Corporate Section December

Transcription

1 Corporate Section December

2 Contents Overview Business Operation Review Financial Highlights Dividend Policy 2

3 Overview Present Established in 1975 Famous Household Name 1975 Listed on Bursa Malaysia 2 nd Board in st Local Integrated Traditional Healthcare & Wellness Company Listed on the Exchange. Transferred to Main Board on 8 th Oct 2007 Principal business Wholesale, Multi Level Marketing (MLM), Retail, Pharmaceutical Manufacturing, Modern TCM clinics Product Focus : Wellness and Beauty, Traditional, Complementary and Alternative Medicine products & services 3

4 Overview Mission We are committed to promoting healthcare culture and improving human's wellbeing. Vision We aim to become the premier healthcare company in Malaysia and thereby bringing the greatest value and pride to our customers, business partners, employees and shareholders. Corporate Values Social Responsibility Excellent Service Attitude Growing Unity Loyalty Learning 4

5 Business Operation Review Multi Level Marketing ( MLM ) Wholesale Retail Manufacturing & Others 5

6 MLM Segment 6

7 Core Drivers MLM Offering Fair and Attractive Commission Scheme, up to 67% payout ratio; Offering Quality and wide range of products; Offering Attractive Overseas Incentive Trip annually; Strong corporate branding Sahajidah Hai-O clearly differentiate MLM business model with other divisions; Effective training; Resilient Distributors Force & Focused Management Team; Leverage on IT to improve efficiency and CRM; E-commerce, Digitalisation & Social Selling. SHOM is committed to fostering entrepreneurship skills in Bumiputra and encourage dealers make this business as a career of choice. 7

8 One of the leading Home-grown MLM companies in Malaysia HQ in Klang, Selangor Wawasan Hai-O; Regional offices / branches in Jakarta - Indonesia, Brunei & Singapore; >160,000 active members (FYE30/4/2017 : 140,000); Over 34 stockists & branches nationwide with CIS; About 80% members are Bumiputra & majority are female; 8

9 MLM -Key Success Factors Our strategies to Recruit, Retain & Reward members contributed to the overall success of the growth in membership: Total 160, Oct

10 MLM - Key Success factors Group continue to enhance its web-based CRM System and software to facilitate the members to build its business nationwide, anywhere, anytime through online store; Added / upgraded 4 regional Distribution Centre (Johor, Sabah, Penang and Kuantan) during FY2017 improved physical presence; 10

11 MLM -Key Success factors Dynamic marketing activities Overseas incentive trip campaign which attract more than 400 pax of qualifiers (Italy Trip); Incentive Trips (Gold Coast, Australia) 500 pax; Current Incentive Trip campaign Korea (July October 2017) (target 800 pax) 11

12 Dynamics Products Line-up Continue focus on health, wellness, and lifestyle range of products New Products include : infinence Fashion Hijabs (new design) infinence Skincare Series infinence Fashion & Leather goods (Shoes & Handbag) F&B (Min Cha) MLM -Key Success factors 12

13 New Brand infinence New Products Planning Skin Care Series Others Hijab & Accessories infinence Leather Goods Foot Wear/ Insole 13

14 Star Product 14

15 Health supplements & Nutrition Food 15

16 Wellness Products 16

17 Beauty, Skin Care & Personal Care 17

18 Extended product range - Seasonal Products 18

19 New Product: Min Cha (Nov 2017) 19

20 Skincare, Cosmetic and personal care - extension of products range 20

21 MLM Products & Sales Strategies Continue to collaborate with a well known local designer to roll out more fashion wear and related products, and other trendy lifestyle range of products (R&R, DJC, Fazura); In conjunction with the MLM division 25 years anniversary celebration, the division carry out grand sales promotions to attract more buying activities and participants. 21

22 Wholesale 22

23 Wholesale 100 wholesalers and 2,000 retailers including Chinese Medical Halls, Restaurants, Pharmacies and Modern Trade Channels; Exclusive Distribution Rights for over 50 renowned brands of Chinese Medicines, health tonic, tea and healthcare products. Centralised purchasing support for the MLM & Retail Segment. 23

24 Wholesale Strategies Strengthening product agencies Expanding e-commerce sales Promoting healthcare products for young customers 24

25 Wholesale Strategies Explore further business opportunities with our principals & business partners to widen our products distribution base and strengthen our agencies relationship To reinforce Hai-O branding and further entrench into younger consumer market More aggressive use of E-commerce platform with regular updates & promotional activities from social media 25

26 Retail 26

27 Retail A leading herbs & healthcare products chain stores in Malaysia; 56 outlets, including 7 franchise; Carry an extensive range of Traditional Chinese Medicines (TCMs), teas, health tonic, wines, gift packs or hampers and other healthcare products; As part of quality service, also provide advice on TCMs to customers. Chinese physician at selected retail outlets to provide value added services in the form of general medical consultation and product knowledge. 27

28 Retail Strategies Improve product mix to focus on high margin house brands, either manufacturing by In-house GMP factory or external OEM; House-brand products contributes >40% of retail sales; 1-3 new outlets annually depends on availability of strategic location and resources; Provision of Chinese Physician TCM consultation as value-added services; Upgrading CRM Program for membership management and setting A&P strategies. 28

29 Manufacturing & Others 29

30 Manufacturing 1 st Company awarded with GMP TCM factory status in Malaysia; Maintained 2 GMP plants cater for Halal and Non-Halal products; Produce quality traditional pharmaceutical products and food supplements; Supply to in-house and OEM customers. Services include product MAL registration and in-house product QC; ISO 9001/ GMP certified, FDA Registered. 30

31 Manufacturing The new GMP plant in Jalan Kapar Klang fully commissioned in 2015 and has obtained HALAL certification for several products; Support the products development for MLM & Retail Segments. Expect higher contribution in near future. 31

32 JV TCM Clinic Tong Ren Tang (3 outlets) Established since Qing Dynasty (Year 1669); Listed in HK and Shanghai; GMP status awarded; Provide qualified medical practitioners from China; Sole distributor of Tong Ren Tang products. 32

33 Awards & Accolades Forbes Asia Best Under A Billion for 4 consecutive years ( ) Anugerah CSR Perdana Menteri 2009 (Honourable Mention for Outstanding Work in Empowerment of Women Asean Corporate Governance Transparency Index, Findings & Recognition Merit Award for AGM Conduct & Minutes Disclosure by MSWG Best Under Billion Awards Best in Transparency by Focus Malaysia AREA (Asia Responsible Entrepreneurship Award) under Social Empowerment Category 2016 by Enterprise Asia 33

34 Awards & Accolades 34

35 Dividend Policy Dividend policy to distribute at least 50% of the profit for the year as dividend remains unchanged; FY2015 : Higher dividend payout (100%) (15 sen) - to reward our shareholders commemorating Hai-O s 40 th anniversary; FY % payout ratio ( 15 sen); FY % payout ratio ( 16 sen); FY2018 single tier interim dividend of 6 sen. Hai-O Corporate Section Update 35

36 36

37 Business Strategies & Prospect We remain optimistic to deliver positive results amidst the challenging business environment. Focusing on core business healthcare, wellness, fashion lifestyle, skin care and personal care; Continuous Distribution Network Expansion ; Enhance Talent Capabilities Membership growth and productivity. Continuous product development & brand building -- enhance profit margin; Leverage on IT, Digitising Operating Platforms to improve operational efficiency; 37

38 Q&A Thank You Wisma Hai-O, Lot Batu 2, Jalan Kapar Klang, Selangor D.E. T : F :