Natural Health Trends Corp. President Chris Sharng Releases an Open Letter to Stakeholders
DALLAS, TX--(Marketwire - January 22, 2008) - Natural Health Trends Corp. (NASDAQ: BHIP), an
international direct selling company, today released this open letter from
its President to its stakeholders.
We at Natural Health Trends Corp. have been working on a plan to turn our
Company around and are optimistic about our progress, which we wanted to
share with you.
The Chinese New Year is rapidly approaching. Our most important, promising
yet challenging market is the Hong Kong-based business. The regulatory
uncertainty in China is outside of our control and will not go away
quickly, but we have a meaningful operating history in the region, believe
that there is great upside in our business, and anticipate this market will
continue progressing toward a more normalized operating environment.
We have discussed before that we, as well as our most important Greater
Chinese leaders, were advised not to engage in marketing activities in the
third quarter of 2007. This lack of activity directly contributed to the
decrease in the third quarter revenue. What is encouraging to us, however,
is that while the revenue decrease mainly took place from July to August,
revenues have generally been stable since August, with a modestly positive
momentum ending the fourth quarter. This more stabilized level of revenue
has enabled us to more specifically plan and implement spending cuts. In
addition to reductions in the first quarter, mostly in Japan and Mexico,
significant additional reductions were made in the third and fourth
quarters in the U.S., China, Hong Kong and Taiwan.
Amid these cost reductions, we streamlined our organization in the Greater
Chinese market by eliminating redundant management while elevating
experienced professionals, which was well supported by our Greater Chinese
members. With these changes, we laid the foundation to make a solid
turnaround of our Greater China business possible in 2008. We are now
re-establishing our marketing presence, with an emphasis on training,
conducted by both the Company as well as by members. We think this has
helped bring back the enthusiasm in the Greater China marketplace.
In evaluating our international presence, our criterion is simply that,
regardless of legacy, every market must be cash flow positive. Greater
China, Korea and Taiwan fit that profile today. We also think that the
European market is promising. We have invested in the necessary
infrastructure and plan to grow that business, which started in Southern
Europe and may expand to Central Europe later this year. We are still
evaluating other markets to see if our cost cutting measures in those
markets will have the desired effect.
Where do we go from here? Our long-term objective continues to be building
a premiere, world-reaching direct selling organization, with emphasis on
exciting markets, offering premium wellness, anti-aging, energy, and
quality of life products and a successful alternative to more conventional
career paths for our distributors. We continue to believe that direct
selling is one of the most efficient business mechanisms to deliver our
products to consumers worldwide, while creating success and goodwill for
Our extensive footprint in some of the fastest growing parts of the world
continues to make us optimistic about our long-term prospects. Our system
and products appeal to not only under-employed but also to enterprising
entrepreneurs and wellness-conscious consumers as well around the world.
The Company will strive to develop and regularly launch products that are
consistent with our message and that encourage a daily regimen. Our goal
over time is to increase the recurring revenue generated from genuine
consumer demand for personal consumption of our products and add to our
family of people making a home-based business with our system.
We thank the many people who continue to support us, and look forward to
the year of 2008 with a great deal of anticipation. We also expect to
communicate more on a regular basis with our updates.
Thanks and best regards,
Natural Health Trends Corp.
About Natural Health Trends Corp.
Natural Health Trends Corp. is an international direct-selling and
e-commerce company operating through its subsidiaries in Asia, North
America, Europe and Latin America. The Company markets premium quality
personal care products under the NHT Global brand. Additional information
can be found on the Company's website, and management encourages interested
parties to register for updated corporate information via email on the
Company's home page, www.naturalhealthtrendscorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 -- Forward-looking statements in this release do not constitute
guarantees of future performance. Such forward-looking statements are
subject to risks and uncertainties that could cause our actual results to
differ materially from those anticipated. Such risks and uncertainties
include the risks and uncertainties detailed under the caption "Risk
Factors" in our Registration Statement on Form S-3 filed with the
Securities and Exchange Commission on December 28, 2007. We assume no
obligation to update any forward-looking information contained in this
press release or with respect to the announcements described herein.
Contact Information: Contact:
Natural Health Trends Corp.