BVI Company News

Origin Agritech Ltd., a company registered in the British Virgin Islands and engaged in distributing hybrid crop seeds in China, has reported its unaudited financial results for the nine month period ended September 30, 2006. These results reflect Company’s financials during the transitional period of January 1, 2006 to September 30, 2006, which resulted from the previously announced change in fiscal year end to September 30.

The results include, on a consolidated basis, the results of Denong Zhengcheng Seed Company, Ltd., in which Origin owned a 52.21% equity interest during that period. BVI company’s interest in Denong increased to approximately 95% effective October 2006.

Revenues for the period increased 151%, from $25.75 million in  the same period of the previous year to $66.17 million this year. Other results include: the 51% rise of operating income, the amount of which made US$7.1 million, and the 118.6% rise of net income, to  US$9.7 million.

Gross Profit for the nine month period ended September 30, 2006 increased to US$20.8 million, or 31.4% of revenues, compared to 39.3% of revenues in the same period 2005. Gross profit as a percentage of revenues declined because of the inclusion of Denong.

Total operating expenses for the nine month period increased by 141.57%, from US$5.52 million in the same period of 2005 to US$13.7 million, because of the inclusion of operating expenses in the amount of US$4.3million related to Denong. Net income was US$9.7 million, or US$0.38 per diluted share. Net loss from the acquisition of Denong made US$0.26 million during this period.

BVI company’s 2007 fiscal year started on October 1, 2006 and will end on September 30, 2007. Looking forward for the financial results of the full year 2007, the company said it expects revenues to be between $80 to $90 million.

Lonmin Plc, the third largest producer of platinum group metals in the world, has announced on February 19, 2007 that it has become the sole shareholder of AfriOre Limited, an exploration company registered in the British Virgin Islands and operating in Africa. The UK-based Lonmin Plc informed on its intention to acquire AfriOre Limited in November 2006.  In December 2006 AfriOre has reported that the proposed acquisition transaction had been approved by the South African Competition Commmission.

On February 9, 2007 AfriOre sent a notice to its shareholders, where the BVI-registered company informed about redeeming all of its issued and outstanding shares that were not held by Lonmin, for an amount equal to C$8.75 per share. On February 19, 2007 the BVI registered AfriOre has sent a further notice to the former shareholders who have had their AfriOre shares redeemed.

AfriOre’s notice also provides further information for former company shareholders seeking to receive the redemption price, which is being held by CIBC Mellon Trust Company as agent for AfriOre.

In connection with the redemption, the shares of Afriore were delisted from the Toronto Stock Exchange. AfriOre has also requested the cancellation of its listing on the Alternative Investment Market of the London Stock Exchange. This decision is to be effective on February 28, 2007.

Bonso Electronics International, Inc., a company incorporated in the British Virgin Islands, and engaged in design and manufacturing of sensor based and communications products, has reported on Thursday, February 15 the financial results for the three and nine month periods ended 31 December 2006.

The reported sales for the third quarter 2006 were approximately $18.9 million – that is 17% more than for the same period of 2005. Despite the turonever increase, the Company had a net loss of about $630,000, if compared to a net loss of approximately $76,000, for the same period last year.

For the nine month period ended 31 December 2006 the sales were approximately $55.7 million, that is an 11% increase compared to the same period of 2005, when the sales made approximately $50.2 million. Net income for the nine-month period ended 31 December 2006 was $311,000, which is 62% lower than the net income for the same period last year, which made $815,000.

Mr. Anthony So, President and CEO of the BVI company, stated the two primary factors which negatively impacted the gross profit margin. The first major factor was named by him as water damage to approximately $678,000 of inventory at company’s Germany warehouse, and the second one was the loss of approximately $199,000 relating to the return of defective scales for repair.

The company’s President added, “We still maintain a strong cash position and our cash position at the end of the third quarter was approximately $13 million ($2.33 per share).”

The BVI-registered Bonso Electronics manufactures telecommunications products, electronic scales, weighing instruments and health products in the People’s Republic of China, mainly for North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and delivery.

AfriOre Limited, which has recently reported its financial results for the three and nine month period ended November 30, 2006, has announced on January 26, 2007 that it has submitted a request to the Alternative Investment Market of the London Stock Exchange, for the cancellation of the trading of shares in the capital of AfriOre.

