(factsheet) Mbbt-19010032.pdf

Borrower ID

284

BT Financing ID:

MBBT-19010032

Date Started:

14 February 2019

Closing Date:

TBC

Business Term Financing Fact Sheet Financing Details Financing Recommended Amount Tenure (No. Of Months) Simple Interest Rate P.A. Effective Interest Rate % P.A. Industry

Investors' Repayment Schedule RM500,000 3 11.50% 11.50% Service & Marketing Agency

Security Purpose

Month 1 2 3

Principal RM0.00 RM0.00 RM500,000.00

Interest RM4,791.67 RM4,791.67 RM4,791.66

Fee RM23.96 RM23.96 RM2,523.95

Total RM4,767.71 RM4,767.71 RM502,267.71

Director 1 & 2 Personal Guarantee Only Working Capital

Documents Received

SSM Registration Forms, Latest 9 Months Bank Statement, Audited 2016 & 2017 Financials, Lastest Management P&L & Bal Sheet (Apr'18 - Nov'18), AR and AP Aging List (up to Nov'18), Bureau Report

Note

Existing customer since sep'18. Two deals with us previously for RM1M for 12 months under MBBT-17090043 & MBBT-17090044. Prompt payment noted for both account. Two deals has been settled on 1 Nov 2018. Total limit approved @ Nov'18 at RM1.5M to be disbursed over 3 tranches. This crowdfund is for tranche 2.

Investors' Net Return Monthly Net Return Amount Financing Net Total Return Amount Financing Net Total Return % Financing Net Simple Interest Rate % P.A. Net Effective Interest Rate % P.A. Service Fee on repayment (P+I) SST Witholding Tax (Non Malaysian Tax Residence)

RM4,767.71 RM511,803.13 2.36% 9.44% 9.48% 0.50% As per standard rate set by government 15% on gross interest income

Company's Summary Incorporation: Business Type Business Nature:

2 January 2015 Private Limited Company Issuer (company) is in the business of providing customized designs and implementation of loyalty marketing promotions for their clients. Scope of work includes designing, customisation, product sourcing & purchasing, implementation and monitoring of results. Clients includes leading brand names from various industries ranging from food, fuel, health, retail convenience outlets to beauty retailers.

Paid Up Capital:

RM1,000,000

Employees:

> 10

Litigation:

No litigation record noted.

Negative / Black List:

Nil

Payment Behaviour and financing record:

Total number of financing : 4 , with total loan limit of RM2.56M while outstanding balance stands at RM2.22M (position as at Dec'18). Existing customer since sep'17. RM1M - disbursed over 2 tranches in Sept'17 & Oct'17. Repayment total 92.9K, conduct good (12M) Number of applications in the past 12mths : 5 (5 approved)

Directors' & PGs' Summary Director 1

42 yrs old male, M'sian(55% shareholding). 15 years in the industry specialising in Finance, Operations and Execution of retail marketing promotions in various countries within the region. Currently heading the Finance, Execution, Operations and Project Mangement team of the company.

Negative / Black List:

Nil. No history of litigation record noted

Payment Behaviour and financing record

Prompt repayment record on 11 existing records (6 Credit Card, 4 Housing loan & 1 Hire Purchase account), earliest since 2006. Total loan limit (all loans) is at RM1.22M with outstanding balance of RM720K @ Dec'18.

Director 2

46 yrs old male, New Zealand national(12% shareholding). 18 years in the industry, specialising in designing, customisation and implementation of retail marketing promotions in various countries within the region. Based in Malaysia for the past 12 years. Currently heading the Strategy, Business Development, Brands & licensing Department of the company.

Negative / Black List: Payment Behaviour and financing record

Nil. No history of litigation record noted Prompt repayment on 1 existing record (1 Credit card account) since 2017. Total loan limit (all loans) is at RM50K with outstanding balance of RM46K @ Dec'18.

Director 3

42 yrs old female, Hong Kong national (33% shareholding). Over 22 years of experience in area of Direct Marketing, Product Design, sourcing and CRM, having work with various clients in Asia. She is currently heading the Sourcing, New Product Development and Strategy for the Group (based in Hong Kong). She will not stand as guarantor for this application.

Negative / Black List:

Nil. No history of litigation record noted

Payment Behaviour and financing record

Prompt repayment record on 1 existing record (1 Housing loan account), since 2015. Total loan limit (all loans) is at RM1.43M with outstanding balance of RM1.21M @ Dec'18.

