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BBSG4013

No. Matriks: 660211025018001

FACULTY OF BUSINESS AND MANAGEMENT


BBSG4103
STRATEGI DAN PENGURUSAN PEMASARAN
MARKETING MANAGEMENT AND STRATEGY

NAME:

NOORAZIAN NOORDIN

MATRIC NO.:

660211025018001

NRIC NO.:

660211025018

EMAIL ADDRESS: naz_jtb@oum.edu.my

TUTOR:

MR. VICTOR ONG CHI POH

LLC:

IPDA, JITRA, KEDAH.

JAN 2006 SEMESTER

BBSG4013

No. Matriks: 660211025018001

1.0 Executive Summary


DXN Marketing Sdn Bhd aims to provide health and wealth using One Dragon to One
Market through Single Minded people. This plan seeks to generate a significant increase
in company sales and profits from sales of our lines of product
We are concerned for your health is our slogan. The eating habit or nutritional trend of
today's population is predisposed to the diet which is high in fat, cholesterol, sugar and
chemical additives. In view of these reasons, DXN brings you a series of health products
which are made of 100 % natural and organic cultivated raw materials without any
artificial preservatives, colourings or flavourings.
The quality of DXN products are always given priority in every single step of production.
The recognition of ISO 14001, ISO 9001, and TGA indicate that our products have
attained international standards. Last but not least, many people in the world have
improved their health by using DXN products.
Data conclude the size and growth of the market and geographical segments, customer
needs, perception, and buying behavior trends have been on the upswing, and are
expected to continue in this trend for the next five years. DXN Marketing Sdn Bhd feels
that it is able to fill the hole in the mass marketing , and will benefit from operations
beginning in January, 2001.

2.0 Introduction
2.1 Description Of Company

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DXN Marketing Sdn Bhd was founded in 1993 by Dr. Lim Siow Jin in
Malaysia as a local direct sales company producing Ganoderma Lucidum and
Ganoderma

Mycelium

with

modern

advanced

technology.

DXN has built an in-house production line to process Ganoderma products combining
advanced technology with Dr. Lim's medical theory of Ganoderma. DXN Pharmaceutical Sdn.
Bhd is an integrated factory of 28, 000 square feet. This facility allows the quality maintenance
and assurance under DXNsstrict supervision of the entire production procedure from
cultivation, processing and packaging to market. DXN Pharmaceutical also ensures high
production capacity to meet DXN ever-growing demand for products as its membership growth
accelerates

worldwide.

DXN successful expansion globally is recognized internationally by its vast


growth of members worldwide and our amplification of footprint in key
strategic locations. To provide better services and to support DXN members
in North America to develop local markets, DXN USA launched in March
2002 and DXN Canada in January 2003. In order to provide complete service
coverage to North America, DXN Mexico is in its final completion stage,
projected to be ready in 2005. Also, DXN Inc. proudly presents another
milestone achievement to our members. Effective from September 30, 2003:
DXN Inc. is now DXN Holdings Bhd., a KLSE-listed company in Malaysia!
DXN Marketing Sdn Bhd is a Multi Level Marketing Company, which is also
known as Network Marketing. This is a marketing concept which can apply to
every type of service and product. Network Marketing ensures profit through
the concept of 'multiplex'.

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This business requires people to believe in the products and the opportunity
that they bring. If we can make sure that people are buying products and
sponsoring someone every month, then we are on our way to the success
summit.
DXN is a Network Marketing company which offers people worldwide
opportunity to build their own business with a small investment and then help
them acquire a better way of life. (Source: www.dxn2u.com)
2.2 Mission Statement
One World One Market -means the distributors will enjoy worldwide bonus
with a single membership card.
One Dragon - means the entire process, from cultivation up to marketing is
solely handled by the Group.
One Mind - means the Group is concentrating on how to achieve the Global
Vision and hope that all the distributors will grasp this great opportunity and
single-mindedly concentrate on doing DXN business.

