

Welcome Message
As we bid farewell to 2016, and usher in the Year of The “ Rooster” in the Chinese Lunar Calendar. I would like wish all my Directors and Valued Staff a Happy New Year.
May the New Year brings prosperity and happiness to you and your families.
May all of you have a Refreshing Year for 2017.
Managing Director Foreword - 2017
First, I wish to congratulate all my Directors and staff on the successes in 2016. The successes for FY2016 was very small as compared to the progress that we have made for the last 5 years. I must put on record that FY2016 was a turbulent year with a stagnant growth in our FMCG industry. I sincerely trust and believe that all my directors and staff will strive for better performance in 2017.
May I quote Mr Jack Ma the CEO & President of Alibaba “ Today is bad, but, tomorrow could be worse”. This quotation certainly holds true in today’s slow economic environment in our Country. Many businesses are going through a very difficult times as we have witnessed in the last few months.
We must not be arrogant, complacent and too busy with trivial things. We must not be sanguine about the matter and maintain the old practices. The prophecy of doom must be avoided and we must continue to innovate and transform the company forward in services and products diversification.
We must strive from “Good to Better and ultimately Excellent” in all aspects of our organization’s structure, IT and operational systems and financial management. We must further develop our human capital in order to meet future challenges. We must remain as a strong organization in order to propel forward in these turbulent times.
A Preview into 2017
Our Management is aware of the need for stronger sales revenue performance to ensure that we get back to normalized profit from operations and profit after tax in 2017 and 2018.
We will continue to focus on net sales revenue growth with the desire to extend our portfolio of products. Our management will look into higher margin consumer products as our potential for growth in 2017-8.
Our forecast net sales revenue of RM63.8 million for FY2017 is very realistic and it should be achievable. The economic outlook for 2017 is still uncertain with weak consumer demand on our products.
Business Sustainability
The Managing Director said that for the company to sustain this critical times, we will continue to focus in four key priorities in 2017. The four main areas are as follows:-
1) Net Sales Revenue Growth
The management will actively focus on the additional products from present Brands owner or new Brand owners to increase the net sales revenue for 2017-18.
Our Company will seek new Brand Owners or Principals either in Malaysia or overseas countries to expand our portfolio of products or services.
2) Working Capital Management
Credit Risks Management
We aimed to reduce credit risks in these adverse market conditions by enhancing our credit evaluation and controls. Our Accounting and Finance department shall be better train and to monitor the risks of accounts receivables more proactively and to reduce potential bad debts.
Inventory Management
We shall optimize our inventory level holdings to less than 30 days DSI (Days Sales Inventory) as a benchmark in this economic slowdown period which is affecting the consumer’s demand.
Cash Flow Management
We will take advantage of our cash reserves position to repay higher interest on term loan to help reduce interest costs and to maintain our company’s current gearing position.
3) Productivity and Efficiency Focus
A strict focus on the logistic load factor yield in the company’s delivery fleet. A Key Performance Indicator like revenue per vehicle based on km travelled shall be implemented as a basis of monitoring the fleet performance. This will be monitored by our logistic team on reducing unproductive routes delivery and improve logistics planning on routes efficiency.
The company has outsourced several of our lorry(s) to delivery sub-contractors and this initiative has helped reduced our logistic costs.
4) Geographical & Product Diversification
We will diversify our business operations in terms of geographical and product portfolios horizontally. Our business has expanded into 4 Key States i.e. Selangor Darul Ehsan, Negeri Sembilan, Malacca and Johore ( Muar District of Johore ).
Our enlarged products portfolio include the following grouping in terms of category:-
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Dairy Milk Powder ( Ambient products )
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Chilled and Frozen Dairy Products
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Disposable Diapers & Baby Products
The geographical population size in all three States is approximately 4.5 million. The trade outlet universe in all three states of which comprised of International Key Accounts, Local Modern trade, Convenient Chain stores, Chinese Medical Halls, Large, Medium, Small provision shops and schools is approximately 3,680 Outlets.
Our milk dairy products, chilled and frozen dairy products, disposal soft goods and beverages are basic necessity in nature. These products are normally considered as “recession resistant” during an economic slowdown, but, nevertheless our company shall not be complacent in our efforts to boost net sales revenue in every segment of our operating divisions.
Thank you.
Raymond Lee - Managing Director

