Best World

[chialc88]

I am the master of my fate, I am the captain of my soul - Invictus by William Ernest Henley

WJ wrote: maybe some folks here started to take note of it in 2013?

Are you talking about me?

Based on my trading journal, my first bwl was brought on 6 Dec 2013 @ $0.18748.



Everyone like to talk about their winning stake and projected a glamorous image.
What a feeling.
Shiok!

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I have a confession.

Other than Noble which I double down at $0.10, 
I also have a lot of bad trades too.

This one clearly is a favourite of everyone (including me now)
- follow relatives recommendation.
The fateful day was 14 Sep 2009 Pacific Andes @ $0.2728

Needless to says, the typical result is not going to be +ve
and for my case, P11 is suspended.
Buying P11 is ignorant at works but mainly driven by greed. 

Another favourite is turn-around play.
The fateful day was 
10 Feb 2014 brought at $0.027
managed to sell some at $0.03
but majority gone case as KT9 is suspended.

Buying KT9 is clearly ignoring d.o.g.'s warning
and greed played a large part.

Aunty Lan is definitely a stock owned by many many Singaporean.
It was one of the hottest stocks in SGX with a PE of 3-digits
                        (peek-a-boo "583")
The fateful day was a Monday which I brought 5ET.
100% greed at play.
Coincidentally, 5ET just gotten suspended 2 weeks ago.

---

If you think that those were the worst trade that I have,
think again.

There are much much more/worst that I couldn't even think about them.


I repeat: I'm the master of my fate, I'm the captain of my soul.

The market is ruthless.
Do the right things.
And, do not fall in love with ANY stocks.



Am I a dreamer?
Am I defeated?
Should I be waiting for my love?

[vingaard]

My share of bad investments:
Kingsmen Creatives;
CAO (many years back when it went bankrupt);
Informatics;
Tat Hong;
OKP;
Silverlake Axis (did not exit in time despite over 100% gains, due to greed);
KS Energy (luckily cut loss, so my loss was limited to 60%);
Ouhua;
Lifebrandz;
Hong Fok;
A-Sonic.....

The list goes on....



Sent from my iPad using Tapatalk

[Boon]

So the first SDA (Star Diamond Ambassador) of BWI/BWL is from China where DS revenue is still zero. How could that have happen under the "export model" Ha-ha!
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[Boon]

I have posted this article before, but I think it is worth revisiting for a different reason - from risk management perspective……
 
Questions:
1)  How relevant is this article to BWI’s “export model” in China?
2)  What are the risks to investors/shareholders?
 
____________________________________________________________________________________________
What’s going on in China?
May 24, 2016
http://mlm.com/whats-going-on-in-china/
 
Expanding into a new country means adapting your commissions and operations to suit the market. Sometimes the adaptations you’ll need to make are small; sometimes they’re big. Entering China means big changes, but their direct selling market is on the rise, so let’s break down their business landscape.
 
China has a long history of conflict with the direct sales and multilevel marketing industry. In 1998, China banned direct selling. They lifted the ban in 2005, with a few stringent regulations. The most influential of these regulation prevent companies from paying commissions on more than one level and set the legal, single-level commission at 30%. This is lower than the usual overall payout of US companies (approximately 40%), but much higher than the individual commissions distributor’s make on volume generated in their organizations.
 
Restricting multilevel commissions takes a pretty big bite out of the motivation that we usually see driving distributors. Getting paid for multiple levels means having the ability to steadily grow your income by changing your efforts toward leadership rather than constantly upping the amount of time you put into personally making sales. Chinese distributors admittedly get a bigger chunk of each sale they make, but they have to make each of those sales personally. Furthermore, if we look at this equation from a corporate perspective, a company’s ability to craft compensation strategies which incentivize specific, desired distributor behaviors, is nil under these restrictions.
 
These seem like the kinds of restrictions that could kill a new venture in the crib, but the sales numbers tell a different story. Despite the restrictions, the World Federation of Direct Selling Associations reported more than 33 billion dollars (USD) retail sales in China (2016).  China is now even with the United States in retail direct sales.
 
Several sources are reporting that distributors in China—working for companies which have not officially moved into China—make multilevel commissions by signing up using addresses in Taiwan or Hong Kong. MLMs are not restricted in either of the two, so enrolling as though you operate there allows you to circumvent China’s MLM ban. In fact, it seems that some companies which do have official presences in China have distributors operating this way………………..
 
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[chialc88]

Quote: 
1)  How relevant is this article to BWI’s “export model” in China?
2)  What are the risks to investors/shareholders?

From the article, 1) is pretty clear without much trying.

So, 2) what are the risks to investors/shareholders?


There's something out there
I can't resist
I need to hide away from the pain
There's something out there
I can't resist
The sweetest song is silence
That I've ever heard

[Squirrel]

I have posted this article before, but I think it is worth revisiting for a different reason - from risk management perspective……
 
Questions:
1)  How relevant is this article to BWI’s “export model” in China?
2)  What are the risks to investors/shareholders?
 
