RET 550

ASSIGNMENT 2
Retailer financial analysis

GROUP MEMBER:
NOR AIMAN AZIM BIN NOR AZLISHAM
(2021239388)
MUHAMAD AIMAN HAFIZI BIN AZEMI
(2021813418)
MUHAMMAD HAIKAL AFIQ BIN
MOHAMMAD ADNAN
(2021603024)

Company Background
Senheng was established by Mr.
Lim Kim Heng in 1989. Senheng
started as just a tiny consumer
electronics shop in Pandan Jaya
with just RM90,000 and four
staffs. Now, it grew into one of
Malaysia’s leading consumer
electronics franchises.
It currently owns 125 stores in Malaysia. It even ventured to Vietnam,
which has four outlets. The main products of Senheng are home
appliances, small appliances, TVs and audios, digital gadgets, kitchen
appliances and insurance. Senheng sells a lot brands such as Acer, Alpha,
Bosch, Cornell, Elba, Electrolux, Hitachi, Kenwood, LG,Microsoft, Pioneer,
Philips, Panasonic, Samsung, Sony, Tefal, Zanussi and Tuscani(Senheng
2015). Other than that, Senheng provides service like free delivery to
customer’s home when they make transaction for RM500 or above. To
attract the younger generation customers, Senheng has established
SenQ. The concept of SenQ is to create a digital station which focus on
selling digital and technology products. Besides, with the widely use of
internet, Senheng has launched Senheng Online Store to create E-
Business and encourage consumers shopping via online. The online store
can be described as the online electrical appliance’s mall because
cunsumers can get the latest information and promotion by online even
when wherever they are. Customer may log in or sign in to Senheng
Online Store at any time of the day, 365 days a year. All orders in
Senheng Online Store will be processed during working hours which is
from 9 am to 5 pm, Monday to Friday (Senheng 2015).
Different... Truly
Different

 SENG HENG INDUSTRY

Sen heng is the biggest consumer electrical
and electronic retail chain in Malaysia.
Senheng is a one stop consumer electronic
center in Malaysia. Senheng sells five main
categories of electronic products which are :

Senheng sells six main categories healtha and beauty

of electronic products which are : home appliances

digital gadgets

small appliances kitchen appliances TVs and audios

They are mostly located at Central Business District and

Main Street. It is because these places have high
pedestrian traffic and easier to attract customer's
attention. Senheng uses green colour as their main
packaging theme colour. For small and medium items like
iron and oven, they are packed in their original brand box.
Senheng staff will put them in Senheng paper bag for
customer to carry easily. For large item such as fridge
and washing machine, they are packed in the original
cupboard boxes

Sen heng segments their market by using demographic

segmentation which divides into group of income and age

Senheng segmented their market by using geographic

segmentation into two groups whichare urban and rural.

Senheng segmented their market by using psychological

segmentation into 3 social classes.These three classes are
low social class, medium social class and high social class
 ME STATEME
CO NT
IN

202O 2021
REVENUE

RM 1,294,768,639 RM 1,444,115,080

The total revenue for Senheng

company based on income
statement in 2020 is RM
1,294,768,639 and in 2021 total
revenue is RM 1,444,115,080. The
difference between these two
year is RM 149,346,441. In 2021,
Senheng was recorded a
higher revenue compare to
2020.

Cost 202O 2021

of
sales

(RM 1,024,768,361) (RM 1,140,467,114)

·The cost of sales in 2021 is

greater than the amount in
2020 where in 2021 RM
1,140,467,114 while in 2020 is RM
1,024,768,361 showing the
difference of RM 115,698,753

This shows that, in 2020

through 2021, Covid-19
pandemic did not affect them
rather make them more
profitable.
Gross 202O 2021
profit

RM 270,000,269 RM 303,647,966

·The amount of gross profit in

2021 is greater than in 2020, the
amount of gross profit in 2021 is
RM 303,647,966 while the
amount of gross profit in 2020
is RM 270,000,269 making the
difference of RM 33,647,697

The amount of gross profit is

essential for business to know
their financial health either
good or bad
 ROFIT OR LOSS
P

Profit 202O 2021

before
tax

RM 73,614,551 RM 84,524,292

·Profit before tax in 2021 is

which is RM 84,524,292 is
greater than 2020 which RM
73,614,551. This shows Senheng
has gain more profit in 2021.

·Senheng company will uses

the value to calculate the tax
obligations that the company
has to pay

Tax 202O 2021

expenses

(RM 17,977,768) (RM 19,267,815)

·In 2021, the value RM 19,267,815

is more than the value in 2020
which is RM 17,977,768. This
includes that Senheng pay
more tax expenses in 2021.

Senheng must pay payroll tax

on wages paid to employees,
sales tax on the purchase of
certain assets and excise tax
on certain goods,
 LANCE SHEET
BA

ASSET
CURRENT ASSET NON-CURRENT ASSET

Inventories
Property, plant, and
Short-term
equipment
investments
Right-of-use assets
Trade and other
Intangible assets
receivable
Long-term
Current tax assets
investment
Cash and bank
Deferred tax assets
balance
Other receivable

Total for current assets Total for current assets

2020 2020
RM 367,385,276 RM 367,385,276

2021 2021
RM 431,769,507 RM 431,769,507

Its shows that Its shows that

current assets that current assets that
Senheng used in Senheng used in
2021 is higher than 2021 is higher than
2020 2020
 LANCE SHEET
IBA

ASSET
CURRENT ASSET NON-CURRENT ASSET

Inventories
Property, plant, and
Short-term
equipment
investments
Right-of-use assets
Trade and other
Intangible assets
receivable
Long-term
Current tax assets
investment
Cash and bank
Deferred tax assets
balance
Other receivable

Total for non-current

Total for current assets
assets
2020
2020
RM 367,385,276
RM 289,527,094
2021
2021
RM 431,769,507
Rm 271,127,662

Its shows that Its shows that the

current assets that non-current assets
Senheng used in that Senheng use
2021 is higher than in 2021 is lower
2020 than 2020
 LIABILITIES
CURRENT LIABALITIES

NON-CURRENT
LIABILITIES
Trade and other
Property, plant, and
payables
equipment
Lease liabilities
Right-of-use assets
Provision for
Intangible assets
restoration costs
Long-term
Contract liabilities
investment
Borrowings
Deferred tax assets
Current tax
Other receivable
liabilities

Total for current Total for Non-current

Liabilities Liabilities

2020 2020
RM 253,359,133 RM 237,347,066

2021 2021
RM 277,183,762 RM 192,049,104

Its shows that the

Its shows that
non-current
current liabilities
liabilites that
that Senheng have
Senheng have in
in 2021 is higher
2021 is lower than
than 2020
2020

Equity 202O 2021

RM 166,206,171 (RM 233,664,303

In 2021, the value RM

233,664,303 is more than in
2020 which is RM 166,206,171 that
makes the difference of RM
67,458,132