The HKICPA Accounting and

Business Management
Case Competition
2021-22

(Level 2)
The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

Bonjour Holdings Limited (Bonjour), together with its subsidiaries (hereinafter referred to
as the “Group”) is one of the most leading retail stores selling beauty and lifestyle
products in Hong Kong. It lists on the Main Board of The Stock Exchange of Hong Kong
Limited in 2003 (Stock Code: 653). Bonjour is currently operating 27 retail stores in Hong
Kong and Macau.

The Group keeps understanding the changing preferences of the customers and sourced
products all over the world to meet their ever-changing needs. Currently, the Group
offers over 40,000 commodities and exclusively distributes 100 brands, including Suisse
Reborn, Dr. Bauer, and Yumei. Since the coronavirus outbreak in Hong Kong, quality
sanitizing and anti-epidemic prevention products are offered at competitive prices.
Bonjour owns over 2,000,000 members and shares the latest news and promotional
information with them instantly.

As a retailer rooted in Hong Kong, the Group has been experiencing a challenging time
when local social incidents and the COVID-19 epidemic triggered a slump in inbound
tourism. Together with the dampened consumer sentiment among local customers, the
Group suffered from the sharpest decline in sales performance. For the year ended 31
December 2020, the Group recorded a turnover of HK$538.8 million, representing a
decrease of 63.1% from HK$1,458.8 million last year. The Group’s gross profit
decreased by 64.7% from HK$490.4 million last year to HK$173.1 million. Loss for the
year was HK$258.4 million, almost twice last year (2019: HK$130.6 million).

Recently, Bonjour tries to upgrade from a traditional cosmetics retailer to a global e-

commerce enterprise by stationing at 44 multi-channel platforms, such as SHOPSHOPS,
Tmall Global, kaola.com, JD.COM, Facebook, YouTube, and Instagram, reaching
customers from Mainland China to 34 overseas countries. Since 2020, the Group has
trained more than 200 frontline employees as influencers on social media, sharing the

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

latest product information through live streaming and online interaction with customers in
real-time. The Group opened a new retail experience store (Bonjour Life O2O) in August
2020, which revolutionizes the traditional model by realizing the integration of online and
offline commerce.

REQUIRED

Local social incidents and the COVID-19 epidemic triggered a significant drop in tourist
arrivals in Hong Kong. Therefore, the traditional offline retail sector has witnessed the
sharpest decline in sales performance in recent years. Bonjour tries to adapt to the
circumstance and promotes the development of comprehensive e-commerce and live
streaming. In addition to cosmetics, the Group will enrich its diversified product portfolio
by actively introducing more categories, such as daily necessities, health products, and
small home appliances.

Bonjour has invited you, as a management consultant, to prepare a business proposal

to:

Part I Review Bonjour’s overall financial performance for the past TWO
years ending 31 December 2019 and 2020, respectively; and

Part II Formulate a business plan of HK$10 million for the coming TWO years
(i.e., the years ending 31 December 2022 and 2023, respectively),
aiming at further enhancing Bonjour’s offline and online retail
business.

Your business proposal should include the following:

A) Executive summary
A concise summary of Bonjour’s (i) current state of business and (ii) key
findings and recommendations of your business plan.
(5 marks – approximately 1 page)

B) Introduction
The background, the objectives, and the scope of your business proposal.
(3 marks – approximately 1 page)

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

C) Part I – A comprehensive analysis of Bonjour’s financial performance for the

past TWO years ending 31 December 2019 and 2020, respectively, with
appropriate interpretation:

Instructions:

- Refer to the 2019 and 2020 Annual Reports for financial information.

- Apply “Average” figures if required:

Average inventory for 2020 = 1/2 x (inventory at 1.1.2020 and
31.12.2020); Average inventory for 2019 = 1/2 x (inventory at 1.1.2019
and 31.12.2019).

- For all ratios, show calculation workings and keep two decimal places.

- To interprete the financial performance, show your comments based on

the ratios.

(a) Profitability in terms of

(i) gross profit margin,
(ii) net profit margin,
(iii) return on average assets; and

(b) Management efficiency in terms of

(i) average inventory turnover period,
(ii) average trade payables repayment period,
(iii) average total assets turnover; and

(c) Short-term liquidity in terms of

(i) current ratio,
(ii) cash ratio; and

(d) Long-term solvency ratios in terms of

(i) gearing ratio,
(ii) debt to equity ratio; and

(e) Investment ratios in terms of

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

(i) earnings per share (EPS).

(35 marks – approximately 4 pages)

D) Part II - Formulate a business plan for Bonjour Group’s offline and online
retail business.

(a) Summarize Bonjour’s (i) strategic efforts and (ii) directions ahead in both
traditional offline retail operations and all-inclusive e-commerce business.
(5 marks – approximately 1 page)

(b) SWOT analysis of Bonjour Group’s offline and online retail business.
Non-financial analyses in terms of favorable/ unfavorable factors external
and internal to the organization.
(20 marks – approximately 3.5 pages)

(c) Business plan

- A business plan of $10 million for launching a promotional project to
improve Bonjour Group’s offline and online retail business.

- Support your business plan with a marketing expenses budget and

implementation details.

- Analyze the projected impact on turnover and profit for the years ending
31 December 2022 and 2023, respectively, to evaluate the effectiveness
of your recommendations.
(25 marks – approximately 5 pages)

E) Conclusion (5 marks – approximately 1 page)

F) Appendices including References, a glossary of terms, and Details of market

research (if any) (2 marks)

(Total: 100 marks)

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

Notes

(1) In preparing your analysis, you should refer to Bonjour Group’s 2019 and 2020
Annual Reports available at https://corp.bonjourhk.com/irc/financial-report/.

