Best World

[Coco]

Got resources and aggrieved but what if BW founders are unable to serve legal documents on short-seller because its address is unknown? The court process can't initiate. In other words, it is a non-starter.

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BWL - The Company is pleased to announce that it had submitted a resumption proposal to SGX RegCo on 8 November 2020, which addresses concerns in relation to the (a) Independent Accountant’s observations and recommendations; (b) legality of the Company’s sales and distribution model in China; and © lack of clarity in the Company’s financial position.
https://links.sgx.com/FileOpen/2020%2011...eID=638307

Stay home and stay safe, everyone.

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BWL - 9M2020 as at 30 Sep 2020
Rev $344m (vs $266m)
GP  $256m (vs $195m)
NP  $ 69m (vs $ 61m)

While certain markets continue to show signs of easing, the Covid-19 situation remains very volatile for other markets. The Group recognizes its role as a responsible corporate citizen and will not hastily hold any marketing events that might potentially compromise our members’ health. In view of these uncontrollable factors, we remain cautious about the Group’s performance outlook for the next 12 months. 

No dividends have been declared or recommended by the Board for the financial period ended 30 September 2020 as the Board has decided to conserve cash in the face of heightened economic volatility and business uncertainty moving forward, with consideration of the current short and medium term commitments, especially in relation to the construction of our Tuas facility as well as second tranche investment in Pedal Pulses Limited, should the vendors exercise their put option during the put option period.
https://links.sgx.com/FileOpen/2020%2011...eID=638763

Stay home and stay safe, everyone.

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BWL - Transition to Direct Selling Model?

As stated in the Previous Announcement, the Company’s long-term plan is to eventually transition to a direct selling model in China. This will address the potential risks under ChuanXiao and Direct Selling laws in China as observed by the Company’s China legal advisers, Merits and Tree (Beijing) Law Office, in relation to certain features of the Business Model.1 This transition will involve the expansion of the geographical coverage of the existing direct selling licence obtained by 全美世界（中国）药业有限公 司 (Best World (China) Pharmaceutical Co., Ltd.) (the “Direct Selling Licence”) and the list of products covered by the Direct Selling Licence.2 Generally speaking, expanding the geographical coverage of the Direct Selling License will involve establishing branch offices in every China province that the Group intends to operate in, and setting up service outlets in every district of every city in which the Group’s products are to be sold via direct selling.


Stay home and stay safe, everyone.

[dreamybear]

This transition will involve the expansion of the geographical coverage of the existing direct selling licence obtained by 全美世界（中国）药业有限公 司 (Best World (China) Pharmaceutical Co., Ltd.) (the “Direct Selling Licence”) and the list of products covered by the Direct Selling Licence.2 Generally speaking, expanding the geographical coverage of the Direct Selling License will involve establishing branch offices in every China province that the Group intends to operate in, and setting up service outlets in every district of every city in which the Group’s products are to be sold via direct selling.

imho, this transition may cause notable disruption and perhaps also significantly affect its profitability. I think one of the factors for BW's China spectacular performance is due to its successful franchise model.

Costs are likely to increase, and expansion more challenging. If I am not wrong, licences have to be obtained per province or district or city individually in order to operate in that area. If so, this will be quite disruptive.

How will its existing distributors react ? Will some of them jump ship to BW's competitors who have the necessary "DS infrastructure" already in place ? Will BW lose its existing customers due to the new model which needs to adhere to new regulations(e.g. no service outlet in my hometown) ?

The announcement also mentioned the China authorities have suspended DS related licences approvals.

Whither BW ?

As a shareholder, if trading is still unable to resume soon after such a long time, I would hope for an offer for it to be taken private. After all, equities should be liquid(compared to some other financial instruments) and we invest/divest based on our evaluation of risk vs reward. Perhaps another option would be to carve out the China business and list it separately.

[weijian]

As a shareholder, if trading is still unable to resume soon after such a long time, I would hope for an offer for it to be taken private. After all, equities should be liquid(compared to some other financial instruments) and we invest/divest based on our evaluation of risk vs reward. Perhaps another option would be to carve out the China business and list it separately.

I think the "buy and put in milo can strategy" is still the ultimate (and final) litmus paper test for an investment made via fundamental analysis.

[Big Toe]

A few points.

1. Personal opinion there isnt any significant/real core competence with this company. Trader/reseller/ marketer is the best terms to describe the company. In terms of moat, not much.

