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1 . 0 COMPANY ACCOUNT POH KONG founded in 1976, being a pioneer jeweller has converted itself by a traditional jewellery until the core recognition of the extremely important jewellery brand as synonymous with excellence linked to the design, quality and remarkable craftsmanship. Detailed on Bursa Malaysia since 2004, POH KONG has been hailed as the largest jewellery retail sequence in Malaysia with a network of 75 branches around the world with developing facilities.
It has been successful in developing and promoting its very own brand and turn the sole distributor for many intercontinental brands.
POH KONG under one building brands including Tranz, Cheerful Love, Anggun, The Art of Auspicious, Bunga Hito Gold Pub, and many more to come. POH KONG is definitely the licensee for Disney Collection is the sole distributor pertaining to luxury Schaeffer pearls coming from around the world. POH KONG by using a differential picture of the brand and retail principle to meet the needs of numerous customers. In addition to POH KONG and Diamond & Platinum outlets, price tag concepts just like POH KONG Gallery, Precious stone Boutique, Jade Gallery, Tranz Boutique and Oro Bianco are available. 2 . The General Environment 2 . you Political Jewellery retail string Poh Kong Holdings Bhd expects the price of gold to be on an up trend this kind of year(2012), fuelled by demand for the rare metal as investment. Movement of gold rates would depend on the political steadiness in Iran, where Poh Kong gets its supply. Poh Kong’s AGM anticipate that in the event war starts in serbia, gold rates may enhance by thirty percent. Last year, gold hit above US$1, 900 per ounces but has since fallen to US$1, 620 this month. Demand for rare metal globally still happening upward trend.
The company remain seeing double-digit growth worldwide on gold bullion and bars, so there may be still any for the business to move forward. Besides that, the higher price of rare metal would bring higher margins for Poh Kong as the cost is usually passed down to retail consumers. On lender offering investing in gold, although there is somewhat competition, Poh Kong’s product sales are not damaged as buyers still come bak to them. 2 . 2 Monetary Poh Kong Holdings Bhd is expecting a better economic year forward, spurred by simply increased with regard to gold through the public.
When the price of gold escalates, the company’s selling price to selling customers increase in tandem. An increased gold price, therefore , has a positivr impact on the revenue. The greatest jeweller in the area by the number of outlets says its revenue are not afflicted with the unpredictability in gold prices. Instead, sales of gold pubs increase, while the abundant look for a safe investment. Analysts say the firm can ride the increased appetite pertaining to gold like a “safe expense class, especially amid economical and monetary uncertainties.
The united states Federal Reserve’s decision to function more money into the financial system which has a second circular of quantitative easing may also mean additional money going into products like precious metal, which will drive prices possibly higher. Nevertheless , this would likewise mean larger inflation, which in turn would gasoline the upwards trend of gold rates. For FY2010, Poh Kong reported a great 11. 24% rise in net profits to RM31. 61 million within the back of a compact 3. 62% increase in revenues to RM561. 24million. EPS was 7. 7 sen, up by 6. 93 sen last year. Net income and working margins improved in FY2010 to 5. 63% and being unfaithful. 8%, correspondingly, from five. 25% and 9. % in FY2009. 2 . several Social Poh Kong Group’s CSR projects are consistent with Bursa Malaysia’s framework centered towards the place of work, marketplace, community and environment. As a socially responsible organization, the corporate citizenship is incorporated into a eco friendly business model which goes beyond investors interests, for the enhancement of contemporary society. Corporate’s CSR programme sees responsibility intended for the Company’s actions and encourages a positive effect through the activities simply by its personnel, caring for customers, giving back to the under fortunate through social welfare function and environmental protection.
