SHAH ALAM, June 30 (Bernama) -- Hai-O Enterprise Bhd, which sells Chinese herbs and medicine, plans to expand its multilevel marketing (MLM) business to Indonesia by year end.
Financial controller Hew Von Kin said today the company has already identified a few local partners and is evaluating options to enter MLM business scene there.
"We have already identified a few local partners and are negotiating with them. We will review some options and subsequently set up a MLM company in Indonesia by the end of this year," he told a press conference here.
Earlier, Hew presented a RM1.025 million cheque to Tabung Haji Travel & Services Sdn Bhd, which has been engaged to manage the Umrah package for Hai-O agents. The package is among the company's incentives for its sales team.
Hai-O, 95 percent of whose distributors are Malays, has the potential to penetrate Indonesia market easily as the country shares its language and culture with Malaysia, he said.
Three of its main products - Body Beautiful, Bio Aura and traditional Chinese medicine - are likely to be the top sellers there.
"As 95 percent of our sales team are Malay, these three products have been the selling point for the Malay segment here. We expect these products to have the same effect in Indonesia," he added.
Currently, the three products contribute about 70 percent to the company's total revenue, Hew said.
For the financial year ended April 30, 2007, the company registered a pre-tax profit of RM15.126 million on the back of revenue of RM146.798 million.
Hew said the company is expecting double digit growth in revenue and pre-tax profit for the financial year ending April 30, 2008, to be driven significantly by its MLM business.
Hai-O, now on the Second Board of Bursa Malaysia, has applied to the Securities Commission to transfer its listing to the Main Board, and Hew expects this to happen in October.