Letter to Shareholders
Production & Operation
The Management Team
Steven Soltz Rishi Desai
To Our Shareholders:
These past few years have been very trying for High Land Bikes. Our Kids Bike and Commuter Bikes have shown complimentary sales and proven to be our strongest lines. We have been fortunate enough to establish a following in these product lines and are very competitive in the biking market. High Land Bikes had some trouble establishing factories and capacity because of an underestimation of consumer demand, but with an early loan we were able to overcome market difficulties, reduce our debt, and breakthrough with stable, profitable growth. Consumer confidence has been restored in our product lines and we look to the future to refine this line and prove to investors that we are a key player in the biking market.
Past, Present, and Future Strategies
8 years ago when we took over High Land Bikes, we created short term and long term goals for us to achieve to make you, our investor, happy and profitable. Our short term goals were to create bikes of good quality and quantity, and our long term goals were to create profit for our investors. Unfortunately, our long term goals have been put on hold for the past 6 years due to our mistake in operations and strategic decisions. However, High Land Bikes is a different company today. We are looking forward to begin working on our long term goals. To understand why, let me briefly describe how we got to our present position.
As a new company, we have encountered many situations and competitors that made us realize, simple mistakes can cost us millions. Looking back at our first year in 2003, we created a short term goal in creating bikes of almost perfect quality. We increased our inspection rate to make sure that our customer’s got what they wanted without any problems with the product. We got careless and realized the costs behind having almost 75% of our bikes inspected. On our 2nd year, we faced near bankruptcy. With your continued support, we decided to halt our long term goals and create new short terms to help us drive out of the mess we created. We searched out risk investors to help with equity and promised to repay that money back with a 10% yearly interest. We also heavily invested in new R&D to attract new market segments.
In our fiscal year 2005, we have recovered extraordinarily from the frying pan. We changed our operations and bought new factory space for future R&D in which I will describe later in this report.
During the eight years our company has been in business we are at the most crucial stage of our operations as we are on our way to recovery. We are pleased to report, that in 2011, our team has stepped up and we are in a much better position then we were at this point in time two years ago. As we continue to move forward, our biggest focus is to now continue to transform our company to a strong contender positioned for long-term success.
In reflecting upon the progress we have:
* Increased our workforce and salary.
* Increase training to help workers become more productive * We plan to contribute to many non-profit organizations and charities. * Increased our preventative maintenance to make our workers and machines safe in the workplace. * Our sales have exceeded over $161,000,000
* Our stock went from $.04 just a few short years ago up to $10.77...
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