Such cancellation will reduce the liquidity and marketability of the AfriOre Shares on the Alternative Investment Market. The cancellation is subject to a minimum 20 business day notice period, and the Company has requested cancellation of trading in AfriOre Shares, to be effective on February 28, 2007.

The Offer period has been extended to February 8, 2007, and AfriOre shareholders who have not accepted the Offer and who hold AfriOre shares in certificated form should complete, sign and return the requisite documents as soon as possible.

A BVI-registered AfriOre Limited is a mineral exploration company which currently concentrates on the acquisition, exploration and development of its platinum and gold projects in South Africa.

Nam Tai Electronics, Inc., a company domiciled in the British Virgin Islands and generally engaged in electronics manufacturing and design services, on February 12 announced its unaudited results in the fourth quarter and twelve months which ended December 31, 2006.

The electronic manufacturing services industry in which the BVI-based Company is operating has had a difficult year in 2006. As a consequence of the decrease of sales from telecommunication components assembly, Nam Tai’s 4th quarter 2006 net sales declined 7%. The 4th quarter operating income went down 118% as a result of competitive pricing pressure requiring the company to lower unit prices.

For the full year of 2006 Nam Tai experienced growth in business volume from existing customers, but this growth was insufficient to smooth away the effects of pressure to reduce unit prices, resulting in lower operating income and net profit for 2006, if compared to 2005. In the 4th quarter 2006 the BVI Company’s net sales were $229.6 million, which is a decrease of 7.1% if compared to $247.2 million in the 4th quarter 2005. Operating loss in the 4th quarter 2006 made $2.6 million, or $0.06 per share, a decrease of 117.9% if compared to the same period last year. Net loss in the 4th quarter of 2006 was $2.3 million, a decrease of 118.3% if compared to $12.7 million for the same period of 2005.

For the year ended December 31, 2006, Nam Tai’s net sales increased 9.1% compared to the last year: they made $870.2 million, while last year they were $797.2 million. Operating income for the year ended December 31, 2006 was $42.5 million, a decrease of 19.3.% as compared with $52.7 million in 2005. Net income for the year ended December 31, 2006 was $40.8 million, a decrease of 20.6% if compared to $51.3 million or $1.19 per share (diluted) in 2005.

Operating income in the 4th  quarter 2006 was $12.0 million, or $0.27 per share - a decrease of 17.2% as compared to the operating income of $14.5 million, or $0.33 per share for the same period 2005. The net income in the 4th quarter of 2006 was $12.3 million, or $0.28 per share, a decrease of 18.0% as compared to $15.0 million, or $0.34 per share, in the fourth quarter of 2005. Operating income for the year 2006 was $42.5 million, or $0.97 per share. Net income for the year 2006 was $40.8 million, or $0.93 per share, a decrease of 20.6% as compared to $51.3 million or $1.19 per share in 2005.

Nam Tai has announced that its financial position remains strong, and net cash provided by operating activities in the 4th quarter 2006 was $19.8 million. The Company ended the quarter with $221.1 million cash on hand after capital expenditures of $6.4 million. The third quarter dividends of $16.6 million were paid to shareholders on October 21, 2006.

BVI Company’s management team remains focused on growing both sales and profitability. Nam Tai’s expansion plans to increase capacity include the construction of additional manufacturing facilities in the People’s Republic of China. Nam Tai management expects that the new capabilities will enhance Company’s competitiveness by enabling it to offer customers more diversified services.

Mr. Warren Lee, Nam Tai’s Chief Executive Officer, has commented, “Despite a challenging 2006, which we expect to continue in 2007, our target of 12% sales growth for 2007 remains unchanged. With our aggressive expansion plans and strong customer relationships, I am optimistic about the long-term prospects of the Company”.

The official newspaper of Myanmar reported on Thursday, 8 February 2007 that a BVI-registered company and a Singapore company are planning oil and natural gas exploration in Myanmar’s western offshore areas. The Rimbunan Petrogas Ltd., based in the British Virgin Islands, and the IGE Pte Ltd of Singapore, are said to carry out the undertakings at block A of the Rakhine coast, under the production sharing contracts signed with the state Myanmar Oil and Gas Enterprise (MOGE), under the Ministry of Energy.

