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Dear Damien,
I am writing with bad news about the position at ----- . The board has
decided to go with a talented young designer from an Asian background
who provides and opportunity for ----- to open up its client base
considerably. (he speaks and writes fluent Cantonese).
Thank you for your interest in ----- and the position. The decision is
not a reflection on your design skills (your portfolio is extensive and
impressive) and I would be happy to consider you for any future
positions that may open up. (and as a young, growing company that is
certainly a possibility).
Thanks again. Best of luck with your future endeavours.