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Goldaş is proud of ending a prosperous 2007...
Here we left another year behind, looking ahead to 2008 with fresh hopes. 2007 has been a tough year for Turkey due to three elections in the political arena as well as the vulnerabilities experienced in the global economy. Goldaş closed the year 2007 with TRY 4,489 million turnover and TRY 468 million total assets. Even though 2008 offers major risks in numerous aspects, we are cautious and well – prepared with respect to the changes in the global conjuncture.
The credit and liquidity concerned, which emerged in the global markets, the housing loans allocated to high – risk consumer groups dramatically affected the operations of both the credit institutions, which allocated such loans, and, through the knock – on effect, the market actors in financial connection therewith. By the time, the global impacts of US’ interest policy and growth figures stand out generally. The American economy, where the FED interest rates have been gradually increasing and the growth trend has been maintained since 2001, has been auguring stagflation signals since the last quarter of 2007.
Turkish economy has, although the financial and the economic goals set by the government could not be accomplished, exhibited a relatively more stable macro profile. While the high real interests offered constituted a fairly attractive investment environment for the global investors, Turkish Lira has maintaining its valuable position caused the foreign investors to stick with their investments in the long run. While the high current deficit continued to be a weakness for the economy, the inflation rates, which have emerged far higher than the aimed figures, were continued to be monitored.
The markets, where the global interaction is simply inevitable, have influenced the non – financial sector, too. Looking through our business branches, the above – average growth figure expectations in the industry stand as an important opportunity for us.
The net international direct investment movement has maintained the level of USD 20 billion in 2007 as well. The exportation amount of Turkey has increased by 23.5 % up to USD 105.9 billion. The figure aimed for 2008 is USD 125 billion.
Our stocks, as being the only jewelry industry stocks listed to ISE, are also listed to the Exchange Markets of Frankfurt, Berlin and Bremen, and the OTC market in the USA. We are a member of Istanbul Gold Exchange through the agency of Goldaş Precious Metals, a subsidiary of ours. We are ambitious in the sliver business as we are with the gold. Therefore, we attach a specific importance to our The Silver Institute membership, which was awarded in January, 2006. Upon our membership to Tokyo and Hong Kong Gold Exchanges, we have made a considerable progress in relation to the enhancement of our effectiveness in the Far East market, which is critical among our growth targets. The year 2007 has witnessed a breakthrough in Turkish capital markets and the Stock Market has been remarked to have provided the highest returns among the financial investment instruments. While the stock exchange capitalization in 2007 reached to USD 290 billion relatively to USD 164 billion in 2006, the trading volume reached up to USD
301 billion upon an increase by 31 % relatively to 2006, exhibiting a similar progress.
While ISE ranked to be 11th top saving exchange market worldwide by 72 % returns on USD basis, in 2007, Goldaş stock closed the year at the level of USD 1.09- (TRY 1.54-) upon an increase by 130 % on USD basis, exhibiting an over – performance. In parallel thereto, the market value of the Company in ISE has reached to TRY 235.2 million upon an increase by 91 % relatively to TRY 123.2 million in 2006.
Expansion of our fields of activity in national and international markets is a critical goal of ours. In that regards, we have carried out activities devoted to deliver the ornaments and the accessories produced under the Goldaş quality worldwide and to increase our market share. By the time, our Company is represented by a comprehensive organization network in the international arena. We have opened up new representation offices in Kiev, Prague, Bucharest and Hong Kong throughout 2007.
We consider any and all steps we have taken so far as investments for both our future and the industry. Among our goals will be to constantly maintain our leading position in the industry, to enhance our strength in our markets of presence and to continue our efforts for the creation of novel and profitable business opportunities.
We intend to perform a major breakthrough in the Retail Stores business by Goldaş, Assortie and other brands of ours. We have closed the year 2007 with 111 stores in total as we have added new elements to Goldaş, Assortie and Danthel store network at home and on abroad. We aim at reaching 1000 stores in 2010. We have determined our growth direction as Eastern Europe and the eastern regions thereof.
Currently, we export our goods to five continents. Indonesia, Vietnam and Sri Lanka have become the new elements of our exportation portfolio for the year closed. We primarily and basically sight to increase the number of country destinations for our exportation operations and to enhance our market shares, where we already have an existing presence. We have continued to increase our exportation, sales and profit amounts within the second quarter of the year. According to the balance sheet figures for 2007, our exportation has amounted to USD 138 million (2006: USD 117 billion). Our growth rate objective for the end of 2007 is 15 %. We aim to accomplish a similar growth rate for the year 2008.
We intend to maintain our stable growth in 2008. We will particularly accelerate new store openings at home and on abroad and make efforts to offer our branded products to a wider audience. As per so far; strengthening our financial structure and broadening our product range with novel elements are our prior goals.
I would like to take this opportunity to thank to the employees of Goldaş, who have always been decisively walking ahead toward the objectives with us, to our customers, national and international business partners and to our national and international shareholders, who never withhold their confidence and reliance from us.
Yours Truly,
M. Sedat Yalinkaya
Vice Chairman
