vision & mision...our core business is in multi-level marketing (mlm), with diversified...

VISION & MISION

VisionWe aspire to become a respectful leadingcompany for health and beauty productsby gaining customers enthusiasm and trustthrough continuous improvement driven byinnovation, teamwork and integrity.

MissionWe are dedicated to excel in resourcemanagement, product quality and customerservice to ensure customers will continue tovalue our products, ZHULIAN members willbuild their businesses, employees will buildtheir careers and shareholders will build theirwealth. The following are seven guidingprinciples of our business practice:

• Being innovative in managing ourbrands and products to enhance ourcompetitiveness.

• Being enthusiastic in serving ourcustomers to our best.

• Being mindful to provide a conduciveworking and business environment forour people.

• Being respectful towards diversity inbuilding a strong people network.

• Being passionate in developingentrepreneurial spirit among our people.

• Being hearty in contributing positivelyto our communities and our environment.

• Being visionary in building our financialsolidity and maximising our shareholders’return.

INITIATING CHANGE, ACCELERATING GROWTH

For ZHULIAN, success is about looking to the future withforesights and insights. We map out our future by makingconstructional changes and strategic decisions about thebusiness that benefits our people; we take pro-activeapproaches that cover improving the infrastructures, reinforcingthe training and development programmes, materialising newproduct ideas, capturing opportunities by analysing the markettrends and identifying future market needs that aim to catapultthe Company to a rapid growth path.

Contents

001 FINANCIAL SUMMARY001 Five-Year Group Financial Highlights002 Five-Year Group Financial Charts

003 CORPORATE REVIEW004 Corporate Profile005 Chairman’s Statement / Penyata Pengerusi017 Group Structure018 Corporate Information019 Directors’ Profile

023 BUSINESS REVIEW

031 CORPORATE SOCIAL RESPONSIBILITY

035 CORPORATE GOVERNANCE036 Statement on Corporate Governance042 Audit Committee Report045 Statement on Internal Control047 Other Corporate Disclosure

048 FINANCIAL STATEMENTS048 Directors’ Report053 Consolidated Statement of Financial Position054 Consolidated Statement of Comprehensive Income055 Consolidated Statement of Changes in Equity056 Consolidated Statement of Cash Flows058 Statement of Financial Position059 Statement of Comprehensive Income060 Statement of Changes in Equity061 Statement of Cash Flows062 Notes to the Financial Statements105 Statement by Directors106 Statutory Declaration107 Independent Auditors’ Report

109 OTHER INFORMATION110 List of Properties111 Regional Offices, Distribution Centres & District Agents117 Analysis of Shareholdings

119 NOTICE OF FIFTEENTH ANNUAL GENERAL MEETING121 PROXY FORM

FIVE-YEAR GROUP FINANCIAL HIGHLIGHTS

* Earnings Per Share (EPS) was calculated based on weighted average number of ordinary share in issue of435,228,000 for the financial year 2007.

FINANCIAL SUMMARY

ZHULIAN CORPORATION BERHAD (415527-P)

Annual Report 2011 001

YEAR ENDED 30 NOVEMBER

2010 2009 2008 2007

Revenue

Profit Before Taxation ("PBT")

Profit After Taxation

322,611

105,897

86,672

357,542

115,072

95,320

315,275

102,704

82,057

303,577

94,993

74,690

220,546

74,348

58,927

2011

1. RESULTS (RM'000)

Net Dividends Per Ordinary Share (sen)

Earnings Per Share (sen)*

Net Assets Per Share (sen)

Gearing Ratio (%)

12.00

18.93

76.52

0%

14.00

17.83

69.59

0%

11.00

16.23

60.76

0%

12.00

20.72

85.29

0%

12.67

13.53

54.28

0%

3. RATIO

Total Equity Attributable to Owners of The Company

Total Assets

Total Borrowings

351,987

405,612

—

320,111

373,334

—

279,500

342,457

—

249,679

283,500

—

392,319

446,219

—

2. STATEMENT OF FINANCIAL POSITION (RM’000)

Net Dividends Per Share (sen)

2007 20112008 2009 20100

5.00

10.00

20.00

25.00

15.0012.67

11.00

14.0012.00 12.00

Earnings Per Share (sen)

2007 20112008 2009 20100

5.00

10.00

20.00

25.00

15.00 13.53

16.2317.83

18.9320.72

FIVE-YEAR GROUP FINANCIAL CHARTS

Revenue (RM’000)

0

100,000

200,000

300,000

400,000

2007 20112008 2009 2010

220,546

357,542322,611315,275303,577

50,000

150,000

250,000

350,000

FINANCIAL SUMMARY

002

Profit After Taxation (RM’000)

2007 20112008 2009 2010

58,927

74,69082,057 86,672

95,320

0

20,000

40,000

80,000

120,000

60,000

100,000

Profit Before Taxation (RM’000)

2007 20112008 2009 20100

20,00

140,00

40,00

60,00

80,00

100,00

120,00

74,348

94,993105,897

115,072102,704

Net Assets Per share (sen)

02007 20112008 2009 2010

54.28

85.29

69.59

60.76

76.52

20.00

40.00

60.00

80.00

10.00

30.00

50.00

70.00

90.00

100.00

Empowering Synergy for Business Success

CORPORATEREVIEW

Corporate Profile

Chairman’s Statement /Penyata Pengerusi

Group Structure

Corporate Information

Board of Directors

Directors’ Profile

004

CORPORATE REVIEW

ZHULIAN CORPORATION BERHAD (“ZHULIAN” or the Company) was initially incorporated in Malaysia on 2 January1997 under the Companies Act, 1965 as a private limited company, namely ZHULIAN CORPORATION SDN. BHD.Subsequently on 28 February of that same year, the private limited company was converted into a public limited companyand assumed the present name. On the 27 April 2007, ZHULIAN was officially listed on the Main Board of Bursa MalaysiaSecurities Berhad (“Bursa Securities”).

