— Reported third quarter revenue of $42.5 million —

— Posted IFRS EPS of $0.06 and non-IFRS EPS of $0.08 —

— Reaffirms guidance for the second half of 2014 —

NEW YORK, November 13, 2014 /PRNewswire/ — Global Sources Ltd. (NASDAQ: GSOL) reported financial results for the third quarter ended Sept. 30, 2014.

Global Sources Logo

“In the third quarter, our exhibitions business featured a mix of shows serving the international and mainland China domestic buying communities, including our inaugural China Sourcing Fairs in Jakarta, Indonesia in August,” stated Merle A. Hinrich, Global Sources’ executive chairman. “Several key events for the mainland China domestic market were held in the third quarter, which included: IIC-China; the China International Optoelectronic Expo (CIOE); the Global Sourcing Fair: Mobile & Wireless; and the FashionSZshow in Shenzhen.

“In October, we completed our fall China Sourcing Fairs for the international export market. Attendance totaled 75,000 and the events featured more than 7,500 booths. Opening the series was our Electronics & Components show, focused on electronics for the home, automotive and office, and our new Mobile Electronics show, which featured all the latest personal electronics products: smartphones, tablets, wireless products, wearables and accessories. This comprehensive offering for buyers was a tremendous success, with the two shows combined featuring some 5,200 booths and more than 52,000 buyers from 148 countries, an increase of more than 25 percent in booths and more than 36 percent in traffic compared to the spring shows. The second phase encompassed gifts and home products while the third phase was focused on fashion accessories and apparel. Overall, we are pleased with the long-term positive trend of our exhibitions business.”

Financial highlights — Third quarter: 2014 compared to 2013

  • Revenue was $42.5 million, as compared to $44.8 million.
    • Online revenue was $20.3 million, as compared to $22.0 million.
    • Exhibitions revenue was $17.6 million for both periods.
    • Print revenue was $2.8 million, as compared to $3.4 million.
  • IFRS net income was $1.9 million, or $0.06 per diluted share, as compared to third quarter 2013 IFRS net income of $5.4 million, or $0.15 per diluted share.
  • Non-IFRS net income was $2.6 million, or $0.08 per diluted share, as compared to $6.1 million, or $0.17 per diluted share, for the third quarter of 2013.
  • Adjusted EBITDA was $7.4 million, as compared to $11.0 million for the third quarter of 2013.
  • Total deferred income and customer prepayments were $106.8 million as at Sept. 30, 2014, as compared to $105.1 million as at Sept. 30, 2013.

Financial highlights — Nine Months Ended Sept. 30: 2014 compared to 2013

  • Revenue was $135.3 million, as compared to $137.5 million.
  • IFRS net income was $9.0 million, or $0.26 per diluted share, as compared to $27.8 million, or $0.77 per diluted share.
  • Non-IFRS net income was $12.6 million, or $0.37 per diluted share, as compared to $19.3 million, or $0.54 per diluted share, for the nine months ended Sept. 30, 2013.
  • Adjusted EBITDA was $25.2 million, as compared to $27.4 million for the nine months ended Sept. 30, 2013.

Global Sources’ CFO, Connie Lai, stated: “We are reaffirming our guidance for the second half of 2014. We expect the revenue mix to range between 36% and 37% for online, 53% and 54% for exhibitions, 5% and 6% for print, and approximately 3% for miscellaneous. This compares to a second half 2013 revenue mix of approximately 42% for online, 49% for exhibitions, 6% for print and 3% for miscellaneous.”

Financial expectations for the second half of 2014 under IFRS

  • For the second half of 2014 ending Dec. 31, 2014:
    • Revenue is expected to be in the range of $102.0 million to $104.0 million, as compared to $104.8 million for the second half of 2013.
    • IFRS EPS is expected to be in the range of $0.13 to $0.17, as compared to $0.29 per diluted share in the second half of 2013. SBC and the amortization of intangibles as it relates to certain equity compensation plans are estimated to be an expense of $0.05 per diluted share for the second half of 2014.
    • Non-IFRS EPS is expected to be in the range of $0.18 to $0.22, as compared to $0.47 per diluted share for the same period in 2013.
    • Adjusted EBITDA is expected to be between $13.0 million and $14.2 million, as compared to $24.1 million in the second half of 2013.

Recent Corporate Highlights

  • Organized its series of fall shows with more than 7,500 booths in October at Hong Kong’s AsiaWorld-Expo. Total attendance exceeded 75,000 and included buyers from more than 148 countries and territories.
  • Held the China Sourcing Fair: Electronics & Components, which featured more than 3,700 booths.
  • Held the inaugural Mobile Electronics Fair, which featured more than 1,500 booths, up 43 percent from spring, and fully launched its suite of services for the mobile electronics industry, which also include an online marketplace, a magazine, alerts and an app.
  • The China International Optoelectronic Expo (CIOE) was held in Shenzhen in September.
  • The third annual China Sourcing Fairs in Sao Paulo, Brazil were held in August.
  • Launched China Sourcing Fairs in Jakarta, Indonesia in August.
  • The 14th China International Fashion Brand Fair — Shenzhen (FashionSZshow), the largest and most influential fashion exhibition in southern China, was held in Shenzhen in July.
  • Private Sourcing Events were held from August through the end of October for 70 sourcing teams from very large buying organizations including Auchan, Blade Group, Groupe Adeo, Kering Global Sourcing, Lojas Renner, Philips, Top Toy, etc. These events created more than 350 high-quality, one-on-one selling opportunities for Global Sources suppliers.