2. Navigating and doing business in China is complex, extremely complex. Looking at CDL, I can fully appreciate why Mr Kwek Leng Peck,had disagreement with the rest of CDL board over investments in china, namely sincere property. Just repatriation of profits is a nightmare.(not that it is not possible, just that capital controls are highly complex)

3. While this MAY turn out to be rewarding for investors, the risks associated and the number of things that could go wrong is aplenty, way above average risks. It is probably a case of the more you know, the more uncertain it gets. Compare this with Sheng Shiong, you can almost plot a graph of the profits and chances are you get most right in the next 5-10years for Sheng Shiong.

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Best World
Further Extension 
The Company has submitted an application to SGX RegCo for a further extension of two (2) months to convene the FY2019 AGM by 28 February 2021 with regard to compliance with Rule 707(1) of the Listing Manual (the “Further Extension”).

Reasons for the Further Extension 
The Report recommended that the Company’s auditors, Ernst & Young LLP (“EY”) consider the implications of certain matters, including whether any reclassification or adjustments are necessary to the financial statements for FY2019 to ensure that the Company’s records represent a complete and accurate view of its financial affairs. 

Since the Report was issued, the Company has worked closely with EY and its legal advisors to address the matters raised in the Report, as well as the areas of concern identified in the Regulatory Announcement. The need for EY to validate the Independent Accountant’s findings in the Report with respect to FY2018 and prior years and to design and perform additional procedures for the FY2019 audit have led to the delay in completion of the FY2019 audit. As at the date of this announcement, certain audit procedures in relation to the Group’s 2 

China operations remain outstanding and EY anticipates that all audit procedures will be completed around early February 2021. Factoring in discussions with the Audit Committee of the Company and management to complete the FY2019 audit, it is expected that the audited financial statements will only be finalised and the FY2019 AGM documents will be issued to Shareholders around mid-February 2021. Accordingly, the earliest date that the Company will be able to convene the FY2019 AGM is at the end of February 2021.
https://links.sgx.com/FileOpen/2020%2012...eID=642640

Stay home and stay safe, everyone.

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Prof Mak YT on Bestworld:
Page 52 onward 
https://governanceforstakeholders.com/wp..._final.pdf

It's another cooling morning and wish our valuebuddies warming up to a beautiful day.

Thanks WJ for bringing up Prof Mak's case study.
He (and his students) had been writing case studies on BWL a few times.
This particular case study gives a update as well as highlight the stew that break the camel which I resonance.

Credits:
This case was prepared by Enelton Satria, Leow Chung Yong Aaron, Quek Yong Qiang Jamos, Ryan Kwan Kay Tzen and Winni Yeo Jia Qi, and edited by Isabella Ow under the supervion of Professor Mak Yuen Teen. It has been substantially re-written, with information added, by Professor Mak Yuen Teen. The case was developed from published sources solely for class discussion and is not intended to serve as illustrations of effective or ineffective management or governance. 

Beyond Prof Mak's highlight on issues pertaining to corporate and biz governance, what I'm really concerned was not stated at all.

Social - society.
In China, brilliant young man and young lady, left their home, into the city to pursuit their dream.
Sponsored by their parents (money), they join a Uni with full of hopes and doing big things for their future - China dream.

Persuaded by entrepreneurship, innovation, hardworking and determination to do something big, something independently - instead of just studying in the University, these bright young man and woman, hastily left their comfort zone (in U).
They chose to work hard in growing their biz and build their pipeline.
Using their heart and soul with strong dedications to find the next pot of gold, instead of at the comfortable Uni campus.

For those who can make it, they shine like Dora (Dollar).
For those who could not (make a guess - how many % could not make in?)
they will be very miserable.
They not only can not go back to university to study, they would have made a big choice (tough decision) to go back home and see their parents too.

That, to me, is the main reason for me to sell.

I actually sit on this for one month and finally decided to dump BWL shares.

I literally was dumping when I make the decision to sell out.

I Q to sell says at $2.01 before market open.

At about 9:30am, nothing happen.

Then, I thought, why do I need to hold on to a baby that needlessly challenged my value and belief?

I modified my order and sold at the market.

All done within the same dump.


Stay home and stay safe, valuebuddies.

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BWL
SGX RegCo has on 24 December 2020 informed the Company that it has no objection to the Company’s application for a further extension of two (2) months to convene the FY2019 AGM by 28 February 2021
subject to conditions.

https://links.sgx.com/FileOpen/BWI%20App...eID=643457



Stay home and stay safe, everyone.