Best World

[kelvesy]

1. Are there any progress on the direct seling license approval process?

Ans: We share your concern on the matter of the application of Direct Selling license. For your reference, the period between 企业申请直销声明 and 批准企业直销许可 does not refer to the entire process of license application. Generally, before a company could submit their documents to 国家商务部 in Beijing, the documents will have to go through the local 市商务局, after which obtain approval from 省商务厅 at provincial level. This is just the tip of the iceberg and not inclusive of the time taken prepare the documents and set up 服务网店. Due to the very complicated application process, we will, at appropriate juncture, update shareholders on the progress of our license application.

2. Will the 2Q results be released on 13 August - same as last year?

Ans: Yes, 2Q results will be released on 13 August.

3. Highlighting the cost structure of the business, and observations made by Boon.

Ans: We also share your concerns about the cost structure of our businesses and revenue growth. Rest assure that Management is working relentlessly to execute strategies that’ll drive revenue for the Group while keeping costs in check.

Signed off by Benjamin Soh, Financial Analyst, Best World

[kelvesy]

http://infopub.sgx.com/FileOpen/1H2014%2...eID=309781

We are encouraged that our strategies in growth markets like Philippines, Taiwan and China have been validated with the strong revenue growth exhibited in the first half of 2014. We shall leverage on the positive momentum and strive to establish a stronger foothold in these markets. While our mature markets continue to face headwinds, we shall use the experience we gained in the growth markets and apply them accordingly in the coming quarters. With the latest restructuring involving our China subsidiaries and pending capital injection into Best World Zhejiang, we have fulfilled all application criterias and is ready to submit our
application documents. Direct selling is potentially a multi-billion dollar industry in China and we hope to move closer towards our eventual goal of becoming a licensed Direct Selling Company. This will allow us to capitalize on the growth opportunities in the country driven by strong domestic consumption.”

To reward our shareholders for their long-term support and trust, the Board has recommended an interim dividend of 0.3 cents per share for the half year ended 30 June 2014.”

http://infopub.sgx.com/FileOpen/Announce...eID=309787

The Board of Directors of Best World International Limited (“the Company”) wishes to announce that its wholly-owned subsidiary, Best World Lifestyle (Shanghai) Co., Ltd , has been restructured to be wholly-owned by Best World (Zhejiang) Pharmaceutical Co., Ltd., which is also a wholly-owned subsidiary of the Company.

A potential turnaround for Best World.

[kelvesy]

http://infopub.sgx.com/FileOpen/Ann%20-%...eID=313915

The Board of Directors of Best World International Limited (“the Company”) wishes to announce that its wholly-owned subsidiary, Best World Lifestyle Pte. Ltd. has made an additional capital injection of SGD 9,000,000.00 into Best World (Zhejiang) Pharmaceutical Co., Ltd., wholly-owned subsidiary, raising its registered capital from RMB 37.5 million to RMB 82 million.

The increase in capital of Best World (Zhejiang) Pharmaceutical Co., Ltd. is to meet the pre-requisite for its application of a Direct Selling License in the People's Republic of China.

The above transaction is funded by borrowings.

[kelvesy]

Still holding on to this stock patiently.

For month Apr to June, Philippines reported a revenue figure of $5.841mil.

For month July and August, Philppines chalked up revenue of $4.39mil. If I do a simple linear extrapolation, the figure would be $6.59mil or a growth of 12.8%. Year end would probably see better sales due to shopping and Christmas.

source: Posts from https://www.facebook.com/BestWorldLifestylePhilippines
31 July: 10.59pm, the sales now clock at 78,030,755php

1 Sep (for August): Congratulations to BWL Philippines for once again retained the as number 1 among other BWL countries, we officially closed the Aug sales at 74,811,720php!

I hope other growth engines such as Taiwan and China will perform even better.

[Image: 333ebz9.png]

Why would the D2 pay such a high price at $0.240? Do they know some good news that we don't? I don't like to speculate but I hope so.

