Best World

[Boon]

“我看过很多人遇到危机时，就马上气馁逃避。其实，遇到危机有财务损失并不要紧，最重要的是不能失去信心和积极态度。因为危机往往也是商机，只要你能保持积极乐观的精神，毫不畏惧地面对大小挑战，你内心的世界将会变得更强大.”


China only allows DS based on single-level cmpensation structure.
Do you see it as a crisis, opportunity and challenge which you would embrace?
Or do you see it as a nuisance which you would ignore, after all, it’s much easier to take short cut by doing what you are good at - the multi-level compensation way or the 663 way - isn’t it?
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说到近期股价表现最亮眼的上市公司，全美世界必然是其中之一。公司股价从去年初的0.33元左右，在今年5月涨至近3元，之后该股一拆为二，股价仍继续高涨至1.62元。
虽然过去几个星期，全美世界因为中国方面取缔传销活动和“网上资金盘”作业消息，导致公司股价连续几天暴跌，一度跌破1元价位，但随着范文瑂和另一大股东、全美世界联合主席陈俐蓉各自收购20万股公司股票，股价也逐步回弹至1.18元的价位。
整体而言，全美世界股价一年多来涨了近10倍，范文瑂的身家自然也水涨船高。但范文瑂说：“所谓身家大涨其实只是账面价值罢了，因为我持有的公司股票不能轻易套现。所以即便公司股价大涨，我却没有多大感觉，只觉得公司规模扩大，自己现在的压力更大了。”
“反倒是我的‘股东’朋友，因为买了我公司股票赚了一笔，比我更加开心。好几次我出席宴会时，都会碰到朋友来道谢说，他们因为买了全美世界股票而赚钱。我也为他们感到高兴。”
对范文瑂来说，让朋友获益和社会增值，是更有意义的事情。

Do the right things => play by the rules => do not mislead investors => how the market reacts, it is not the company's fault !

Do the wrong things => don't play by the rules => misled investors => how the market reacts, the Company could be blamed and sued by investors who have suffered losses as a result of being misled by the Company.

How long can a Company keep on misleading the market and at the same time control the share price such that every investor is a winner?

It was a multi-bagger for many but share price has dropped from 1.62 to 1.18……WHY ?

Because of crack down in China ? Ha-ha!

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“虽然中国最近展开传销整治行动，范文瑂强调，全美世界一直是以产品导向来运作，尤其在中国通过代理商的美容店零售产品，经营品牌。全美世界为直销所做的准备工作完全符合当局规定。公司在所有国家，包括中国，都不采用金字塔传销方式。”

No one says your China business is not product focus or is a pyramid scheme. Looks like another company propaganda to me.....

[Boon]

This video merely confirms that YM PD used to own a chain of 3 beauty salons.  

[Boon]

Interesting, Eros Hsu' China "involvement" was much earlier than I thought..........................

[Boon]

Product focus + online sales + development of downline = 传销   

Nothing related to DS
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云集微店强势联盟强生等30余品牌 传销“阴影”难消

2017年09月06日09:01  中国网财经  作者：王君

[font=微软雅黑][Image: 153_4380682_2b3a2aa43b3e9a904749b0fb65f8f224.jpg][/font]


中国网财经9月6日讯(见习记者 王君)社交电商平台云集微店近期走到了舆论的风口浪尖，刚刚被监管部门认定为传销，就逆势要与30家大型企业合作扩张业务。

　　战略联盟30余品牌

　　云集微店于8月30日在杭州召开“新零售• 新电商• 新未来”——云集微店2017核心品牌战略合作发布会。

　　据媒体报道，欧莱雅、强生、圣牧、飞利浦、九阳、百草味、科沃斯等近30家国内外一线品牌在发布会上与云集微店签订战略合作。作为战略签约品牌方代表，强生、美迪惠尔、大希地三家品牌商在会上发言。

　　为此，中国网财经记者致电云集微店相关负责人，询问是否与强生、高露洁、圣牧、飞利浦、科沃斯等国内外知名品牌签署战略合作协议，对方给予肯定。当记者追问是否与总部签署协议时，云集微店相关负责人称是与中华区签署合作协议。

　　强生(中国)在接受中国网财经记者采访时也表示，刚刚与云集确定了合作关系。但飞利浦、科沃斯等文中提到的所谓会在发布会上签署战略合作协议的企业，皆没有给予正面回应。

　　传销“阴影”难消

　　虽然云集微店业务层面迅猛扩张，但传销“阴影”难消。

　　2017年8月22日，浙江省工商局发布的“红盾网剑”专项执法行动十大典型案例的第一案例就是滨江监管局查处浙江某网络科技有限公司网络传销案。

　　公告显示，上述网络公司开发的移动购物平台—“云集微店”APP于2015年2月12日开始上线试运营，从2015年3月26日开始，当事人设定网络微店运作模式为：每人缴纳一年365元的平台服务年费，可以成为“云集微店”的店主(实际上并不开店)，成为所谓的“店主”后，可以邀请其他人员加入成为新店主。该公告明确指出“云集微店”的晋级制度已形成上下线关系。评定该网络公司利用“云集微店”，以 “交入门费”、“拉人头”和“团队计酬”的行为开展网络传销行为。

