Qiao Xing Universal Resources, Inc., a leading company in the molybdenum mining business with substantial assets in the resources industry, today announced its unaudited consolidated financial results for the fiscal year ended December 31, 2010. All figures were converted from RMB into U.S. dollar amounts.
In fiscal 2010, the company reported solid results driven by its mining business with revenues of $45.5 million, compared to approximately $29.7 million reported for fiscal 2009, and net income in fiscal 2010 of $13.7 million compared to approximately $9.7 million in fiscal 2009.
The company’s 56 percent owned subsidiary, Qiao Xing Mobile Communication Co. Ltd. (QXM), responded to unfavorable competition by strategically contracting its mobile phone business, thereby limiting its operating losses. These operating losses contributed to Qiao Xing’s net loss of $8.7 million compared to a consolidated net loss of approximately $40 million in 2009.
As of December 31, 2010, Qiao Xing reported cash and equivalents of $481.5 million.
Ruilin Wu, the company’s chairman and CEO, said the company’s mining operations had a positive impact on its financial position, as evidenced through its net income for the fiscal year.
“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,” Wu stated in the press release. “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 completed the acquisition of a 100 percent equity interest in Balinzuo Banner Xinyuan Mining Co. Ltd., which owns a mine with estimated ore reserves of 9.7 million tons which primarily contains lead, zinc and copper; and the acquisition of a 34.53 percent equity interest in Chifeng Aolunhua Mining Co. Ltd.
Moving forward, the company’s stated strategic plan is to optimize its mining assets, acquire future high potential mining assets, and to become a pure resources company.
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