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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: info@newskin.com.my

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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

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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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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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