The Group aligns its company activities to social triggers with the different target publics as we endeavor to create a even more caring community and make a significant big difference in the lives of many in society. In this respect, Poh Kong recognizes the CSR is always to foster mutually beneficial associations with our stakeholders and world through energetic participation that help improve the living standards from the surrounding communities. 2 . some Technological Scientific research and technology are carefully related in the gold mining process, especially in the extracting and processing in the metal. Precious metal is a gold ellow metallic, which is sound at area temperature. Gold can be extracted in many ways. Exploration for platinum is only useful financially high is a significant concentration of it found in ore. The set price of gold in 1934 elevated from 20 dollars. 67 U. S. to $35 U. S. per troy oz. This cost remained fixed until late 1960s which disappointed hard rock and roll mining for gold because increased inflation (which raised the cost of mining production) eliminated the mining companies from making money. 3. zero Task Environment Analysis Gold mines generally have a huge impact on the environment.
Via digging away a huge gap, to getting rid of the remaining chemicals and tailing. When a gold mine isn’t very managed correctly it can incorporate some very adverse impacts for the environment. One common impact is usually when normal water used in the mining procedure is contaminated with chemical compounds from the stock and then put back into waterways and channels. Cyanide accustomed to extract platinum can dirty the estuaries and rivers and kill fish and also other. 3. you Green Consciousness In adding to the environment, Poh Kong believes in green consciousness activities and eco-friendly procedures that decreases the co2 footprint generated by the company infrastructure and working toward reducing wastage.. 2 Strength Conservation Throughout the combined work and determination of each staff, environment-friendly life styles that promote green technology are performed. This incorporate using light-emitting diode bulbs (LEDs) pertaining to energy saving light, the programmed shutdown of desktop computer systems while not in use, maintaining a/c at secure, but reduced temperatures, turning off non-essential lights and equipment, plus the recycling of materials have all reduced costs savings. several. 3 On a Green Quest
We support minimise the effect on the environment by reducing the use of dangerous substances, undertaking the secure disposal of waste release and the monitoring of polluting of the environment levels to get a clean environment. Poh Kong believes in lowest wastage and it is working to a absolutely no waste relieve policy inside the jewellery production process. The Company takes back again gold items at end-of-use or end-of-life for dependable reuse, reuse, remanufacture or recovery from the gold in the refining process.
The Company’s aim is to offer and maintain a clean environment for lasting development pertaining to current and future ages. It strives to fulfill the social, environmental and ethical obligation which is vital in global environmental sustainability. 4. 0 SWOT Strength POH KONG can be described as well-know company and is attractive for those who enjoy beautiful earrings. The POH KONG is prosperous in building, provided quality product plus the hardware to make the jewelry. POH KONG also listed in BURSA MALAYSIA, therefore the company be successful attract a large number of customers purchase their products.
Different design and different concept is defined to target the various market segmentation as to fulfill the customer necessity. POH KONG Holding Berhad offered rings to wedding ceremony, jade, international, diamond or gems and several else in respect to customers taste. POH KONG possesses its own expert to designing the product to make that more luxury. The price offer is based on the us government policy, and so the price is not so expensive and everyone is inexpensive. Weakness A few POH KONG company branch is certainly not selling all products, because the shop present limited space.
So , the consumer just can take an buy through cataloged or browser. As a result, it could lose some customer or perhaps decrease customers’ satisfaction as a result of take time in sending the stock towards the customers. Besides that, a lot of customers also complain the POH KONG is less alternative if match up against other opponents. Consequently, bulk customers proceed to support additional company. Chance Using the latest technology might help the business growing more quickly. POH KONG can save all their production expense by utilized new technology and produce great quantity jewelry.
The organization can identified it because cost benefit and offer an acceptable price intended for the customers. POH KONG also received the payment approach by credit-based card, this is ease to the clients when they purchase expensive jewelry. In addition, they also utilized the online promoting to market all their product, the costumer can easily visited the website to get the newest information. POH KONG contains a big business formulation, just like distributor towards the international brands such as Tranz, Happy Like, Anggun, The ability of Auspicious and Bunga Raya Gold Bar.
