WEB NEWS Comments & Business Outlook
Guidance Report:
2009 Outlook: We will focus on our new business model to provide management services to other retail operators, such as Best Paramount. We are optimistic that our new business direction will enable the Company to produce a more stable stream of income and achieve profitability for the Company and its shareholders.
GeoTeam ® Note: The compnay is currently not profitable.
Source: SEC From 10K ( For the fiscal year ended December 31, 2008. Page 22)
Investor Alert
Over the past few years, our goal has been the development of our retail business with a focus on international tourists in Hong Kong. Under the weight of a global recession, management has re-evaluated the Company’s business model and operation. In the near future, the Company foresees a significant slowdown in retail sales and fierce competition from other retailers, anticipates a reduction in tourist visits from mainland China to Hong Kong, and a reduction in spending per tourist, partly as a result of adverse changes in travel policy and the domestic economic environment in China.
During the third quarter of 2008, the revenue of the Company significantly decreased due to the above-mentioned trends. In addition, in the period leading up to and during the Beijing 2008 Olympic Games, the Chinese government restricted outbound travel visas, and this policy has not been reversed following the Olympics. Further, management believes that the ongoing global economic recession is discouraging tourist visits to Hong Kong. In the present economic climate, management believes that the Company is unlikely to sustain profitability with operation of its retail outlets, and believes that changing its business model is in its best interest. Management believes the Company faces heavy competition from other local retailers seeking to make sales to a dwindling group of tourists, which is causing a trend toward lower profits. Retailers that wish to stay afloat have to compete fiercely by drastically marking down their prices, lowering their margins, and offering higher commissions to travel operators. Some of our competitors are in a better position to weather difficult economic conditions because they have better locations with heavier foot traffic and attract a higher density of tourists. Management believes that our sales will not improve in the near future due to the difficult economic climate, the location of our outlets, and the intense competition surrounding our area. Therefore, starting the third quarter of 2008, the Company has shifted its business model from being an outlet and discount shopping center operator to a retail service provider and has closed the operation of its two outlets at the end of 2008.
Comments & Business Outlook
Guidance Report:
2009 Outlook: We will focus on our new business model to provide management services to other retail operators, such as Best Paramount. We are optimistic that our new business direction will enable the Company to produce a more stable stream of income and achieve profitability for the Company and its shareholders.
GeoTeam ® Note: The compnay is currently not profitable.
Source: SEC From 10K ( For the fiscal year ended December 31, 2008. Page 22)
