cover rationale At heart, CNI believe in the human willpower to This open-ended phrase is to get people to think transform one’s own life for the better. And in beyond what they read and see. It intends to so doing, better the lives of the people closest positively provoke our mind in every aspect of to him or her. our life, be it an opportunity or a life-changing decision. It also hopes to trigger people to make But to uplift the lives of others, we first must a stand in their lives…and there’s no better day uplift ourselves and act on the decision to make than today! a change - today and every day. That is exactly what the phrase “Inilah Harinya” is all about, “Inilah Harinya” has also been the corporate which serves as the theme of the cover and in theme for CNI’s tactical campaign since 2010 subsequent pages in this Annual Report. publicised via highway billboards, newspapers ads, on our website, our marketing activities and collaterals to remind us - and others - that today is the day to make that change. contents Vision 03 Directors’ Report 38 Mission 04 Statement by Directors & Statutory Declaration 43 Financial Highlights 05 Report of the Auditors 44 Corporate Profile 06 Consolidated Statement of Comprehensive Income 46 Awards & Recognition 07 Consolidated Statement of Financial Position 48 Corporate Calendar 08 Consolidated Statement of Changes in Equity 50 Chairman’s Statement 12 Consolidated Statement of Cash Flows 52 Group Structure 16 Statement of Comprehensive Income 54 Corporate Information 17 Statement of Financial Position 55 Board of Directors 18 Statement of Changes in Equity 57 Statement on Corporate Governance 22 Statement of Cash Flows 59 Statement on Internal Control 29 Notes to the Financial Statements 61 Audit Committee Report 32 List of Properties 118 Statement of Corporate Social Responsibility 35 Additional Compliance Information 120 Statement of Directors’ Responsibility 37 Analysis of Shareholdings 124 Notice of AGM 127 Statement Accompanying Notice of AGM 130 Distribution Centres/ Sales Points/ e-Sales Points 131 Proxy Form 137 vision A dynamic organization that continuously 3 strives to create a better life for all through shared experience and mutual support. CNI HoldINgs BerHad 181758-a mission 4 We are more than just a business, firmly rooted in Asian values, we blend the best of East and West to deliver the highest value to help enrich the lives of our staff, members, partners, customers and the greater society. financialhighlights 5 YEAR ENDED 31 DECEMBER Performance (RM’000) 2010 2009 2008 2007 2006 Revenue 134,441 158,512 181,886 180,122 204,006 Profit Before Taxation 3,480 10,150 23,458 27,652 34,969 Attributable Profit 2,285 6,485 16,961 20,811 25,359 Key Balance Sheet Data (RM’000) Share Capital 72,000 72,000 72,000 72,000 72,000 Shareholders’ Equity 105,726 107,954 111,272 100,944 93,467 Total Assets 134,700 141,013 149,520 137,857 144,708 Borrowings 117 299 179 206 684 Financial Ratios Net Earnings Per Share (sen) 0.32 0.90 2.36 2.90 3.52 Net Dividend Per Share (sen) 0.61 1.35 0.89 1.62 2.18 Net Assets Per Share (sen) 14.80 15.07 15.51 14.05 12.99 Gearing Ratio (%) 0.1% 0.3% 0.2% 0.2% 0.7% CNI HoldINgs BerHad 181758-a corporate profile Proud to be wholly Malaysian, CNI started The Group also expanded its business as Homca Chemical Sdn Bhd and changed portfolio to include retail food and beverage its name to Forever Young Holdings Sdn which carries the brand name of Pick n’ Bhd in 1991. Due to a restructuring in 2002 Brew and The Otak-otak Place under its and subsequently a corporate building two subsidiaries, Infuso and Regal Effect exercise in 2004, it took its present name, as well as trading under Lotus Supplies CNI Holdings Berhad. August 2005, it went Sdn Bhd. on to be listed on the Main Board of Bursa Malaysia. Symplesoft Sdn Bhd primarily deals in IT and e-commerce related services whereas Founded by three bold entrepreneurs – its subsidiary Symplesoft eSolutions deals Dato’ Koh Peng Chor, Tan Sia Swee and in providing software and e-commerce Law Yang Ket, the path to success has solutions. been challenging. From a small double One of the leading storey shoplot to what it is today, occupying Yayasan CNI, CNI group’s charity arm, has an industrial plant space of 16,314 square supported various local and international multilevel marketing metres, CNI has grown steadily and charity projects besides carrying out companies in consistently. its own especially its unique Children Education Fund. Under their stewardship, the company 6 Malaysia, CNI ventured into Brunei and Singapore besides Believing in its mission of being more than Holdings Berhad aggressively building its network locally. just a business, CNI with its Asian values blends the best of the East and the West has established Moving well ahead, it expanded into to constantly deliver the highest quality manufacturing. Now, 70% of CNI