BVI Company News

On May 15, Diguang International Development Co., Ltd., whose sales and marketing subsidiary is registered in the British Virgin Islands, announced financial results for the first quarter of the fiscal year 2007.

Diguang International reported net revenues of $6.8 million represented a decrease of $2.0 million, or 22.7% from $8.8 million in the quarter ended March 31, 2006. The decrease in net revenues was primarily due to continuing pricing pressure in the backlight industry and a shortage of raw materials. Gross profit for the Q1 2007 totaled $1.3 million, a 56.5% decline if compared to gross profit of about $3.1 million for the same period of the previous year.

Gross margins for the first quarter of 2007 were 19.8% – this is a 15.3% decrease compared to 35.1% for the same period of 2006. The decline of gross margins is due to industry-wide pricing pressure, which amounted to an average pricing decline totalling fully 24% on the Company’s existing products, an increase in labor costs and production overhead per unit.

For the first quarter ended March 31, 2007, the company posted a loss of $0.05 per share, while in the corresponding period of 2006 the company reported earnings per share of $0.10.

Total operating expenses (general and administrative, research and development and selling) for the first quarter of 2007 were $2.6 million, or 37.9% of net revenues, compared to $1.0 million, or 11.7% of net revenues, for the same quarter of the prior year.

First-quarter 2007 selling expenses totaled approximately $626,000, or approximately 9.3% of net revenues, a 181% increase compared to first-quarter 2006 selling expenses of approximately $223,000, or 2.5% of net revenues. This is the result of Company’s efforts to expand market share and promote new products such as backlights for monitors and television sets, driving increases in the Company’s sales staff headcount, higher sales incentives and higher advertising and trade show expenses.

China Organic Agriculture, Inc. on 15 May, 2007 has announced the financial results for the first quarter of 2007. The Company has reported increased profit margins and revenue gains based on increased production capacity and growing customer base.

In the first quarter 2007, China Organic Agriculture generated $4.1 million in revenues – this is a 30% increase compared to the $3.1 million for the same period 2006.

The reported gross profit for Q1, 2007, was 43.9% compared to 42.54% for the three months ending March 31, 2006. Income from operations for the three months period 2007 was $1,719,083 or 41.8% of net Sales if compared to income from operations of $1,271,996 for the Q1 2006 or 40.0% of net Sales.
Net income was $1,720,495 or 41.79% of net Sales for the three months ending March 31, 2007, compared to $1,273,548 or 40.09% of net Sales for the three months ending March 31, 2006.

China Organic Agriculture, engaged in the business of rice production and processing, is incoporated in August 5, 2005 in the state of Florida, and has two wholly owned subsidiaries. The first subsidiary, China Organic Agriculture, Ltd. (COAL) was incorporated on August 10, 2006, under the laws of the British Virgin Islands, is the full owner of the second subsidiary, Jilin Songyuan City ErMaPao Green Rice Ltd., was established in 2002 in China.

On March 15, 2007 COAL, through a reverse merger, issued 27,448,776 shares of stock in consideration for all the outstanding shares of COAL.

In the end of March the BVI-registered company Nam Tai Electronics, Inc. reported its audited results for the year 2006; on April 30, 2007 the company announced its unaudited results for the first quarter of the year.

BVI company Nam Tai Electronics has reported that net sales in the Q1 2007 were $191.6 million, this is a 8.1% decrease if compared to $208.4 million in the first quarter of the last year. Operating income in the period ended March 31, 2007 was 42.7% down as compared to the same period of the last year – $7.2 million and $12.6 respectively. Net income in the first quarter 2007 was $8.4 million – a decrease of 32.6% as compared to $12.5 million in the first quarter of 2006.

Other figures remain positive, and company’s overall financial position is strong. Net cash provided by operating activities in the first quarter of 2007 was $6.7 million. The BVI company finished the quarter with $209.0 million cash, and fourth quarter dividends of $16.6 million paid to shareholders on January 1, 2007. However, it can be summarized that the first quarter of the year was difficult for Nam Tai Electronics.