Conference call for Global Sources third quarter 2014 earnings

Executive Chairman Merle A. Hinrich and CFO Connie Lai are scheduled to conduct a conference call at 8:00 a.m. ET on Nov. 13, 2014 (9:00 p.m. on Nov. 13, 2014 in Hong Kong) to review these results in more detail. Investors in the United States may participate in the call by dialing (888) 819-8018, and non-Hong Kong international participants may dial (1-913) 312-1412. Investors in Hong Kong may participate by dialing (852) 3008-0382. The conference ID is 1137202 and participants are encouraged to dial 10 minutes prior to the call to prevent a delay in joining. A live webcast of the conference call is scheduled to be available on Global Sources’ corporate site at http://www.investor.globalsources.com.

For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company’s corporate site for 30 days. A telephone replay of the call is also scheduled to be available through Nov. 20, 2014. To listen to the telephone replay dial (888) 203-1112 or dial (1-719) 457-0820 outside the United States, and enter pass code 1137202. For those in the Hong Kong area, the replay dial-in number is (800) 901-108, and the pass code is 1137202.

About Global Sources

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China.

The core business facilitates trade between Asia and the world using English-language media such as online marketplaces (GlobalSources.com), print and digital magazines, sourcing research reports, private sourcing events, and trade shows.

More than 1 million international buyers, including 95 of the world’s top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads and win orders from buyers in more than 240 countries and territories.

Global Sources’ other businesses provide Chinese-language media to companies selling to and within Greater China. These services include online web sites, print and digital magazines, seminars and trade shows. In mainland China, Global Sources has a network of more than 30 office locations and a community of more than 5 million registered online users and magazine readers of its Chinese-language media.

Now in its fifth decade, Global Sources has been publicly listed on the NASDAQ since 2000.

Global Sources’ non-IFRS metrics

Management believes non-IFRS metrics are useful measures of operations and provides IFRS to non-IFRS reconciliation tables at the end of this press release. Global Sources defines non-IFRS net income as net income excluding non-cash, SBC expense or credit, amortization of intangibles as it relates to certain equity compensation plans, profits or losses on acquisitions and investments net of transaction costs and related tax expenses, and/or impairment charges net of related taxes, for all historical and future references to non-IFRS metrics. Non-IFRS EPS is defined as non-IFRS net income divided by the weighted average of diluted common shares outstanding. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment of goodwill and intangible assets, and profits or losses on acquisitions and investments net of transaction costs and related tax expenses.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company’s actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company’s business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.

— Tables Follow —

GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

As at September 30,

As at December 31,

2014

2013

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

87,757

$

137,359

Term deposits with banks

3,954

106

Financial assets, available-for-sale

3,954

6,367

Accounts receivables, net

2,714

3,122

Receivables from sales representatives

13,505

10,630

Inventories

214

266

Prepaid expenses and other current assets

24,108

18,544

136,206

176,394

Non-current assets

Property and equipment

64,516

49,701

Investment properties

86,924

89,615

Intangible assets

38,396

21,423

Long term investment

100

100

Deferred income tax assets

246

98

Other non-current assets

2,109

1,766

192,291

162,703

Total assets

$

328,497

$

339,097

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

10,408

$

8,779

Deferred income and customer prepayments

99,060

84,704

Accrued liabilities

21,150

19,166

Income tax liabilities

4,473

2,635

135,091

115,284

Non-current liabilities

Accounts Payable

886

Deferred income and customer prepayments

7,709

5,660

Deferred income tax liabilities

6,942

4,591

15,537

10,251

Total liabilities

150,628

125,535

Equity attributable to Company’s shareholders

Common shares

529

525

Treasury shares

(200,089)

(150,089)

Other reserves

162,050

161,950

Retained earnings

200,643

191,594

Total Company shareholders’ equity

163,133

203,980

Non-controlling interests

14,736

9,582

Total equity

$

177,869

$

213,562

Total liabilities and equity

$

328,497

$

339,097

GLOBAL SOURCES LTD. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

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

Three months ended September 30,

Nine months ended September 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenue:

Online and other media services (Note 1)

$

23,081

$

25,417

$

70,787

$

79,593

Exhibitions

17,562

17,624

58,834

52,399

Miscellaneous

1,895

1,726

5,724

5,466

42,538

44,767

135,345

137,458

Operating Expenses:

Sales (Note 2)

