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Best World
11-08-2018, 09:36 AM. (This post was last modified: 11-08-2018, 10:13 AM by Boon.)
Post: #831
RE: Best World
The “China Wholesale Model” deliberately created disappeared in thin air just like that …….................................Ha-ha!
______________________________________________________________________________________________________________
 
FY2017 Results Announcement:
 
“As mentioned previously, the Group is in preparation for the conversion of the Export segment to Direct Selling”………………..(Section 8 ; page 16)
 
“As previously announced, conversion of the Export business to Direct Selling shall be implemented in phases. Management expects first phase conversion to commence during the first half of FY2018. Revenue from the Export Segment may decline during the course of conversion, as the Group will concurrently export to the Export Agent and our China subsidiary;”…………….(Section 10 ; page 19) 
                  
“For 1H2018, exports to China may be categorised as China Wholesale as we will be importing China orders through our China subsidiary, Best World (China) Pharmaceutical Co., Ltd (formerly known as Best World (Zhejiang) Pharmaceutical Co., Ltd.); “…………………….(Section 10 ; page 19)
 
AR2017 page 12:
 
“For FY2018, while the Group’s China management continue to work with our distributors to set up more BWL Experience Centres in various cities located throughout China where we already have established good market presence, we will also progressively convert our current export model in China to a new business segment, otherwise known as China Wholesale. Given that direct selling business model in China is unique to the country, we deliberately created this segment to differentiate it from the Direct Selling we practice in all other markets
 
1QFY2018 Results Announcement:

“In line with management’s commentary in Section 10 of the Group’s last results announcement, Group Revenue for 1Q2018 was 43.3% lower compared to the same period last year, primarily due to minimal export to China as the Group commenced its conversion from the Export segment to the new China Wholesale segment.………………………..(Section 8 ; page 12)
 
“In line with the last results announcement, the Group took its first step in converting the Export segment into the new segment of China Wholesale in 1Q2018.During the……………..(Section 8 : page 13)
 
“As explained above, as a result of delayed revenue recognition, revenue from China declined 68.2% in 1Q2018 vis-à-vis the same period last year as the Group entered into a transition for the conversion of the Export segment into the new segment of China Wholesale”………………(Section 8 ; page 14)
 
“Although the Group’s top and bottom line has been impacted in 1Q2018 due to the conversion of its business model from Export to China Wholesale and since actual demand for the Group’s brand offerings in China is still growing, barring any unforeseen circumstances, management is cautiously optimistic that the China Wholesale segment will contribute to the growth in the bottom line for the Group in 2H2018.”……………………………(Section 10 ; page 15)
 
2QFY2018 Results Announcement:

In line with Section 10 of the Group’s 1Q2018 Results Announcement, the Group’s transition to the new Franchise Segment in China extended into 2Q2018, resulting in lower Export Segment revenue as compared to 2Q2017. Group revenue for the reporting period ended 30 June 2018 declined 39.6% vis-à-vis the same period last year primarily due to the aforesaid transition which delays revenue recognition to 2H2018”………………….(Section 8 ; page 13)
 
As mentioned previously, due to the transition towards the new Franchise business segment resulting in delayed revenue recognition, revenue from China decreased from $26.6 million in 2Q2017 to $6.2 million in 2Q2018”………………….(Section 8 ; page 16)
 
“The completion of 1H2018 marks a new milestone for the Group’s China operations with the commencement of the Franchise Segment which replaces the Export Segment from 2H2018 onwards.”,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,(Section 10 ; page 18)
 
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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11-08-2018, 10:15 AM. (This post was last modified: 11-08-2018, 10:23 AM by chialc88. Edit Reason: color )
Post: #832
Rainbow  Thank you Boon, thank you our valuebuddies.
全美世界 Best World - a 10 bagger...

I need to take a pause before going on.
A lot of emotion rush up and it's not easy to speak my mind.


#1 Best world is a company with a good heart.
Fellow valueinvestors should re-read Dora's story on how she got her name "Dora".
Why she startup a MLM in Singapore with Doreen.
And, most importantly, how she personally coaches all her to change their mindset;
stand tall and bash out a path for themselves and their family.

Best world slogan "The best is yet to be!" shows the +ve attitude that our dearest looking forward to,
each and everyday.   

#2 Dora is BWL top trainer.
Needless to say, Dora had trained and hand-picked lots of  all these while.
She is the icon and role model -not just for Best World but also motivated a lots of other people.
Will she continue to push? 
Or will she starts to watch Korean drama and leave it to other more capable  managers?

贝, 油!


China Direct Sell model presented a tremendous growth story.
Timeline was given during the initial euphoria.
At this moment, Wholesale model which is known transition phase had completed 100%.
It's challenging to get rid of the Export model until today.
We shall see whether China Export revenue is still there at Q3FY18.
I will not be surprise that it is still there as someone who stand to benefits 
from the Export model will not rest without putting up a good fight.

Q3 result will show how much control HBC really have in China.
I hope China export is zero but...


Franchise model was a surprise.
No much announcement until it's already in motion.
Looking back, it seems to be a natural step for Wholesale model.
I asked the question in my mind.
Why is it so easy to get a Franchise in China?
And, then why is it so difficult to get  ell in China?