____________________________________________________________________________________________
What’s going on in China?
May 24, 2016
http://mlm.com/whats-going-on-in-china/
 
Expanding into a new country means adapting your commissions and operations to suit the market. Sometimes the adaptations you’ll need to make are small; sometimes they’re big. Entering China means big changes, but their direct selling market is on the rise, so let’s break down their business landscape.
 
China has a long history of conflict with the direct sales and multilevel marketing industry. In 1998, China banned direct selling. They lifted the ban in 2005, with a few stringent regulations. The most influential of these regulation prevent companies from paying commissions on more than one level and set the legal, single-level commission at 30%. This is lower than the usual overall payout of US companies (approximately 40%), but much higher than the individual commissions distributor’s make on volume generated in their organizations.
 
Restricting multilevel commissions takes a pretty big bite out of the motivation that we usually see driving distributors. Getting paid for multiple levels means having the ability to steadily grow your income by changing your efforts toward leadership rather than constantly upping the amount of time you put into personally making sales. Chinese distributors admittedly get a bigger chunk of each sale they make, but they have to make each of those sales personally. Furthermore, if we look at this equation from a corporate perspective, a company’s ability to craft compensation strategies which incentivize specific, desired distributor behaviors, is nil under these restrictions.
 
These seem like the kinds of restrictions that could kill a new venture in the crib, but the sales numbers tell a different story. Despite the restrictions, the World Federation of Direct Selling Associations reported more than 33 billion dollars (USD) retail sales in China (2016).  China is now even with the United States in retail direct sales.
 
Several sources are reporting that distributors in China—working for companies which have not officially moved into China—make multilevel commissions by signing up using addresses in Taiwan or Hong Kong. MLMs are not restricted in either of the two, so enrolling as though you operate there allows you to circumvent China’s MLM ban. In fact, it seems that some companies which do have official presences in China have distributors operating this way………………..
 
_____________________________________________________________________________________________

Thanks Boon for highlighting this. Your posts have always been very enlightening for analyzing Best World. Perhaps this is a culpable reason behind the meteoric rise in "export" revenue, especially if it can keep up the momentum in 2Q reporting. It would be a series of missteps if the above is really happening at BWI. It is time to revisit and take into account the regulatory risks associated with this company although I would highly doubt that the management would do anything to jeopardise their license which they have taken years to procure.

[Boon]

Under the export model, BWI exports its BWL line of products to its China agent, whom BWI called “Export Agent” in its financial reports.
 
Export revenue is recognized by BWI (Singapore) once the products are shipped.

The Export Agent, sells the products to its clientele - traditional business owners of hair salons/beauty salons/nail salons/spas, across China.
 
The Export Agent’s clientele sell the products to their customers through their hair salon chains, beaty salon chains, nail salon chains and spas
 
Development of clientele for its Export Agent is driven by BWI’s market support staff, product trainers together with a few selected leaders of Taiwan. Their involvement is mainly in terms of product trainings, sales techniques training and product presentation etc, on behalf of the agent. The Export Agent pays BWI (Singapore) a service fee for the services rendered.
 
Page 88 of AR2016: Item 6 => Service Fee income for FY2016= SGD 2.401 m
 
Page 12 of 1Q2017 results => Other Operating Income increased by 26.9% mainly due to higher service fees received from the Group’s overseas Export Agent for 1Q2017.
 
In theory, there should not be any “contractual relationship” between BWI (Singapore) and the Export Agent’s distributors in China. Technically speaking, these are NOT BWI’s Distributors over whom BWI has control.
 
But from the convention video, the China distributors are recognized and endorsed by BWI as if they were BWI’s direct distributors according to BWI’s following DS promotion criteria:
 
BWI’s DS model Ranking/Promotion/Recognition criteria:
BA (Business Associate) =>BM (Business Manager) =>SBM (Senior Business Manager) =>SD (Silver Director) =>GD (Gold Director) =>PD (Platinum Director) => SDA (Star Diamond Ambassador).
 
In another words, it could be implied from the convention videos plus the recognition criteria that the China distributors are being paid “multi-level-commission” which is considered illegal in China, am I not right? 
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[brattzz]

is it actually enforceable in china? Multi-level-commission charges in china court? :O :O

[Boon]

POSTED ON 2017/07/01BY JASONIN BUSINESS, NEWS, RESEARCH, NETWORKING
Challenges and Opportunities for Network Marketing in China
http://www.china.globalready.news/5467/c...-in-china/
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[Boon]

is it actually enforceable in china? Multi-level-commission charges in china court? :O :O

However, these “offshore” Network Marketing companies often fail to take into account the potential fragility of their business in China. They prefer to believe (or possibly pretend to believe) that their offshore model allows them to avoid the PRC’s legal restrictions on Network Marketing. Nothing could be further from the truth. If your business is operating in China then you are required to be compliant in China or risk the serious consequences of non-compliance ................

A castle built on sand - that's potentially how fragile "the illegal business operation in China " is, I reckon.......................
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