Tomei strengths

Tomei Consolidated Berhad's notable strength is in its exclusive status as the sole firm in Malaysia to
have achieved the esteemed recognition of being an "Authorised Diamond Dealer" under the "World
Diamond Mark" programme. This certification serves as a validation of the group's exceptional
diamond marketing efforts. Being the sole company in Malaysia to achieve this certification, Tomei
holds a significant advantage over other companies. In addition, Tomei is the sole jeweller in
Malaysia to have received the official endorsement of the national "Malaysia Brand" mark. This
endorsement has been granted by SMECorp in Malaysia since 2010. The acquisition of these
certifications enables the organisation to effectively appeal to a larger consumer base and thus
elevate their level of excellence (Tomei, 2023).

Tomei holds a significant share of the Malaysian jewellery market, operating over 50 locations across
various brands including Tomei, Goldheart, Le Lumiere, and De Beers. Tomei established retail outlets
in 12 states, notably East Malaysia (Tomei, 2023). Tomei's outlet store has a larger coverage area
compared to its rival. For example, Poh Kong has stores only in ten states and does not have any
outlets in east Malaysia (Poh Kong, 2023).

The collaboration between Tomei and Visconti, a renowned Italian pen manufacturer, not only
enhances brand recognition but also expands Tomei's product range and diversity. For instance, a
diamond pen. Tomei has also diversified their business operations to international markets. Tomei
exports its gold and jewellery to several overseas markets, including Singapore, Indonesia, Thailand,
Vietnam, and European countries (Tomei, 2023).

Last but not least, with the evolution of the digital era, consumers' purchasing behaviour has shifted
from traditional retail to online shopping. Tomei primarily focuses on the e-commerce sector, with
their own online platform known as eTomei. Tomei also has a signature store on other online
platforms including Lazada, Shopee, and Zalora. An e-commerce company offers convenience to
attract consumers with unconventional work schedules or limited time for in-person shopping.
ANALYSIS INVESTING

The overall trend shows negative net cash from investing activities over the years, with the largest
negative value in 2022. This indicates that the company has been consistently investing more cash in
its activities such as acquiring assets and properties than it has been generating from disposals and
other investing-related income.

The company has consistently invested in right-of-use assets over the years.

The increase in 2022 compared to 2021 suggests a higher investment in these assets, which could be
indicative of expansion or strategic decisions. In 2022, the company received RM55,000 in interest,
indicating a positive cash flow from this activity. The increase in interest received in 2022 may be due
to changes in the company's investment portfolio or higher interest rates. Therefore, the company
has consistently invested in PPE over the years, with a substantial increase in 2022 compared to
2021. Higher expenditures in 2022 could indicate significant capital investments, possibly for
expanding operations or upgrading existing facilities. The negative cash flow saw a substantial rise,
mainly due to a significant decrease in short-term deposits.

Tomei Berhad has been actively investing in right-of-use assets and property, plant, and equipment,
suggesting a commitment to growth and expansion. The increase in net cash used in investing
activities in 2022 may raise concerns about the company's cash position, as it reflects a significant
outflow of cash for investments.