(2) You are required to carry out a detailed financial analysis for the past TWO
years ending 31 December 2019 and 2020, respectively. Support your calculations
using appropriate formulas as attached on p.5 (Annex 1) and keep two decimal
places in your answers.

(3) In preparing the business proposal, you should:

- ensure that all your suggestions and recommendations are in line with Bonjour
Group’s vision and strategic directions;
- quote references from the annual reports with their page numbers;
- state all relevant information such as charts, graphs, published information,
references, research findings and copies of questionnaires (if any), etc., under
the Appendices section;
- state any underlying assumptions which can justify your analyses and
recommendations; and
- support all your calculations with workings and explanations.

Useful reference

HKICPA Accounting and Business Management Case Competition Website

https://www.hkicpa.org.hk/amcc
Competition Facebook Page
https://www.facebook.com/hkicpacompetition/
Bonjour Holdings Limited website
https://corp.bonjourhk.com/en/

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

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 The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

Annex 1
Annual Report
Formula Reference Page
2020 2019
(a) Profitability Ratios

Gross Profit
Gross Profit / Turnover x 100% p. 83 p. 80
Margin

Net Profit Margin Profit (Loss) Before Tax / Turnover x 100% p. 83 p. 80

Return on Profit (Loss) For The Year

x 100% p. 83, 85 p. 80, 82
Average Assets Average Total Assets

(b) Management Efficiency Ratios

Average Inventory Average Inventory

x 365 days p. 83, 85 p. 80, 82
Turnover Period Cost of Goods Sold

Average Trade Payables

Average Trade x 365 days p. 83, 85 p. 80, 82
Credit Purchases
Payables
Repayment Period Hints:
Credit Purchase = Closing Inventories + Cost of Goods Sold - Opening Inventories

Average Total
Turnover / Average Total Assets p. 83, 85 p. 80, 82
Assets Turnover

(c) Short-term Liquidity Ratios

Current Ratio Current Assets / Current Liabilities p. 85 p. 82

Cash Ratio Cash and Cash Equivalents / Current Liabilities p. 85 p. 82

(d) Long-term Solvency Ratios

Non-current Liabilities
Gearing Ratio x 100% p.86 p.83
Non-current Liabilities + Share Capital + Reserves

Debt to Equity
Total Liabilities / Total Equity x 100% p.85, 86 p.82, 83
Ratio

(e) Investment Ratios

Profit (Loss) Attributed to Owners of the Company

Earnings Per p. 83, 156 p. 80, 150
Weighted-average No. of Ordinary Shares
Share (EPS)
Hints: show results in “ cents/share” and keep two decimal places.

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

REPORT FORMAT AND RULES

1. Each team should submit a business proposal in English or Chinese. The language
used depends on the choice indicated on the registration form.

1. Cover page* (This page is not counted in the page limit.)

2. Table of contents
3. Contents
4. Appendices/ graphs/ references
5. Survey questionnaire and its results# (if any) (This part is not counted in the page
limit.)
Page limit
English proposal – 10 to 17 pages of A4 paper
Chinese proposal – 8 to 14 pages of A4 paper

* Each proposal should use a standardized HKICPA cover sheet with the name(s)
of the participating students, the school at which they are studying, as well as the
contact number and e-mail address of the team leader. The cover sheet is
appended at the end of the case question for download.
#
Please include survey questionnaires and results in the last part of the report, if any,
so that the number of pages can be counted easily.

2. Font type and size: English proposal – Arial (12 point) / Chinese proposal – 新 細 明 體
(11 point). 1.5 line spacing. Margin: 1 inch for each side.

3. The content pages SHOULD NOT include the names of team members and the
school at which they are studying.

4. Each participating team needs to submit the following items in SOFT COPY (PDF
format):
 Written business proposal; and
 An HKICPA cover sheet.

5. Save the proposal and cover sheet in TWO separate files with respective file names
being shown as:

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The HKICPA Accounting and Business Management Case Competition 2021-22 (Level 2)

 "Team leader full name_Team leader mobile phone no._Proposal"

(e.g. Chan Tai Man_98765432_Proposal)
 "Team leader full name_Team leader mobile phone no._Cover Sheet"
(e.g. Chan Tai Man_98765432_Cover Sheet)

6. Each participating team should send the TWO PDF files in one email to
amcc@hkicpa.org.hk, with the subject as "Level 2_Chan Tai ". Multiple
submissions will be disqualified.

7. The deadline for submission: Before 23:59, 18 February 2022 (the email receiving
time by the HKICPA's mailbox shall prevail).

8. The HKICPA has the right to disqualify any participant or team if the participant or
team is found to have violated the rules of the competition.

9. Please scan the QR code on the right to complete an online

questionnaire for the competition.

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 The HKICPA Accounting and Business Management Case Competition 2021-22
(Level 2)
Cover Sheet
Please attach this cover sheet to your business proposal
(Please complete in BLOCK LETTERS)

School name

Participants information:
*The names provided below should be identical to the name of participants’ identity card, which
will be used for printing certificate.
Name of Team leader

Email address

Contact number

Team members
Name of Team Member 1

Name of Team Member 2

Name of Team Member 3

(if any)
Name of Team Member 4
(if any)

Document checklist:

 Email this cover sheet  An business proposal in PDF format

^Any missing documents or incomplete analysis may result in the disqualification of your participation.

For official use:

Report received on

Assigned Team no.

Total marks

Remarks

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The HKICPA Accounting and Business Management Case Competition 2021-22 Secondary School Group (Level 2)