financial position of company
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TRANSCRIPT
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New-Skin’s Annual Financial Report of 2011
New-Skin’s Annual Financial Report of 2011
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NEW SKIN SDN.BHD
• A world class latex glove producer
• Produces two types of gloves:-
- Natural Rubber latex gloves
(80%) & Nitrile gloves (20%)
• Leading international manufacturer, distributor and marketer.
• Exporting to over 100 countries worldwide in the regions of:
- United States of America (USA) - Europe - Asia Pacific
• Total production :
- 16 bil pcs/year, 10% of the
world’s demand.
MAIN FACTORYNo. 7, Kawasan Perusahaan Suria, 45600 Pulau Indah, KlangSelangor Darul Ehsan, Malaysia • Tel: +603 - 3280 1007• Fax: +603 - 3271 1007• Email: [email protected]
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We Strive To Be The World’s
Leading ManufacturerWith Excellent Quality Gloves
ProductsAnd Services That
EnrichAnd Protect Human Lives
Our Vision1
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• Has its own brand, New Skin
• Diversified to Nitrile Glove Production
• Now owns 3 plants• Gained substantial
foothold and command significant market share in the world glove market.
NEW SKIN SDN.BHD- NOW
IN 2011
• 50 employees only• Starting capital 1
million• Producing NR Latex
glove.
INCEPTION OF THE FIRST PLANT
• Manufacture Latex Gloves
• Public Listed Company
FOUNDED BY MR.GO &
FRIENDS IN 2007
Historical Background 1
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Board Of Directors
Managing Director Mr. Go Ren Quan,Malaysian.
Executive ManagerMs. Afsana Husain, Bangladeshi
Executive ManagerMs. Aisyah Ibrahim, Malaysian.
Executive ManagerMs. Kalaichelvi Rajagopal, Malaysian
Executive ManagerMr. M. Mahdi Mesbahi, Iranian.
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• To stay ahead in the industry, Research and Development (R&D) is a primary consideration of New Skin Sdn. Bhd.
• OUR holistic views of R &D has given us a far superior head start in terms of our product efficacy, technological prowess in our engineering capabilities and above all, speed to market.
• Echoing this sentiment, Plant 3 is now fully operational and able to surpass our targeted productivity from 12,000 pieces of gloves per hour per line.
Research & Development1
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• Employees are indeed the most valuable assets and play an
integral role in the continued success of our business.
• New Skin Sdn. Bhd are committed in recruiting, developing,
rewarding and retaining a quality workforce.
• New Skin started its operation with:
50 – 2007 (manufacturing only NR latex gloves + 1st
Plant)
80 – 2008 (extension of production lines &
establishment)
250 – 2009 (started manufacturing nitrile gloves+ 2nd
Plant)
250 – 2010 (extension of production lines &
establishment)
290 – 2011 (extended to 3rd manufacturing plant)
Human Capital1
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Pharmaceutical - To protect against chemical splashes in the manufacturing, extraction, processing, purification and packaging of chemical materials etc.
Laboratory - As an excellent biological barrier and as safet measures when handling chemicals.
Dental – For the use of dental healthcare practitioners.
Medical - For the use of surgeons, nurses etc to prevent possible transmission of diseases.
New Skin’s Customers 1
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1. Chemical Company of Malaysia Berhad (CCM)
• Recognized leader and steward in corporate safety
and environment management.
• Provide chemical products and applications
2. Medical Rubber Product Sdn Bhd
• Leading manufacturer and exporter of natural and
Synthetic rubber supply.
New Skin’s Suppliers1
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1. High Efficiency Production Lines with Glove Removal System
• Capable to produce 12,000 pieces of gloves per hour per line.
• Ensured with stable operating process parameters.
2. Automatic Product Handling System
• Product movement processes from production to warehouse
and to customers via conveyors and lifting systems and
• Electronically via Information Systems – ERP, RFID and
barcode traceability systems.
New Skin’s Technology1
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• To protect our valuable water source and air quality
• Committed to maintaining the quality of our effluent
water discharge and air emission to levels that are far
below allowable limits set by JAS.
• Fully aware of the laws, Environmental Quality Act
1974
New Skin Environmental Performance
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Powdered Glove
Powder Free Glove
Latex Surgical Glove
Latex Surgical Powder Free Glove
Latex Gloves
• provide strong barrier against pathogen, contaminations
• the best alternative for powdered gloves• reducing the risk of allergy
• designed to fit hand structure perfectly• equipped with grip properties
• designed with the surgeon in mind• gloves fit like a second skin
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Nitrile Powdered Examination Glove
Nitrile Powdered Free Examination Glove
Nitrile Gloves
• soft and stretchy
• exceptional protection against chemicals and blood borne
pathogens
• highly elastic, strong, comfortable and durable
• provides high levels of tactile sensitivity, comfort and
security even over long hours of usage.
