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FUQI International commissions diamond jewellery production line

May '08
FUQI International Inc announced the development of the Company's finished gemstone jewelry production line.

The production line will be based out of the Company's Shenzhen manufacturing facility and is capable of producing studded or inlayed precious stone designs.

Management expects to primarily produce diamond jewelry pieces but can also develop jade, sapphire, ruby and emeralds pieces as well.

These jewelry pieces from this line will be made available exclusively at the Company's current and future retail outlets.

Mr. Yu Kwai Chong, Chairman of FUQI International commented, 'In addition to our gold and platinum products, our new gemstone line, anchored by our diamond jewelry pieces offers an additional growth opportunity for our business in the consumer jewelry category.

We believe demand for quality gemstone jewelry products has been increasing, particularly among the rising middle class in major tier 1 & 2 cities along the coast of China, and we intend to capitalize on this growth in demand.

Our designs will have a more modernized, western fashion feel and will be marketed to young, educated, middle-class professionals.

With our new production line, we are able to produce additional high quality pieces with unique styles and designs, which we believe can result in more meaningful revenues for our business over time.

While gemstone products usually have a longer turnover period of at least four to six months, they typically offer higher profit margins.

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