2.2.1

Product

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No. Matriks: 660211025018001

Health Food Supplement Series


1. Reishi Gano (RG)
2. Ganocelium (GL)
3. Reishilium Powder
4. Andro-G
5. DXN Mycodiet

Food & Beverage Series

1. Lingzhi Coffee 3 In 1
2. Lingzhi Black Coffee
3. Lingzhi Coffee 2 In 1
4. Zhi Cafe
5. Spica Tea
6. Cocozhi
7. Morinzhi
8. Morinzyme
9. Kiwi Fruit Concentrated
Juice
10. Roselle Juice
11. Cordyceps
12. Spirulina Herbal Candy
13. Lions Mane
14. Roselle Candy
15. GL Spread
16. Tropik Mango
17. Tropik Orange
18. Spirulina Cereal
19. Spirulina Candy
20. Pineapple Jam
21. Zhi Mint
22. DXN Cordypine

Personal Care Series

1. Tea Tree Cream


2. Gano Massage Oil
3. Ganozhi Soap
4. Ganozhi Shampoo and Body
Foam
5. Ganozhi Toothpaste
6. Numeko Medicated Rub
7. Fresh Perfume
8. Talcum Powder
Household Product Series
1. Dyna Cleen
2. BLC Bio-Organic Liquid Cleaner
3. Sheen
4. Pine Cleen
5. Dish Cleen
6. GT-6 Wash N Shine
7. Toilet Bowl Cleaner

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Water Treatment System Series


1. EWS
2. Filter
New Products
1. DXN Cordyceps Powder
2. DXN Bee Pollen
3. Spirulina Cereal
4. DXN Spirulina Powder
5. DXN Shiitake Mushroom Powder
6. DXN Lions Mane Mushroom
Powder
7. DXN Zhi Mint
8. Zhi Mocha

3.0 Marketing Strategy


3.1 Core Competencies
a) Operational Excellence

Dependable line of product and production

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No. Matriks: 660211025018001

Low-cost operation DXN operates seven manufacturing


facilities located in three countries where labour cost is relatively
cheap namely Malaysia, Indonesia and China.

b) Product Leadership

First company to market Ganoderma products

Top priorities for research and development to further strengthen


the quality of existing products and have new products of higher
specifications on stream to stay ahead in competition.

3.2 Situation Analysis


3.2.1

Internal Factors
The company feels that it controls its own success through some
basic internal factors. These are:

1. Selling and Marketing Power.


DXN Marketing believe that its MLM Plan is effective and
highly rank. These are:
Energy saving plan - with upward compression mechanism.
Low pressure, high reward - Low maintenance, high % of
bonus payout.
Enjoy worldwide profit sharing and overriding

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No. Matriks: 660211025018001


Fair plan - downline can overtake upline after they
breakaway .
Achievable plan - low target for promotion, low monthly
maintenance for bonus.
Retirement plan - for high rank distributor, qualification PV
can be borrowed.
Win win plan - when downline promoted, upline will get
better reward with higher %.
Combination of static & dynamic plan - No drop in % for
Distributor (6% - 21%); for SA and above, they are able to get
higher % for better performance.

2. Excellence in fulfilling the promise. Clients do not buy


features, they buy benefits. To realize a benefit, DXN has
improved health of many people throughout the world and
continue to improve their health by using DXN products.

3. Developing visibility to generate new business leads.


Participation by the company in online business affiliations
with reputable global players of e-business technology is a
necessity. Strategic relationships must also be made with
companies, government institutions, regional (provincial)
government offices, and NGOs, as well as with individual

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customers to ensure the success of our One World One
Market Vision. This is also important in diversifying the
business in the near future.

4. High-quality service and customer satisfaction.


Everything the company sells is guaranteed; therefore, the
services have to do what the customers want, and do it well.
Long-term customer satisfaction is critical to the survival of the

5. Key management team. The right management team is


integral, and must have a strong foundation in marketing,
management, finance, and services development. The
company is confident in its team.