If, like boon says, Experience center and Saloon become Franchisee...
then, nothing changed?

That is the key to all these questions.
Selling in China is very tough.
What makes Best World different from her Chinese Competitors?
How could Best World leverage on Wholesale/Franchise model to grow its market
and winning against all those hungry competitors?

Once, I thought Direct Selling is the answer.
Now, with the swift launching of Franchise model, I think twice.

(I mean so quickly get the license, don't you agree? So fast can get the license?)



With the euphoria of NDP still lingering in the back of my mind, 
I couldn't resist to share a great photo:
[Image: Fireworks.JPG] 

plus a reminder that Singapore is full of opportunities.
Seek and we shall find:




Thanks you for reading.
Have a nice weekend.
感恩

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11-08-2018, 11:12 AM.
Post: #833
RE: Best World
(08-08-2018, 04:36 PM)PGL Wrote:
(10-11-2014, 10:40 PM)Oidyllic_yawster Wrote: People @ NextInsight are bullish on Best World....

http://www.nextinsight.net/index.php/for...=366#21212

Vested.

Like Best World for the intrgrity, professional competence and shareholder friendliness of Management and Founders.Believe the business they are in has potential in China.
They own the brands.Cash Flow from operations is up , which is a good sign.
Expect this year to be down on Revenue but up at the Net Profit Level as the switch from Export 
To Wholesale level finally works its way through.but not fully until q1 2019.
Also the selling price and margins should be higher with the new model, and there is less risk of overstocking as sales mirror  more closely sales to the consumer.srick with it! PGL

"Cash Flow from operations is up , which is a good sign."

Operating Cash Flows before Changes in Working Capital is actually down

Operating Cash Flows after Changes in Working Capital is up mainly due to significant drop in trade receivable, as result of payments received from the China Agent......................................
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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11-08-2018, 10:13 PM.
Post: #834
RE: Best World
(08-08-2018, 04:36 PM)Last PGL pid= Wrote:
(10-11-2014, 10:40 PM)Oidyllic_yawster Wrote: People @ NextInsight are bullish on Best World....

http://www.nextinsight.net/index.php/for...=366#21212

Vested.

Like Best World for the intrgrity, professional competence and shareholder friendliness of Management and Founders.Believe the business they are in has potential in China.
They own the brands.Cash Flow from operations is up , which is a good sign.
Expect this year to be down on Revenue but up at the Net Profit Level as the switch from Export 
To Wholesale level finally works its way through.but not fully until q1 2019.
Also the selling price and margins should be higher with the new model, and there is less risk of overstocking as sales mirror  more closely sales to the consumer.srick with it! PGL

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11-08-2018, 10:15 PM.
Post: #835
RE: Best World
(11-08-2018, 11:12 AM)Boon Wrote:
(08-08-2018, 04:36 PM)PGL Wrote:
(10-11-2014, 10:40 PM)Oidyllic_yawster Wrote: People @ NextInsight are bullish on Best World....

http://www.nextinsight.net/index.php/for...=366#21212

Vested.

Like Best World for the intrgrity, professional competence and shareholder friendliness of Management and Founders.Believe the business they are in has potential in China.
They own the brands.Cash Flow from operations is up , which is a good sign.
Expect this year to be down on Revenue but up at the Net Profit Level as the switch from Export 
To Wholesale level finally works its way through.but not fully until q1 2019.
Also the selling price and margins should be higher with the new model, and there is less risk of overstocking as sales mirror  more closely sales to the consumer.srick with it! PGL

"Cash Flow from operations is up , which is a good sign."

Operating Cash Flows before Changes in Working Capital is actually down

Operating Cash Flows after Changes in Working Capital is up mainly due to significant drop in trade receivable, as result of payments received from the China Agent......................................

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11-08-2018, 10:19 PM.
Post: #836
RE: Best World
Yes. You are right what matters is “Operating Cash Flow af,TER working capital changes” and this is up.I should have specified this.
Why does it matter, because it has nor always been up in the past, and cash Flow is the acid test.
I mean Cash Flow after working capital changes, or better still Free Cash Flow.
Stich with it.Patience will pay off.Vested.PGL

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12-08-2018, 09:06 AM. (This post was last modified: 12-08-2018, 09:36 AM by Boon.)
Post: #837
RE: Best World
(11-08-2018, 10:19 PM)PGL Wrote: Yes. You are right what matters is “Operating Cash Flow af,TER working capital changes” and this is up.I should have specified this.
Why does it matter, because it has nor always been up in the past, and  cash Flow is the acid test.
I mean Cash Flow after working capital changes, or better still Free Cash Flow.
Stich with it.Patience will pay off.Vested.PGL

What matters? Both matter

But "OCF BEFORE WCC" matters more than "OCF AFTER WCC"......................Ha-ha!

OCFBWCC decreased means business generated LESS cash (key drivers are revenue and margins)
WCC increased means business needs LESS cash to "work" (key drivers are change in inventories, trade and receivables, trade and payables)
OCFAWCC = OCFBWCC + WCC
OCFAWCC has increased NOT because business has generated MORE cash but business needs Less cash to "work"
Ability of business to "generate" cash matters more .....................but it has decreased.
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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