products experiences to help the lives of its staff, its footholds are manufactured through its wholly-owned members, customers, partners and the subsidiaries namely Exclusive Mark and greater society. since 1989. Q-Pack. Stepping into its next 20 years, CNI’s new Over 200 products under 5 categories such vision to be a dynamic community where as nutritional and health, personal care and its shared experiences and mutual support cosmetics, food and beverage, auto care are the building blocks towards a better life and lastly, household, are readily available for all will be realized. to all CNI members for their everyday use. CNI Holdings Berhad CNI Today Investment holding and provision of management services CNI Holdings Berhad is principally an CNI Enterprise (M) Sdn Bhd (“CNIE”) Sale and distribution of health care and investment holding consumer products company and provides management services Exclusive Mark (M) Sdn Bhd to its subsidiaries. (“Exclusive Mark”) Manufacturing, trading and packaging of all kinds of foodstuffs and beverages awards & recognition CNI Enterprise (M) Sdn Bhd was awarded Business Ethics Excellence Award 2010 / 2011 (Big Enterprise Category) by Ministry of Domestic Trade, Co-operatives and Consumerism on 9 December 2010. 7 CNI Creative Centre (C3) has been CNI signed a Memorandum of endorsed as the new tourist attraction Collaboration (MoC) with Malaysian of Selangor by Tourism Selangor. The Biotechnology Corporation Sdn Bhd certificate presentation ceremony on and Universiti Putra Malaysia to 6 October 2010 was witnessed by develop and produce nutraceuticals 36 beauty pageants from the “Honey and pharmaceuticals by using an eco- Beach” tv programme in China. friendly CO2 technology. The ceremony was witnessed by Deputy Prime Minister, Tan Sri Muhyiddin Yassin on 1 November 2010. Q-Pack (M) Sdn Bhd (“Q-Pack”) Symplesoft eSolutions Sdn Bhd Lotus Supplies Sdn Bhd Manufacturing, trading and packaging of (subsidiary of Symplesoft) Import and distribution of food ingredients household and personal care products Provision of software and e-commerce solutions Creative Network International Infuso Sdn Bhd (“Infuso”) Agriscience Biotech (Malaysia) Sdn Bhd (S) Pte Ltd (subsidiary of CNIE) Supply of food and beverage Consultancy services for agriculture in Sale and distribution of health care and biotechnology industry consumer products in Singapore Symplesoft Sdn Bhd (“Symplesoft”) Regal Effect Sdn Bhd Provision of information technology, shared (subsidiary of Infuso) (“Regal Effect”) services and e-commerce related services Operation of food and beverage outlets, namely Otak-Otak Place CNI HoldINgs BerHad 181758-a corporate calendar February 2010 2-5 March 2010 & 23-27 June 2010 5 March 2010 Yayasan CNI launched its official website Exclusive Mark (M) Sdn. Bhd, a wholly CNI was selected as one of the top 20 ”www.yayasancni.org” The public are owned subsidiary of CNI, took part in finalists for the StarBiz-ICR Malaysia encouraged to log on to the website to Japan International Food & Beverage Corporate Responsibility Awards 2009. obtain Yayasan’s latest news, engaged Exhibition (FOODEX) 2010 in March. in charity shopping or donate online to It later joined the International Halal support the “Single Parent Family Caring Showcase (MIHAS) 2010 in Kuala Lumpur Programme”. Yayasan CNI had also to promote its products and services contributed RM100,000.00 for the CNI in June. Children Education Fund. 8 14 March 2010 April 2010 14-17 April 2010 & 3-15 October 2010 An explosive opening of the first CNI’s well-known health food products Q-Pack (M) Sdn Bhd, a wholly owned Healthy Living Centre in Puchong. CNI have been rebranded under a new subsidiary of CNI, joined the Vietnam continuously explores new business name - Well3. The Well3 core concept is Expo 2010 in April, to penetrate the channel by setting up more than 50 eSPs, to advocate wellness and balance of the Vietnamese market. In October, Q-Pack an innovative and consumer-friendly new mind and body. All Well3 products are was invited by MATRADE to take part in business channel. currently undergoing name and image the Malaysian Solo Fair at Phnom Penh, revamp in stages. Cambodia to penetrate the local personal care market. corporate calendar Ongoing since June 2010 4 July 2010 “Today Is The Day” marketing campaign The official opening of the all-modern C3 (CNI Creative Centre) that comes complete with has created a positive word of mouth in interactive information screens, product exhibits and sampling, fitness screening service the market. Publicity initiatives such as and health consultation, among others. It’s a product experiential centre that capitalises highway billboard advertisements, “Inilah on customer-centred attractions and interaction to encourage better understanding of CNI Harinya” Convention, “Today Is The star products and to create interest in CNI products.