Also, they distribute for Schoeffel High-class Pearls coming from German, Luca Carati and Verdi coming from Italy, Angel Diamond coming from Belgium and Cocoro coming from Japan. Threats The strict of government plan might impact POH KONG gain earnings in business. Following, due to the increasing number of opponents, POH KONG was facing the problem of pricing war. This is because majority customers will certainly choose the company which can give reasonable price with top quality products. Because an existing various competitors, they will purposely give lower price to draw more clients.
The problem of pricing warfare between rival had cause POH KONG frequently advancement unique and special style product to be able to attract as well as customers. Your competition has bring about POH KONG more power employed several ways to become a big retailer on the market, the subjective is to enhance their profit and market share. a few. 0 TOWS Internal Elements (IFAS)ExternalFactors(EFAS)| Strength (S) | Weaknesses (W)| Opportunities (O) | SO strategies-POH KONG is a well-know company and distribute the jewellery into foreign market. The expertise permitting creates different products with new technology. -all the product cost are relating government policy, so the business successful gain cost benefits. -With the POH KONG operate wall socket in all express, the company may gain the charge advantage after they selling large quantity with cheap to the customer| WO strategies- The company should certainly use the latest technology to making more variety products. , POH KONG company directs their item over the foreign market regarding compete with competition. POH KONG company offering various goods with cheap as to satisfy customer necessity around the intercontinental market. | Threats (T)| ST strategies- POH KONG company established a goal to become a leader in jewelry merchants as to face the competition issue. -The cost of POH KONG is according to government policy, so they can avoid pricing conflict between competitors. -POH KONG has employs the government insurance plan to manage their very own business, about gain their particular profit. | WT strategies-Due to many opponents, POH KONG had experienced the charges war. The strict of presidency policy bring about POH KONG branch unable to fulfill customer requirement. -As many opponents in market, POH KONG have to compete with others concerning become a big retailer in market. | Strength and Opportunities (SO) POH KONG is a famous company in jewelry industry, so they can employ their reputation to distribute the products in international marketplace. The knowledge in POH KONG may well useful to generate a creative thought in creates various goods with the latest technology.
POH KONG was comply with the government policy to gain their very own cost edge and open outlet in all of the state by selling large amounts of products with low cost to the customers. Weakness and Opportunity (WO) POH KONG company ought to be used the latest technology to make large amount plus more quality products, it is important for customers have more option from range products. POH KONG develop a strategy prepare by foreign trade their products in to international industry and providing various rings with cheap as to satisfy customers expectation.
Strength and Treats (ST) POH KONG based their strength to set an objective as become a big retailer in charms industry. Or else, POH KONG also established their price based on federal government policy, so they can avoid prices war from competitors. About gain more profit and increase the market share, POH KONG have to comply the government coverage. Weakness and Treats (WT) Due to living competitors in market, POH KONG offers faced pricing war between your competitors. Mainly because pricing is a crucial asset intended for company to draw more buyers in order to maximize company.
Because the strict of government plan lead to several POH KONG branch was unable to satisfy all clients requirement. Therefore, POH KONG is require to set an objective to become a big retailer in jewelry market. 6. zero Ratio Analysis Formula: , 1 . Liquidity Ratios| Current ratio = | Current assets Current liabilities| Speedy ratio = | Current assets ” inventory Current liabilities| Inventory to net working =capital | Products on hand Current assets ” current liabilities|. Earnings Ratios | Net revenue margin sama dengan | Net profit after taxes Net sales| Return on investment (ROI) sama dengan | Net profit following taxes Total assets| Come back on collateral (ROE) = | Net profit after taxesShareholders’ equity| 3. Activity Ratios| Inventory turnover =| Net salesInventory | Net working capital turnover = | Net salesNet working capital| Asset turnover = | Sales Total assets| 5.