3.2.2

External Factors
How was DXN going to compete with the brand image of
Ganoderma products from Japan and China?
One of the ways was to set up a good manufacturing practice
(GMP)-certified factory. This is a factory with a modern set-up that
meets the standards set by authorities like the Drug Control
Authority of Malaysia.

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After DXN had established its processing facilities, the next step
was the marketing strategy. DXN started small, recruiting
members from Kedah and elsewhere in the country. But by 1995,
business boomed. DXN came up with many different products
containing Ganoderma besides offering it in tablet form. Among
these products are DXN's 3-in-1 Lingzhi coffee, toothpaste and
cosmetics.
DXN may not be the only Ganoderma mushroom producer in the
country but are certainly the largest in terms of capacity. DXN
are a complete company in the sense that we do the cultivation,
processing and marketing of Ganoderma. DXN not only sell
products locally but also sell to the whole world. DXN already
have branches in 11 countries.

3.2.3

SWOT Analysis

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STRENGTH
Selling and Marketing Power

OPPORTUNITES
Adapt
Good
Practise (GMP)

Manufaturing

Excellence In Fulfilling Promises Global Market


Developing visibility to generate
new businee leads
Health awareness globally
High
quality
service
and
customer satisfaction
Effective key management team
Additional Line Of Product
WEAKNESSES
THREAT
Main competititor
Limited management skill
EXCEL
Staff ethnic
ratio, majority
chinese, hard to penetrate
Malay market
Weak
market
image
in
domestic market

GANO

3.3 Competitive Analysis


DXNs products are primarily sold via direct selling. A plus side on DXN is
that it requires upfront cash payments from stockists and distributors before
goods are delivered, hence lowering credit risk. Also, all overseas sales
transactions are denominated in USD, lowering DXNs foreign exchange
exposure to local currencies in the countries they operate in.
DXNs direct-selling focus reduces competition with bigger brands and other
homogeneous products currently available in hypermarkets and
supermarkets. Also, this focus means DXN is not vulnerable to unfavourable
credit terms with these hypermarkets and supermarkets as these parties
have stronger bargaining power.

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DXNs business operational structure of having access to both its upstream


and downstream supply chain gives the group a better position in controlling
its product price.
Given its increased number of and average revenue contributed by stockists
and distributors, we believe there is a strong potential growth in revenue and
earnings.
3.4 The Target Market
DXN is targeting global market as the mission stated One World, One Market
for their line of product using mass marketing strategy. Through this strategy,
DXN is offering a line of product of:

Health food supplement series

Food and beverages series

Personal cares series

Water treatment system series

3.5 The Marketing Mix

Promotion Promotion will be done as a continuous effort in order to


promote more direct selling agents throughout Malaysia through
member-get-member promotion.

Product As far as product is concern, DXN is continuously putting


an effort to research and development to produce new Gano-based
product. The product have been standardise throughout the world.

Place or distribution is aim at the global market. DXN will make sure
that the distribution is done smoothly and minimize the out of stock
syndrome

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Price DXN should have control on the prices due to their low cost of
production. As the One Dragon concept; from cultivation of raw
materials up to marketing is solely handled by the group.

4.0 Market Analysis Summary


4.1 Market Segmentation and Strategy
As a MLM company, DXN is employing one-to-one marketing segmentation.
DXN is engaging a mix type of target market strategy. As a MLM company
DXN target a consumer market in using their product. On the other hand, the
consumer themselves can become their business partner as a MLM agent.
This qualifies as a business to business market where there is a change in
buyers and sellers Roles.

5.0 Strategy and Implementation Summary


5.1 Competitive Edge
In order to take a competitive edge in the global market, DXN has a farm and
factory located in Bukit Wang, Jitra, Kedah. Having its own farm and factories
give a lot of advantages in minimizing manufacturing cost. This will ensure
the ongoing production of LingZhi Products to the global market. DXN are
also marketing a world class health product.