Part 2

Looking at their website, http://sg.bwlgroup.com/english/whatson_annual.jsp

Under BWL International Convention 2014, Founders' Speech (15th minutes onwards), the founders seem to be able to rally their people quite well. The morale and motivation of their selling team is quite high, as evident by the video!

They are going to celebrate their Silver Jubilee 2015 in Marina Bay Sands SG. My feel is that their products aren't really appealing, they need a kickass product and that will be their golden ticket. Distribution network is strong and motivated.

[chialc88]

there are many reason why insider is selling.
but, there is only one reason why they buy...
.
..
...
to make $$$

Love Compassion


Earth day - save the world everyday.

[kelvesy]

1. Where does Best World manufacture their products from?

Best World offers a variety range of products and these products are manufactured in different countries such as USA, Korea, New Zealand, China, Japan and Taiwan.

2. What is the production utilisation thus far?

Whilst, Best World (Zhejiang) Pharmaceutical Co., Ltd. (“BWZ”) does manufacturing for our retail brand in China, the Group engages our manufacturing partners in different countries for most of our products. The current production utilisation for BWZ is approximately 70%.

3. Does the management constantly review their product line and remove underperforming products?

Yes. We do evaluate product performances semi annually and remove those which are not performing. At the same time, our Product Development team is working relentlessly to bring in innovative new products to stay ahead of market trends.

4. Does the management have a team of research and development personnel to innovate and produce new products annually to cater for latest health trends?

At Best World International, we do not have a team of R&D personnel. However, we do have our own Product Development team working extensively with external R&D team of researchers and formulators from our manufacturing partners in different countries, to evaluate formulations, analyse market trends as well as creating innovative new products.

On the other hand, in BWZ, we do have our own R&D team which launches new products annually.

5. How does the management record revenue - is it the moment they are produced and sold to the distributors OR when it is sold to the consumers?

We recognise revenue based on the International Accounting Standards established by the International Accounting Standards Board under IFRS 18. In our circumstances, we recognise revenue when risk and rewards of ownership of the goods has been transferred to the buyer (Distributors, Consumers, Contracted Agents or Drugstores).

Signed off by Benjamin Soh, Financial Analyst, Best World

[Boon]

http://infopub.sgx.com/Apps?A=COW_CorpAn...717db34a01

D2 Investment bought another 465,000 shares at SGD 0.215 per share on 24-September 2014.

Late disclosure............ nevertheless a positive sign.... as the saying goes - there is only one reason why insiders buy ...........................

(vested)

[idyllic_yawster]

謝謝全美夥伴與愛用者對清輕果的支持,但因缺貨造成的困擾與不便,在此深深致歉。

因為清輕果在菲律賓上市後,近半年多以來銷量大增,每個月都賣3萬盒(30入計)以上,也帶動了其他各國的成長。

由與清輕果主要是以梅子（農產品）製作,而且在公司嚴格的標準控管下,是無法無限量供應的。

雖然目前新加坡總部已盡力要求工廠趕製,但仍無法一一滿足需求,所以暫時採分配的方式,現在仍會有短暫缺貨現象,但貨到後都會立即補上。

總部也特別提出,會請工廠擴大產能,以供應未來更多的訂量。

全美世界台灣分公司總經理 葉國淡敬上

In summary:
"One of their product, "clear light fruit", is currently out of stock due to high sales from Philipines. HQ in Singapore have asked the factory to expand their production to meet the demand."

https://www.facebook.com/pages/BWL-Taiwa...81?fref=ts

http://www.optrimax.com.sg/product-plum-delite.html

[namralk]

Seems like they are all under 1 year time frame.

Since it is going to be almost one year since Best World acquired SolidGold, can we expect good news on the status of their Direct Selling license - is Mr Shi Jinyu & Best World able to do so? Could the latest share puchases by Doreen and Dora a sign of this positive news? I genuinely hope so.

2QFY2014 results may be released on 13 August 2014 - same as last year's.

I reviewed the terms and conditions of the acqusition carefully and found that Best World management was very smart in protecting their own interests and aligning Mr Shi Jinyu's interests with the company's.