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2007 Balance c/f 1,000,000 2007 1 Cash 1,000,000 1,000,000 1,000,000
2007 1 Owner's Equity 1,000,000 2007 2 Factory 600,000 2007 4 Sales 900,000 2007 2 Equipments 210,000 2007 9 Receivable 80,000 2007 2 Vehicle 50,000
2007 3 Raw material 150,000 2007 5 Advertising 20,000 2007 6 Salary 789,000 2007 7 Account payable 29,000 2007 8 Utility 12,000 2007 10 Stationeries 10,000 2007 13 Taxation 13,875 2007 Balance c/f 96,125
1,980,000 1,980,000
2008 Balance b/f 96,125 2008 14 Equipment 210,000 2008 14 Loan 250,000 2008 17 Raw Material 300,000 2008 16 Sales 1,300,000 2008 18 Salaries 978,000
Owner's Equity
Cash/Bank 2007
Cash/Bank 2008
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Start up business with capital 1,000,000 cash at 1/1/2007
Bank (Cash)
1,000,000
Owner’s Equity
1,000,000
Dt CrDepreciation expenses of equipment 10,500 (5%) for year 2007.
Depreciation expenses of Equipment
10,500
Accumulated Depreciation of Equipment
10,500
Dt Cr
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2007 2008 2009 2010 2011 Revenue from Sales of Good 1,000,000 1,500,000 4,200,000 5,000,000 6,500,000 Cost of Sales (901,000) (1,146,000) (3,586,000) (4,304,000) (4,750,000) Gross Profit 99,000 354,000 614,000 696,000 1,750,000 Research and development Expenses (50,000) (50,000) (60,000)Administration expenses (10,000) (15,000) (45,000) (70,000) (100,000)Other operating expenses/CSR (20,000) (35,000) (55,000) (75,000) (110,000) Operating Income/Profit 69,000 304,000 464,000 501,000 1,480,000 Other income(expenses) Depreciation expenses (14,500) (25,000) (35,500) (39,000) (39,000) Interest Expenses (10,000) (10,000) (12,000) (13,000) Interest and discount received 1,000 Profit before Taxation 55,500 269,000 418,500 450,000 1,428,000 Taxation (25%) (13,875) (67,250) (104,625) (112,500) (357,000)Net Profit for the Year 41,625 201,750 313,875 337,500 1,071,000 41,625 RM
Income Statements of 5 Years3
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2007 2008 2009 2010 2011 ASSETS Non-current Assets Property and Plant facilities 600,000 600,000 2,100,000 2,100,000 2,100,000 Equipments and Machinery 210,000 420,000 420,000 420,000 700,000 Accumulated Depreciation (10,500) (31,500) (63,000) (98,000) (133,000) Net Equipment and Machinery 799,500 988,500 2,457,000 2,422,000 2,667,000 Vehicles 50,000 50,000 50,000 50,000 50,000 Accumulated Depreciation (4,000) (8,000) (12,000) (16,000) (20,000) Net Vehicles 46,000 42,000 38,000 34,000 30,000 Total 845,500 1,030,500 2,495,000 2,456,000 2,697,000 Current Assets Inventory 100,000 250,000 30,000 80,000 30,000 Trade Receivables 20,000 130,000 80,000 210,000 230,000 Prepaid Expenses 2,400 2,400 Investment 10,000 30,000 Cash and Bank balances 96,125 102,875 792,250 291,350 631,350 Total 216,125 482,875 902,250 593,750 923,750 TOTAL ASSETS 1,061,625 1,513,375 3,397,250 3,049,750 3,620,750
845,500 RM
216,125 RM1,061,625 RM
Financial Positions of 5 YearsAssets
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2007 2008 2009 2010 2011 ASSETS TOTAL ASSETS 1,061,625 1,513,375 3,397,250 3,049,750 3,620,750 EQUITY AND LIABILITY Equity Owners Capital 1,000,000 1,041,625 1,243,375 1,557,250 1,894,750 Retained Profits 41,625 201,750 313,875 337,500 1,071,000 Total Equity 1,041,625 1,243,375 1,557,250 1,894,750 2,965,750 Liabilities Non-current Liabilities Bank Loan 250,000 1,800,000 1,050,000 550,000 Total - 250,000 1,800,000 1,050,000 550,000 Current Liabilities Payables 20,000 20,000 20,000 5,000 5,000 Deferred Revenue 20,000 50,000 50,000 Government Short Term Loan 50,000 50,000 Total 20,000 20,000 40,000 105,000 105,000 Total Liabilities 20,000 270,000 1,840,000 1,155,000 655,000 TOTAL EQUITY AND LIABILITY 1,061,625 1,513,375 3,397,250 3,049,750 3,620,750 1,061,625 RM
Financial Positions of 5 YearsEquities and Liabilities
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Net Profit in 5 Years4
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2007 2008 2009 2010 2011 -
200,000
400,000
600,000
800,000
1,000,000
1,200,000
41,625
201,750
313,875 337,500
1,071,000
Net Profit for the Year
New Skin has shown a strong and positive growth in Net Profit where we only RM41, 625 in first year operation, but increase 24 times to 1 million profit in 2011 (5 years operation)
In year 2007, H1N1 pandemic induced company invest in production capacity and in two years time, the net profit shown that the strategic move is wise enough.
