LJ International issues special letter to shareholders
23 Aug '05
5 min read
Jewelry marketer LJ International Inc (LJI) announced its Chairman and CEO, Yu Chuan Yih, has issued a Special Letter to Shareholders to update investors on the current status of the Company and, more importantly, to offer management's view on the Company's growth strategy and prospects going forward.
The text of the letter follows: The company report strong revenue growth and steady net income. The main difference is that they are well along in executing their China strategy, and they can expect the pace of expansion there to accelerate in the remainder of 2005 and beyond. As expected, this effort has had a short- term impact on margins, as absorb the startup costs of their new retail stores in China. For those who take a longer view of the Chinese consumer jewelry market and of company role in it, whichever jewelry company is the first and fastest to penetrate the Chinese market will have the biggest opportunity in what is a historic time for China and intend to be that company.
A Historic Time to Invest in China Yu Chuan Yih cannot predict future global economics, of course, but I can tell you this: China is growing in wealth and economic clout, and the growth shows no signs of stopping. Its rate of GDP expansion, recently pegged at 9.5 percent annually, is by far the fastest growing among major nations. The recent bid by the Chinese firm CNOOC for the U.S. oil company Unocal, later withdrawn for political rather than business reasons, was just one sign of how China's wealth and economic power are on the rise. I'm confident that China's growth will continue and that it will lift many millions of workers and business people into a state of real affluence, where they will be eager customers for the types of products that sell.