Corporate Section · 2018. 1. 25. · Asean Corporate Governance Transparency Index, Findings & Recognition 2015 - Merit Award for AGM Conduct & Minutes Disclosure by MSWG Best Under

Corporate Section

December 20171

Contents Overview

Business Operation Review

2

Financial Highlights

Dividend Policy

Overview

Present

Established in 1975 – Famous Household Name

Listed on Bursa Malaysia 2nd Board in 1996 - 1st Local Integrated Traditional Healthcare & Wellness Company Listed on the Exchange. Transferred to Main Board on 8th

Oct 2007

Principal business – Wholesale, Multi Level Marketing (MLM), Retail, Pharmaceutical Manufacturing, Modern TCM clinics

Product Focus : Wellness and Beauty, Traditional, Complementary and Alternative Medicine products & services

1975

3Hai-O Corporate Section Update -

Overview

Mission

• We are committed to promoting healthcare culture and improving human's well-being.

Vision

• We aim to become the premier healthcare company in Malaysia and thereby bringing the greatest value and pride to our customers, business partners, employees and shareholders.

Corporate Values

• Social Responsibility

• Excellent Service

• Attitude

• Growing

• Unity

• Loyalty

• Learning


Business Operation Review

Multi Level Marketing (“MLM”)

Wholesale

Retail

Manufacturing & Others

5

MLM Segment


MLMCore Drivers

• Offering Fair and Attractive Commission Scheme, up to 67% payout ratio;

• Offering Quality and wide range of products;

• Offering Attractive Overseas Incentive Trip annually;

• Strong corporate branding “Sahajidah Hai-O” – clearly differentiate MLM business model with other divisions;

• Effective training;

• Resilient Distributors Force & Focused Management Team;

• Leverage on IT to improve efficiency and CRM;

• E-commerce, Digitalisation & Social Selling.

“SHOM is committed to fostering entrepreneurship skills in Bumiputra and encourage dealers make this business as a career of choice.”


One of the leading Home-grown MLM companies in Malaysia

✓ HQ in Klang, Selangor – Wawasan Hai-O;

✓ Regional offices / branches in Jakarta - Indonesia, Brunei & Singapore;

✓ >160,000 active members (FYE30/4/2017 : 140,000);

✓ Over 34 stockists & branches nationwide with CIS;

✓ About 80% members are Bumiputra & majority are female;


MLM -Key Success Factors

Our strategies to “Recruit, Retain & Reward” members contributed to the overall success of the growth in membership: ✓ Total 160,000 members @ 31 Oct 2017


MLM - Key Success factors

✓ Group continue to enhance its web-based CRM System and software to facilitate the members to build its business nationwide, anywhere, anytime through online store;

✓ Added / upgraded 4 regional Distribution Centre (Johor, Sabah, Penang and Kuantan) during FY2017– improved physical presence;


MLM -Key Success factors

Dynamic marketing activities✓ Overseas incentive trip campaign which attract more than 400 pax of qualifiers

(Italy Trip);

✓ Incentive Trips (Gold Coast, Australia) – 500 pax;

✓ Current Incentive Trip campaign – Korea (July – October 2017) (target 800 pax)


Dynamics Products Line-upContinue focus on health, wellness, and lifestyle range of products

New Products include :✓ infinence Fashion Hijabs (new design)

✓ infinence Skincare Series

✓ infinence Fashion & Leather goods (Shoes & Handbag)

✓ F&B (Min Cha)

MLM -Key Success factors


New Brand – infinenceNew Products Planning

infinence

Skin Care Series

Hijab & Accessories

Foot Wear/ Insole

Leather Goods

Others


Star Product


Health supplements & Nutrition Food


Wellness Products


Beauty, Skin Care & Personal Care


Extended product range - Seasonal Products


New Product: Min Cha (Nov 2017)


Skincare, Cosmetic and personal care - extension of products range

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MLMProducts & Sales Strategies✓ Continue to collaborate with a well known local designer to roll out more

fashion wear and related products, and other trendy lifestyle range ofproducts (R&R, DJC, Fazura);

✓ In conjunction with the MLM division 25 years anniversary celebration, thedivision carry out grand sales promotions to attract more buying activitiesand participants.


