Page 5 - ar2011

05 04 Best World International Limited
Annual Report 2011
Best World International Limited
Annual Report 2011
FOUNDERS’
MESSAGE
On behalf of the Board of Directors, we are pleased to
present the Annual Report of Best World International
Limited (“Best World” ) for the fnancial year ended 31
December 2011 (“FY2011”).
FY2011 in Review
Best World achieved a turnover of $41.5 million, and
net proft of $0.3 million for the full year, in spite of
losses incurred for the frst nine months of 2011. We
encountered a challenging year due to global economic
uncertainly brought about by the European sovereign-
debt crisis. Cautious consumer spending and market
competition have resulted in a decline in revenue from
Singapore and Malaysia, particularly during frst half
of 2011. In addition, the unexpected Bangkok foods
in late 2011 affected marketing activities, which led to
lower revenue contributions from Thailand during the
last quarter of the year.
Although our top and bottom line decreased as a result
of a general slowdown in sales for our key markets, we
maintained our focus on our core business, building
our brands and developing quality premium skincare,
nutritional and wellness products and services for
discerning customers around the world. With our
strong business fundamentals and customer-focused
values, we will continue to establish our presence in
Asia, by putting in place the building blocks for the
next phase of growth.
Markets that we have expanded to in the recent years
such as Taiwan, Korea, Myanmar and China have
started to display promising growth. Early signs of
revenue recovery are also showing in Indonesia as a
result of a series of marketing campaigns and product
launches implemented during the year. Building on
this momentum, we remain cautiously optimistic
with Asia’s resilience and growth potential despite
uncertain global economic conditions, and believe that
our investments and series of marketing activities in
our new and existing markets will pave the way for the
upturn ahead.
A Strong Culture of Innovation
At Best World, we are motivated by our commitment
to provide a range of innovative and quality health and
wellness products that is synonymous with our brand
excellence. To that end, the management pays special
attention in our choice of contract manufacturers
and new products. All of our cosmetics, skin care,
personal care and nutritional supplement products
are manufactured in Good Manufacturing Practice
(“GMP”) certifed or GMP equivalent certifed facilities.
We keep an ear to the ground to create products that
fulfl our customers’ desires. After intensive research
and development, we launched the Aestier Hydro
Mask, IntiMeds Femwash and Avance Collagen Plus
in 2011, which were widely embraced by the market.
To expand and reach out to more markets in Asia, we
have successfully set up Regional Centres in Manila
and Seoul in the last quarter of 2011.
Our desire to innovate extends to streamlining
operations from the supply chain to back-end IT
systems. These continuous improvements are carried
out with the aim of increasing our distributors’
effciency in conducting their business and achieving
better cost savings as a Group. Strategically, as we
grow and expand our network across Asia, we have
and will continue to leverage on technology to support
our distributors’ network. In the last quarter of the
year, we released a new online platform in Singapore
that will enable our distributors to obtain real-time
information of products and sales or place orders. We
have received positive feedback from our distributors
since the launch of this new platform and will intend to
extend this service to other markets in FY2012.
Differentiation through personalised service is
another emphasis that we value. We frequently
organise training sessions for our distributors to
improve their product knowledge and presentation
skills. Due to our structured and fnancially rewarding
programme, membership numbers have increased by
6.9% to 245,444 members at the end of 31 December
2011 as compared to the previous year.
Best World’s long-held focus of building brand
excellence is a message of quality and promise of
distinction. With our customer-centric culture, we
are confdent of attracting and retaining distributors
and customers, moving us closer towards our goal of
Going Global.
A Commitment to Our Global Communities
Best World believes that every business has a
responsibility to give back to the communities we
serve in order to make the world a better place to live.
That’s why Best World has established World Learner
(世界童窗) – to underscore our long term commitment
of being a good corporate citizen. Launched in 2010,
the programme is a continuation of Singaporean’s
charitable contribution to the Sichuan Earthquake
Regions, and seeks to reward underprivileged
students with outstanding performance in school,
an opportunity to travel and engage in a 2 weeks
cultural and educational exchange in Singapore.
This company-wide and annual commitment
foster stronger understanding between the future
generations of Singapore and China, reinstating the
Group’s belief in all-rounded learning and our vision
to deepen our connection in Asia.
A Commitment to Ethical Business Practices
To improve risk management and safeguard our
shareholders’ investments and the company’s assets,
we have sought to maintain and enhance a sound
system of internal controls and corporate governance
measures. Our Enterprise Risk Management (‘ERM”)
programme was implemented in 2010 with the
objective of identifying top risks that the company is
exposed to, establishing counter measures to address
the top risks, as well as to develop a structured risk
reporting hierarchy and ongoing monitoring process
to address existing and new risks on a timely basis.
In line with the Company’s intolerance for fraud
and unethical actions, a whistle-blowing policy was
also developed and launched in 2011 to empower
employees with avenues to highlight concerns and
address acts of misconduct which include but are not
limited to activities that lead to inaccurate fnancial
reporting, unlawful activities and breach of company
policy.
Outlook & Prospects
The key driver of our strategy is to further establish our
presence in Asia by strengthening brand awareness
through effective marketing campaigns and increased
membership.
Building on the strong foundation we have established
in Thailand, Taiwan and new markets in Korea,
Philippines and Vietnam, we will focus on increasing
our market share and brand awareness in these
countries. We will take steps to further unlock the
potential in these countries by engaging the market
through marketing campaigns, introducing new
products and boosting our network of distributors.
In 2012, we will forge ahead with confdence and
determination while maintaining caution demanded
in this uncertain environment. Having weathered
diffcult times, we have honed and equipped ourselves
with the necessary skills to handle challenges ahead.
We will focus on selective investment, cost control
and further integration and streamlining of our
operations through the use of technology to maximise
effciency. The relocation of our packaging facility
to Tai Seng in particular, has enabled us to achieve
higher level of automation which will improve our
packaging capacity to meet the growing demands
of our regional subsidiaries. The facility which is on
track to be certifed as an ISO 9001 and GMP certifed
operation, sets the stage for the Group’s effort to
tap into the value chain of nutritional and health
supplements production via backward integration, in
view of building demands from a greying population.
With the dedication, zest and expertise to grow our
brands and business, the Group is well-positioned for
tomorrow.
Acknowledgment
On behalf of the Board, I would like to convey my deep
appreciation to each and every one of you. To the
board members, thank you for your invaluable advice
and support. To our shareholders, customers and
business partners, thank you for the confdence you
have placed in Best World.
Most of all, I would like to thank our Best World
management and staff whose passion, dedication and
innovative spirit have allowed the Group to grow year
after year.
DR DORA HOAN
Group Managing Director & CEO
DR DOREEN TAN
Chairman