Media firm reports 63% revenue rise from China

NASDAQ-listed Global Sources announced on Thursday its revenue from China grew a significant 63 per cent over the same period of last year during a release of financial results for the second quarter, reported Saturday's China Daily.

While the business-to-business media company chalked up a year-on-year reve-nue increase of 35 per cent to US$29 million during the second quarter ending June 30, its revenue from China hit US$14.6 million, accounting for nearly 50 per cent of the total.

Meanwhile, Global Sources' operating income grew more than 200 per cent to US$5 million during the time, and its net income surged 278 per cent to US$5.1 million.

Company Chairman and CEO Merle Hinrichs attributed the strong business growth to Global Sources' remarkable performance in the China market, which is highlighted by the success of its China Sourcing Fairs organized during the time.

The company is mainly engaged in creating and facilitating international trade by providing information, through various means, to international buyers and integrated marketing services to suppliers.

In April, the company held three China Sourcing Fairs in Shanghai, featuring over 2,300 exhibition booths that involved business areas of electronics and components, gifts and home products as well as DIY and home improvement.

The three events attracted the attendance of over 38,000 buyers from 137 countries and regions, with particular interest in expanding their procurement volume in China.

Official statistics indicate that China's export volume reached US$258 billion in the first half of this year, reporting a 36 per cent growth on a yearly basis.

Seeing that over 64 per cent of China's exports are centred on the Yangtze River Delta and Pearl River Delta regions, Global Sources announced in May that it will expand China Sourcing Fairs to Hong Kong while continuing to host trade shows in Shanghai.

Currently, the company claims it has built up an independently certified community of active buyers that reaches over 413,000.

"Though we expect to recognize a more modest level of year-on-year growth in the third quarter as we will not conduct any China Sourcing Fairs, our overall sales remain on track and we reaffirm our 2004 full-year revenue and earnings guidance," said company Chief Financial Officer Eddie Heng.

For the third quarter, the company anticipates a revenue volume between US$23.5 million and US$24.5 million, with China expected to contribute approximately 43 per cent of the total.

For fiscal year 2004, the company has reaffirmed its targeted revenue of between US$106 million and US$109 million and earnings per share of 34-38 US cents.

Source: China Daily