GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

As at June 30,

As at December 31,

2016

2015

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

79,476

$

70,356

Term deposits with banks

8,462

9,097

Accounts receivables, net

710

849

Receivables from sales representatives

14,018

8,802

Inventories

102

176

Prepaid expenses and other current assets

16,188

16,268

118,956

105,548

Non-current assets

Property and equipment

64,084

59,064

Investment properties

60,585

69,726

Intangible assets

22,023

26,309

Long term investment

-

100

Deferred income tax assets

2,035

389

Other non-current assets

1,322

951

150,049

156,539

Total assets

$

269,005

$

262,087

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable

$

5,924

$

7,383

Deferred income and customer prepayments

75,257

75,265

Accrued liabilities

16,880

15,183

Income tax liabilities

2,692

2,990

100,753

100,821

Non-current liabilities

Accounts payable

-

289

Deferred income and customer prepayments

4,269

2,917

Deferred income tax liabilities

3,512

4,493

7,781

7,699

Total liabilities

108,534

108,520

Equity attributable to Company's shareholders

Common shares

536

533

Treasury shares

(250,089)

(250,089)

Other reserves

156,252

157,562

Retained earnings

248,637

239,812

Total Company shareholders' equity

155,336

147,818

Non-controlling interests

5,135

5,749

Total equity

$

160,471

$

153,567

Total liabilities and equity

$

269,005

$

262,087

GLOBAL SOURCES LTD. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

Six months ended June 30,

2016

2015

(Unaudited)

(Unaudited)

Revenue:

    Exhibitions

$

47,413

$

46,171

    Online and other media services (Note 1)

30,694

35,730

    Miscellaneous

3,711

4,015

81,818

85,916

Operating Expenses:

    Sales (Note 2)

22,909

24,693

    Event production

13,066

12,224

    Community and content (Note 2)

9,011

10,203

    General and administrative (Note 2 & 3)

22,334

20,752

    Information and technology (Note 2)

5,774

6,452

Total Operating Expenses

73,094

74,324

Profit from Operations

8,724

11,592

    Interest income

293

566

    Gain on sale of available-for-sale securities

67

136

    Profit on sale of investment

43

-

    Interest expenses

(16)

(59)

Profit before Income Taxes

9,111

12,235

Income tax credit / (expense)

576

(2,188)

Net Profit from continuing operations

$

9,687

$

10,047

Net Profit from discontinued operations, net of
  income tax (Note 4)

-

5,406

Net profit

$

9,687

$

15,453

Net (profit)/loss attributable to non-controlling interests
from:

  Continuing operations

(862)

(1,222)

  Discontinued operations

-

264

   Total

(862)

(958)

Net profit attributable to the Company's 
  shareholders from:

  Continuing operations

$

8,825

$

8,825

  Discontinued operations

-

5,670

  Total

$

8,825

$

14,495

Diluted net profit per share attributable to the
    Company's shareholders from:

  Continuing operations

$

0.35

$

0.28

  Discontinued operations

-

0.18

  Total

$

0.35

$

0.46

Shares used in diluted net profit per share
    calculations

25,358,358

31,534,448

Note:   

1.   Online and other media services consists of:

Six months ended June 30,

2016

2015

(Unaudited)

(Unaudited)

Online services

$

27,686

$

33,201

Print services

3,008

2,529

$

30,694

$

35,730

2.   Non-cash compensation expenses associated with the several equity compensation plans and Global
Sources Directors Share Grant Award Plan included under various categories of expenses are as follows:

Six months ended June 30,

2016

2015

(Unaudited)

(Unaudited)

Sales

$

73

$

178

Community and content

18

41

General and administrative

736

768

Information and technology

119

133

$

946

$

1,120

Note:   

3.   General and administrative expenses consist of:

Six months ended June 30,

2016

(Unaudited)

(Unaudited)

General and administrative expenses before 
 amortization of intangible assets, impairment
 charge on intangible assets and foreign 
 exchange losses

$

17,979

$

18,305

 Amortization of intangible assets

2,042

2,107

 Impairment charge on intangible assets

1,902

-

 Foreign exchange losses

411

340

$

22,334

$

20,752

Note:    

4.   Net Profit from discontinued operations, net of income tax consist of:                                                     

Six months ended June 30,

2016

2015

(Unaudited)

(Unaudited)

Profit on sale of subsidiary

$

-

$

6,159

Income tax expense

-

(361)

Profit on sale of subsidiary, net of income tax  

-

5,798

Loss from discontinued operations, net of income tax

-

(392)

$

-

$

5,406

GLOBAL SOURCES LTD. AND SUBSIDIARIES

ACTUAL IFRS to NON-IFRS RECONCILIATION 

(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

Six months ended June 30,

2016

2015

IFRS diluted net profit per share from continuing operations           

$

0.35

$

0.28

IFRS Net Profit from continuing operations

$

8,825

$

8,825

Non-cash stock based compensation expense (Note 1)

946

1,120

Amortization of intangibles (Note 2)

184

293

Profit on sale of investment

(43)

-

Impairment of goodwill and intangibles (Note 3)

1,426

-

Non-IFRS Net Profit continuing operations

$

11,338

$

10,238

Non-IFRS diluted net profit per share from continuing operations

$

0.45

$

0.32

Total shares used in non-IFRS diluted net profit
  per share calculations

25,358,358

31,534,448

Notes:

(1) Actual SBC is calculated based on actual share price on date of the awards.

(2) Amortization of intangible assets relating to certain non-compete agreements.

(3) Impairment of intangibles are net of related taxes.

GLOBAL SOURCES LTD. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION 

(In U.S. Dollars Thousands)

Six months ended June 30,

2016

2015

IFRS profit from continuing operations

$

8,724

$

11,592

Depreciation and amortization from continuing operations

4,767

5,038

EBITDA

13,491

16,630

Non-cash stock based compensation expense

946

1,120

Impairment of goodwill and intangibles

1,902

-

Adjusted EBITDA from continuing operations

$

16,339

$

17,750

GLOBAL SOURCES LTD. AND SUBSIDIARIES

GUIDANCE IFRS to NON-IFRS RECONCILIATION 

(In U.S. Dollars Million, Except Number of Shares and Per Share Data)

GUIDANCE

ACTUAL

Six months

Six months

ended December 31,

 ended December 31,

2016

2015

Revenue from continuing operations

$74.0

to

$76.0

$85.1

IFRS EPS from continuing operations

$0.24

to

$0.29

$0.58

Non-cash stock based compensation expense (Note 1)

$0.04

$0.04

$0.04

Amortization of intangibles (Note 2)

$0.01

$0.01

$0.00

Profit on sale of property, net of transaction costs & related tax expenses       

$0.00

$0.00

($0.29)

Non-IFRS diluted net income per share from continuing operations

$0.29

to

$0.34

$0.33

Total shares used in non-IFRS diluted net income
 per share calculations

25,536,000

25,536,000

26,249,657

Notes:

(1) Actual SBC is calculated based on actual share price on date of the awards.

(2) Amortization of intangible assets relating to certain non-compete agreements.

傳媒聯(lián)絡(luò)

環(huán)球資源Global Sources 

蘇慧雯       

電話：(852) 2555-5040     

電子郵件：GSpress@globalsources.com  

投資者聯(lián)絡(luò)

亞洲地區(qū)   

美國

環(huán)球資源Global Sources  

LHA

賴秀琴   

Cathy Mattison

電話：(852) 2555-4747

電話：(1-415) 433-3777

電子郵件：investor@globalsources.com  

電子郵件：cmattison@lhai.com