　　上述网络公司的行为违反了《禁止传销条例》第二十四条规定，被处罚人民币9,584,106元。

　　云集微店CEO肖尚略在接受其它媒体采访时侧面证实了上述企业即为云集微店。肖尚略曾说，“工商部门认为云集微店的电商模式没有问题，只是之前采取的APP销售模式即店主发展模式有传销嫌疑。”。

　　某位不愿透露姓名的专业人士表示，判断是否属于传销，可以通过其是否需要交纳或变相交纳入门费；是否分层级，直接或者间接发展下线，从而根据下线获利，上线直接或间接提取报酬等行为来判定。 

(责任编辑：王雪英)
[img=0x0]http://image.finance.china.cn/picupload/2017/0309/1_253094727_20170309135804.png[/img]
http://finance.china.com.cn/news/20170906/4380682.shtml
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认清入伙费、拉人头、团队计酬三大特点，这些知识教你远离传销

[font=微软雅黑]来源：新民晚报      [font=微软雅黑]记者：[/font][font=微软雅黑]张炯强[/font]     [font=微软雅黑]编辑：[/font][font=微软雅黑]任天宝[/font]     [font=微软雅黑]20[/font][/font]

http://newsxmwb.xinmin.cn/kejiao/2017/09...62125.html

[Boon]

Thank you boon for additional information.

I read this from the link you posted: 

The salespeople said they would also earn a bonus on the sales of each person they brought into the organization. If the salesperson made 8,000 yuan (about $1,300) in net sales and enlisted four people, who each also made 8,000 yuan in sales, he would get a 3,360 yuan ($550) bonus (18 percent of the total 40,000 yuan in revenue minus the 12 percent, or 960 yuan, that would go to each of his four recruits).

It’s not correct to say a salesperson would get a bonus for sales made by recruits, Amway’s Balfour says. The online document isn’t an Amway document and isn’t accurate, he says. The company has two categories of distributors in China: representatives, who earn commissions solely on their own sales, and authorized agents, individuals who register with the government as businesses.
“Sales representatives are true direct sellers in that they’re going out and selling the product to family and friends,” Balfour says. “Authorized agents actually have a fixed location.”
The sales from agents’ shops are counted as personal volume, he says. Under Chinese law, Balfour adds, “networks and groups are not allowed,” so Amway structures its business differently than in the rest of the world.
China’s regulations stipulate that “the remuneration paid by the direct-selling enterprise to its direct salesman shall be calculated only based on the income of the products sold to the consumers.” - https://www.washingtonpost.com/business/...8dc8ff92b7ditio

If Amway China can do it, why cant BWI?

Unleashing the sales force: In recent years, Best World has been getting the ground ready to unleash a surge in direct-selling of its products in China. 


It has been reaching out to owners of, for example, nail spas, beauty salons, lady spas and hair salons. It has introduced and sold them Best World skin-care products, which they have in turn promoted and sold to their own customers.

This accounts for the $22.4 million revenue (up 165% y-o-y) in 1H2016 attributable to the China market.

Now that Best World has secured a direct-selling licence, these business owners are poised to become distributors whose customers can in turn also become direct sellers of Best World skin care products.

In direct-selling parlance, the business owners are the "upline" while their customers are the "downline". "There's now a huge difference. Instead of being the owner of one store selling to, say, 200 customers, now a hair salon owner, for example, has 200 downlines which effectively is like having 200 stores! These Chinese are quick to recognise this as they are very business savvy, and they have signed on with us," said Mr Huang. - https://www.nextinsight.net/story-archive-mainmenu-60/938-2016/10899-best-world-how-the-china-direct-selling-licence-will-unleash-sales-surge

All the best to BWI shareholders and BWI management. Hope that Q3 result will speak for itself. =)

"In direct-selling parlance, the business owners are the "upline" while their customers are the "downline". "There's now a huge difference. Instead of being the owner of one store selling to, say, 200 customers, now a hair salon owner, for example, has 200 downlines which effectively is like having 200 stores! These Chinese are quick to recognise this as they are very business savvy, and they have signed on with us," said Mr Huang." 

In China 传销 parlance, this development of upline / downline relationship is considered illegal. 

Isn't it fair to say that the COO is trying to mislead investors by painting an overly optimistic scenario, an outcome which is legally impossible but possible if operated illegally ?

[mslee888]

Another bullish report form CIMB.

http://research.itradecimb.com/index.php...65&bb=file

Key points from the report:

Little to no impact from “pyramid scheme” campaign Management reiterated that BW is not a pyramid scheme as its direct selling business has differing characteristics. It cited BW being awarded a direct selling licence by China’s Ministry of Commerce (MOFCOM) in Nov 2016 as an indication it is in full compliance with China’s rules and regulations on business operations. Approvals to extend geographical coverage of BW’s direct selling licence beyond Hangzhou are also ongoing, an indirect signal that licensed direct selling players are not the target of this campaign. 