ZHULIAN is an investment holding company of ZHULIAN Group of Companies. Our core business is in Multi-levelMarketing (MLM), with diversified interests in the manufacturing and trading of an array of widely diversified products andalso printing business. The core activities of the subsidiaries and associate are as follows:

CORPORATE PROFILE

ZHULIAN LABUAN LIMITED (LL07218) Investment holding

Multi-level Marketing

Investment Holding

Others

ZHULIAN INDUSTRIES SDN. BHD. (304448-X) Manufacturing of consumer products

ZHULIAN JEWELLERY MANUFACTURINGSDN. BHD. (183361-U)

Manufacturing of costume / fine jewellery and accessories

BEYOND PRODUCTS TECHNOLOGY SDN. BHD.(386717-K) Manufacturing of home technology products

ZHULIAN MANUFACTURING SDN. BHD. (392763-V) Manufacturing of bedroom apparels and therapeutic products

AMAZING VESTRAX SDN. BHD. (688963-U) Manufacturing of personal care products

ZHULIAN NUTRACEUTICAL SDN. BHD. (644402-D) Manufacturing of traditional products

ZHULIAN PRINTING INDUSTRIES SDN. BHD.(216788-X)

Printing of brochures, leaflets, catalogues, name cards andother related documents

MASTER SQUARE SDN. BHD. (389011-A) Trading of consumer products

ZHULIAN MARKETING (M) SDN. BHD. (186058-T) Direct marketing of costume jewellery and consumer products

ZHULIAN MANAGEMENT SDN. BHD. (374415-M) Provision of management services and investment holding

ZHULIAN DEVELOPMENT SDN. BHD. (321164-M) Property development

DIAMOND INSPIRATION SDN. BHD. (375186-D) Operation of in-house cafeteria business

ZHULIAN VENTURES SDN. BHD. (665168-A) Dormant

ZHULIAN PROPERTIES SDN. BHD. (665167-D) Dormant

SELAT NUSANTARA DEVELOPMENT SDN. BHD.(665240-M) Dormant

DEXASSETS SDN. BHD. (686970-K) Dormant

ZHULIAN CONSTRUCTION SDN. BHD. (415546-H) Dormant

ZHULIAN (SINGAPORE) PTE. LTD. (200105275R) Direct marketing of costume jewellery and consumer products

PT. ZHULIAN INDONESIA Direct marketing of costume jewellery and consumer products

ZHULIAN (THAILAND) LTD. [(3) 1207/2539] Direct marketing of costume jewellery and consumer products

Dear Valued Shareholders,

On behalf of the Board of

Directors of ZHULIAN

CORPORATION BERHAD

(“ZHULIAN” or “the Company”),

I am pleased to present the

Annual Report and Audited

Consolidated Financial

Statements of ZHULIAN and

its subsidiaries (“ZHULIAN

Group” or “the Group”)

for the financial year ended

30 November 2011.

CHAIRMAN’S STATEMENT

“…ZHULIAN Group is able to sustain the uptrend for five consecutive years - a testimonyof the Group’s resilience in steering through the growing competition and great challengesin Multi-Level Marketing (“MLM”) industry. This encouraging performance is backed by itsprudent management and dedicated Distributors who have unwavering faith in the business,also driven by the innovative and proactive strategic initiatives taken in shaping the Group’sfuture... ”

FINANCIAL OVERVIEW

Despite the prevailing situation of global uncertainty, such asfinancial crisis in Europe, rising costs due to surging prices ofpetrol and raw materials, especially food, the Malaysia’s economyshowed positive recovering signs during 2011 with a GDP growthof 5%.

As for ZHULIAN Group, our domestic and export market demandremained resilient with a positive growth in the year under reviewwhere we took the Group’s revenue up a notch to RM357.5 million,which is equivalent to 11% growth from previous year’s revenueof RM322.6 million, a remarkable increase as compared to growthof only 2% in 2010. That also means ZHULIAN Group was ableto sustain the uptrend for five consecutive years, a remarkabletrack record that serves as a testimony of the Group’s resiliencein steering through the growing competition and great challengesin the MLM industry. Thanks to its prudent management anddedicated Distributors who always have strong faith in the business,also driven by the innovative and proactive strategic initiativestaken in shaping the Group’s future.

ZHULIAN Group has gone through a year of enormous strategicchange in order to position itself to compete effectively in themarket and march into the new stage of growth. Initiatives weretaken to expand market share, increase product mix, refinebusiness model, improve infrastructure to boost efficiency incoping with increasing business volume. The positive momentumaugured well for the Company’s long-term growth prospects.

The Group did not start up the year on a positive note as therewas a drop in its first quarter’s net profit compared to 2010 firstquarter’s Profit After Tax. That was mainly due to the drop in grossprofit margin as a result of the strengthening of the Ringgit Malaysiaagainst the US Dollar. However, the Group recovered stronglylater on in the 2nd and 3rd quarter, backed by an increase in thenumber and productivity of Distributors, better sales performanceand higher demand for our products in the regional markets.During the last quarter of 2011 when coping with the trials andtribulations of the flood disaster in Thailand, the Group managedto come up with contingency plans to overcome the logisticalchallenge in flood area promptly without disrupting our supplychain. Such effective remedial action enables the Group tosustain the uptrend momentum till the final quarter to concludethe year with a 11% increase in revenue to RM357.5 million forthe year under review, compared to RM322.6 million for year2010. Profit Before Tax increased to RM115.1 million against theprevious year’s RM105.9 million while Profit After Tax (PAT) increasedto RM95.3 million in year 2011, an increase of 10% from lastyear’s PAT of RM86.7 million.

DIVIDENDSConsistently Giving Back to Shareholders

The Company continued to uphold the policy of creating valuefor shareholders through a sustainable dividend policy, i.e. 60%of Profit After Tax for the year under review will be paid toshareholders as dividends. Taken together with the fourth interimsingle-tier dividends of 3 sen declared in January, 2012, thetotal dividend for the financial year ended 30 November 2011amounts to 12 sen net per share. The total net dividend payoutof RM55.2 million will translate into a net dividend yield of 7%.This is the 5th consecutive financial year that ZHULIAN hasdeclared dividends to shareholders since listing on the MainMarket of Bursa Malaysia Securities Berhad in 2007.

CORPORATE DEVELOPMENTFurther Improvement on Infrastructure

The newly revamped RM29.9 million Zhulian InternationalHeadquarters Building in Penang which was officially openedin a grand ceremony held on 23 July 2011, created muchexcitement and inspired confidence amongst all Distributorsunder the umbrella of ZHULIAN Group. This certainly reinforcedthe Group’s commitment towards delivering its best to itsDistributors and Consumers in the region.

Currently, the Group’s Plot 3 food manufacturing plant isundergoing an extension project to add 3,283 sq. metres to theexisting built-up area of 17,444 sq. metres. The extended areais particularly catered for the use as the warehouse andproduction floor in order to provide more room for the businesssegment to grow in terms of productivity in coping with increasingbusiness volume. The project has completed in February, 2012.

CORPORATE REVIEW

006

AWARDS AND RECOGNITIONSRepresents Prominence and Competitiveness

The Group added another feather in its cap when ZHULIANMARKETING (M) SDN. BHD. received another prestigious award,namely “1 Malaysia Enterprise Award 2012 – 1 Malaysia MasterLeader” under the national category. The award presentationwhich was organised by Malaysia Food Processing and PackagingEntrepreneurs Association (MAFPA) was held in Subang, Selangoron 10 January 2012. With the winning of this exceptionalrecognition, we believe ZHULIAN’s visionary Board and prudentmanagement will be able to mould a model of credibility,accountability and sustainability for others to emulate.

