Company Opens Office in Hong Kong
SHENZHEN, China, May 29 /Xinhua-PRNewswire-FirstCall/ -- FUQI International, Inc. (Nasdaq: FUQI) today 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. Most of our diamond purchases will be 0.1 - 0.5 carats that will be set in 18K gold or PT 950 and we have arranged our purchases through the Temix diamond license on the Shanghai Diamond Exchange. We are hopeful we can further penetrate China’s growing jewelry market through the introduction of this new line of precious jewelry products.”
Additionally, the Company announced today that it has opened a Hong Kong management office. This office located at Landmark North in Sheung Shui, Hong Kong will be staffed primarily with members of the Company’s financial reporting team. It will also serve as a more convenient location to meet with international designers and jewelry suppliers.
“Our new office will provide a more convenient location for members of our financial team that live in Hong Kong and also make it easier to recruit more qualified financial and design talent. Hong Kong also serves a one of the world’s major jewelry centers and this new office location will allow us to develop stronger relations with the key players in the jewelry industry,” concluded Chong.
About FUQI International
Based in Shenzhen, China, FUQI International, Inc. is a leading designer of high quality precious metal jewelry in China, developing, promoting, and selling a broad range of products in the large and rapidly expanding Chinese luxury goods market.
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This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “will” “believes”, “expects” or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect.
All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC’s electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
