This video provides an exclusive look into the operations of DXN Holdings Berhad, a company that has achieved over 300 million ringgit in profit yet remains largely under the radar of institutional investors. The interview delves into the paradox of their immense financial success and low public profile, revealing an unconventional strategy that prioritises a unique business model over traditional investor relations.
The discussion highlights the company's global footprint, with major markets in regions such as Peru and Mexico. It offers insight into the company's core values and its commitment to its network of distributors.
This content is a compelling exploration of how a company can achieve extraordinary success by forging its own path, offering a powerful lesson on prioritising purpose and people over conventional business visibility. It is a story that will challenge and expand your understanding of modern commerce.
*VIDEO ctto: FAQ Show
#DXNBusiness #DXNHoldings #7PercentDividendYield #StockMarket #DXNStocks #DXNGlobal #DXNLifestyle #DXNInvestment #DXNMLM
The discussion highlights the company's global footprint, with major markets in regions such as Peru and Mexico. It offers insight into the company's core values and its commitment to its network of distributors.
This content is a compelling exploration of how a company can achieve extraordinary success by forging its own path, offering a powerful lesson on prioritising purpose and people over conventional business visibility. It is a story that will challenge and expand your understanding of modern commerce.
*VIDEO ctto: FAQ Show
#DXNBusiness #DXNHoldings #7PercentDividendYield #StockMarket #DXNStocks #DXNGlobal #DXNLifestyle #DXNInvestment #DXNMLM
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LifestyleTranscript
00:00Over 300 million ringgit in profit, you pay like over 50% as dividend around 7%, 2.5 billion
00:16ringgit market cap. Why is DXN having such low investor visibility? We are a listed company in
00:22Malaysia but DXN is a global company. I would say for the investors in Malaysia, they have overlooked
00:27this company. Malaysians should feel very proud that we have one company taking care of distributors
00:32like looking at growth and expansion. Business is growing and thriving. PrivateJet is mainly
00:36used as a marketing tool to motivate and inspire the market. Brazil, we just started a year
00:41ago, now we have around 900 to 1,000% growth. These investors who had overlooked the stock
00:47and the company for this while, I'm sure they're going to come back to us.
00:50Hi Mr. Brachit. Hello. Well, DXN isn't your normal consumer business. It's a direct selling
00:56company with a twist. Could you share with us what is DXN's business model and what makes
01:01it so unique as a wellness company?
01:04Thank you for asking. DXN is a global manufacturer of nutraceutical products that is into the distribution
01:11model of direct selling. Unlike many other direct selling companies, we are a B2C company.
01:16That means directly from the manufacturing to a consumer. You look at today's environment
01:20of direct selling, we have a lot of companies who are trading companies actually. DXN is a company
01:25that has been built over years. Today we are a vertically integrated business model. We
01:29have two large research facilities, one in India, one in Malaysia. We have seven to eight cultivation
01:36facilities located in three countries. We have today 14 manufacturing plants and we have 82 sales
01:42branches in over 54 nations. And the business is spread out around in over 180 countries.
01:48So you know, unlike many other business models where they do source out their supplies from other
01:55companies and they engage another company to distribute, we are all in all. So we call ourselves
01:59as a One Dragon Company model. Our concept is One Dragon Company. That means right from the cultivation
02:05to the processing, to the manufacturing, to the distribution, it's all under one roof.
02:09Right. Okay. So it is not just a Malaysian company, it's actually a global company.
02:13It's a global company. Just now you mentioned something called vertical integration. Could
02:17you explain what is vertical integration? Yeah. Yeah. Right from the top to the bottom,
02:21you know, top I would say research facilities, you know, we do our own innovations set in place to come
02:27up with products, you know, that is into biotech. And as a result, we are able to come up with the various
02:34product lines. Today we have over 596 products in our SKUs, ranging from personal care to dietary supplements,
02:42to beverages, to household products, to lifestyle products we have. And now we have recently entered
02:47into ready to eat and ready to drink and ready to cook products as well. And along these lines,
02:53I mean, from the top research, to the manufacturing, to the distribution, it's all under vertically placed,
02:59you know. Right. Right. So that's the business model that we have been following all these years.
03:04Okay. And just now you also mentioned your motto that it's actually called One Dragon, One World,
03:10One Market, One Might. Right. It's a very motivating kind of motto, I would say, but how does having a
03:18single integrated system benefit your distributors and your consumers worldwide? Oh, that's a very
03:24interesting question. You know, in DX and right from the very beginning, you know, we have a system in
03:29place called the One World, One Market system. I mentioned about the One Dragon company, you know,
03:33where we have a particular integrated model. But when you talk about the system, it's more of how
03:38we have a platform for distributors to expand the business worldwide. What does One World, One
03:45Market system, you know, what does it signify? It means like a distributor, the one single membership,
03:50he has the opportunity to expand his network throughout the world. For example, we have a distributor who
03:55joined in Malaysia, he has a membership code, he has some friends and families in Dubai,
04:00he has some people down in Indonesia, he can introduce the products of DXN in the respective
04:05countries. And once his family, friends and all tries our coffee in the respective countries,
04:09this member sitting back in Malaysia will receive multiple incomes coming. So we have a unified,
04:14integrated system to manage the payouts. Okay, so let's say I have a family member who is residing
04:19in Dubai. Yeah. I can sell it to my friends and family over there. And you would, you would, the
04:25goods that they buy straight into Dubai? No, we don't have to transport, we have our own sales
04:30branches in the respective nations. Right, right, right, right. Okay, okay, because you're a global
04:34company, so obviously, obviously have distribution. So I want you to look at DXN as a global company.
