MONTHLY REPORT

TABLE OF CONTENTS 01 Introduction to Bonia Corporation Berhad 03 Financial Analysis 06 Problem and disccussion 07 Solution and Recommendation 09 Conclusion 10 References

01 Bonia established in 1974, a worldwide luxury brand and leather expert, has won a plethora of prizes and rose to legendary reputation in the fashion industry. Bonia, an Italian-inspired company, has developed its identity and distinguished itself by consistently highlighting the three pillars of its brand: Modern, Elegant, and Contemporary.

Bonia, a leather expert, offers a variety of leather goods including leather shoes, accessories, and purses for men and women. Bonia has outlets all over the world, including in Thailand, Malaysia, Singapore, Cambodia, Myanmar, Vietnam, Indonesia, Saudi Arabia, Kuwait, and Japan.

THE PROBLEMS

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A Brief Description About the Problems The Bonia company reported a terrible first quarter of the fiscal 2019 year, with core net profit decreasing 64% year over year due to declining brand sales in both the domestic market (-8%) and its international market (-20%). All areas of the group's same-store sales growth decreased year over year, with the exception of its consignment counters, which underwent a significant restructuring effort.

BONIA CORPORATION BERHAD

FINANCIAL ANALYSIS

Fiscal Year 2017 - 2021

Financial analysis involves using financial data to analyze a company’s financial performance and doing comparison from year to year to make improvement. Financial ratio analysis has been used to analyze financial data to compare a organization’s financial performance as well as to identify the organization’s position in the market.



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BONIA CORPORATION BERHAD

SUMMARY OF FINANCIAL ANALYSIS Based on the Table 1, current ratio has remained unstable. In 5 years comparison, although it shows that the Bonia Corporation Berhad has enough liquid assets to pay off shortterm debts from 2018 to 2022, it will also be risky to assume the efficiency and profitability of operating the capital turnover in the future. Quick ratio of Bonia Corporation Berhad has decline from 2018 (2.27 times) to 2020 (1.72 times) and rise to 2.04 times in 2021. In overall, it shows that the Bonia Corporation Berhad can very quickly to turn the company’s accounts receivable into cash to pay off its short-term debts from 2018 to 2022.

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BONIA CORPORATION BERHAD

SUMMARY OF FINANCIAL ANALYSIS Since a lower ratio also reflects a lower

Due to the utilization of more investor

total debt, a lower debt ratio of 0.5

financing than creditor financing, a

typically indicates a more stable

company is generally considered to be

company with longevity potential.

less risky if its debt-to-equity ratio is

Through the 5 year based financial ratio

less than 1.0.

analysis, Bonia Corporation Berhad has display a low debt ratio that is below

D/E ratio of Bonia Corporation Berhad

0.5% and indicates that Bonia

has a lower ratio 2019 as well as the

Corporation Berhad has the ability to

firm has the lowest D/E ratio(0.36 times)

pay its debt.

in 2019. However, it has increase from 2019(0.36 times) to 2021(0.54 times) which mean the firm become more risky from year to year. Firm that leveraging large amount of debt may be unable to pay their debt obligation.

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Bonia Corporation Berhad

REVENUE CONTINUES TO DECLINE

The Group's retailing revenue fell 9.1% from RM 609.3 million in 2017 to RM 553.9 million in 2018. The decline in revenue was primarily attributable to the region's weak retail market. Additionally, boutique operations experience a decline, contributing 41.7% of total retailing sales in contrast to 42.6% in 2019. Retailing revenue in 2020 decreased primarily as a result of the retail sector's revenue contribution, which fell from RM 496,446 to RM 344,960. There have been 43 stores closed as of June 30, 2020, bringing the overall number of stores down from 667 to 624. Futhermore, the outbreak of the Coronavirus ("COVID-19") pandemic, as well as the resulting various movement control orders in the form of travel and business operation restrictions imposed by all countries in which Bonia Corporation Berhad operates, have resulted in a 16.4% decrease in the Group's retailing revenue from RM344.0 million to RM 287.5 million at 2021.

The Problem THE HIGHEST DEBT RATIO

Bonia Corporation Berhad has the lowest total asset and total liability in 2019, which causes the debt ratio to be the highest in that year. Because many of their stores and boutique businesses had to close, Bonia Corporation Berhad's total assets were decreased. The store's closure has set off a series of domino effects, that has increased the inventory of firm. In addition, the demerger of CRG Group resulted in a considerable fall in total assets of 21.5%, total liabilities of 35.7%, and shareholders' equity of 14.7% during FY2019.In 2021,total liabilities increased by RM17.8 million or 10.0% in comparison to the previous fiscal year, owing mostly to the purchase of investment properties financed in part by bank borrowings. The growth in total assets was offset in part by the dividend payout throughout the fiscal year, which also contributed to the decrease in net assets or shareholders' equity.

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THE SUGGESTIONS Encouraged to Increase Online Platform Activity The Covid-19 Pandemic led some retailers, the consignment counter, and boutique companies to close, but Bonia Corporation Berhad can take more active role on popular online shopping sites like Shopee, Lazada, and others. Customers can make online purchases from Bonia Corporation Berhad using this technique. All online purchases must be real, according to an official statement that Bonia Corporation Berhad must submit. Scammers will no longer have a competitive advantage, making it impossible for them to profit from their unethical behavior.

THE SUGGESTIONS

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Optimizing the Structure Structure optimization must be developed by Bonia Corporation Berhad to address the overly high debt ratio by increasing overall assets or decreasing total liabilities. Because they have a large number of non-operating assets which don't produce profits for the business directly, but they use a lot of resources and create opportunity costs. Therefore, Bonia Corporation Berhad needs to effectively manage its non-profit assets and limit its future purchases of non-essential assets. Additionally, in order to maintain a continuous and effective operation, Bonia Corporation Berhad must keep up its costmanagement efforts and concentrate on improving its business structure approach. By doing this, companies can be sure they can handle the pressure from the retail industry's growing competition.

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CONCLUSION Even though Bonia is well-established and known by many people, it cannot ensure that the Bonia Corporation Berhad will make a profit. In addition, Bonia Corporation Berhad faces with many internal and external issues. This situation will also affect whether the company’s shareholders will continue to invest in their company. Bonia Corporation Berhad need to take any initiative and actions regarding how to solve or minimize their problems to make sure that the company did not suffer from the problems.

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