300
(US$14,694) to Rmb103,000
(US$15,909), equivalent to
US$6.68 to US$6.86 per pound. The
Company anticipates that by the end of 2010, molybdenum concentrate
production at its Chifeng Haozhou plant will reach full processing
capacity of 1800 tonnes of molybdenum ore per day.
The Company filed its annual report on Form 20-F which included
the audited consolidated financial statements for the fiscal year
ended December 31, 2009 with the
Securities and Exchange Commission on July
15, 2010. The annual report can be accessed on the Company's
investor relations website at http://www.cosun-xing.com .
A hard copy of the annual report on Form 20-F for the fiscal
year ended December 31, 2009, can be
obtained free of charge upon request by writing to:
Qiao Xing Universal Resources, Inc
Qiao Xing Industrial Zone, Tang Quan,
Huizhou, Guangdong, PRC, 516023
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc. is an emerging Chinese
resources company headquartered in Huizhou, Guangdong
Province, China. The
Company was previously one of the leading players of
telecommunication terminal products in China, but made the strategic decision to
diversify into the resources industry in 2007. In April 2009, the Company acquired the 100% equity
interest in China Luxuriance Jade
Company, Ltd ("CLJC"). CLJC, through its wholly owned Chinese
subsidiaries, owns the rights to receive the expected residual
returns from Chifeng Haozhou Mining Co., Ltd. ("Haozhou Mining"), a
large copper-molybdenum poly-metallic mining company in Inner
Mongolia, China. Since then, the
Company has further refined its strategy to become a pure resources
company and is actively seeking additional acquisition targets in
the resources industry.
Safe Harbor Statement
This announcement contains forward-looking statements, as
defined in the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, these
forward-looking statements can be identified by words or phrases
such as "aim," "anticipate," "believe," "continue," "estimate,"
"expect," "intend," "is /are likely to," "may," "plan,"
"potential," "will" or other similar expressions. Statements that
are not historical facts, including statements about Qiao Xing
Universal Resources, Inc.'s beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement. Information regarding these factors is
included in our filings with the Securities and Exchange
Commission. Qiao Xing Universal Resources, Inc. does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release is as of July 16,
2010.
For more information, please contact:
Company Contact:
Mr. Rick Xiao, Vice President
Email: rick@qiaoxing.com
Tel: +86-752-282-0268
CCG Investor Relations Contact:
Mr. Ed Job, Account Manager
Email: ed.job@ccgir.com
Tel: +1-646-213-1914 (NY office)
SOURCE Qiao Xing Universal Resources, Inc.