DALLAS–(BUSINESS WIRE)–Aug. 11, 2006–Natural Health Trends Corp. (NASDAQ NMS: BHIP - News), an international direct-selling company, today announced its financial results for the second quarter ended June 30, 2006.
Net sales in the second quarter of 2006 were $36.3 million, compared to $50.0 million for the second quarter a year ago. This net decrease of $13.7 million, or 27%, was largely due to sale of the Company’s 51% equity interest in KGC Networks (”KGC”), effective December 31, 2005. Excluding KGC, the Company’s net sales decreased $5.4 million, or 13%, over the comparable period in the prior year. This decrease was primarily due to hesitation among the Hong Kong-registered members against an uncertain regulatory environment in China. Hong Kong net sales decreased $7.9 million, or 25%, over the comparable period a year ago. Also, net sales for North America were down $1.1 million, or 24%, versus the comparable period a year ago. Partly offsetting the decrease, South Korea net sales increased $1.4 million, or 66%, compared to the same period in 2005, as it experienced a significant increase in its distributor count and introduced new products to the local market. Japan registered $2.3 million in net sales, and Mexico about $0.8 million. A year ago, advanced sales to Japanese distributors from Singapore were approximately $1.4 million.
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