Leverage Ratios| Debt to asset ratio = | Total debt Total assets| Debt to equity proportion = | Total debt Shareholders’ equity| Current liabilities to value = | Current legal responsibility Shareholders’ equity| Analysis 1 ) Liquidity Percentages ( i actually ). Current ratio 2011 year| 2010 year| RM 484, 863, 174 RM 198, 367, 638 sama dengan 2 . 44 times| RM 419, 387, 537 RM 120, 116, 086 = 3. forty-nine times|
To get current ratio, year 2011 is 2 . 44 occasions and 3. 49 moments in year 2010. It really is decreased 1 ) 05 times in season 2011 in the event compare with yr 2010. 2011 year| 2010 year| RM 484, 863, 174 ” RM 443, 668, 132 RM 198, 367, 638 = 0. 21 times| RM 419, 387, 537 ” RM 383, 614, 269 RM 120, 116, 086 sama dengan 0. 31 times| ( ii ). Quick proportion Fo Pertaining to quick percentage, year 2011 is zero. 21 instances and 0. 30 instances in 12 months 2010. It is decreased 0. 09 moments in years 2011 in the event compare with yr 2010. ( iii ). Inventory to net working capital 011 year| 2010 year| RM 443, 668, 132 RM 484, 863, 174 ” RM 198, 367, 638= 1 . 55 times| RM 383, 614, 269 RM 419, 387, 537 ” RM 120, 116, 086 sama dengan 1 . 28 times| Pertaining to Inventory to net seed money year 2011 is more than 2010, which can be 1 . fifty-five times (2011) and for year 2010 is usually 1 . twenty-eight times. It is increased 0. 27 moments in yr 2011 if perhaps compare with 12 months 2010. installment payments on your Profitability ratio ( my spouse and i ). Net profit perimeter 2011 year| 2010 year| RM forty one, 204, 606 x 75 % RM 487, 653, 434 sama dengan 8. a few %| RM 32, 516, 897 back button 100 % RM 389, 023, 737 = 8. 36 %| ( Farreneheit For net profit perimeter, year 2011 is greater than year 2010, which is eight. 45 % and 8. 36 % in year 2010. And year 2011 is increased 0. 09 %. ( ii ). Return on investment (ROI) 2011 year| 2010 year| RM 41, 204, 606 x 100 % RM 576, 408, 981 = 7. 15 %| RM 32, 516, 897 times 100 % RM 509, 641, 678 = 6th. 38%| Pertaining to ROI, year 2011 can be 7. 15 % and 6. 32 % in year 2010, which is increased 0. 7 % in year 2011 compare with 12 months 2010. ( iii ). Return upon equity (ROE) 2011 year| 2010 year| RM forty one, 204, 606 x 95 % RM 345, 996, 853 sama dengan 11. 91 %| RM 32, 516, 897 back button 100 % RM 310, 537, 172 = twelve. 47 %| In 12 months 2011, ROE is 10. 91 % and twelve. 47 % for 12 months 2010. That is certainly increased 1 ) 44 % if compare with year 2010. 3. Activity Ratios ( i ). Inventory proceeds 2011 year| 2010 year| RM 487, 653, 434 RM 443, 668, 132 = 1 . 0 times| RM 389, 023, 737 RM 383, 614, 269 = 1 ) 01 times| In yr 2011, inventory turnover pertaining to Poh Kong Holdings Berhad is 1 ) 10 times and 1 . 01 times intended for year 2010. It is elevated 0. 2009 times intended for year 2011. ( 2 ). Net working capital turnover 2011 year| 2010 year| RM 487, 653, 434 RM 484, 863, 174 ” RM 198, 367, 638 = 1 . 70 times| RM 389, 023, 737 RM 419, 387, 537″ RM 120, 116, 086 = 1 . 40 times|
Intended for net seed money turnover, 12 months 2011 is 1 . 75 times and year 2010 is 1 ) 30 instances. It is elevated 0. 40 times in year 2011 if match up against year 2010. ( iii ). Resources turnover 2011 year| 2010 year| RM 487, 653, 434 RM 576, 408ps, 981 sama dengan 0. 85 times| RM 389, 023, 737 RM 509, 641, 678 = 0. 76 times| Pertaining to assets turnover, year 2011is 0. eighty-five times and year 2010 is 0. 76 occasions. It is elevated 0. 2009 times in year 2011 if match up against year 2010. 4.