DXN Farm In Jitra, Kedah

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Consumer satisfaction is DXN long-term strategy. Building long-term


customer satisfaction requires that DXN invest heavily in a wide range of
activities meant to please present and future customers. A strategy of
customer satisfaction requires of both money and people.
There are many ways to improve customer satisfaction:

Building relationship with customers a strategy that takes form of


building long-term relationship with customer that repeat business
and promote customer loyalty. Example: bonus point or bonus card

Unconditional guarantee a guarantee must go hand in hand with


product quality.

Efficient complaint handling

5.2 Sales Strategy


DXN Marketing Sdn Bhd strategy focuses first on maintaining the identity of
quality products of Gano Mushroom. Research and development programs
will remain one of the top priorities to further strengthen the quality of existing
products and have new products of higher specifications on stream to stay
ahead in competition. During the last financial year, we have officially
launched DXN Bee Pollen, DXN Cordyceps Powder, DXN Lions Mane, DXN
Mushroom Powder, DXN Shiitake Mushroom Powder, DXN Spirulina Powder,
DXN Zhi Mocha, and DXN Zhi Mint into the market. While focusing on food
products, DXN also see the potential demand in the market for non-food
products such as herbal based cosmetic products.
DXN are in the progress to set-up our construction of a GMP (Good
Manufacturing Practice) factory to manufacture our newly developed skin

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care and personal care series products. DXN are optimistic the growing
demand of DXNs range of diversified products will complement the growing
and diverse spread of our markets further in the Middle East, North America
and China in the forthcoming year.

5.3 Sales Forecast


The sales forecast monthly summary is included in the appendix. The annual
sales projections are included here in the following chart and table.
The sales forecast assumes that the yearly change in costs or prices will
average 20%, which is a reasonable assumption based on the last few years.
DXN Marketing Sdn Bhds is expecting to increase sales from RM1.9 million
last year to RM2.1 million in 2006, RM2.5 million in 2007, RM3 million in
2008, RM3.6 million in 2009, and RM4.3 million in 2010. It is the expectation
that the company will double its starting sales within five years.

6.0 Management Strategy


6.1 Personnel Plan
The team includes 17 employees, under a CEO and Seven Directors.
The three main management divisions are Sales and Marketing, Operations,
and Internal Business Management. The departments managed by the Sales
and Marketing division are: marketing, sales, products and services, research
and development, and public relations operations. The departments managed

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No. Matriks: 660211025018001


the

Internal

Business

Management

division

are:

accounting,

administration, and human resources development.

Personnel Plan
2006

2007

2008

2009

2010

RM24,000

RM26,400

RM29,040

RM31,944

RM35,138

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

RM3,600

RM3,960

RM4,356

RM4,792

RM5,271

RM24,000

RM26,400

RM29,040

RM31,944

RM35,138

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

RM3,600

RM3,960

RM4,356

RM4,792

RM5,271

RM24,000

RM26,400

RM29,040

RM31,944

RM35,138

Vice President
Sales &
Marketing
Marketing
Sales B2B
Marketing
Sales B2C
Secretary Sales &
Marketing
Office
Vice President
Operations
Senior
Consultant Marketing
Senior
Consultant Finance
Management
Senior
Consultant Strategic
Management
Secretary Operations
Office
VP Internal

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Business
Management
Accountant

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

Legal Officer

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

HRD Officer

RM14,400

RM15,840

RM17,424

RM19,166

RM21,083

President/CEO

RM48,000

RM52,800

RM58,080

RM63,888

RM70,277

RM6,000

RM6,600

RM7,260

RM7,986

RM8,785

Bookkeeper

RM3,600

RM3,960

RM4,356

RM4,792

RM5,271

Clerical

RM1,200

RM1,320

RM1,452

RM1,597

RM1,757

Clerical

RM1,200

RM1,320

RM1,452

RM1,597

RM1,757

Clerical

RM1,200

RM1,320

RM1,452

RM1,597

RM1,757

Clerical

RM1,200

RM1,320

RM1,452

RM1,597

RM1,757

Total People

Total Payroll

RM271,200

RM298,320

RM328,152

RM360,967

RM397,064

Administrative
Officer

Secretary to
the CEO

7.0 Financial Plan


7.1 Important Assumption
The accompanying table lists DXN Marketing Sdn Bhds' main assumptions
for developing its financial projections. The most sensitive assumption is the
collection days. DXN Marketing Sdn Bhds would like to improve collection
days to take pressure off of its working capital.

