NEW YORK (AP) â¿¿ Qiao Xing Universal Resources Inc., a one-time telecommunications equipment maker that has decided to focus entirely on its mining business, said Monday that it swung to a profit in its first quarter on income from discontinued operations.
The company, which operates a copper and molybdenum mining company in Mongolia, said earnings from its mining business would be higher in the April-June quarter.
Qiao Xing also said it was close to deciding what to do with its Qiao Xing Mobile Communication Co. subsidiary.
The company had been a major maker of telecommunication terminal products in China, but decided in 2007 to diversify into the resources industry.In April 2009, it acquired a company that owned the rights to receive the residual returns from a large copper-molybdenum poly-metallic mining company in Inner Mongolia, China. Since then, the company decided to become a pure resources company and said it is seeking acquisitions in that industry. The Chinese company reported net income of 71.4 million renminbi ($10.5 million), or 0.81 renminbi per share (12 cents per share), in the quarter ended March 31, compared with a net loss of 21.5 million renminbi, or 0.69 renminbi per share, a year earlier. Sales tumbled 58 percent to 195.4 million renminbi ($28.6 million). Qiao Xing reported income of 67.6 million renminbi($9.9 million) from discontinued operations in the latest quarter compared with a small loss a year earlier. Qiao Xing's U.S. shares rose 23 cents, or 15.7 percent, to $1.70 in afternoon trading Monday.