ANNUAL REPORT 2015 |
37
CHAIRMAN’S STATEMENT
as expected, where it has dropped by
10% from RM165.8 million to RM148.3
million as compared to last year same
quarter after the implementation of
Goods and Services Tax (GST) in April
2015. More significantly is the boutiques
revenue for last quarter for Malaysia
and Singapore has dropped by 28%
and 10% respectively due to lower
consumer traffic, be it local or tourists
to our stores. The SSSG from Indonesia
still registered a positive growth of
16%, which are well supported by their
stronger economies and fast-growing
middle class consumers.
The Group reported a profit before tax
of RM72.6 million, which is 15% lower
than the profit before tax of RM85.5
million reported in the preceding
year. Earnings weakened drastically as
gross profit margin were affected due
to promotional activities and higher
discount given to drive sales as well
as absorption of 6% GST without price
increase.
DIVIDEND
TheBoardofDirectorshasrecommended
a final single tier dividend of 5% or 1.25
sen per ordinary share of 25.0 sen each,
amounting to RM10,078,593 in respect
of the financial year ended on 30 June
2015.
The final dividend will be proposed
for shareholders’ approval in the
forthcoming Annual General Meeting.
The entitlement date and payment date
for the proposed final dividend will be
determined and announced at a later
date.
CORPORATE
DEVELOPMENTS
As part of the Group’s rationalisation
plan
to
eliminate
unnecessary
administrative costs in maintaining
dormant
subsidiaries,
Guangzhou
Bonia Fashions Co Limited, a dormant
subsidiary of which its business activities
ceased since 2014, was dissolved during
the FY2015. Apart from it, Bonia Italia
SrI, a wholly-owned subsidiary of Daily
Frontier Sdn Bhd with dormant status,
also went into voluntary liquidation
during the financial year under review.
On 16 July 2015, BB Global Holdings
Pte Ltd (“BBGH”) has emerged as a
51%-owned subsidiary of Jeco (Pte)
Limited (“Jeco”), which in turn a
subsidiary of Bonia. BBGH’s principal
activity
is
intellectual
property
management.
BBGH has executed the Intellectual
Property Rights Sale & Purchase
Agreement with Braun GmbH & Co.
KG (“BBKG”) on 21 September 2015 to
formalise the terms and conditions on
the acquisitions of certain intellectual
property rights of the Braun Buffel brand
at a purchase consideration of EUR
1.877 million. The acquisition allowed
Jeco to have better control of all the
intellectual property rights of the Braun
Buffel brand previously controlled by
BBKG. The parties also agreed to work
in cooperation to achieve synergies in
relation to the development of products
and of new markets in connection with
the Braun Buffel brand across the world.
FUTURE PROSPECTS
On the local front, Malaysia’s economy
is expected to continue at a slower pace
for the next financial year. Consumers
are expected to be very cautious in their
spending in viewof the slowingMalaysia
economy as well as rising costs of living
partly due to the weakening Ringgit
and GST. The retail sector has becoming
more challenging due to rising costs,
weakened
Ringgit,
dampening
commodities price which the country is
based upon and weakening consumer
sentiments.
Giving the uncertain economic outlook,
the Group’s prospects for the coming
financial year are expected to be
challenging. The Group will continue to
focus on its expansion plan to overseas
markets
in
particularly
Vietnam,
Indonesia, Cambodia and other Asian
countries.
Barring any unforeseen circumstances,
the Board of Directors remains cautious
about the Group’s outlook for the
coming financial year. We expect to
face further challenges as outlook for
global economy look uncertain and
our domestic economy may need time
to recover from the weaken Ringgit,
low commodities prices and overall
consumer sentiment.
ACKNOWLEDGEMENTS
On behalf of the Board, I would like
to express my utmost and sincere
appreciation and gratitude to the
management and staff for their
conscientious efforts, commitment and
dedication to delivering results. The
successes we achieved in FY2015 could
not have been possible without their
efforts.
We are also grateful to our valued
customers,
partners,
shareholders,
business
associates,
government
authorities and financiers for their
continued support and confidence in
the Group.
CHIANG SANG SEM
Group Executive Chairman
cum Chief Executive Officer
Date: 12 October 2015
