FUQI International expands retail jewelry presence

25 Sep '08

4 min read

FUQI International Inc announced that it has expanded its retail presence within the Beijing and Shanghai markets.

Two FUQI-branded jewelry counters have opened in two department stores one at the 'Xidan Shopping Mall', the other at the 'Chengxiang Huamao Department Store', which are located among the biggest business and tourist districts in Beijing.

The average size of each store counter ranges from 330-550 square feet. Approximately 2,000-2,500 SKU's will be available for sale at each counter on a monthly basis. Another two FUQI-branded jewelry counters are expected to open in Beijing in September and November 2008, respectively.

The Company has also opened one Temix jewelry counter at a 'Department Store of Articles for Women', a wholly-owned subsidiary of Shanghai Hualian Supermarket Corporation, located at the Huaihai Zhong Road in Shanghai which is a central shopping destination.

Three additional Temix jewelry counters are expected to open- the first at the 'City Center Shopping Mall' in the Changning District, Shanghai; the second at the 'Blue Island Mansion Shopping Arcade', Chaoyang District, Beijing in late September 2008; and the third at the 'Chengxiang Trading Center', Haidian District, Beijing in November 2008.

The average size of each store counter will be approximately 440-770 square feet with approximately 1,500-2,000 SKU's available for sale at each counter on a monthly basis.

Mr. Yu Kwai Chong, Chairman of FUQI International commented, "We are pleased to expand our retail brand presence by opening up more jewelry counters in new locations.

Part of our retail strategy is to increase the recognition of both the FUQI and Temix brands in highly desirable locations in premier shopping malls in Tier 1 cities in China, such as Beijing and Shanghai.

The FUQI brand is marketed to a broad group of mid-level income men and women that purchase more traditional gold and platinum jewelry and jewelry gift items while our Temix counters and retail stores represent contemporary, fashionable jewelry designs that appeal to young women.

Temix also has a fashionable diamond business in addition to its wide selection of gold and platinum products. Several of our existing Temix stores will soon be offering fashionable jade jewelry into our product mix to fulfill the style demands of our growing base of female customers.

With these new retail outlets, we now have a total of 60 outlets comprised of 52 store counters and eight retail stores.

Our balance sheet is healthy and our strong cash position allows us to actively evaluate and pursue retail acquisition opportunities in the market.

We remain comfortable with our wholesale and retail growth plan for this year and are focused on strengthening our position as the leading provider of luxury jewelry products in the Chinese market," concluded Chong.

The Company reiterated comfort with its previously announced financial forecast for 3Q08 and FY08. For the third quarter, the Company anticipates total wholesale revenue of approximately $75 - $77 million, which would represent a year-over-year increase of approximately 108% - 114%,respectively.

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