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.
Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

If you liked this article you might like

What's Behind the Surge in Energy Stocks

Hillary Clinton Says Prosecuting Individuals is Key to Wall Street Reform