Comtech Group Inc

CIK:0000028367|SEC Filings

Earnings Per Share

6 Months Ended

Jun. 30, 2011

Note 11 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months ended June 30,				Six Months ended June 30,
	2011		2010		2011		2010
	RMB’000		RMB’000		RMB’000		RMB’000
Numerator for basic and diluted earnings per share:
Net income attributable to Cogo Group, Inc.		26,955		27,158		54,011		50,919
Denominator:
Basic weighted average shares		38,078,756		37,133,304		38,036,997		37,088,817
Effect of dilutive non-vested equity share units, performance shares, options and warrants		640,534		912,401		921,173		981,283
Diluted weighted average shares		38,719,290		38,045,705		38,958,170		38,070,100

	RMB		RMB		RMB		RMB
Basic earnings per share:		0.71		0.73		1.42		1.37
Diluted earnings per share:		0.70		0.71		1.39		1.34

Non-vested equity share units, performance shares and options amounting to approximately 2,035 thousand and 322 thousand are excluded from the Company’s dilutive computation as their effect would be anti-dilutive for the three months ended June 30, 2011 and 2010, respectively. For the six months ended June 30, 2011 and 2010, approximately 1,481 thousand and 370 thousand of such non-vested equity share units, respectively are excluded from the Company’s dilutive computation as their effect would be anti-dilutive.

Condensed Consolidated Statements of Cash Flows In Thousands	6 Months Ended
	Jun. 30, 2011 USD ($)	Jun. 30, 2011 CNY	Jun. 30, 2010 CNY
Cash flows from operating activities:
Net income	$ 9,243	59,745	51,324
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	470	3,029	3,031
Amortization of intangible assets	2,617	16,914	10,902
Deferred income taxes	(340)	(2,198)	(1,799)
Allowance for doubtful accounts	(102)	(657)	2
Loss on disposal of property and equipment			353
Share-based compensation	5,769	37,286	33,691
Change in current assets and liabilities:
Accounts receivable, net	(16,213)	(104,791)	(7,856)
Bills receivable	(1,250)	(8,079)	(26,649)
Inventories	(23,732)	(153,391)	(94,594)
Prepaid expenses and other receivables	2,732	17,659	(999)
Accounts payable	13,797	89,179	(8,734)
Income taxes receivable	210	1,357
Income taxes payable	(855)	(5,526)	(778)
Accrued expenses and other liabilities	(1,636)	(10,578)	(7,712)
Net cash used in operating activities	(9,290)	(60,051)	(49,818)
Cash flows from investing activities:
Increase in pledged bank deposits	(8,598)	(55,572)
Payment for acquisitions of subsidiaries	(11,072)	(71,565)	(51,578)
Purchases of property and equipment	(679)	(4,389)	(4,688)
Net cash used in investing activities	(20,349)	(131,526)	(56,266)
Cash flows from financing activities:
Purchase of treasury stock	(4,868)	(31,466)	(40,309)
Proceeds from bank borrowings	11,363	73,444	357,630
Net cash provided by financing activities	6,495	41,978	317,321
Effect of exchange rate changes on cash	(515)	(3,326)	(806)
Net increase (decrease) in cash	(23,659)	(152,925)	210,431
Cash at beginning of the period	108,246	699,650	667,320
Cash at end of the period	84,587	546,725	877,751
Supplementary cash flow information:
Interest paid	1,062	6,862	2,781
Income tax paid	$ 2,083	13,463	6,502

Condensed Consolidated Balance Sheets In Thousands	Jun. 30, 2011 USD ($)	Jun. 30, 2011 CNY	Dec. 31, 2010 CNY
Current assets:
Cash	$ 84,587	546,725	699,650
Pledged bank deposits	59,451	384,260	332,050
Accounts receivable, net	120,786	780,702	681,911
Bills receivable	6,046	39,080	31,001
Inventories	61,836	399,678	250,573
Income taxes receivable	168	1,085	2,478
Prepaid expenses and other receivables	4,644	30,023	49,338
Total current assets	337,518	2,181,553	2,047,001
Property and equipment, net	2,462	15,912	14,613
Goodwill and intangible assets, less accumulated amortization, RMB139,551 thousand (USD21,591 thousand) in 2011 and RMB122,637 thousand in 2010	62,197	402,010	258,935
Other assets	460	2,970	1,468
Total Assets	402,637	2,602,445	2,322,017
Current liabilities:
Accounts payable	23,260	150,343	63,283
Bank borrowings	87,883	568,034	505,888
Income taxes payable	1,633	10,556	16,153
Accrued expenses and other liabilities	11,904	76,937	15,581
Total current liabilities	124,680	805,870	600,905
Deferred tax liabilities	4,207	27,195	13,777
Total liabilities	128,887	833,065	614,682
Equity
Common stock: Par value: USD0.01 Authorized: 200,000,000 Shares Issued: 41,309,285 shares in 2011 41,181,529 shares in 2010 Outstanding: 35,110,950 shares in 2011 35,848,764 shares in 2010	517	3,340	3,332
Additional paid in capital	209,342	1,353,084	1,315,806
Retained earnings	119,262	770,850	716,839
Accumulated other comprehensive loss	(18,707)	(120,913)	(117,479)
Stockholders' Equity subtotal before Treasury Stock, Total	310,414	2,006,361	1,918,498
Less cost of common stock in treasury, 6,198,335 shares in 2011 and 5,332,765 shares in 2010.	(39,910)	(257,961)	(226,495)
Total Cogo Group, Inc. equity	270,504	1,748,400	1,692,003
Noncontrolling interests	3,246	20,980	15,332
Total equity	273,750	1,769,380	1,707,335
Total liabilities and equity	$ 402,637	2,602,445	2,322,017