Last month, another BVI-based oil company – the MRPLE and P Pte Ltd, have reached a production sharing contract with the Myanmar Oil and Gas Enterprise, for exploration and production of oil and gas at Block A-6 off the same Rakhine coast.

There have been some foreign oil companies exploring gas in the Rakhine offshore area in recent years – including a consortium led by South Korea’s Daewoo International Corporation with 60% stake. The consortium has found gas deposits at Block A-1 and Block A-3 off the Rakhine coast in January 2004 and April 2005.

In January 2007, the China National Petroleum Corporation (CNPC) International Ltd of China and the MOGE also signed a contract to explore oil and gas at three deep-sea blocks AD-1, AD-6, and AD-8, off that Rakhine coast, which cover a total area of about 10,000 square kilometers.

It should be noted that Myanmar has abundance of natural gas resources in the offshore areas. There are three large off-shore and 19 onshore oil and gas fields in Myanmar.  The country is also estimated to have 3.2 billion barrels of recoverable crude oil reserve.

The statistics reveals that foreign investments in Myanmar’s oil and gas sector had reached 2.635 billion dollars as of March, the end of the fiscal year 2005-2006, since the country opened to foreign investment in the end of 1988. It is also figured out that in the same fiscal year 2005-2006 the country produced 7.962 million barrels of crude oil and 11.45 BCM of gas. Gas export during the year went to 9.138 BCM, earning over 1 billion U.S. dollars.

In the beginning of February 2007 i2 Group has announced the acquisition of computer retailer CompuMe through a share swap deal.

CompuMe is an offshore limited Commercial Company based in Dubai, United Arab Emirates, registered in the British Virgin Islands, with a total capital of US$11 million. The company was established in 1998, IT Investments Group represents the second largest shareholder in the company, currently maintaining 17% of the total shares.

CompuMe is the first computer megastore in the Middle East. Company’s initial plans were to establish 18 megastores in the countries of the region. Now the stores already exist in Dubai, Jeddah, Riyadh, Khobar, and Cairo.

The merger of i2 and CompuMe will make the first one the biggest provider of combined telecommunications, digital electronics and IT products throughout the Middle East and African region.

In the next three years i2 Group is planning to open additional 150 retail outlets in the Middle East and African regions, with a total investment of $35 million. Also the existing 340 i2 retail stores will be revisited for planned refurbishments to include IT and electronic product offerings.

i2 has acquired the UAE operations of CompuMe retail outlets from CompuMe British Virgin Islands in 2005, through a 60-40 partnership. The two companies started merger negotiations in the end of 2006. The agreement was finished in January 2007.

i2 Group started to grow in 2006, when it entered five new markets in Africa, announced two acquisitions and launched its own TV station. Now the company is operating in 22 markets, and is the leading mobile provider in the region.

Regional interactive media and advertising agency Flip Media has won strong competition for redeveloping the website of Qatar Airways, with many top worldwide interactive agencies that participated in the competition.

Flip Media will follow the scope of work to completely redesign the airline’s website, and develop templates for using in the bank end content management system. The updated website will also feature additional functionality and some additional enhancements. Qatar Airways said that the renewed website should be more vibrant, in line with the Five Star service which the airline is renowned for worldwide. Qatar Airways said that Flip Media would support its e-commerce objectives. The work over the site starts immediately, and the remit extends to include Qatar Airways’ online marketing communications and promotional campaign sites.

Flip Media, which is headquartered in Dubai Media City, is part of Flip Holding Ltd., registered in the British Virgin Islands in 2005 and managed by Martin Diessner. As CEO of Flip Media, he commented on company’s winning the prestigious competition, “We are delighted to be appointed by Qatar Airways and are very excited to be working on this project. Our team has extensive experience and understanding of the aviation industry, having worked for several well-known airlines over the last three years. This stands us in good stead to deliver a truly world class interactive solution for Qatar Airways.”

Qatar Airways is operating a fleet of 52 aircraft, to more than 70 destinations in Europe, Middle East, Africa, Far East and India. It is headquartered in Doha, the airline’s hub and capital of the State of Qatar. Qatar Airways is one of four airlines in the world with a Five Star ranking for service excellence. The company has received the award from Skytrax, the independent aviation monitoring agency.

