UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2011
Commission File Number: 0-29946
Qiao Xing Universal Resources, Inc.
(Translation of registrants name into English)
Qiao Xing Science Industrial Park
Tang Quan
Huizhou City, Guangdong, Peoples Republic of China 516023
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F
þ
Form 40-F
o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
o
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
o
No
þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-
.
TABLE OF CONTENTS
On May 18, 2011, Qiao Xing Universal Resources, Inc. (XING) issued a press release announcing
unaudited results of its mining business for the fiscal year 2010 ended December 31, 2010 and for
the three months ended December 31, 2010. A copy of the press release is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
(a) Exhibits:
The Exhibit Index attached hereto is hereby incorporated by reference to this Item.
EXHIBIT INDEX
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Exhibit
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Number
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Exhibit Title
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99.1
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Press Release, dated May 18, 2011
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2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: May 18, 2011
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Qiao Xing Universal Resources, Inc.
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By:
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/s/ Rui Lin Wu
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Name:
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Rui Lin Wu
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Title:
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Chairman
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Exhibit 99.1
Qiao Xing Universal Resources, Inc. Reports 2010 Unaudited Financial Results of its Mining Business
Revenue and Net Income Climb 55% and 41%, Respectively
HUIZHOU, China, May 18, 2011 /PRNewswire-Asia-FirstCall/ Qiao Xing Universal Resources, Inc.
(NASDAQ: XING) (XING or the Company), one of the leading players in the molybdenum-mining
business as well as a company with meaningful size in the resources industry, today announced
unaudited results of its mining business for the fiscal year 2010 ended December 31, 2010 and for
the three months ended December 31, 2010.
For the fiscal year 2010, sales revenues and net income generated from the mining business were
RMB300.4 million (US$45.5 million) and RMB90.6 million (US$13.7 million), compared to RMB193.9
million and RMB64.2 million, respectively, for the fiscal year 2009. During the fourth quarter of
2010, the Companys Chifeng Haozhou Mining Company Ltd. (Haozhou) conducted comprehensive plant
maintenance and improvements which caused a slight decline in molybdenum concentrate production in
the fourth quarter of 2010. However, this was offset by higher quarter-over-quarter average
selling prices, resulting in net income of RMB22.4 million (US$3.4 million) in the fourth quarter,
consistent with the third quarter of 2010. Following these improvements, Haozhou has now reached
its full production capacity of 1,800 tons of ore per day, or 540,000 tons of ore on an annual
basis.
Our mining operations achieved significant growth in 2010. With our newly acquired Xinyuan
lead-zinc mine and Aolunhua copper-molybdenum mine starting to contribute to our financial results
this year, we expect the growth of our mining business to continue to accelerate in 2011 and
beyond, commented Mr. Ruilin Wu, the Companys Chairman and Chief Executive Officer. We continue
to implement our strategy of becoming a pure-play resources company and are currently considering
options to divest of our remaining telecommunications business. We expect to formalize and announce
our final decision in June 2011.
Financial Review of Operations for the Molybdenum Mining Business for the Three Months ended
December 2010.
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Consolidated revenue from the mining business for the fourth quarter of 2010 totaled
RMB78.0 million (US$11.8 million). Gross profit was RMB26.6 million (US$4.0 million) while
gross margin was 34.1%. Net income totaled RMB22.4 million (US$3.4 million) in the fourth
quarter.
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Molybdenum concentrate production in the fourth quarter of 2010 decreased 4.9% from 982
metric tons in the third quarter of 2010 to 934 metric tons (2.06 million pounds), mainly
due to plant maintenance and improvements. This production was equivalent to 449 metric
tons (0.99 million pounds) of molybdenum metal.
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The average cost of sales of molybdenum metal produced in the fourth quarter of 2010
was RMB114,405 (US$17,334) per metric ton, or RMB51.88 (US$7.86) per pound. The average
cash cost of molybdenum metal produced in the fourth quarter of 2010 was RMB63,302
(US$9,591) per metric ton, or RMB28.71 (US$4.35) per pound. (The Company produces
molybdenum concentrate but does not engage in smelting operations, so the cash cost does
not include the cost of smelting).
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Capital expenditures for the mining business in the fourth quarter of 2010 totaled
RMB33.2 million (US$5.0 million). These capital expenditures were primarily used for
construction and improvements at the Haozhao molybdenum mine.
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The average price of molybdenum concentrate sold by Haozhou for the fourth quarter
ended December 31, 2010 was RMB2,057 (US$312) per metric ton unit, representing an
increase of 3.3% from RMB1,992 per metric ton unit from the third quarter of 2010.
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Financial Review of Operations for Molybdenum Mining Business for Fiscal 2010
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Consolidated revenues from the mining business for fiscal 2010, ended December 31, were
RMB300.4 million (US$45.5 million), compared to RMB193.9 million in fiscal 2009, an
increase of 55%. The business generated a gross profit of RMB126.9 million (US$19.2
million) in 2010, compared to RMB100.6 million in 2009. Gross margin was 42.2%. Net income
from the mining business in 2010 was RMB90.6 million (US$13.7 million), compared to
RMB64.2 million in 2009, an increase of 41%.
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Molybdenum concentrate production in 2010 was 3,465.1 metric tons, which contained
1,667.6 metric tons (3.68 million pounds) of molybdenum metal. This compares to
molybdenum concentrate production in 2009 of 1,929.6 metric tons, which contained 929.9
metric tons of molybdenum metal.
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The average cost of sales per metric ton of molybdenum metal produced in 2010 was
RMB104,223 (US$15,791), or RMB47.27 (US$7.16) per pound. This compares to the average
cost of sales per metric ton of molybdenum metal produced in 2009 of RMB100,360, or
RMB45.62 per pound. The primary reason for the increase in the cost of sales was due to a
reclassification of approximately RMB6 million of mineral resource compensation tax charge
from administrative expenses to cost of sales in 2010 under US GAAP-based accounting, on
the recommendation of the Companys auditor.
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Capital expenditures incurred in the mining business were RMB95.3 million (US$14.4
million) for 2010, compared to RMB113.0 million in 2009. All of the capital expenditures
incurred in 2010 were related to enhancements of the Companys mining facilities.
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Mining Business Outlook
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So far in 2011, the Companys Haozhao molybdenum mine reached full production capacity
of 540,000 metric tons of ore per year. XINGs 34.5%-owned Aolunhua molybdenum mine, the
biggest molybdenum mine in Asia, is striving to improve efficiencies in its day-to-day
management and operations to increase profitability.
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XINGs 100%-owned Xinyuan lead-zinc mine is expected to increase production capacity to
process 2,000 metric tons of ore per day by the end of the third quarter of 2011.
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Upcoming Events
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XING will release its consolidated financial results, including the results of its
telecommunications business, by the end of May 2011.
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Upon filing of its 2010 Annual Report on Form 20-F with the SEC and announcements of
its final decision regarding the telecommunication business, the Company will hold a
conference call with investors to discuss both items.
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Foreign Exchange Rate Used
The United States dollar (US$) amounts disclosed in this press release are presented solely for the
convenience of the reader. Translations of the amounts from Renminbi (RMB) into United States
dollars for the convenience of readers were calculated at the noon purchase rate of US$1.00 =
RMB6.60 on December 31, 2010 in New York City for cable transfers of RMB as certified for customs
purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts
could have been, or could be, converted into U.S. Dollars at that rate on December 31, 2010, or on
any other specific date. The percentages stated are calculated based on RMB.
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc. is a leading player in the molybdenum mining industry with
meaningful size in the resources industry. XING focuses on mining and processing rare metal ores
and several strategically important base-metal ores, including molybdenum, copper lead and zinc.
XING currently owns a 100% equity interest in Balinzuo Banner Xinyuan Mining Co., Ltd. and a 34.53%
equity interest in Chifeng Aolunhua Mining Co., Ltd, as well as the right to receive 100% of the
expected economic residual returns from Chifeng Haozhou Mining Co., Ltd.
XING was one of the first Chinese companies to be listed on NASDAQ (in 1999) as one of the leading
players in the telecommunication-terminal product business in China. In 2007, XING made the
strategic decision to diversify into the resources industry. Since then, XING has made several
acquisitions in the resources industry and divested its fixed-line and budget mobile phone
businesses. To reflect this change, XING changed its corporate name to Qiao Xing Universal
Resources, Inc., effective January 28, 2010.
XING continues to evaluate acquisition opportunities in the resources area to strengthen its
foothold in the industry. At the same time, XING is also working to divest its remaining
mobile-phone business to become a pure-play resources company.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These
include statements about our expectations, plans, objectives, assumptions, performance or future
events. In some cases, you can identify forward-looking statements by terminology such as
anticipate, estimate, plans, potential, projects, continuing, ongoing, expects,
management believes, we believe, we intend and similar expressions. These statements involve
estimates, assumptions and uncertainties that could cause actual results to differ materially from
those expressed. You should not place undue reliance on these forward-looking statements.
Forward-looking statements include all statements other than statements of historical facts, such
as statements regarding the Companys plans to improve efficiencies in the day-to-day operations of
its mines, the Companys plans to enhance production processes and management efficiencies, the
Companys plans to develop more efficient production processes for molybdenum exploration and
extraction and the Companys transition to a pure resources company and bigger player within the
resources industry. Readers are cautioned that forward-looking statements are not guarantees of
future performance and actual results may differ materially from those projected, anticipated or
assumed in the forward-looking statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to differ materially from those
contained in any forward-looking statement. Information regarding these factors is included in our filings with the SEC. The Company does not
undertake any obligation to update any forward-looking statements. All information provided in this
press release is as of May 18, 2011.
Company Contact:
Qiao Xing Universal Resources
Rick Xiao, Vice President
Phone: +86-752-282-0268
Email: rick@qiaoxing.com
USA IR AGENCY
CCG Investor Relations Inc.
Mabel Zhang, Associate Partner