This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chinese Miner Qiao Xing Posts 1st-half Profit

NEW YORK (AP) â¿¿ Chinese resources company Qiao Universal Resources Inc. on Friday reported a return to profit in the first half of the year as sharply lower costs offset a downturn in sales.

"We are pleased to return to profitability following our efforts to strategically transform the company into a resources-focused enterprise," said Chairman and CEO Ruilin Wu, in a statement. The company had been a major maker of telecommunication terminal products in China, but decided in 2007 to diversify into the resources industry. Wu said the company is looking to privatize its Qiao Xing Mobile Communication Co. business and is making steady progress in acquiring molybdenum, copper, lead and zinc mines.

The company said it earned 100.6 million yuan ($14.8 million), or 1.12 per share (17 cents per share) in the six months ended June 30, compared with a loss of 184.1 million yuan during the first six months of 2010. The company's year-ago results were hurt by higher operating costs and losses on now-discontinued operations.

Revenue fell to 465.9 million yuan ($68.7 million) from 1.05 billion yuan. Revenue from the telecommunications business fell to 324 million yuan ($47.8 million) from 1.04 billion yuan. Handset shipments fell to 621,000 units from just under 1.6 million units, accounting for the lower unit revenue, the company said.

"The decrease in handset shipments was primarily due to fewer new model launches and a slow-down in shipments amid intense competition in the PRC handset market," the company said in a statement.

During the first half, molybdenum concentrate production was 1,550 tons, equivalent to 746 tons of molybdenum metal, which can withstand extreme temperatures. It is often used in aircraft and industrial parts.

Looking ahead, the company said it expects continued growth from its Haozhou Molybdenum Mining business, which may grow eventually to contribute over $24 million profit in 2011. The company also expects to complete its acquisition of Balinzuo Banner Xinyuan Mining Co. Ltd, which owns a lead-zinc mine in China.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.72 -1.50%
FB $81.32 -0.72%
GOOG $551.87 -0.63%
TSLA $233.86 1.00%
YHOO $44.29 -0.16%


DOW 18,009.08 -28.89 -0.16%
S&P 500 2,102.20 -6.72 -0.32%
NASDAQ 5,035.03 -25.2160 -0.50%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs