Industry Prospects

Outlook for the health and lifestyle industry and our products

Our Directors believe that the overall outlook for the health and lifestyle industry and the demand for our products is positive based on the following factors:

(i)Increase in consumer sophistication and disposable income
With higher levels of education, the global trend of urbanisation and increase in exposure to information, consumers today have become more sophisticated. We believe that consumer sophistication results in consumers becoming more health conscious and paying more attention to personal grooming. Furthermore, our Directors believe that there will be an increase in the levels of disposable income and consumer affluence as a result of higher standards of living in developing countries such as Malaysia, Thailand and the PRC. Our Directors believe that increased consumer sophistication, disposable income and consumer affluence in the markets we operate will continue to drive the demand for our cosmetics, skin care, nutritional supplements, personal care products and healthcare equipment.

(ii)Trend towards preventive healthcare
With increase in health care costs in most countries and longer life span, consumers have become increasingly aware of the need to take a pro-active approach in managing their health and well-being. We believe that this has fuelled the trend for consumers to invest in preventive healthcare. Our Directors believe that this trend augurs well for the demand for our nutritional supplements, personal care products and healthcare equipment.

(iii)Advancement in technology
With the advancement in technology, we are able to introduce new products as well as innovative forms of packaging and presentation to target the specific consumer needs at economically feasible costs of production. For example, the ultra-filtration membrane technology used for the healthcare equipment, PUREfLO, otherwise employed in industrial applications such as NEWater production, is now available for household use. We are also able to capitalise on advancement in technology to introduce innovative forms of packaging and presentation for our products. Leveraging on our technical know-how, we expect to continue to introduce new products and enhance our packaging capabilities to meet the healthcare needs of consumers, thereby generating increases in demand for our products.

In view of the factors discussed above, our Directors believe that barring any unforeseen circumstances, the growth prospects for our Group’s business are favourable. Additionally, we have 3 distribution channels which gives us flexibility in marketing our products as we can tap into any of these channels for our future expansion. This also allows us to diversify our revenue base from each channel and cushion any negative impact on any of the distribution channels.