11,766

11,153

40,056

41,418

Event production

4,533

4,431

15,352

15,081

Community and content (Note 2)

6,645

6,670

19,043

20,402

General and administrative (Note 2 & 3)

12,303

10,990

40,256

34,146

Information and technology (Note 2)

3,226

3,164

9,512

9,639

Total Operating Expenses

38,473

36,408

124,219

120,686

Profit on sale of property

15,410

Profit from Operations

4,065

8,359

11,126

32,182

Interest income

296

467

1,046

1,088

Gain on sale of available-for -sale securities

1

11

Interest expenses

(47)

(139)

Profit before Income Taxes

4,315

8,826

12,044

33,270

Income tax expense

(1,077)

(1,657)

(1,843)

(4,326)

Net Profit

$

3,238

$

7,169

$

10,201

$

28,944

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

(1,321)

(1,813)

(1,152)

(1,193)

Net profit attributable to the Company’s
shareholders

$

1,917

$

5,356

$

9,049

$

27,751

Diluted net profit per share attributable to
the Company’s shareholders

$

0.06

$

0.15

$

0.26

$

0.77

Shares used in diluted net profit per share
calculations

31,487,766

36,186,254

34,166,224

36,045,545

Note: 1. Online and other media services consists of:

Three months ended September 30,

Nine months ended September 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Online services

$

20,252

$

22,046

$

62,348

$

69,710

Print services

2,829

3,371

8,439

9,883

$

23,081

$

25,417

$

70,787

$

79,593

Note: 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:

Three months ended September 30,

Nine months ended September 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Sales

$

140

$

159

$

286

$

386

Community and content

27

28

(5)

12

General and administrative

366

368

896

971

Information and technology

52

54

172

193

$

585

$

609

$

1,349

$

1,562

Note: 3. General and administrative expenses consist of:

Three months ended September 30,

Nine months ended September 30,

2014

2013

2014

2013

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

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

$

11,083

$

10,556

$

30,350

$

30,146

Amortization of intangible assets

1,376

627

6,347

2,097

Impairment charge on intangible assets

2,238

2,531

Foreign exchange losses (gains)

(156)

(193)

1,321

(628)

$

12,303

$

10,990

$

40,256

$

34,146

GLOBAL SOURCES LTD. AND SUBSIDIARIES

ACTUAL IFRS to NON-IFRS RECONCILIATION

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

Three months ended September 30,

Nine months ended September 30,

2014

2013

2014

2013

IFRS EPS

$

0.06

$

0.15

$

0.26

$

0.77

IFRS Net Profit

$

1,917

$

5,356

$

9,049

$

27,751

Non-cash stock based compensation expense (Note 1)

585

609

1,349

1,562

Amortization of intangibles (Note 2)

104

167

508

594

Impairment of goodwill and intangibles (Note 3)

1,678

2,531

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

(13,124)

Non-IFRS Net Profit

$

2,606

$

6,132

$

12,584

$

19,314

Non-IFRS diluted net profit per share

$

0.08

$

0.17

$

0.37

$

0.54

Total shares used in non-IFRS diluted net profit

per share calculations

31,487,766

36,186,254

34,166,224

36,045,545

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)

Three months ended September 30,

Nine months ended September 30,

2014

2013

2014

2013

IFRS profit from operations

$

4,065

$

8,359

$

11,126

$

32,182

Depreciation and amortization

2,782

2,038

10,447

6,487

EBITDA

6,847

10,397

21,573

38,669

Non-cash stock based compensation expense

585

609

1,349

1,562

Impairment of goodwill and intangibles

2,238

2,531

Profit on sale of property, net of transaction costs

(15,410)

Adjusted EBITDA

$

7,432

$

11,006

$

25,160

$

27,352

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,

2014

2013

Revenue

$102.0

to

$104.0

$104.8

IFRS EPS

$0.13

to

$0.17

$0.29

Non-cash stock based compensation expense (Note 1)

$0.04

$0.04

$0.03

Amortization of intangibles (Note 2)

$0.01

$0.01

$0.01

Impairment of goodwill and intangibles

$0.14

Non-IFRS diluted net income per share

$0.18

to

$0.22

$0.47

Total shares used in non-IFRS diluted net income

per share calculations

31,600,000

31,600,000

36,181,032

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.

For financial matrix, please visit: http://photos.prnasia.com/prnk/20141112/8521406752

Press Contact in Asia

Investor Contact in Asia

Camellia So

Connie Lai

Tel: (852) 2555-5021

Tel: (852) 2555-4747

e-mail: cso@globalsources.com

e-mail: investor@globalsources.com

Press Contact in U.S.

Investor Contact in U.S.

Brendon Ouimette

Cathy Mattison

Tel: (1-480) 664-8309

LHA

e-mail: bouimette@globalsources.com

Tel: (1-415) 433-3777

e-mail: cmattison@lhai.com

Logo – http://photos.prnewswire.com/prnh/20030303/LNM011LOGO-b