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(Source: Adaption from DXN Financial Report)

General Assumptions

Plan Month
Current
Interest Rate
Long-term
Interest Rate
Tax Rate
Sales on
Credit %
Other

2006

2007

2008

2009

2010

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

25.00%

25.00%

25.00%

25.00%

25.00%

50.00%

50.00%

50.00%

50.00%

50.00%

7.2 Break-even Analysis

The following chart and table summarize the break-even analysis, including
monthly units and sales break-even points.

Break-even Analysis

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Break-even Analysis:
Monthly Units Break-even
Monthly Revenue Break-even

46,214
RM46,214

Assumptions:
Average Per-Unit Revenue

RM1.00

Average Per-Unit Variable Cost

RM0.20

Estimated Monthly Fixed Cost

RM37,053

7.3 Projected Profit And Loss

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The detailed monthly pro-forma income statement for the first year is included
in the appendix. The annual estimates are included here.
(Source: Adaption from DXN Financial Report)
Pro Forma Profit and Loss
2006
Sales
Direct Cost of
Sales
Other

Total Cost of
Sales

2007

2008

2009

2010

RM2,080,000 RM2,496,000 RM2,995,200 RM3,594,240 RM4,313,088


RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

------------

------------

------------

------------

------------

RM0

RM0

RM0

RM0

RM0

Gross Margin RM2,080,000 RM2,496,000 RM2,995,200 RM3,594,240 RM4,313,088


Gross Margin

100.00%

100.00%

100.00%

100.00%

100.00%

RM271,200

RM298,320

RM328,152

RM360,967

RM397,064

RM85,000

RM102,000

RM122,320

RM146,784

RM176,141

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

Utilities

RM7,200

RM8,640

RM10,368

RM12,442

RM14,930

Insurance

RM2,160

RM2,592

RM3,110

RM3,732

RM4,479

Office Rent

RM38,400

RM46,080

RM55,296

RM66,355

RM79,626

Payroll Taxes

RM40,680

RM44,748

RM49,223

RM54,145

RM59,560

RM0

RM0

RM0

RM0

RM0

------------

------------

------------

------------

------------

%
Expenses:
Payroll
Sales and
Marketing
and Other
Expenses
Depreciation
Leased
Equipment

Other

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Total
Operating

RM444,640

RM502,380

RM568,469

RM644,426

RM731,799

Expenses
Profit Before
Interest and

RM1,635,360 RM1,993,620 RM2,426,731 RM2,949,814 RM3,581,289

Taxes
Interest
Expense
Taxes
Incurred
Net Profit
Net
Profit/Sales

RM0

RM0

RM0

RM0

RM0

RM408,840

RM498,405

RM606,683

RM737,454

RM895,322

RM1,226,520 RM1,495,215 RM1,820,048 RM2,212,361 RM2,685,966


58.97%

59.90%

60.77%

61.55%

62.27%

7.4 Projected Cash Flow

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Cash flow projections are critical to DXN Marketing Sdn Bhds' success. The
monthly cash flow is shown in the illustration, with one bar representing the
cash flow per month and the other representing the monthly balance. The
annual cash flow figures are included below in the following chart and table.
Detailed monthly numbers are included in the appendix.
(Source: Adaption from DXN Financial Report)