CORPORATE GOVERNANCEKey to Business Resilience and Growth

ZHULIAN is committed to upholding the principles of integrity,transparency and accountability and this is reflected in the goodcorporate governance practices and strong internal control wehave incorporated into the way we do business. The Board isdedicated in ensuring all the practices related to CorporateGovernance comply with the relevant laws and regulations. Weplace our focus on value creation, in a management culture thatconforms to the latest standards of Corporate Governance andin the Company’s policy of communicating transparently. The

core principles of ZHULIAN’s Corporate Governance are clearlylaid down by the Board in the Group’s Statement on CorporateGovernance and the Statement on Internal Control as stated inthis Annual Report. An internal audit function is in place throughoutthe Company to examine and evaluate the Company’sprocedures and systems, including internal controls, disclosureprocedures and information systems in ensuring compliance togood corporate governance standards.

CORPORATE REVIEW

008

CORPORATE SOCIAL RESPONSIBILITIES

Fulfilling Social Responsibility

The Group takes pride in bringing people together by offeringan equitable business opportunity that is instrumental to changepeople’s life towards betterment. We promote the culture ofsharing and caring as the key principle of our business. ToZHULIAN Group, corporate responsibility is about doing businesswith conscience and respect to the need of community at large.The Group embraces this tenet into the place we work, the waywe do our business, the products we developed and manufacturedand the way we serve the people who are connected to theGroup in any way to enable long-term viability of the Group.

Based on this belief, the Group is dedicated in undertaking variouscorporate social responsibility initiatives that add values in theaspect of the workplace, community, environment andmarketplace. We create the most conducive working environmentfor the employees especially in the aspects of work safety. Wecontinue to inspire our Distributors in our endeavour to groomsuccessful entrepreneurs through the comprehensive ZhulianGolden Business Plan and training and development programmes.On top of that, we also specially set up Education Trust Fund toencourage our Distributors to work together with their childrentowards pursuing excellence in their career and studiesrespectively. As a corporate citizen who is responsible to thecommunity, we extend our helping hands to the underprivilegedgroups in the communities with contributions in cash and in kindamounting to RM140,000 through various charity bodies. In theaspect of environment, we ensure the environment is not adverselyaffected by our business operations by adhering to EnvironmentalQuality Act and other regulations stipulated in regards ofenvironment protection. In addition, since the year 2010 morethan 8,000 recycle bags were given away at the NationalConvention, namely Night of Honour held annually in the Group’seffort to help promote the use of reusable bags while fulfilling itsenvironmental responsibility. As far as the marketplace isconcerned, the Group also put effort in ensuring ethical businesspractices amongst its Distributors and encourage fair competitionin the market place.

The Group holds on to its belief that a business should be ableto bring positive changes to the quality of life of the communitiesand the environment where people live and work. Thus, we wouldcontinue our effort in doing our very best in helping our peoplelive a better life and making our environment a better place tolive with the future generations in mind.

OUTLOOK AND PROSPECTS

The Malaysian government has said in its annual economic forecastthat Malaysia will be able to achieve economic growth of 4 to 5percent in 2012 and cut its fiscal deficit further as strong domesticdemand and commodities exports cushion the impact of a globaldownturn. It is also forecasted that GDP growth in Malaysia will belargely domestic-driven, due to heightened uncertainties in theglobal economy. The government also said domestic inflation isincreasingly affected by external factors, including supplyconstraints. Meanwhile, the Asian Development Bank (ADB) saidMalaysia’s 2012 GDP growth forecast to be 5.1 percent. Thisencouraging forecast was echoed by economists from CreditSuisse that Malaysia’s economy is expected to remain robust in2012 due to strong private consumption growth, supported bypay rises and bonus payments for civil servants and pensionersannounced in the 2012 Budget.

Although the fundamentals of the Group are strong with manyplans in-place for future development, we are mindful that externalfactors, such as the alarming global economic situation andhigher fuel costs may continue to impact the regional economiccondition. For instance, the economic pinch that can be feltdomestically for the past financial year including steady hike inpetrol, sugar and flour prices has already impacted consumerspending power in general and the operating costs of our business.The Group however will continue to adopt a cautious and strategicapproach into the business while stepping-up control throughmore efficient and focused operations in order to be more cost-effective. Our strengths lie on our wide variety of self-developedand self-manufactured high quality products and our capacityto meet the demand of the ever-changing market throughcontinuous innovation and uncompromising quality. We willcontinue to strengthen brand equity, increase product mix, extendmarket reach and expand our distribution network. Therefore, weremain cautiously optimistic that the continued support from ourdedicated and resilient Distributors coupled with the improvedfacilities, necessary initiatives and marketing programmes put inplace to support Distributors in their efforts to develop their business,we will be able to bring our Group to greater heights in the comingfinancial year.



PENYATA PENGERUSI

“…Kumpulan ZHULIAN berupayamengekalkan tren menaikselama lima tahun berturut-turut– testimoni keteguhan Syarikatmeredah persaingan yang kianmeningkat dan cabaran-cabaranhebat di dalam industriPemasaran Berbilang Tingkat(Multi-Level Marketing - “MLM”).Prestasi menggalakkan inidisokong oleh pengurusan telitidan para Pengedar berdedikasiyang memiliki keyakinan tidakbergoyah terhadap perniagaanini, serta dipacu oleh inisiatif-inisiatif strategik yang inovatifdan proaktif yang dilaksanakanbagi membentuk masa depanKumpulan…”

APPRECIATION

ZHULIAN Group has come out stronger than beforein our 5th year after listing on the Main Board ofBursa Malaysia and I am indeed very proud of ourachievements. 2011 has been another step towardsour continued success. The support of ourshareholders and Board of Directors, along with thefighting spirits of our MLM entrepreneurs, efforts ofour competent management team and ourdedicated staff, have allowed us to stand strongagainst all challenges.

First of all, on behalf of ZHULIAN’s Board of Directors,I would like to thank all of our 573,883 Distributors,including our leaders and authorised agents fortheir continued loyalty and dedication to the Groupand undivided commitment and faith in the Group’sMLM business. Undeniably, their entrepreneurialspirit is the key to take our business to the next level.On top of that, I would like to take this opportunityto thank the Board members for their diligent effort,strong leadership and prudent insights. I believewith their insight and guidance, the Group will beable to accelerate forward by leaps and bounds.My heartfelt thanks also go to the managementand staff whose dedicated hard work has yieldedanother year of amazing achievements. The Boardwishes to convey sincere gratitude to our businessassociate, suppliers and bankers for their steadfastsupport and the kind cooperation extended to theGroup. Last but not least, my deepest appreciationto all the shareholders for their continuing supportand unwavering confidence in the Group. All ofyou can be rest-assured that ZHULIAN Group isfully committed towards achieving excellence inour performance, dedicated in serving ourDistributors, and determined to stand by ourcommitments to our valuable shareholders inmaximising shareholders’ value as well as our missionto our entrepreneurs in helping them achieve theirgoals.

On Behalf of the BoardZHULIAN CORPORATION BERHAD

Haji Wan Mansoor Bin Wan OmarChairman, Independent Non-Executive Director

CORPORATE REVIEW

010

Para Pemegang Saham Yang

Dihargai,

Bagi pihak Lembaga Pengarah

ZHULIAN CORPORATION

BERHAD (“ZHULIAN” atau

“Syarikat”), saya dengan

sukacitanya membentangkan

Laporan Tahunan dan Penyata

Kewangan Disatukan Yang Diaudit

bagi ZHULIAN dan subsidiarinya

(“Kumpulan ZHULIAN” atau

“Kumpulan”) untuk tahun

kewangan yang berakhir pada

30 November 2011.

TINJAUAN KEWANGAN

Walaupun di dalam situasi global semasa yang tidak pasti, sepertikrisis kewangan di Eropah, peningkatan kos yang disebabkanoleh peningkatan harga petrol dan bahan mentah, terutamanyamakanan, namun ekonomi Malaysia menunjukkan tanda-tandapemulihan yang positif bagi 2011 dengan pertumbuhan KDNKsebanyak 5%.

Bagi Kumpulan ZHULIAN, permintaan pasaran domestik daneksport kita kekal bertahan dengan pertumbuhan positif semasatahun dalam tinjauan di mana kita merekodkan perolehansehingga RM357.5 juta, bersamaan 11% pertumbuhanberbanding perolehan bagi tahun sebelumnya sebanyak RM322.6juta, iaitu satu peningkatan menakjubkan berbandingpertumbuhan tahun kewangan 2010 yang hanya sebanyak 2%pada 2010. Ia juga bermakna Kumpulan ZHULIAN berupayamengekalkan tren menaik selama lima tahun berturut-turut, iaiturekod pencapaian cemerlang yang menjadi testimoni keteguhanKumpulan meredah persaingan yang kian meningkat dancabaran-cabaran hebat di dalam industri MLM, oleh keranapengurusan teliti dan para Pengedar berdedikasi yang memilikikeyakinan tidak bergoyah terhadap perniagaan ini, serta dipacuoleh inisiatif-inisiatif strategik yang inovatif dan proaktif yangdilaksanakan bagi membentuk masa depan Kumpulan.

Kumpulan ZHULIAN telah melalui setahun yang penuh denganperubahan strategik yang ketara bagi membolehkannya bersaingsecara berkesan di dalam pasaran dan melangkah ke tahappertumbuhan yang baru. Inisiatif-inisiatif telah diambil bagimengembangkan syer pasaran, menambahkan campuranproduk, memperbaiki modal perniagaan, mempertingkatkaninfrastruktur demi merangsang kecekapan menangani jumlahperniagaan yang meningkat. Momentum positif ini merupakanpetanda yang baik bagi prospek pertumbuhan jangka panjangSyarikat.

Kumpulan tidak memulakan tahun tersebut dengan nada yangbegitu positif lantaran penurunan keuntungan bersih pada sukupertamanya berbanding Keuntungan Selepas Cukai suku pertamatahun 2010. Kekurangan ini adalah disebabkan oleh kemerosotanmargin untung kasar yang berpunca daripada nilai RinggitMalaysia yang kian kukuh berbanding Dollar Amerika Syarikat.Namun, Kumpulan kian pulih pada suku kedua dan ketiga,lantaran peningkatan bilangan Pengedar dan produktivitiPengedar, prestasi jualan yang lebih baik serta peningkatanpermintaan terhadap produk kita di pasaran serantau. Semasamenghadapi cabaran dan dugaan bencana banjir di Thailandsepanjang suku terakhir tahun 2011, Kumpulan berupayamelaksanakan pelan kontinjensi bagi menangani masalah logistikdi kawasan banjir dengan pantas tanpa menjejaskan rantaianbekalan kita. Tindakan pemulihan berkesan sedemikianmembolehkan Kumpulan ZHULIAN mengekalkan momentummenaiknya sehinggalah suku terakhir bagi menamatkan tahuntersebut dengan peningkatan 11% bagi perolehan, denganjumlah RM357.5 juta bagi tahun dalam tinjauan, berbandingRM322.6 juta bagi 2010. Keuntungan Sebelum Cukai meningkatkepada RM115.1 juta berbanding RM105.9 juta pada tahunsebelumnya, sementara Keuntungan selepas Cukai (PAT)meningkat kepada RM95.3 juta iaitu peningkatan sebanyak10% daripada PAT tahun lepas sebanyak RM86.7 juta.

DIVIDENDSSentiasa Memulangkan Kembali kepada Para PemegangSaham

Syarikat terus menjulang polisi mencipta nilai buat parapemegang saham melalui polisi dividen yang boleh dikekalkan,yakni 60% daripada Keuntungan Selepas Cukai bagi tahundalam tinjauan akan dibayar kepada para pemegang sahamsebagai dividen. Dikira bersama dividen peringkat tunggalinterim keempat berjumlah 3 sen yang diisytiharkan pada Januari2012, jumlah dividen bagi tahun kewangan berakhir 30 November2011 adalah berjumlah 12 sen bersih sesaham. Pembayaranjumlah dividen bersih sebanyak RM55.2 juta diterjemahkan kedalam hasil dividen bersih 7%. Tahun ini adalah tahun kewanganke-5 berturut-turut di mana ZHULIAN mengisytiharkan dividenkepada para pemegang saham semenjak penyenaraiannyadi Papan Utama Bursa Malaysia Securities Berhad pada tahun2007.

CORPORATE REVIEW

012

PEMBANGUNAN KORPORATPenambahbaikan Lanjut Infrastruktur

Bangunan serba baru Ibu Pejabat Antarabangsa ZHULIAN bernilaiRM29.9 juta di Pulau Pinang yang telah dibuka dengan rasminya secarabesar-besaran pada 23 Julai 2011, telah menyuntik keterujaan dankeyakinan pada semua Pengedar yang bernaung di bawah payungKumpulan ZHULIAN. Ia mengukuhkan lagi komitmen KumpulanZHULIAN untuk menawarkan yang terbaik kepada para Pengedardan Pelanggannya di rantau ini.

Terkini, loji pengilangan makanan Plot 3 milik Kumpulan sedang melaluiprojek peluasan untuk menambah lagi 3,283 meter persegi kepadaluas binaan sedia ada seluas 17,444 meter persegi. Kawasan yangdiperluaskan ini diperuntukkan bagi kegunaan gudang dan pengeluaranagar dapat mengembangkan lagi produktiviti segmen perniagaantersebut supaya berupaya memenuhi jumlah perniagaan yang kianmeningkat. Projek ini telah siap sepenuhnya di bulan Februari, 2012.



menyampaikan ketelusan. Prinsip teras Tabdir Urus KorporatZHULIAN dibentangkan secara jelas oleh Lembaga di dalamPenyata Tadbir Urus Korporat (Statement of Corporate Governance)dan Penyata Kawalan Dalaman (Statement of Internal Control)seperti yang tertera di dalam Laporan Tahunan ini. Fungsi auditdalaman diadakan bagi keseluruhan Syarikat untuk menguji danmenilai prosedur dan sistem Syarikat, termasuklah kawalandalaman, prosedur pendedahan dan sistem informasi bagimemastikan kepatuhan terhadap piawaian tadbir urus korporatyang baik.

TADBIR URUS KORPORATKunci ke Arah Ketahanan dan Pertumbuhan Perniagaan

ZHULIAN berkomitmen menegakkan prinsip kesepaduan,ketelusan dan kebertanggungjawaban, serta ia dicerminkanoleh amalan tadbir urus korporat yang baik dan kawalan dalamanyang kuat, yang telah kita gabungkan ke dalam perlaksanaanperniagaan kita. Lembaga Pengarah berdedikasi untukmemastikan segala amalan yang bersangkutan dengan TadbirUrus Korporat adalah mematuhi perundangan dan peraturanyang berkaitan. Kita memfokuskan kepada penciptaan nilai didalam budaya pengurusan yang mematuhi piawaian terkiniTadbir Urus Korporat dan di dalam polisi Syarikat yang

ANUGERAH DAN PENGIKTIRAFANMenggambarkan Kemasyhuran dan Berdaya Saing

Kumpulan telah menambah satu lagi pengiktirafan apabilaZHULIAN MARKETING (M) SDN. BHD. menerima satu lagianugerah berprestij iaitu “1 Malaysia Enterprise Award 2012 –1 Malaysia Master Leader” di bawah kategori kebangsaan.Penyampaian anugerah yang dianjurkan oleh PersatuanUsahawan Pemprosesan dan Pembungkusan Makanan Malaysia(Malaysia Food Processing and Packaging EntrepreneursAssociation - MAFPA) telah berlangsung di Subang, Selangorpada 10 Januari 2012. Dengan kemenangan pengiktirafanyang menakjubkan ini, kita percaya Lembaga yang berwawasanserta pengurusan yang teliti di bawah ZHULIAN akan berupayamembentuk model yang boleh dipercayai, bertanggungjawabdan berkekalan untuk diteladani.

CORPORATE REVIEW

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TANGGUNGJAWAB SOSIAL KORPORATMemenuhi Tanggungjawab Sosial

Kumpulan berbangga dapat menyatukan insan denganmenawarkan peluang perniagaan saksama yang berupayamembantu merubah kehidupan ke arah kebaikan. Kita memupukbudaya berkongsi dan prihatin sebagai prinsip utama perniagaankita. Bagi Kumpulan ZHULIAN, tanggungjawab korporat adalahtentang menjalankan perniagaan dengan berhemat danmenghormati keperluan komuniti umum. Kumpulan menyerapkanprinsip ini ke dalam tempat kita bekerja, cara kita menjalankanperniagaan, produk-produk yang kita bangunkan dan kilangkanserta cara kita melayan setiap insan yang berhubung kait denganKumpulan, agar Kumpulan terus berdaya maju dalam jangkapanjang.

Berdasarkan kepercayaan ini, Kumpulan berazam untukmenjalankan pelbagai tanggungjawab sosial korporat yangmenambahkan nilai kepada aspek tempat kerja, komuniti, alamsekitar dan persekitaran pasaran. Kita mewujudkan persekitarankerja yang amat kondusif buat para pekerja terutamanya darisegi keselamatan kerja. Kita terus menginspirasi para Pengedarkita dalam usaha kita membentuk para usahawan berjaya melaluiPelan Perniagaan Keemasan Zhulian, serta latihan dan programpembangunan yang menyeluruh. Selain itu, kita juga menyediakandana khas iaitu Tabung Pendidikan Amanah bagi menggalakkanpara Pengedar kita agar berusaha seiring anak-anak merekamenuju kecemerlangan masing-masing baik dalam bidang kerjayaataupun pelajaran. Sebagai warga korporat yangbertanggungjawab kepada komuniti, kita menyalurkan bantuankepada golongan masyarakat yang memerlukan dengansumbangan wang tunai atau barangan berjumlah sehinggaRM140,000 melalui pelbagai badan kebajikan. Dari sudut alamsekitar, kita memastikan alam sekitar tidak terjejas teruk akibatoperasi perniagaan kita dengan mematuhi Akta Kualiti Alam Sekitardan peraturan-peraturan termaktub lain yang berkenaanperlindungan alam sekitar. Di samping itu, sejak tahun 2010 lebihdaripada 8,000 beg kitar semula telah diedarkan ketikaberlangsungnya Konvensyen Kebangsaan, iaitu MalamPenganugerahan yang diadakan setiap tahun, dalam usahaKumpulan membantu menggalakkan penggunaan beg yangboleh diguna semula sambil memenuhi tanggungjawab kepadaalam sekitar. Dari segi persekitaran pasaran, Kumpulan jugaberusaha memastikan amalan perniagaan beretika di kalanganpara Pengedarnya dan memupuk persaingan yang sihat di dalampasaran.

Kumpulan menjulang kepercayaan bahawa sebuah perniagaanseharusnya berupaya membawa perubahan-perubahan yangpositif terhadap kualiti kehidupan masyarakat dan persekitaran dimana masyarakat hidup dan bekerja. Oleh itu, kita akanmeneruskan usaha terbaik dalam membantu orang-orang kitasupaya menjalani kehidupan yang lebih baik dan menjadikanalam sekitar tempat yang lebih baik untuk kehidupan dengansentiasa memikirkan kepentingan generasi masa hadapan.

TINJAUAN DAN PROSPEK

Kerajaan Malaysia telah menyatakan di dalam ramalan ekonomitahunannya bahawasanya Malaysia dijangka berupayamencapai pertumbuhan ekonomi sebanyak 4 ke 5 peratus didalam tahun 2012, dan merendahkan defisit fiskalnya keranapermintaan domestik dan eksport komoditi yang kukuh dapatmenampung kesan kegawatan global. Turut diramalkan,pertumbuhan KDNK Malaysia akan digerakkan oleh permintaandomestik, lantaran ketidakpastian ekonomi global yangmeningkat. Kerajaan juga menyatakan bahawa inflasi domestikkian terjejas oleh faktor-faktor luaran, termasuklah kekanganbekalan. Sementara itu, Asian Development Bank (ADB)menyatakan ramalan pertumbuhan KDNK 2012 Malaysia adalahsebanyak 5.1 peratus. Ramalan yang menggalakkan ini disusulidengan ramalan oleh pakar-pakar ekonomi Credit Suisse bahawaekonomi Malaysia dijangka kekal kukuh di dalam tahun 2012kerana pertumbuhan penggunaan swasta yang teguh, disokongoleh kenaikan gaji dan pembayaran bonus kepada pekerjakerajaan dan pesara yang diumumkan di dalam Belanjawan2012.

Walaupun asas Kumpulan adalah kuat dengan banyakperancangan telah diatur demi perkembangan masa depannya,kita sedar bahawa faktor-faktor luaran seperti situasi ekonomiglobal yang mencemaskan dan kos bahan api yang lebih tinggiberkemungkinan terus meninggalkan impaknya kepada situasiekonomi di rantau ini. Misalannya, ketegangan ekonomi yangdapat dirasai setempat sepanjang tahun kewangan lalu sepertikenaikan harga petrol, gula dan tepung yang berterusan telahpun menjejaskan kuasa pembelian para pengguna secaraumumnya dan kos pengoperasian perniagaan kita. Walaubagaimanapun Kumpulan akan terus mengamalkan pendekatanberwaspada dan berstrategi terhadap perniagaan ini sambilmeningkatkan kawalan merentasi operasi yang lebih cekap danterfokus agar lebih berkesan kos. Kekuatan kita terletak padakepelbagaian meluas produk berkualiti tinggi kita yangdibangunkan dan dikilangkan sendiri serta kapasiti yangmemenuhi permintaan pasaran yang berubah-ubah melaluiinovasi berterusan dan kualiti yang tiada kompromi. Kita akanterus mengukuhkan ekuiti jenama, meningkatkan campuranproduk, membesarkan jangkauan pasaran dan meluaskanrangkaian Pengedar kita. Oleh itu, kita sentiasa bersikap optimistiksecara berwaspada bahawa dengan sokongan berterusandaripada para Pengedar kita yang berdedikasi dan bersemangat,kemudahan-kemudahan yang dipertingkatkan, serta inisiatif danprogram pemasaran penting yang telah diatur bagi menyokongusaha pembangunan perniagaan para Pengedar, kita akandapat mengangkat Kumpulan ke tahap yang lebihmemberangsangkan di dalam tahun kewangan berikutnya.



PENGHARGAAN

Dalam tahun kelima penyenaraiannya di Papan Utama Bursa Malaysia, Kumpulan ZHULIAN semakin kukuhberbanding tahun-tahun sebelumnya dan saya amat berbangga dengan pencapaian-pencapaian kita. Tahun2011 adalah satu lagi langkah bagi kesinambungan kejayaan kita. Sokongan para pemegang saham dan LembagaPengarah, seiring dengan semangat juang para usahawan MLM kita, usaha gigih barisan pengurusan yang cekapserta kakitangan yang berdedikasi, telah membantu kita berdiri teguh dalam menghadapi segenap cabaran.

Pertama sekali, bagi pihak Lembaga Pengarah ZHULIAN, saya ingin mengucapkan ribuan terima kasih kepadaPengedar kita seramai 573,883, termasuklah para pemimpin dan ejen bertauliah di atas kesetiaan dan dedikasiberpanjangan mereka kepada Kumpulan serta komitmen dan keyakinan tidak berbelah bahagi terhadap perniagaanMLM Kumpulan. Tidak disangkal lagi, semangat keusahawanan mereka adalah kunci yang akan membawaperniagaan kita ke tahap lebih tinggi. Selain itu, saya juga ingin mengambil kesempatan ini untuk menyampaikansetinggi-tinggi penghargaan kepada ahli-ahli Lembaga Pengarah di atas usaha tekun, kepimpinan teguh danwawasan bijaksana mereka. Saya yakin dengan wawasan dan bimbingan mereka, Kumpulan akan dapat terusmemacu pantas dan jauh. Terima kasih setulus ikhlas juga buat pengurusan dan kakitangan kerana kerja keraspenuh dedikasi mereka telah membuahkan satu lagi tahun yang dipenuhi pencapaian menakjubkan. Lembagaingin menyampaikan ucapan sekalung penghargaan kepada rakan sekutu, pembekal-pembekal dan bank-bankdi atas sokongan padu dan kerjasama baik yang diberikan kepada Kumpulan. Akhir sekali, penghargaan tertinggibuat semua pemegang saham di atas sokongan berterusan dan kepercayaan yang tidak bergoyah terhadapKumpulan. Anda sekalian yakinlah bahawa Kumpulan ZHULIAN berkomitmen penuh bagi mencapai kecemerlanganprestasi, berdedikasi untuk berkhidmat kepada Pengedar kita, dan berazam untuk terus teguh memegang komitmenkita terhadao para pemegang saham yang dihargai demi memaksimumkan nilai pemegang saham serta misi kitaterhadap para usahawan yakni membantu mereka menggapai impian mereka.

Bagi pihak Lembaga PengarahZHULIAN CORPORATION BERHAD

Haji Wan Mansoor Bin Wan OmarPengerusi, Pengarah Bebas Bukan Eksekutif

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GROUP STRUCTURE



A WELL-DIVERSIFIED BUSINESS NETWORK

“ZHULIAN is dealing with a well diversified business across the South-East Asian region. Wepride ourselves on being a group of entrepreneurs bound by the common belief that “We CanAchieve What We Believe”. We always think out-of-the-box when we make a strategic entryto a new business segment with MLM business remains as our focus.”

49%

60%

100%

PT. ZHULIAN INDONESIA(PTZI)

ZHULIAN (THAILAND)LTD. (ZTH)

ZHULIAN (SINGAPORE)PTE. LTD. (ZSG)

ZHULIAN CONSTRUCTIONSDN. BHD. (ZCSB)

62%

SELAT NUSANTARA DEVELOPMENT SDN. BHD. (SNDSB)

ZHULIAN CORPORATION BERHAD

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

80%

100%

ZHULIAN INDUSTRIES SDN. BHD. (ZISB)

ZHULIAN JEWELLERY MANUFACTURING SDN. BHD. (ZJMSB)

BEYOND PRODUCTS TECHNOLOGY SDN. BHD. (BPTSB)

ZHULIAN MANUFACTURING SDN. BHD. (ZMFSB)

AMAZING VESTRAX SDN. BHD. (AVSB)

ZHULIAN NUTRACEUTICAL SDN. BHD. (ZNSB)

ZHULIAN PRINTING INDUSTRIES SDN. BHD. (ZPISB)

MASTER SQUARE SDN. BHD. (MSSB)

ZHULIAN LABUAN LIMITED (ZL)

ZHULIAN MARKETING (M) SDN. BHD. (ZMMSB)

ZHULIAN MANAGEMENT SDN. BHD. (ZMSB)

ZHULIAN DEVELOPMENT SDN. BHD. (ZDSB)

DEXASSETS SDN. BHD. (DSB)

DIAMOND INSPIRATION SDN. BHD. (DISB)

ZHULIAN VENTURES SDN. BHD. (ZVSB)

ZHULIAN PROPERTIES SDN. BHD. (ZPSB)

BOARD OF DIRECTORSHaji Wan Mansoor Bin Wan Omar(Independent Non-Executive Chairman)

Teoh Beng Seng(Group President and Chief Executive Officer)

Teoh Meng Keat(Group Managing Director)

Khoo Teng It(Executive Director)

Teoh Meng Lee(Executive Director)

Teoh Meng Soon(Executive Director)

Diong Chin Teck(Senior Independent Non-Executive Director)

Tan Lip Gay(Independent Non-Executive Director)

AUDIT COMMITTEEDiong Chin Teck (Chairman)Haji Wan Mansoor Bin Wan OmarTan Lip Gay

NOMINATING COMMITTEETan Lip Gay (Chairman)Haji Wan Mansoor Bin Wan OmarDiong Chin Teck

REMUNERATION COMMITTEETan Lip Gay (Chairman)Haji Wan Mansoor Bin Wan OmarTeoh Meng Keat

PRINCIPAL PLACE OF BUSINESSPlot 42, Bayan Lepas Industrial Estate,Phase IV, 11900 Penang.Telephone No.: 04-6162020Fax No.: 04-6425989

COMPANY SECRETARIESTai Yit Chan (MAICSA 7009143)Ong Tze-En (MAICSA 7026537)

AUDITORSMessrs KPMGChartered Accountants1st Floor, Wisma Penang Garden42, Jalan Sultan Ahmad Shah10050 Pulau PinangTelephone No.: 04-2272288Fax No.: 04-2271888

REGISTERED OFFICESuite 2-1, 2nd FloorMenara Penang Garden42-A, Jalan Sultan Ahmad Shah10050 Pulau PinangTelephone No.: 04-2294390Fax No.: 04-2265860

SHARE REGISTRARAgriteum Share Registration Services Sdn Bhd2nd Floor, Wisma Penang Garden42, Jalan Sultan Ahmad Shah10050 Pulau PinangTelephone No.: 04-2282321Fax No.: 04-2272391

PRINCIPAL BANKERSCIMB Bank BerhadUnited Overseas Bank (Malaysia) Bhd

SOLICITORSMurad & FooSitham & Associates

STOCK EXCHANGE LISTINGMain Board of Bursa Malaysia Securities Berhad (“BursaSecurities”)(Listed since 27 April 2007)Stock Code : 5131Stock Name : ZHULIANSyariah Status : Approved by Syariah Advisory Council

and Securities Commission

WEBSITES:http://www.zhulian.comhttp://www.zhulian.com.my

CORPORATE INFORMATION

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DIRECTORS’ PROFILE

Teoh Beng SengGroup President and Chief Executive Officer

Teoh Beng Seng, a Malaysian aged 53, is the founder,Group President and Chief Executive Officer of our Group,having been appointed to our Board since 29 April 2006.

As Group President and Chief Executive Officer, he hascreated our Group’s master plan for growth, directing ourGroup’s operations and leading us from success to success.Despite facing overwhelming odds along the way, hisvisionary stewardship of the Group has been proven withthe rapid growth achieved by our Group over the years.Within the period from its inception to the present day, ourGroup has successfully expanded our direct sellingoperations from our home base in Malaysia to countriessuch as Thailand, Indonesia and Singapore. Benefitingfrom his vast experience and business acumen, he hasalso led the Group in building its growing manufacturingcapabilities, allowing the Group to master and developan extensive range of manufacturing operations to supportits dynamic expansion to produce the Group’s expandingrange of innovative products.

Teoh Beng Seng began his career in the jewellerymanufacturing industry early in his youth, honing his skillsas an able apprentice who showed keen enthusiasm anddedication to learning the intricacies of the trade. In thelate 1970’s, he successfully set up his own jewellery businessventure, trading under the name of Hup Seng Goldsmith.He gradually built for himself a prominent standing as areputable jeweller both in the local and overseas industry,travelling extensively to broaden his scope and to keepin touch with the latest jewellery trends. Having successfullycreated his own distinctive ZHULIAN brand of gold-platedcostume jewellery products, in 1989 he decided to marketthem through the direct selling concept via the Group’sdirect selling arm – ZHULIAN MARKETING (M) SDN BHD.

Teoh Beng Seng has attended all the Board Meetings heldduring the financial year ended 30 November 2011. TeohBeng Seng is the brother of Teoh Meng Keat, Teoh MengLee and Teoh Meng Soon. He has had no conflict ofinterest with the Company and no conviction for offenceswithin the past ten (10) years.

Haji Wan Mansoor Bin Wan OmarIndependent Non-Executive Chairman



Haji Wan Mansoor Bin Wan Omar, a Malaysian aged 63,was appointed to our Board as an Independent Non-Executive Chairman on 30 October 2006. An economicsgraduate from the University of Malaya, he had begunhis illustrious career with the Malaysian Administrative andDiplomatic Service in various departments and ministriesincluding public services department, Malaysian studentdepartments in Washington D.C. and the ImplementationCoordination Unit and Economic Planning Unit in the PrimeMinister’s Department. He has 33 years of experience inpublic service. In his last posting, he was appointed theDirector of Consumer Affairs in the Ministry of DomesticTrade and Consumer Affairs. Over the years, he hasactively participated in many seminars and training coursesboth locally and overseas, including a Master of Businessand Public Administration course at the SoutheasternUniversity in Washington D.C. in 1983; a Certificate inIndustrial Cooperation and Small and Medium Industriesorganised by the Ministry of Science and TechnologyKorea in 1985, a Seminar by the Overseas EconomicsCooperation Fund Japan in 1986 and the RVB ExecutiveProgramme in Management, Netherland Specialisationon Small Entrepreneurship Promotion and IndustrialAssistance in 1988. An active contributor to the localindustries, he is currently the Vice President of the MalaysianAssociation of Standard Users, the Chief Liaison Officer ofthe Malaysian Islamic Chamber of Commerce, an honorarySecretary General to the Malaysian Chamber of RuralIndustry Entrepreneurs and Secretary General to theCODUID (Koperasi Dewan Usahawan Industri DesaMalaysia).

Haji Wan Mansoor Bin Wan Omar has attended all BoardMeetings held during the financial year ended 30November 2011 since his appointment to the Board ofDirectors of ZHULIAN CORPORATION BERHAD. HajiWan Mansoor Bin Wan Omar does not have any familyrelationship with any other directors of the Group. He hashad no conflict of interest with the Company and noconviction for offences within the past ten (10) years.

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Khoo Teng ItExecutive Director

Khoo Teng It, a Malaysian aged 49, was appointed to ourBoard on 29 April 2006 as an Executive Director. He is alsothe Executive Director of ZHULIAN INDUSTRIES SDN.BHD. and MASTER SQUARE SDN. BHD. He is responsiblefor implementing and overseeing our Product Developmentactivities. The division had successfully introduced a wideselection of innovative products for our direct selling andmanufacturing operations. He is also involved in ongoinghuman resources development programme particularlyin recruitment, training, skills development and humanresources advancement.

He has brought with him vast experience gained from hismany years of close involvement in IT-related industriesdealing in both the software and hardware fields. Hisexposure to the information technology industry includesconsulting, installation, maintenance and support as wellas application software used in personal computers, serversand embedded systems.

Khoo Teng It has attended all the Board Meetings heldduring the financial year ended 30 November 2011. KhooTeng It does not have any family relationship with anyother directors of the Company. He has had no conflictof interest with the Company and no conviction for offenceswithin the past ten (10) years.