Wholesale

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Wholesale

✓ 100 wholesalers and 2,000 retailers including Chinese Medical Halls,Restaurants, Pharmacies and Modern Trade Channels;

✓ Exclusive Distribution Rights for over 50 renowned brands of ChineseMedicines, health tonic, tea and healthcare products.

✓ Centralised purchasing support for the MLM & Retail Segment.


Wholesale Strategies

Strengthening product agencies

Promoting healthcare

products for young

customers

Expanding e-commerce

sales


Wholesale Strategies

Explore further business opportunities with our principals & business partners to widen our products distribution base and strengthen our agencies relationship

More aggressive use of E-commerce platform with regularupdates & promotional activities from social media

To reinforce “Hai-O” branding and further entrench intoyounger consumer market


Retail

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Retail ✓ A leading herbs & healthcare products chain stores in Malaysia;

✓ 56 outlets, including 7 franchise;

✓ Carry an extensive range of Traditional Chinese Medicines (TCMs), teas, health tonic, wines, gift packs or hampers and other healthcare products;

✓ As part of quality service, also provide advice on TCMs to customers. Chinese physician at selected retail outlets to provide value added services in the form of general medical consultation and product knowledge.


Retail Strategies ✓ Improve product mix to focus on high margin house brands, either

manufacturing by In-house GMP factory or external OEM;

✓ House-brand products contributes >40% of retail sales;

✓ 1-3 new outlets annually depends on availability of strategic location and resources;

✓ Provision of Chinese Physician TCM consultation as value-added services;

✓ Upgrading CRM Program for membership management and setting A&P strategies.


Manufacturing & Others

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Manufacturing ✓ 1st Company awarded with GMP TCM factory status in Malaysia;

✓ Maintained 2 GMP plants – cater for Halal and Non-Halal products;

✓ Produce quality traditional pharmaceutical products and food supplements;

✓ Supply to in-house and OEM customers. Services include product MAL registration and in-house product QC;

✓ ISO 9001/ GMP certified, FDA Registered.


Manufacturing ✓ The new GMP plant in Jalan Kapar Klang

fully commissioned in 2015 and has obtained HALAL certification for several products;

✓ Support the products development for MLM & Retail Segments. Expect higher contribution in near future.


JV – TCM ClinicTong Ren Tang (3 outlets)

✓ Established since Qing Dynasty (Year 1669);

✓ Listed in HK and Shanghai;

✓ GMP status awarded;

✓ Provide qualified medical practitioners from China;

✓ Sole distributor of Tong Ren Tang products.


Awards & Accolades

Forbes Asia “Best Under A Billion” for 4 consecutive years (2007-2010)

Anugerah CSR Perdana Menteri 2009 (Honourable Mention for Outstanding Work in Empowerment of Women

Asean Corporate Governance Transparency Index, Findings & Recognition 2015 - Merit Award for AGM Conduct & Minutes Disclosure by MSWG

Best Under Billion Awards 2015 - Best in Transparency by Focus Malaysia

AREA (Asia Responsible Entrepreneurship Award) under Social Empowerment Category 2016 by Enterprise Asia


Awards & Accolades


Dividend Policy

✓Dividend policy to distribute at least 50% of theprofit for the year as dividend remains unchanged;

✓ FY2015 : Higher dividend payout (100%) (15 sen) -to reward our shareholders commemorating Hai-O’s40th anniversary;

✓ FY2016 – 80% payout ratio ( 15 sen);

✓ FY2017 – 70% payout ratio ( 16 sen);

✓ FY2018 – single tier interim dividend of 6 sen.

35Hai-O Corporate Section Update

Business Strategies & ProspectWe remain optimistic to deliver positive results amidst thechallenging business environment.

✓ Focusing on core business – healthcare, wellness, fashion lifestyle,skin care and personal care;

✓ Continuous Distribution Network Expansion ;

✓ Enhance Talent Capabilities – Membership growth andproductivity.

✓ Continuous product development & brand building -- enhanceprofit margin;

✓ Leverage on IT, Digitising Operating Platforms to improveoperational efficiency;


Q&AThank You

Wisma Hai-O, Lot 11995

Batu 2, Jalan Kapar

41400 Klang, Selangor D.E.

T : 03-33423322 F : 03-33434257

www.hai-o.com.my

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Corporate Section · 2018. 1. 25. · Asean Corporate Governance Transparency Index, Findings & Recognition 2015 - Merit Award for AGM Conduct & Minutes Disclosure by MSWG Best Under

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