On February 5, 2007 Diamondcorp PLC has announced the commencement of trading in its ordinary shares on AIM, following a placing with institutional investors at 90 pence per ordinary share of 3 pence each of the Company. Based on the placing price, Diamondcorp’s market capitalisation is J30.6 million, with 33,987,078 Ordinary Shares in issue.

The one wholly owned subsidiary of Diamondcorp is Crown Diamond Mining Limited, a company incorporated in the British Virgin Islands. In its turn, Crown Diamond is the owner of 74% of the issued share capital of Lace property, a company registered in South Africa, with an estimated resource of 13.7 million carats of diamonds at an estimated value of $125/carat (In-ground value estimated in excess of $1.7 billion). Crown Diamond is also the owner of 100% of the issued capital of Soapstone Investments (Proprietary) Limited, incorporated in South Africa.

Diamondcorp PLC was formed in March 2005, with the purpose of acquisition and development of diamond assets in South Africa. Since the incorporation date, the Company has raised about J11.8 million through private placements of shares and convertible loans, as well as an institutional placing completed upon admission to AIM, principally to give it the possibility to acquire the Lace diamond property, and finance construction of a 1.6 million tonne per annum diamond recovery plant.

The planned phase one will include tailings retreatment, prefeasibility and exploration (2007-2009). Phase two will probably start in 2009, and will include upgrading of plant and the larger mining operation.

The Lace Property, 74% owned by the BVI-based Crown Diamond and located about 200 km southwest of Johannesburg, includes:

• diamondiferous tailings from previous mining operations for which there is the potential to recover an estimated 370,000 carats from retreatment; and
• diamondiferous kimberlites containing a potential resource in excess of 13 million carats of diamonds with a potential underground mine life of 20 years.

The rest 13% in the Lace Property are owned by Black Economic Empowerment (“BEE”) Partners, Sphere Investments (Proprietary) Limited (“Sphere”) and Shanduka Resources (Proprietary) Limited (“Shanduka”) each owning 13 per cent.

Paul Loudon, Managing Director and CEO of Diamondcorp plc, has commented, “We are delighted to have successfully completed our Admission to AIM. It is anticipated that the group will begin to generate cash in the near-term from a tailings retreatment project. This has the potential to create a strong platform from which the Company can grow, provide cash flow to take a bulk sample from the Company’s assets and generate significant cashflow for the Company over a number of years. Management is also seeking other diamond production opportunities in South Africa as we believe the world outlook for diamond prices is strong, with demand forecast to exceed mine supply in the foreseeable future.”

Bronze Marketing, Inc., on February 2, 2007 has announced the closing of the stock exchange transaction with the shareholders of Sutor Steel Technology Co., Ltd., and a related private placement financing transaction. As a result of this transaction, the BVI-registered Sutor Steel has become a wholly-owned subsidiary of Bronze Marketing; the senior executives of Sutor Steel were elected as executive officers of Bronze Marketing. Now both companies will operate on a consolidated basis, executing upon the current business plan of Sutor Steel.

In this stock exchange transaction, the company’s shareholders were issued 323,380.52 shares of Bronze Marketing’s Series B Voting Convertible Preferred Stock, for 100% of the issued and outstanding shares of Sutor Steel. These shares received by the stockholders of Sutor Steel make 85.2% of the total capital stock of Bronze Marketing.

Bronze Marketing also closed a private placement of its capital stock whereby it issued  39,473.68 shares of its Series B Voting Convertible Preferred Stock, in exchange for $12.0 million in gross offering proceeds, before any commissions and fees. The Series B shares issued to investors in the private placement transaction make approximately 10.4% of the total issued and capital stock of Bronze Marketing. Roth Capital Partners, LLC acted as the placement agent in the $12 million private placement transaction.

Sutor Steel is manufacturing and selling steel finishing fabrication products, through its wholly owned subsidiaries Changshu Huaye Steel Strip Co., Ltd. and Jiangsu Coldrolled Technology Co., Ltd., registered in the People’s Republic of China. The corporation’s products are generally used in the construction industry, widely applied in the manufacturing of electrical household appliance parts and outer casings, electrocnics, infrastructure and large industrial equipment. Currently there over 270 people employed by the company. Sutor Steel is investing a total of about $49 million to complete its vertical integration strategy and expand its galvanizing production capacity.