Teoh Meng KeatGroup Managing Director

Teoh Meng Keat, a Malaysian aged 45, is the GroupManaging Director, having been appointed to our Boardsince 29 April 2006. He began his early career in 1990as the Administrative and Finance Manager of ZHULIANJEWELLERY MANUFACTURING SDN. BHD. In 1992, hewas promoted to the post of Executive Director and in1998 to Group Managing Director in recognition of hisservice distinction. Drawing upon his over 14 years ofwide experience in finance, IT and corporatemanagement, he is instrumental in coordinating andcarrying out the Group’s objectives as set out by the GroupPresident and Chief Executive Officer and in seekingexcellence in every area of its operations.

He is also responsible for overseeing our Group’s directselling operations in Malaysia, Thailand, Indonesia andSingapore, providing a firm guiding hand in ensuring theGroup’s continued growth and expansion and has createda corporate culture of service excellence in all areas ofour Group’s operations.

He is currently active in various trade organisations andis presently an honorary individual lifetime member of theAsian Regional Training and Development Organisation,a member of the Malaysian Invention and Design Societyas well as a member of the Malaysian National ComputerConfederation.

Teoh Meng Keat has attended all the Board Meetings heldduring the financial year ended 30 November 2011. TeohMeng Keat is the brother of Teoh Beng Seng, Teoh MengLee and Teoh Meng Soon. He has had no conflict ofinterest with the Company and no conviction for offenceswithin the past ten (10) years.



Teoh Meng LeeExecutive Director

Teoh Meng Lee, a Malaysian aged 42, was appointed toour Board on 15 July 2009 as an Executive Director. He isalso the Operations Director and Executive Director ofBEYOND PRODUCTS TECHNOLOGY SDN. BHD. andZHULIAN MANUFACTURING SDN. BHD. He is responsiblefor production planning and strategy, scheduling of materialrequisitions and inventory management for themanufacturing activities of the specified plants. He joinedZHULIAN JEWELLERY MANUFACTURING SDN. BHD.in 1996 as a Coordinator and was promoted to the positionof Production Control Manager at the end of 1996. Hewas subsequently promoted to the position of OperationsDirector in 2003.

In his capacity as the Operations Director as well as thehead of our R&D team for home technology products, hehas continuously improved our products through ongoingR&D and implementation of new production technology.He has extensive experience in the manufacturing industryand has contributed significantly to the establishment ofour production planning and inventory control system forour manufacturing activities.

Teoh Meng Lee has attended all the Board Meetings heldduring the financial year ended 30 November 2011. TeohMeng Lee is the brother of Teoh Beng Seng, Teoh MengKeat and Teoh Meng Soon. He has had no conflict ofinterest with the Company and no conviction for offenceswithin the past ten (10) years.

Teoh Meng SoonExecutive Director

Teoh Meng Soon, a Malaysian aged 42, was appointedto our Board on 15 July 2009 as an Executive Director. Heis also the Production Director and Executive Director ofZHULIAN JEWELLERY MANUFACTURING SDN. BHD.(ZJMSB) and ZHULIAN INDUSTRIES SDN. BHD. He hasin-depth experience in research and development as wellas the manufacturing processes of jewellery and foodproducts. His specialised knowledge in electroplating hascontributed to the success and growth of our trademarkfashion jewellery products where electroplating is a criticalelement in contributing towards product quality. He leadsthe food division's R&D team and is also involved in theimplementation and continuous improvement of our wide-ranging quality control procedures that ensures that highproduct quality is consistently maintained anduncompromised.

He joined ZJMSB in 1993 as a Plating Operator and waspromoted to the position of Plating Process Manager in1996. He was subsequently promoted to the position ofProduction Director in 2003.

Teoh Meng Soon has attended all the Board Meetingsheld during the financial year ended 30 November 2011.Teoh Meng Soon is the brother of Teoh Beng Seng, TeohMeng Keat and Teoh Meng Lee. He has had no conflictof interest with the Company and no conviction for offenceswithin the past ten (10) years.

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Tan Lip GayIndependent Non-Executive Director

Tan Lip Gay, Malaysian aged 48, was appointed to ourBoard as an Independent Non-Executive Director on 30October 2006. He graduated from Middlesex Polytechnicin London, England with a Bachelor of Laws (LLB) Honoursdegree in 1987 and subsequently received his Certificatein Legal Practise (CLP) in 1988. In 1989, he was admittedto the High Court of Malaya as an advocate and solicitor.

In 1990, he set up his own legal firm, Leong, Ng & Tan withhis partners and today it is an established legal practicein the country. An active participant in community services,he was awarded the Pingat Jasa Kebaktian (PJK) by theYang Di-Pertua Negeri Pulau Pinang in 2001 in recognitionof his selfless services. His unrelenting commitment towardshis community and active interest in social work led to hisreceiving another state award from the Di-Pertua NegeriPulau Pinang – the Pingat Kelakuan Terpuji (PKT) in 2005.

Tan Lip Gay has attended three of the four Board Meetingsheld during the financial year ended 30 November 2011.Tan Lip Gay does not have any family relationship withany other directors of the Company. He has had noconflict of interest with the Company and no convictionfor offences within the past ten (10) years other.

Diong Chin TeckSenior Independent Non-Executive Director

Diong Chin Teck, a Malaysian aged 79, was appointedto our Board as an Independent Non-Executive Directoron 30 October 2006. Subsequently, he was appointedas the Senior Independent Non-Executive Director in ourBoard on 15 October 2008. He is a Fellow of The Instituteof Charted Accountants in Australia and a member of theMalaysian Institute of Accountants. He obtained hisprofessional training in accountancy in Melbourne, Australiaand was admitted as a member of The Institute of ChartedAccountants in Australia in 1996.

He joined KPMG in 1967 and worked in their Kuala Lumpur,Ipoh and Penang offices. He was made a Partner of KPMGin 1971. The Penang office grew under his leadershipfrom a small practice to a sizeable office when he retiredfrom the partnership in 1988. While he was with KPMG,he was involved in providing audit, taxation andconsultancy services to clients from various industriesincluding manufacturing, plantation and the bankingsector.

Diong Chin Teck was the Company Secretary of OrientalHoldings Berhad and its subsidiaries from 1974 to February2010. His role as Company Secretary also requires himto provide advisory services on corporate matters rangingfrom acquisition of companies and properties in bothMalaysia and overseas to compliance with the variousstatutory and governmental bodies. He is currently anIndependent Non-Executive Director of Eurospan HoldingsBerhad, Globetronics Technology Bhd and Asas DuniaBerhad.

Diong Chin Teck has attended all the Board Meetings heldduring the financial year ended 30 November 2011.Diong Chin Teck does not have any family relationshipwith any other directors of the Company. He has had noconflict of interest with the Company and no convictionfor offences within the past ten (10) years.

vision & mision...our core business is in multi-level marketing (mlm), with diversified...

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