Pro Forma Cash Flow


2006

2007

2008

2009

2010

Cash
Received
Cash from
Operations:
Cash Sales
Cash from
Receivables

RM1,040,000 RM1,248,000 RM1,497,600 RM1,797,120 RM2,156,544


RM1,030,105 RM1,222,333 RM1,466,800 RM1,760,160 RM2,112,192

Subtotal
Cash from

RM2,070,105 RM2,470,333 RM2,964,400 RM3,557,280 RM4,268,736

Operations

Additional
Cash
Received
Sales Tax,
VAT,
HST/GST

RM0

RM0

RM0

RM0

RM0

Received
Subtotal

RM2,070,105 RM2,470,333 RM2,964,400 RM3,557,280 RM4,268,736

Cash

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Received

Expenditures

2006

2007

2008

2009

2010

RM85,084

RM102,881

RM124,308

RM150,113

RM181,174

Expenditures
from
Operations:
Cash
Spending
Payment of
Accounts

RM712,707

RM885,211 RM1,035,560 RM1,213,359 RM1,423,793

RM797,791

RM988,091 RM1,159,868 RM1,363,473 RM1,604,967

Payable
Subtotal
Spent on
Operations

Additional
Cash Spent
Sales Tax,
VAT,
HST/GST

RM0

RM0

RM0

RM0

RM0

Paid Out
Subtotal
Cash Spent

Net Cash
Flow

RM797,791

RM988,091 RM1,159,868 RM1,363,473 RM1,604,967

RM1,272,314 RM1,482,242 RM1,804,532 RM2,193,807 RM2,663,769

Cash Balance RM1,928,400 RM3,410,642 RM5,215,174 RM7,408,981 RM10,072,750

7.5 Projected Balance Sheet

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The following balance sheet shows healthy growth of net worth, and strong
financial position. The monthly estimates are included in the appendix.

(Source: Adaption from DXN Financial Report)


Pro Forma Balance Sheet

Assets
Current
Assets
Cash
Accounts
Receivable
Other Current
Assets
Total Current
Assets

2006

2007

2008

2009

2010

RM1,928,400 RM3,410,642 RM5,215,174 RM7,408,981 RM10,072,750


RM128,333

RM154,000

RM184,800

RM221,760

RM266,112

RM0

RM0

RM0

RM0

RM0

RM2,056,733 RM3,564,642 RM5,399,974 RM7,630,741 RM10,338,862

Long-term
Assets
Long-term
Assets
Accumulated
Depreciation
Total Longterm Assets
Total Assets

RM126,588

RM126,588

RM126,588

RM126,588

RM126,588

RM0

RM0

RM0

RM0

RM0

RM126,588

RM126,588

RM126,588

RM126,588

RM126,588

RM2,183,321 RM3,691,229 RM5,526,562 RM7,757,329 RM10,465,450

Liabilities and
Capital
Current
Liabilities
Accounts

2006

2007

2008

2009

2010

RM60,689

RM73,383

RM88,667

RM107,073

RM129,228

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Payable
Current
Borrowing
Other Current
Liabilities

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM0

RM60,689

RM73,383

RM88,667

RM107,073

RM129,228

RM0

RM0

RM0

RM0

RM0

RM60,689

RM73,383

RM88,667

RM107,073

RM129,228

RM37,800

RM37,800

RM37,800

RM37,800

RM37,800

Subtotal
Current
Liabilities

Long-term
Liabilities
Total
Liabilities

Paid-in
Capital
Retained
Earnings

RM858,312 RM2,084,832 RM3,580,047 RM5,400,095 RM7,612,455

Earnings

RM1,226,520 RM1,495,215 RM1,820,048 RM2,212,361 RM2,685,966

Total Capital

RM2,122,632 RM3,617,847 RM5,437,895 RM7,650,255 RM10,336,222

Total
Liabilities and RM2,183,321 RM3,691,229 RM5,526,562 RM7,757,329 RM10,465,450
Capital
Net Worth

RM2,122,632 RM3,617,847 RM5,437,895 RM7,650,255 RM10,336,222

The following table presents significant business ratios for DXN Marketing Sdn Bhds.
The last column, Industry Profiles, contains ratios based on the management consulting
services industry, as defined by the Standard Industry Classification (SIC) Index code
8742.
Ratio Analysis
2006

