Nu Skin CEO talks direct sales with Chinese government minister (NUS 2Q05 conf call quotes)

Nu Skin Enterprises (ticker: NUS) President and CEO Truman Hunt met with a Chinese government official last week to discuss the expected introduction of regulations governing direct sales in China. Details (from management's Q2 2005 earnings results conference call):

On the meeting

....I was in China last week and had a very productive meeting with the minister of an agency called SAIC. This is the regulatory agency that will enforce the new direct selling laws when they become effective. This was a very positive meeting.

....it gave me a great assurance for our prospects in China for a couple of reasons.

....the meeting confirmed to us that the government is close to publishing regulations and that it's intention to regulate the industry is consistent with the way the industry is regulated elsewhere throughout the world.

....it was also comforting to confirm that Nu Skin enterprises is in good standing with the government and that we're well-positioned to secure a direct selling license in this rapidly developing market.

On timing of regulations

....we are projecting the regulations will be published in the third quarter and will be close to be being implemented if not implemented by the end of the third quarter.

On multi-level marketing

....we know that that issue is still in play.

On Avon’s (ticker: AVP) issues in China

....you know, the problems that Avon has articulated are going to be dealt with, and they're going to be just fine in that market as we are.

Comment: USANA Health Sciences (ticker: USNA) is also patiently awaiting the Chinese government's regulations. See here.

(Quotes are from the CCBN StreetEvents transcript.)

NUS chart.

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