Histostem Co., Ltd. (South Korea)

Firm's sales fell, compared to last year, due to reduction of orders, deriving from sluggish consumption biz cycle, and price decline, stemming from continuous exchange rate decline. Firm's operating loss was expanded, due to biz revenue reduction, and rising cost to sales ratio, and firm turned into deficit, as firm's non-operating balance was deteriorated. Firm sold land in Nonhyeon-dong to Sunrider Korea at KRW 5.3 billion for repayment of loans in January 2007. Firm mainly exports its products to the U.S., Europe and Russia, and firm's biz revenue growth is likely to be difficult, due to sluggish world economic recovery and exchange rate decline. Firm's profitability improvement is forecast to be limited, because of increase in burden of cost deriving from raw material prices hike, and low price products from latecomers from the developing countries. Firm makes an effort to enhance profitability thru quality and fashion-orientation, high price policy, and gradual operation pattern changes.