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Dear esteemed employees and customers,
2006 was a successful year for Turkey and for the Yalinkaya Group. Political stability continued in Turkey, as did economic growth, although at a slower pace. Yalinkaya Group continued to grow at a higher rate.
Fluctuations in the global financial markets in the middle of the year affected Turkey negatively. However, in contrast to similar crises in the past, the impact of this was overcome quickly. This difference signifies that Turkey has entered into a new phase in which political stability and economic discipline mutually reinforces the resilience of the Turkish financial markets to sharp changes in currency and interest rates.
The uninterrupted economic growth experienced over the last five years is indeed noteworthy given the track record in recent history. The economy expanded by another 6% in 2006, despite widespread expectations that the rate of growth would cool down slightly, thus raising hopes for the future. Other indicators, including the strong inflow of foreign direct investment, the significant increase in exports, the slowing down of the current account deficit and the improvement, however slight, in the distribution of income–support our optimism.
The positive development in the economy is reflected in our business results. Traditionally, Yalinkaya Group always outperforms market developments in Turkey and this proved to be the case once again in 2006. However, we judge our business performance not only by economic results but by the added value we create. We seek to distinguish ourselves from our competitors in both domestic and international markets by the quality of our goods and services as well as by such factors as innovation, design, reliability and customer satisfaction. The results we have achieved demonstrate that we have attained our objectives.
Yalinkaya Holding with its Group of Companies continues to carry on its business as usual as one of the most prominent Holding Companies in Turkey on solid grounds without any compromise on its corporate values through its 4 companies. Yalinkaya Holding, active in precious metals, energy, construction, IT and textile sectors, is the main parent of Yalin Investment Holding and Goldart Holding. The Group's gold and jewelry related companies are structured under Goldart Holding.
We made significant progress in both local and international markets, fortifying our position of leadership in our core businesses and thus paving the way to becoming a global player in these areas. Yalın Yatırım Holding is involved in management and coordination of its subsidiaries, while in the foreign trade sector, Goldas Foreign Trade Inc. is involved in the export of products mainly produced by Goldas Jewelry Inc. The company exports to 45 countries on 5 continents. In the energy sector, Yalınkaya Energy is involved in the production of electricity.
In the jewelry sector, we remain the unrivaled leader in the local market. Growth abroad accelerated with our retail stores in China and Russia. China. A strong focus on our core businesses over the past few years has produced excellent results.
In addition to continuing to enhance the productivity and profitability of our businesses, we are committed to utilizing technology, processing information, supporting innovation and funding research & development. We give utmost priority to risk management and the evaluation of opportunities amidst constantly changing market conditions. By establishing a business system that trains all of our employees to follow these principles, we have empowered our companies to compete and succeed.
In 2007, risks and difficulties are likely to stem from the two upcoming elections in Turkey in addition to any unforeseen fluctuations in the global markets. However, I am hopeful that these risks and difficulties will remain at minimal levels or even will not materialize at all provided that the government, bureaucrats, businessmen, media–in sum all segments of society– remember the lessons of the past and continue to apply strict economic policies.
Yalinkaya Group has set high growth and profit targets for 2007. We will make every effort to achieve these objectives. We pledge to reinforce our position in the national economy and are determined, as always, to fulfill the social responsibilities that such a position entails.
I extend my sincere thanks to our customers, dealers, business partners and employees for their unfaltering support and cooperation.
Best regards,
Hasan Yalinkaya
Chairman of the Board of Directors
