HONG KONG, May 17 /Xinhua-PRNewswire-FirstCall/ -- Global Sources Ltd. (Nasdaq: GSOL) issued a summary today of its 2006 annual letter to shareholders.
(Logo: http://www.prnasia.com/sa/200703271450.JPG )
In the letter on March 31, 2007, chairman and CEO, Merle A. Hinrichs, said: "Our goals in 2007 are to build on our highly successful trade shows; continue to drive growth by concentrating on cross-selling; launch new online marketplaces and magazines; and further our expansion into China's B2B market."
Regarding the company's financial performance in 2006, Hinrichs noted: "Global Sources achieved year-on-year revenue growth of 39 percent. This revenue growth was driven primarily by our exhibitions that grew 195 percent as compared to 2005 -- in large part due to the very successful execution of our China Sourcing Fairs held for the first time in Hong Kong. Our print and online revenues also increased significantly, reflecting the success we had in cross-selling existing products and launching new products. Finally, our revenue from China grew 50 percent and represented 53 percent of our total 2006 revenue."
Extracts of the annual letter to shareholders discussing the company's growth strategy follow and the complete document is available for download at http://www.corporate.globalsources.com/IRS/ANNUAL.HTM .
Growth Strategy
The Global Sources growth strategy is built around the following four key elements.
1. Market Penetration
Global Sources is well placed in its existing markets that offer significant opportunities for further growth. We have a large number of prospects within the 150,000 suppliers listed on globalsources.com . Our market penetration plans include continued growth of our China Sourcing Fairs, cross-selling to clients not using online, print and trade shows -- and achieving continued strong growth in China.
2. New Product Development
Our product development plans include increasingly specialized online marketplaces, magazines and trade shows -- as well as entirely new media formats. For example, in late 2006 and early 2007, we launched online marketplaces and magazines titled Gifts & Premiums and Home Products. Another example is the spring 2007 launch of a new monthly magazine titled Security Products to accompany a pre-existing online vertical. Also, a new China Sourcing Fair: Underwear & Swimwear is scheduled to be held during spring and fall in Hong Kong. "New media" initiatives include application websites for engineers, e-newsletters, and webcasts.
3. Expansion into China's Domestic B2B Market
A primary objective is to become increasingly involved in serving China's domestic B2B markets -- something we consider to be an attractive growth market and a synergistic complement to our existing businesses that serve China's export and import sectors. We intend to launch new Chinese language online, print and/or trade show products in existing or related industry sectors. These initiatives are expected to leverage our brands, content, skills and community, and to build on our existing successes with
Chinese-language media including Chief Executive China, the leading management magazine and website in China, and Electronic Engineering Times-China, the leading website and magazine for China's electronics engineers.
4. Acquisitions and/or Alliances
We intend to support our growth strategy through acquisitions and/or alliances designed to drive growth and accelerate achievement of strategic goals. We plan to seek complementary businesses, technologies or products we believe will help us maintain and achieve market leading positions in particular niche markets.
About Global Sources
Global Sources is a leading business-to-business (B2B) media company and a primary facilitator of two-way trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other key business segment facilitates trade from the world to Greater China using Chinese-language media.
The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 600,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 230 countries.
The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 1.8 million products and more than 150,000 suppliers annually through 13 online marketplaces, 12 monthly magazines, over 100 sourcing research reports and nine specialized trade shows which run 22 times a year across seven cities.
Suppliers receive more than 13 million sales leads annually from buyers through Global Sources Online ( http://www.globalsources.com ) alone.
Global Sources has been facilitating global trade for 36 years. In mainland China it has over 1,700 team members in 44 locations, and a community of over 1 million registered online users and magazine readers for
Chinese-language media.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.
Global Sources Press Contact in Asia:
Camellia So
Tel: +852-2555-5021
Email: cso@globalsources.com
Global Sources Investor Contact in Asia:
Eddie Heng
Tel: +65-6547-2850
Email: eheng@globalsources.com
Global Sources Press Contact in U.S.:
James W.W. Strachan
Tel: +1-602-978-7504
Email: strachan@globalsources.com
Global Sources Investor Contact in U.S.:
Moriah Shilton & Cathy Mattison
Lippert/Heilshorn & Associates, Inc.
Tel: +1-415-433-3777
Email: cmattison@lhai.com