No noticeable slowdown in consumer sentiment There was no noticeable slowdown in consumer sentiment post the “pyramid selling” crackdown campaign by China’s State Administration for Industry & Commerce (SAIC) that started on 15 Aug. Pyramid selling has always had a negative connotation in the Chinese market and the government crackdown is nothing new. Hence, the campaign is unlikely to have an impact on BW’s earnings, according to management. 

Conversion to direct selling model on track Management targets to add key cities in two/three other provinces under the existing direct selling licence by end-2017F. It plans to begin the conversion to direct selling model in 1Q18F. Management plans to implement this process in phases over the course of two years, given the size of the Chinese market

DO read with a pinch of salt...DYODD

[Boon]

Interesting, Eros Hsu' China "involvement" was much earlier than I thought..........................

Eros Hsu (Ranking = PD) - 2016 Convention video in Macau:
He was a SBM when he first went to develop the China market
Being introduced by the MC as having achieved sales of SGD 37 m in FY2015.
Being introduced by the MC as Leader of Chao Yue Network Team in China.
He acknowledged that China region is led by Jansen Teng
He acknowledged that he is leading network teams in Taiwan (Right hand) and a network team in China (Left Hand).
He was preaching the 663 system for recruiting downlines to both his Taiwan and China network teams.
He conceived Taiwan market to be an egg, and the China market to be a big Chicken. And the ideal solution and tool to embrace this huge chicken is the “ 663 system”.
He attributed the success of his Taiwan network teams sales to the “663 system” and he reckoned this success could be duplicated in China by his China Chao Yue Network team using the same system.
 
In short, is it not fair to say that Eros Hsu and his Chao Yue Network Team (including DMJ/YM) in China have been engaging, using the 663 system, in the development of downline and network team, which is considered illegal in China?

[Value Explorer81]

https://www.nextinsight.net/story-archiv...-in-2h2017

Best World's chief operating officer, Huang Ban Chin, didn't overstate things when he said in an interview with Business Times last week: “The company is on track to hit analyst targets of S$41 million to S$44 million of net profit for 2017. This translates to a 20-30 per cent improvement from 2016.” 

What drove profit growth in 1H2017 was demand for Best World’s DR’s Secret skincare range of products in China. This will continue to be the thrust in 2H2017, as Best World widens its outreach to Chinese consumers.

Seems like BWI is not affected by the crackdown in China and they are on track to achieve $41mm to $44m NPAT in line with analyst estimates. A company that continue to deliver value to both its customer and to society will continue to thrive and do well. BWI stock price is also starting to recover from the crash.

[Boon]

https://www.nextinsight.net/story-archiv...-in-2h2017

Best World's chief operating officer, Huang Ban Chin, didn't overstate things when he said in an interview with Business Times last week: “The company is on track to hit analyst targets of S$41 million to S$44 million of net profit for 2017. This translates to a 20-30 per cent improvement from 2016.” 

What drove profit growth in 1H2017 was demand for Best World’s DR’s Secret skincare range of products in China. This will continue to be the thrust in 2H2017, as Best World widens its outreach to Chinese consumers.

Seems like BWI is not affected by the crackdown in China and they are on track to achieve $41mm to $44m NPAT in line with analyst estimates. A company that continue to deliver value to both its customer and to society will continue to thrive and do well. BWI stock price is also starting to recover from the crash.

Without the “illegal multi-level-compensation structure”, how would the “real” demand be? How would the “real” sales figure be? “The COO didn’t overstate things”, it got to be kidding, I reckon.

[Value Explorer81]

https://www.nextinsight.net/story-archiv...-in-2h2017

Best World's chief operating officer, Huang Ban Chin, didn't overstate things when he said in an interview with Business Times last week: “The company is on track to hit analyst targets of S$41 million to S$44 million of net profit for 2017. This translates to a 20-30 per cent improvement from 2016.” 

What drove profit growth in 1H2017 was demand for Best World’s DR’s Secret skincare range of products in China. This will continue to be the thrust in 2H2017, as Best World widens its outreach to Chinese consumers.

Seems like BWI is not affected by the crackdown in China and they are on track to achieve $41mm to $44m NPAT in line with analyst estimates. A company that continue to deliver value to both its customer and to society will continue to thrive and do well. BWI stock price is also starting to recover from the crash.

Without the “illegal multi-level-compensation structure”, how would the “real” demand be? How would the “real” sales figure be? “The COO didn’t overstate things”, it got to be kidding, I reckon.

Illegal would be base on your assumption which can be right or wrong. So long as BWI can continue to sell their products in China and able to get more and more license covering more cities in China, the PROFITS would be REAL which can be returned to shareholder as dividends and the value of the business would continue to grow.