FINANCIAL ACCOUNTING AND

REPORTING 4

ANALYSIS OF AMWAY AND HAI-O

COMPANIES

Name: Siti Nurshahirah Binti Yaacob

Matric No. : M172020014
Lecturer's name: Miss Syahiza Binti Arsad

2019/12/28
2018 ANNUAL REPORT
CONTENT

INTRODUCTION EMPLOYEES BENEFITS DATA ANALYSIS COMPARISON

 01
AMWAY (MALAYSIA ) HOLDINGS BERHA
28, JALAN 223, 46100 PETALING JAYA
SELANGOR DARUL EHSAN
Anything is
Company's activities :

 Investment holding

Possible • Distribution of consumer product

s principally under the "Amway T
rademark".
LIST OF THE PRODUC
T:
• Amway Artistry • Amway Fushion X
• Amway Allano • Amway True Spring
• Amway Aloe Care • Amway XS Energy
• Amway Home • Amway Cookies Lovers
• Amway Glister • Amway Vergold
• Amway Tropical Herb • Amway Satinique
s • Amway Colour Creation
• Amway Sudzy • Amway Atmosphere
•2019/12/28
Amway Nutrilite • Amway eSpring
 Figure 1 shows the financial highlights of
Amway (Malaysia) Holdings Berhad con
sist of sales revenue, net profit, net divid
end per share, profit before tax, net earn
ings per share and core ABO force for th
e financial year 2018

Figure 1
2019/12/28
 HAI-O ENTERPRISE BERHAD
LOT 11995, BATU 2,
JALAN KAPAR 41400 KLANG
SELANGOR DARUL EHSAN.

2019/12/28
 Soaring
Company's activities :

 Investment holding

Sustainability
 Wholesaling & Retailing
• Herbal medicines & healthcare pr
oducts
 Property holding

2019/12/28
LIST OF THE PRODUC
T:
• Hai-O Garam Buluh
• Miautan Enerplus
• Premium Beautiful
• Marine Essense
• Eziclean
• Premium Beautiful Found
ation Lingerie Series

2019/12/28
 Figure 2 shows the financial highli
ghts of Hai-O Enterprise Berhad c
onsist of revenue, profit after tax,
net assets per share, profit before
tax, earnings per share and retur
n on shareholders equity for the fi
nancial year 2018

Figure 2

2019/12/28
02
EMPLOYEES BENEFITS
1. Employee benefits
2. Short term employee benefits
3. Post-employment benefits
4. Other long-term benefits
5. Termination benefits
Employees benefits
• According to MFS 119, Employee
Benefit defines as 'all forms of con
sideration given by an entity in exc
hange for service rendered by em
ployees".
Short term employee benefits
• Wages, salaries and social securi
ty contribution, paid annual leave
and paid sick leave, profit sharing
and bonuses and non-monetary b
enefits
Post-employment benefits
• Pension, other retirement benefits
, post employment life insurance
and medical care
2019/12/28
Other long-term employee benefits
• Long service leave, sabbatical leave, jubil
ee or other long-service benefits, longgter
m disability benefits and, if they are not pa
yable wholly withing twelve months after th
e end of the period, profit-sharing, bonuse
s and deferred compensation
Termination benefits
• entity’s decision to terminate the employm
ent; or
• an employee’s decision to accept an entit
y’s offer of benefits in exchange for termin
ation of employment.
 • Termination benefits are typically lump sum p
ayments, but sometimes also include
a. enhancement of post-employment benef
its, either indirectly through an employee
benefit plan or directly.
b. salary until the end of a specified notice
period if the employee renders no furthe
r service that provides economic benefit
s to the entity.