2007

2008

2009

2010

25

Industry
Profile

BBSG4013

Sales Growth

No. Matriks: 660211025018001

9.76%

20.00%

20.00%

20.00%

20.00%

8.60%

5.88%

4.17%

3.34%

2.86%

2.54% 24.40%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00% 46.70%

94.20%

96.57%

97.71%

98.37%

98.79% 74.90%

5.80%

3.43%

2.29%

1.63%

1.21% 25.10%

100.00%

100.00%

100.00%

100.00%

100.00% 100.00%

2.78%

1.99%

1.60%

1.38%

1.23% 42.80%

0.00%

0.00%

0.00%

0.00%

0.00% 17.20%

2.78%

1.99%

1.60%

1.38%

1.23% 60.00%

97.22%

98.01%

98.40%

98.62%

98.77% 40.00%

Sales

100.00%

100.00%

100.00%

100.00%

100.00% 100.00%

Gross Margin

100.00%

100.00%

100.00%

100.00%

100.00%

36.08%

35.14%

34.28%

33.49%

1.27%

1.27%

1.27%

1.27%

Percent of
Total Assets
Accounts
Receivable
Inventory
Other Current
Assets
Total Current
Assets
Long-term
Assets
Total Assets

Current
Liabilities
Long-term
Liabilities
Total
Liabilities
Net Worth

3.80%

Percent of
Sales

0.00%

Selling,
General &
Administrative

32.77% 83.50%

Expenses
Advertising

1.27%

26

1.20%

BBSG4013

No. Matriks: 660211025018001

Expenses
Profit Before
Interest and

78.62%

79.87%

81.02%

82.07%

83.03%

2.60%

Current

33.89

48.58

60.90

71.27

80.00

1.59

Quick

33.89

48.58

60.90

71.27

80.00

1.26

2.78%

1.99%

1.60%

1.38%

77.04%

55.11%

44.63%

38.56%

34.65%

74.90%

54.01%

43.91%

38.03%

34.22% 10.90%

2001

2002

2003

2004

2005

58.97%

59.90%

60.77%

61.55%

62.27%

n.a

57.78%

41.33%

33.47%

28.92%

25.99%

n.a

8.10

8.10

8.10

8.10

8.10

n.a

45

41

41

41

41

n.a

0.00

0.00

0.00

0.00

0.00

n.a

Taxes

Main Ratios

Total Debt to
Total Assets

1.23% 60.00%

Pre-tax
Return on Net

4.40%

Worth
Pre-tax
Return on
Assets

Additional
Ratios
Net Profit
Margin
Return on
Equity

Activity Ratios
Accounts
Receivable
Turnover
Collection
Days
Inventory
Turnover

27

BBSG4013

No. Matriks: 660211025018001

Accounts
Payable

12.66

12.24

11.85

11.50

11.19

n.a

27

27

28

29

30

n.a

0.95

0.68

0.54

0.46

0.41

n.a

0.03

0.02

0.02

0.01

0.01

n.a

1.00

1.00

1.00

1.00

1.00

n.a

RM1,996,044 RM3,491,259 RM5,311,307 RM7,523,668 RM10,209,634

n.a

Turnover
Payment
Days
Total Asset
Turnover

Debt Ratios
Debt to Net
Worth
Current Liab.
to Liab.

Liquidity
Ratios
Net Working
Capital
Interest
Coverage

0.00

0.00

0.00

0.00

0.00

n.a

1.05

1.48

1.85

2.16

2.43

n.a

3%

2%

2%

1%

1%

n.a

31.78

46.48

58.82

69.20

77.95

n.a

0.98

0.69

0.55

0.47

0.42

n.a

0.00

0.00

0.00

0.00

0.00

n.a

Additional
Ratios
Assets to
Sales
Current
Debt/Total
Assets
Acid Test
Sales/Net
Worth
Dividend

28

BBSG4013

No. Matriks: 660211025018001

Payout
(Source: Adaption from DXN Financial Report)

29