Financials FYE 31 Dec

2015 (Audited) Revenue

2016 (Audited)

Financial Ratios

2017 (Audited)

Jan 1 2018 to 30 Nov 2018 (Management)

RM6,251,291

RM22,955,527

RM35,449,506

RM26,840,083

Cost of sales

RM5,107,344

RM19,209,743

RM31,583,206

RM22,211,716

Gross profit

RM1,143,947

RM3,745,784

RM3,866,300

RM4,628,367

RM7,446

RM8,558

RM20,042

RM0

Depreciation

2015 (Audited) Revenue Growth Gross Margin Net Margin Current Ratio

Staff Cost

RM768,961

RM1,661,928

RM1,430,916

Other operating expenses

RM332,395

RM751,544

RM944,167

RM2,801,550

RM35,145

RM2,002,520

RM1,240,163

RM395,901

Gearing ratio

RM0

RM72,765

RM742,704

RM550,350

Pre-tax Interest Coverage

EBIT

RM35,145

RM2,075,285

RM1,982,867

RM946,252

Return (before tax) On Net Worth

Interest and Taxes Net Profit (Loss) for the year

RM17,445 RM17,700

RM520,553 RM1,554,732

RM480,136 RM1,502,731

RM0 RM946,252

Receivables Turnover Payables Turnover

RM67,013 RM4,726,131 RM4,793,144 RM0 RM4,775,344 RM4,775,344 RM17,800 RM4,793,144

RM69,580 RM14,610,877 RM14,680,457 RM0 RM13,107,925 RM13,107,925 RM1,572,532 RM14,680,457

RM152,404 RM15,074,254 RM15,226,658 RM786,324 RM11,363,971 RM12,150,295 RM3,076,363 RM15,226,658

RM180,239 RM14,265,243 RM14,445,482 RM0 RM10,422,866 RM10,422,866 RM4,022,616 RM14,445,482

Time Period Apr'18 - Dec'18

Avg Credit RM2,084,703.19 RM2,084,703.19

Operating profit Add: other income

Fixed Asset Current Asset Total Asset Fixed Liabilities Current Liabilities Total Liabilities Equity Total Liabilities and Equity

RM983,162

Bank Statement Summary Bank Account 1 Total

Avg Debit RM2,282,539.25 RM2,282,539.25

Avg Bal RM788,212.51 RM788,212.51

Quick Ratio Leverage Ratio

Inventory turnover Total asset turnover

Avg Available Bal RM788,212.51 RM788,212.51

2016 (Audited)

2017 (Audited)

Jan 1 2018 to 30 Nov 2018 (Management)

N.A.

267.21%

54.43%

18.30%

16.32%

10.91%

0.28%

6.77%

4.24%

-17.40% 3.53%

98.97%

111.47%

132.65%

136.86%

17.24%

22.17%

18.92%

32.98%

14.42%

26827.78%

833.56%

394.96%

259.11%

0.00%

0.00%

138.53%

#DIV/0!

#DIV/0!

42.73

0.00% #DIV/0!

197.44%

131.97%

62.95%

25.66%

1.70 1.43

4.57 2.36

5.22 3.14

3.17 3.66

1.30

6.68 2.36

6.40 2.37

8.63 1.97

#DIV/0!

Latest available Bal (Dec'18) RM286,872.55 RM286,872.55

Risk Snapshot Industry:

Positive outlook given that the the industry is still growing with stable and growing demand from companies who are outsourcing the marketing efforts to specialised companies.

Strength:

Profitable with healthy profit margin over the past 2 years. Directors having wide experience in the industry, having worked with many leading brands across various industries.

Weakness:

High working capital requirement given that working capital turn over might take 4-5 months.

Profitability:

The Issuer company has been in operation since Jan 2015 in Malaysia and has been profitable over the past 3 years. Revenue noted to have increased from RM6.2MM in 2015 to RM35.44MM in 2017. Based on Management account @ Nov'18 (11 months) revenue is at RM26.84MM. Gross Profit FYE 2016 & 2017 is at RM3.74M(margin 16%) & RM3.86MM (11% margin) while Net Profit after tax stood at RM1.55MM (6.77%) and RM1.5MM (4.24%).

Comments

Risk:

Short term risk of business arises from currency risk given its purchases are mainly obtained from Korea. A longer term risk (>6 months) would be its ability to solicit for recurring business from its existing clients and source new business given revenue are mainly on project basis.

Financials:

From 2018 Management account @ Nov'18, noted the Issuer's net worth is at RM4.02MM with NPBT of RM946K on the back of Revenue amount of RM26.84MM. Sufficient cash flow noted to cover their financial commitment. Average available balance over the past 9 months is around RM788K while latest available balance @ Dec'18 is around RM286K.

General Overview:

The reason of obtaining additional working capital is to fund its purchase order to fullfil the job secured. It requires additional fund for their job in hand worth around RM4.36MM. The issuer business has been in operation for past 3 years in Malaysia. The Group (based in Hong Kong) started operations at the end of 2014. Company is founded by the 3 directors (as above). Although the company is relatively new, the directors have vast experience in the industry having work with many leading brand names across the region. The Issuer is profitable for the past 2.5 years (2015 - 2017) with healthy revenue and acceptable profit margins. Initial set up cost of the company is relatively low as it is mainly a service driven industry. The directors of the company has plans to grow the company further by taking on additional deals/orders. It is currently looking for additional working capital to fund these new business opportunities(totaling more than RM12MM). Funds would be used to purchased stocks (gift items) for their clients. Working capital turnover expected to be around 4-5 months. The above demonstrates the sustainability of the business and credit worthiness of its directors. Flight risk is moderate given that business is profitable and sustainable mitigating the low fixed assets and low paid up capital. Noted that 2 of the Directors have prompt repayment track record since 2007 and 2015 respectively.

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