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Best World International Limited
Annual Report 2011
Best World International Limited
Annual Report 2011
4. Financial Information By Segments
4A. Information about Reportable Segment Proft or Loss, Assets and Liabilities
Disclosure of information about operating segments, products and services, the geographical areas, and
the major customers are made as required by FRS 108 Operating Segments. This disclosure standard has
no impact on the reported results or fnancial position of the group.
For management purposes the group is organised into two major operating segments: direct selling
and sales through agencies and retail. Such structural organisation is determined by the nature of risks
and returns associated to each business segment and it defnes the management structure as well as
the internal reporting system. It represents the basis on which the management reports the primary
segment information. They are managed separately because each business requires different strategies.
The segments are as follows:
(
a
)
Direct selling and sales through agencies segment mainly comprises sales to customers through
direct selling channels in Singapore, Malaysia, Indonesia, Thailand, Taiwan, Hong Kong, Vietnam,
Myanmar, Philippines, Korea and Australia; and
(
b
)
Retail segment comprises sales to retail customers through retailers in the People’s Republic of China.
Inter-segment sales are measured on the basis that the entity actually uses to price the transfers. Internal
transfer pricing policies of the group are as far as practicable based on market prices. The accounting
policies of the operating segments are the same as those described in the summary of signifcant
accounting policies.
The management reporting system evaluates performances mainly based on a measure of earnings before
depreciation, amortisation, interests and income taxes
(
called “Recurring EBITDA”
)
. This measurement
basis excludes the effect of expenditure from the operating segments such as goodwill impairment that
are not expected to recur regularly in every reporting year.
The types of products include nutritional supplement products, personal care products and healthcare
equipment. The information on each product and service, or each group of similar products and services is
not available and the cost to develop it would be excessive.
Segment results consist of costs directly attributable to a segment as well as those that can be allocated on
a reasonable basis.
Segment assets consist principally of property, plant and equipment, other intangible assets, inventories,
trade receivables and cash and cash equivalents.
Segment liabilities consist principally of trade and other payables.
4. Financial Information By Segments
(
Cont’d
)
4A. Information about Reportable Segment Proft or Loss, Assets and Liabilities
(
Cont’d
)
Unallocated items comprise investment property, other fnancial assets, goodwill, other assets, other
receivables, income tax payable and deferred tax assets and liabilities.
4B. Proft or Loss from Continuing Operations and Reconciliations
Direct selling & sales
through agencies
$’000
Retail
$’000
Unallocated
$’000
Group
$’000
Continuing Operations 2011
Revenue by Segment
External sales and services
40,230
1,302
–
41,532
Recurring EBITDA
2,645
(
715
)
58
1,988
Interest income
113
55
–
168
Depreciation
(
1,538
)
(
92
)
(
18
)
(
1,648
)
Amortisation
(
110
)
(
51
)
–
(
161
)
Proft
(
Loss
)
before Tax from
Continuing Operations
1,110
(
803
)
40
347
Income tax expenses
(
226
)
Proft from Continuing Operations
121
Continuing Operations 2010
Revenue by Segment
External sales and services
48,843
706
–
49,549
Recurring EBITDA
5,080
(
427
)
–
4,653
Interest income
100
38
–
138
Depreciation
(
1,508
)
(
34
)
–
(
1,542
)
Amortisation
(
83
)
(
63
)
–
(
146
)
Proft
(
Loss
)
before Tax from
Continuing Operations
3,589
(
486
)
–
3,103
Income tax expenses
(
980
)
Proft from Continuing Operations
2,123
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2011