Mr Shi Jinyu is no stranger to Best World as they have been acquainted since 2010.

(vested)

Profile of Mr. Shi Jinyu
SJY is an reputable entrepreneur with substantial experience, extensive network and in-depth industry knowledge of the dietary supplements business in the PRC. SJY is also a member of the Zhejiang Committee of the China People’s Political Consultative Conference. Given SJY’s shareholding interests in the Company following the completion of the Proposed Acquisition and the Proposed Subscription, the Group will be able to tap on his network and experience to expand and strengthen its foothold in the dietary supplement business for the growing PRC market.

The Proposed Subscription would further align the interests of SJY with the interests of the Group following completion of the Proposed Acquisition, which in the short and medium term, will be invaluable for the Group's application for a direct selling license in the PRC through SolidGold.

Profile of SolidGold
SolidGold is a company incorporated in Hangzhou City, Zhejiang Province, PRC on 30 September 2000 and is principally engaged in the business of the development, manufacture and distribution of dietary supplements in the PRC. SolidGold has a track record of about 13 years in the dietary supplements business and as at the Latest Practicable Date, holds about 35 healthcare product permits and 3 patents with its proprietary brand of products distributed through 236 agents and drugstore chains throughout 31 provinces in the PRC. The SolidGold brand of dietary supplements include fish oils and calcium and vitamin supplements, amongst other products which are widely recognised in the PRC.

SolidGold currently leases three floors, having an aggregate gross floor area of approximately 7,573 square metres, at Building 1, 48 Jiuhuan Road, Jiubao Town, Jianggan District, Hangzhou City for its manufacturing plant, office and warehouse, at a monthly rental of RMB149,000 and such lease will expire on 30 June 2015.

SolidGold’s manufacturing plant, which has a gross floor area of approximately 3,030 square metres, has been in operation in the abovementioned premises since late 2006. As at the Latest Practicable Date, the manufacturing plant has an annual production capacity of 500 million soft capsules, 500 million tablets, 200 million hard capsules and 100 million bags of powder, which accounts for approximately 94% of SolidGold’s products based on its FY2012 sales volume. The remaining approximately 6% of SolidGold’s products, which comprise SolidGold’s fish oil products, are produced by a third party manufacturer, Fu-Hai Biotechnology Co. Ltd (广东富海生物科技有限 公司). As at the Latest Practicable Date, SolidGold employs about 80 staff in its Hangzhou office serving multiple functions such as marketing, finance, administration, research and development and production. SolidGold has received many awards and accolades in its 13-year history, including
“保健食品安全信用优

source: http://infopub.sgx.com/FileOpen/Libra_13...leID=35445
http://infopub.sgx.com/FileOpen/Best%20W...leID=19763

Some not-so-good news regarding Solid Gold that Best World acquired. Apparently they were embroiled in a scandal in 2010 regarding selling faked honeycomb (?).

http://finance.sina.com.cn/consume/pugua...7661.shtml

http://v.youku.com/v_show/id_XMjMyMDg1MzEy.html

I trust that Best World Mgt would have discovered this during due diligence. But will this affect the direct selling license application given that Mr Shi is still "leading" Solid Gold as per the Mgt agreement. Anybody got any info regarding the direct selling license criteria (like clean co. records, mgt, etc?)

(not vested but interested)

[idyllic_yawster]

Article 7 Anyone applying for becoming a direct selling company shall meet the following requirements:

1. The investor shall have sound business credit, and has no records of serious illegal operation during the past five years before filing the application; a foreign investor shall also have undertaken direct selling business for at least three years outside China;

2. The paid-in registered capital is no less than RMB 80 million Yuan;

3. The deposit has been paid in full amount in the designated bank according to the provisions of the present Regulation; and

4. The system of information reporting and disclosure as required has been established.

RMB 80mil Yuan was met via injection of $9mil SGD.

http://www.lehmanlaw.com/resource-centre...age-1.html

But is namralk's example considered a serious illegal operation? In any regard, I've forwarded to Best World's IR to seek their views.

bonus faq: http://www.lehmanlaw.com/resource-centre...china.html