Leverage Ratios ( i ). Debt to asset rate 2011 year| 2010 year| RM 230, 412, 128 x 100% RM 576, 408, 981 = 39. 97 %| RM 199, 104, 506 x 100 % RM 509, 641, 678 = 39. ’07 %| Intended for debt to asset rate, year 2011 is 39. 97 % and 39. 07 % in yr 2010. It can be increased zero. 9 % in yr 2011 in the event compare with 12 months 2010. ( ii ). Debt to equity rate 2011 year| 2010 year| RM 230, 412, 128 x 100% RM 345, 996, 853 = sixty six. 9 %| RM 199, 104, 506 x 90 % RM 310, 537, 172 sama dengan 64. 12 %| ( For financial debt to collateral, year 2011 is 66. 59 % and sixty four. 12 % in year 2010. It is increased installment payments on your 47 % in season 2011 in the event compare with season 2010. ( iii ). Current financial obligations to value 2011 year| 2010 year| RM 198, 367, 638 x 100% RM 345, 996, 853 = 57. 33 %| RM 120, 116, 086 x 95 % RM 310, 537, 172 sama dengan 38. 68 %| For current financial obligations to collateral, year 2011 is 57. 3 % and 38. 68 % in year 2010. It is increased 18. 65 % in yr 2011 if compare with yr 2010. several. 0 TACTICAL DIRECTION several. 1 Increase on even more outlets. POH KONG is definitely planning to wide open more stores as part of local development. Ongoing expansion programs out a several spots from metropolitan center to small cities, is intended to produce opportunities and revenue regarding large and supply accessibility and convenience to their customers through its intensive retail network with owned or operated or partially owned establish branches through Malaysia. several. 2 Make a new selection product
POH KONG organization has chose to produce a fresh range of platinum jewellery targets a younger age group. The brand new network will certainly complement POH KONG Platinum jewellery available and satisfy the needs and preferences even more users. Fresh machinery and equipment will be available to support development of the item. 7. three or more Expand retail operation nationwide and China POH KONG has a eyesight to broaden its price tag operations outside of the country nationwide and Cina as the original target market. The feasibility examine will be done to assess the viability of setting up full gold jewellery branch, style and preference in new markets.
In the event everything else goes well, that they decided to set up branches in Australia and China and tiawan. POH KONG’s vision is to spread it is wings to local outside in order to maximize income. six. 4 Planning to franchise the idea POH KONG is intending to franchise the idea to potential retail regional entrepreneurs. This enabled POH KONG to spread out the fasten brand and retail knowledge. New franchise outlets brings POH KONG brands and potential places such as Terengganu, Kelantan, Sabah and Sarawak, in areas which do not include a personal hope establish a part. This new income stream increases the profits of POH KONG. almost 8. 0 Board of Movie director YG BHG DATO’ CHOON YEE SEIONG (Executive Leader and Croup Managing Director) * MR CHEONG TECK CHONG (Executive Director) * MADAM CHOON NEE SIEW (Executive Director) * MADAM CHOON YOKE YING (Executive Director) 5. MADAM CHOON WAN JOO (Executive Director) * DR CHOONG TUCK YEW (Senior Independent nonexecutive Director 5. ENCIK FAZRIN AZWAR BIN MD NEITHER (Independent nonexecutive Director) * DATIN SHIRLEY YUE SHOU HOW (Independent Non-Executive Director) The table of Poh Kong Loge Berhad is committed to transfuse a corporate tradition of good corporate governance which can be practiced through the entire company as well as subsidiary businesses.
The group acknowledges the importance of corporate governance in enhancing the business wealth and corporate answerability with the absolute objective of realizing long lasting shareholders’ and stakeholder’s value. The group will still endeavor to abide by all the essential principles from the Malaysia Code Corporate Governance in an effort to watch high requirements of visibility, accountability and integrity. This is to support optimal governance with careful accountability for continuous efficiency, efficiency and competitiveness from the crew.
