Profile of Global Sources

Company background

This is an updated edition of the report which was last published in March 2008.

Founded in 1970 by Merle Hinrichs, Global Sources, formerly Asian Sources, has long been a key media group supporting consumer merchandise sourcing in Asia. Global Sources provides buyers with information on products and suppliers, while it provides manufacturers with marketing services. Core products and services include online sourcing platforms, exhibitions, print magazines, small-scale sourcing events and industry research. Global Sources is particularly focused on the Chinese market. In China, Global Sources currently has over 2,800 employees in 44 locations.

Typically, Global Sources creates and hosts a supplier's product and company information on its flagship website. The company is one of the few B2B media companies in Asia with audited community numbers. Global Sources' corporate website notes that it has 196,000 suppliers and an "active buyer community" of over 790,000. Global Sources operates 15 online marketplaces and 11 sourcing exhibitions. The company also publishes 13 trade magazines consisting of supplier advertisements and independent editorial content. Some of Global Sources' titles include Gifts & Premiums, Electronics and Fashion Accessories. In 2003, Global Sources launched a line of trade shows branded, China Sourcing Fairs. These trade shows bring together Global Sources' readers and advertisers. Global Sources also controls a joint venture, eMedia Asia Limited, which is a 60:40 partnership with TechInsights (a division of United Business Media). eMedia Asia produces titles and events serving the electronics industry.

The company was listed on NASDAQ (ticker: GSOL) in March 2000 and currently trades at a current valuation of approximately US$200 million or less than 9 times earnings. The stock has traded between US$15 and US$3.30 in the past twelve months, well down from its high of more than US$35 in the lead up to the Alibaba.com IPO. For the year ending 31st December 2008, Global Sources recorded revenues of US$207 million - a 14% increase over revenues in 2007. Online revenues grew 24% and revenues from Global Sources' exhibitions operations were up 13%. The company has US$131 million in cash and cash equivalents and no long-term or short-term debt. GAAP net income in 2008 was US$26 million - up 11% from the US$24 million recorded in 2007.