2019/12/28
 AMWAY

2019/12/28
2019/12/28
2019/12/28
2019/12/28
2019/12/28
2019/12/28
HAI-O

2019/12/28
2019/12/28
2019/12/28
2019/12/28
2019/12/28
 Amway (Malaysia) Holdings Berhad
Statements of Comprehensive Income
For the Financial Year Ended 31 December 2018
2018 % 2017 %
RM'000 RM'000
100 100
Revenue 972,272 % 984,214 %
Cost of sales (731,984) 75% (740,024) 75%
Gross profit 240,288 25% 244,190 25%
Other income 6,556 1% 6,147 1%
Distribution expenses (50,516) 5% (48,039) 5%
Selling and administrative expenses (126,147) 13% (131,797) 13%
Profit before tax 70,181 7% 70,501 7%
Income tax expense (15,671) 2% (17,857) 2%
Profit net of tax, representing profit
attributable to owners of the parent 54,510 6% 52,644 5%
Other comprehensive income:
Foreign currency translation, representing other
comprehensive income for the year, net of tax 4 0% (20) 0%
Total comprehensive income for the year,
attributable to owners of the parent 54,514 6% 52,624 5%

2019/12/28
 Amway (Malaysia) Holdings Berhad
Statements of Financial Position
As at 31 December 2018
2018 % 2017 %
RM'000 RM'000
Assets
Non-current assets
Property, plant and equipment 59,473 15% 60,718 15%
Intangible asset 4,782 1% 4,782 1%
Investment in subsidiaries - 0% - 0%
Defered tax assets 12,786 3% 8,545 2%
77,041 19% 74,045 18%
Current assets
Inventories 99,353 25% 126,159 30%
Tax receivable 4,846 1% 7,924 2%
Trade and other receivables 45,182 11% 44,385 11%
Cash and cash equivalents 176,719 44% 163,402 39%
326,100 81% 341,870 82%
100 100
Total assets 403,141 % 415,915 %
Equity and liabilities
Equity
Share capital 166,436 41% 166,436 40%
Forex translation reserves 621 0% 617 0%
Retained earnings 49,547 12% 47,020 11%
Total equity attributable to owners of the parent 216,604 54% 214,073 51%
Non-current liability
Deferred tax liabilities - 0% 21 0%
Current liabilities
Trade and other payables 169,611 42% 201,471 48%
Contract liabilities 16,643 4% - 0%
Current tax payable 283 0% 350 0%
186,537 46% 201,821 49%
Total liabilities 186,537 46% 201,842 49%
100 100
Total equity and liabilities 403,141 % 415,915 %

2019/12/28
 Hai-O Enterprise Berhad
Statements of Financial Position
As at 30 April 2018
2018 % 2017 %
RM RM
Assets