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Total Expenses in 5 Years
2007 2008 2009 2010 2011 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
958,375 1,298,250
3,886,125
4,662,500
5,429,000
Total Expences for the Year
As the company grow bigger with expansion, the expenses of the company will increase as well, as the cost of goods sold increase due to increase of number of employees, the increase price of raw material, the increase of operating cost, maintenance of machineries.
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Total Revenue with COGS in 5 Years
2007 2008 2009 2010 2011 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
1,000,000 1,500,000
4,200,000
5,000,000
6,500,000
901,000 1,146,000
3,586,000
4,304,000 4,750,000
Revenue from Sales of Good Cost of Sales
The bigger jump of sales is during year 2009 where H1N1 pandemic occurred globally which push glove demand to another high level.
From 1 million sales in first year, New Skin has achieved incensement of 6 times to 6.5 million sales in year 2011.
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Total Assets in 5 Years
The asset of company consistently increase which is consistently with the expansion and growing of the company.
Purchased of factory and equipment in 2009 as H1N1 pandemic to increase production capacity
2007 2008 2009 2010 2011 -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1,061,625
1,513,375
3,397,250 3,049,750
3,620,750
TOTAL ASSETS
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Total Liabilities in 5 Years
Highest liability during 2009 due to bank loan for new plant and production capacity expansion
But the liability reduced consistently about 30% after that as the return of investment started to generate income
2007 2008 2009 2010 2011 -
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
20,000
270,000
1,840,000
1,155,000
655,000
Total Liabilities
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Total Eqiuty in 5 Years
Consistent increase trend can be seen majoring contributed by the consistent increase of retained profit from each years net profit after taxation.
Consistent increase of 20% to 40%
2007 2008 2009 2010 2011 -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1,041,625 1,243,375
1,557,250
1,894,750
2,965,750
Total Equity
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Balanced Equilibrium
2007 2008 2009 2010 2011 -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Total Equity Total Liabilities TOTAL ASSETS
1,061,625
1,513,375
3,397,250
3,049,750
3,620,750
Equities + Liabilities = Assets4.
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Projection of Business ProspectIn terms of Equity and Asset, we have started with RM1,000,000 and by 2011 it
reached RM1,894,750. The retained profit expected will continue to RISE as
company will continue generate income. As company continue to expand with
new plant, more cash, more facilities, asset will continue to build up.
In terms of liability, HIGHEST figure achieved was RM1.8 million and the amount
continue to reduce about 30% per annum. Thus, as company direction increase
cash flow on hand and reduce debt, the figure will continue to decrease until
clear off the loan and left minima liability.
In terms of Sales and Cost of Good Sold, it is expected to increase in both
elements. However, the total revenue will sales will be made sure always higher
than COGS as that is our profit. As more cost reduction step in place, higher
profit margin able to be generated.5.
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Projection of Business Prospect
In terms of Profit, New Skin’s profit has grown from RM41, 625 until RM 1
million in 2011, an increase of 24 times of increase over 5 years.
The company is working on completing 4th plant, with an investment of RM 5
million. It is decided to the production of Nitrile gloves, could potentially add
another RM 1 million in revenue to the group annually, based on the current
average selling price.
New Skin future profit will able to achieve a consistent increase of 25% to
50% depending on the market fluctuation.
Target to achieve 10 million profit in future 5 years
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