Read 10q and 10k, you will find that NHTC has a license to operate an e-commerce retail business in China which does not require a direct selling license and allows for discounts on volume purchases. Besides, NHTC is applying for a direct selling license in China. Once it is approved, the growth will be huge.
The above indicates the direct selling growth engine has shifted from US/Europe to Asia/Pacific.
Those shorting against USNA and NHTC are living in another planet.
NHTC started in US by an American about 20 years ago. About 10 years ago, the American founder's greedy and squander and fighting among managers caused most US distributors left the company. Now the trend is reversing. The Northern American sales rose 221% to $1.878 million last quarter vs the same quarter a year ago. Based on my conversation with some North American distributors, the sales continue accelerating and it would not be surprising me that the North American sales grow to over $5 million a quarter or $20 million on annual basis in one year. On the other hand, Hong Kong, China, Taiwan and South Korea sales very likely continues to rise about 100% year over year. Next year this time, we would not understand why the share price is so low this time.
North american revenue rose rapidly, far more than Hong Kong revenue: "Revenue outside of Hong Kong increased $2.4 million, or 91% over the same period last year; excluding the Commonwealth of Independent States, revenue increased 151% over the same period last year."
"We delivered another quarter of solid top-line growth and doubled our net income as we continue to leverage the strength and utility of our Hong Kong infrastructure to meet the increasing consumer demand for our health and wellness products," commented Chris Sharng, President of Natural Health Trends Corp. "During the quarter we launched several new products to extend our product line and kicked off additional incentive programs for top performers. The combination of consumer demand supported by our market-leading products and effective sales, leadership and incentive programs are proving to be very successful strategies for expanding our base of consumers and distributors while fortifying an already firm foundation for future growth."
"Our Hong Kong business continues to excel, and to date, the economic slowdown in China has not impacted us," continued Mr. Sharng. "In the long term, we feel that the re-orientation of the Chinese economy toward consumption is good for businesses like ours, as we work to introduce high-quality consumer products to the increasingly affluent Chinese consumers. We are in the Chinese market for the long haul and are bullish on its prospect."
"Further, during the quarter, we funded the required deposit for the consumer protection fund in China, which is a prerequisite to submitting our direct selling license application," concluded Mr. Sharng. "We view applying for a direct selling license as strategically valuable to help us drive incremental growth as our brand recognition continues to grow in China and Asia."