Property, plant and equipment 83,343,586 21% 73,671,607 20%

Investment properties 55,949,690 14% 48,306,101 13%

Goodwill 84,930 0% 84,930 0%

Investment in subsidiaries - 0% - 0%

Investment in associates - 0% - 0%

Investment in a joint venture 2,166,139 1% 2,160,456 1%

Other investments 12,425 0% 236,406 0%

Trade and other receivables 1,622,828 0% 294,492 0%

Defered tax assets 1,615,208 0% 1,212,389 0%

Total non-current assets 144,794,806 37% 125,966,381 35%

Inventories 91,184,218 23% 71,707,149 20%

Other investments 57,940,494 15% 58,194,030 16%

Trade and other receivables 30,239,138 8% 27,644,387 8%

Prepayments 2,852,166 1% 3,654,648 1%

Current tax assets 314,098 0% 286,237 0%

Cash and cash equivalents 68,674,442 17% 76,848,186 21%

Total current assets 251,204,556 63% 238,334,637 65%

Total assets 395,999,362 100% 364,301,018 100%

Equity

Share capital 157,092,458 40% 149,326,945 41%

Treasury shares (21,580,611) -5% (19,686,506) -5%

Reserves 172,392,803 44% 155,174,066 43%

Equity atrributable to owners of the Company 307,904,650 78% 284,814,505 78%

Non-controlling interest 11,018,740 3% 11,354,430 3%

Total equity 318,923,390 81% 296,168,935 81%

Liabilities

Loans and borrowings - 0% - 0%

Deferred tax liabilities 399,806 0% 208,133 0%

Total non-current liabilities 399,806 0% 208,133 0%

Loans and borrowings 1,405,000 0% 3,046,377 1%

Trade and other receivables 66,785,505 17% 57,536,050 16%

Current tax liabilities 5,237,521 1% 5,693,083 2%

Provisions 3,248,140 1% 1,648,440 0%

Total current liabilities 76,676,166 19% 67,923,950 19%

Total liabilities 77,075,972 19% 68,132,083 19%

Total equity and liabilities 395,999,362 100% 364,301,018 100%

2019/12/28
 Hai-O Enterprise Berhad
Statements of Profit or Loss and Other Comprehensive Income
For the Financial Year Ended 30 April 2018
2018 % 2017 %
RM RM

Revenue 461,696,489 100% 404,239,775 100%

Cost of sales (300,149,947) -65% (271,712,065) -67%
Gross profit 161,546,542 35% 132,527,710 33%
Other income 13,599,719 3% 13,174,050 3%

Distribution expenses (48,005,499) -10% (38,811,568) -10%

Administrative expenses (31,173,793) -7% (28,917,587) -7%

Other expenses (1,024,324) 0% (531,146) 0%

Results from operating activities 94,942,645 77,441,459
Finance income 1,660,211 1,361,449

Finance costs (117,384) (134,985)

Net finance income 1,542,827 1,226,464
Share of loss of equity accounted associates,

net of tax - (399,145)

Share of profit of equity accounted joint venture,
net of tax 5,683 688
Profit before tax 96,491,155 21% 78,269,466 19%

Tax expense (23,970,502) 0% (18,854,358) 0%

Profit for the year 72,520,653 16% 59,415,108 15%
Other comprehensive income/expense,net of tax
Item that is or may be reclassified subsequent to
profit or loss
Foreign currency translation differences

for foreign operations 287,313 0% (159,800) 0%

Other comprehensive income/(expense)

for the year, net of tax 287,313 0% (159,800) 0%

Total comprehensive income for the year 72,807,966 16% 59,255,308 15%
Profit atrributable to:
Owners of the Company 72,254,329 16% 59,475,449 15%

Non-controlling interests 266,324 0% (60,341) 0%

Profit for the year 72,520,653 16% 59,415,108 15%
Total comprehensive income attributable to:
Owners of the Company 72,541,642 16% 59,315,649 15%

Non-controlling interests 266,324 0% (60,341) 0%

Total comprehensive income for the year 72,807,966 16% 59,255,308 15%

2019/12/28
 Cross-section Comprehensive Income

Amway Hai-O

Sales 100% 100%

Operating profit 25% 35%

Pretax income 7% 21%

Net profit 6% 16%

2019/12/28
 Amway Hai-O

Current Assets 81% 63%

Fixed assets, net 19% 37%

Current Liabilities 46% 19%

Long-term Debt 0% 0%

Stockholders' Equity 54% 81%

2019/12/28
Comparison of employee benefits and financial statements of both compan
ies Amway
• Career development and goals
• Job satisfaction
• Work-life balance
• Create opportunities for the physically
challenged and those with disabilities
Financial performance for the year:
• Sales revenue: RM972.3m (-1.2%)
• Profit before tax: RM70.2m (-0.5%
) 22.1%)
• Net assets per share: RM1.32m (+
1.5%)
2019/12/28
Hai-O
Employees benefits • Employee health and safety
• Career development and advancemen
t
• Work-life balance
• Educational Aid for employees' child
• Award for best employee
• Employee Share Option Scheme
Financial statements Financial performance for the year :
• Revenue : RM461.7m (+14.2%)
• Profit after taxation : RM72.5m (+
• Total assets : RM396.0m (+8.7%)
• Net assets : RM307.9m (+8.1%)
• Dividend per share: 20 sen (+25.0
%)
• Market capitalisation :RM1.5b (+3
0.9%)
2019/12/28
2018

THANK YOU