04:39Of course, we are a Malaysian-born company, but we are, you know, well-present globally. Yeah, so you're
04:44operating in so many companies, and you started in Malaysia. But I'm just surprised that you're
04:49biggest market is not in Malaysia, but in places like Peru, and also Mexico, you know, these kind
04:55of places. Can you tell us about your international growth? I mean, how can a Malaysian company grow so
05:01big in places where it's not so familiar to us Malaysians? Yeah, the answer to that is the system
05:07that we have and the product portfolio, you know, in this company. Now, DXN was a company that was born
05:13in Malaysia. It was back in 1993, started off in a very humble setup in Kedah, Malaysia.
05:19Since then, we have expanded to Indonesia, Thailand, India, Philippines, the Middle East,
05:25the Arab market, the African market. Then we entered into American region, starting from
05:30United States, and it expanded to Mexico, and now South America. But today, if you look at the
05:35global business landscape of DXN, although Malaysia, you know, we are among the top 10 markets of DXN
05:41group, but the major contributor of DXN would be some countries in Latin America,
05:47especially a country called Peru. You know, it has a population similar to that of Malaysia.
05:52We have a country even smaller, that is around 11 billion population called Bolivia, that is the
05:56number two market. And then we have Mexico, and then we have Morocco, North African market,
06:01we have Philippines, we have India, we have Arab market, especially Middle East, UAE, and the
06:06neighboring GCC countries. These are the major markets for DXN. One of the reasons why the business
06:12is spreading like wildfire in all these markets, especially is because of the nature of the
06:17products. In DXN, the main product or the key product would be our coffee. And coffee, you do
06:24not need to talk much, you know, you just need to serve your friends your coffee, let them try the
06:28coffee, let them feel the difference, let them get the aroma and let them come back for more. So our
06:33coffee is a very unique coffee in the market. Of course, we all know about coffee, coffee is one of the
06:37largest commodity in the world. But we try to make our coffee very unique coffee by adding a special
06:43ingredient called Ganoderma, which is very therapeutic, which has a lot of medicinal properties
06:47and nutritional properties. So that makes your coffee very special coffee. So we have wide varieties
06:52of coffees like coffee with Ganoderma, we have coffee with Cordyceps, we have coffee with Lion's
06:57Mane, coffee with spirulina, and all these are like nutritional beverage. So people, the world is
07:03moving towards health awareness, you know, today we have a lot of people actually, you know, so they
07:07just don't want to try their coffee, but they want to try a healthy coffee. And that's where DXN comes
07:11in. The product is easy, the system is easy, and we made everything right from the bottom, from top to
07:16the bottom, very simple for people to understand and replicate it further. Right, so Ganoderma mushroom,
07:23sometimes better known as Lingzhi mushroom, right? It's also a popular medicine-ish kind of herbs in
07:30China as well. So is that plan to actually penetrate into that huge market? Oh yes, of course. See,
07:36Ganoderma is considered as a herb, although it has a lot of nutritional medicinal properties,
07:40but it's categorized as a herb actually. And according to the Chinese pharmacopoeia,
07:46Ganoderma is considered as a king of herbs among all the herbs. Why? Because it has a property to
07:51balance back your body and prevent your body. So it's basically used as a prevention. Ganoderma Lingzhi
07:57has been considered and has been consumed by Chinese for ages, you know, since more than 5,000
08:02years. But the concept of Ganoderma or mushrooms or Lingzhi, the rest of the world has been very
08:08ignorant. So since the last 30 years, you know, the goal of our founder, Dr. Lim Siyojin, is to bring
08:14this nutritional mushroom, medicinal mushroom to the world through a medium, through a platform which
08:19is easy to penetrate. Call it as a word of mouth marketing, you know. It's not just you just put these
08:24products into the medicinal store and let the pharmacist talk about it. Rather, you use it
08:28and talk about the benefits to your friends, families and let them try this and let them talk
08:32about more people. So that's something that he has explored. And that's why DXN is into the direct
08:37selling model. And today, because of which it is, you know, the world knows about Ganoderma coffee.
08:43Today, if you just try to Google the Ganoderma coffee, you will find millions of pages out there
08:48that talks about a good Ganoderma coffee, benefits of Ganoderma, what is its implication on human
08:54health and so on and so forth. How does it going to go into China? Oh, actually, Ganoderma does not
08:59need to go into China. Ganoderma is coming from China to the rest of the world. Correct. But how do
09:05you bring DXN into China using this? Yes, of course, of course, of course. That's another very interesting
09:11question, actually. We did set up our own manufacturing plants in China and the factories and facilities in
09:17China is the largest facility we have in Ningxia, China. That's where we produce not just Ganoderma,
09:23but also other herbs like lion's mane, cordyceps. We do have our manufacturing footprint in China,
09:28but we are also looking at starting our marketing base in China. We applied for licenses for China
09:36and we are waiting for the results as of now. So once we have the direct selling license, we'll be
09:40penetrating our market. Our members have been eagerly waiting for DXN to enter China. So we are also
09:46working closely with the authorities to make sure that we are able to penetrate business-wise into
09:50the country as well. Coming soon? Yeah, in the coming years, we should have some great news for China.
09:54Cool. Well, I think DXN is a very, very interesting company. You have RM2.5 billion market cap, which
10:01solidly put it under a mid-cap range, which means a lot of fund managers and institutional investors
10:07would want to look at this company. You also make like over RM300 million in profit, right? But the thing is,
10:12DXN is really under the radar for many investors. So in your opinion, why is DXN having such low investor
10:21visibility? The main reason would be that we are a listed company in Malaysia. But if you look at DXN,
10:28DXN is a global company. Majority of the market presence that we have is in the global markets.
10:34And if you try to look at the business of DXN, I would say for the investors in Malaysia,
10:39I would say they have overlooked this company. In this instance, like, you know, when they try to
10:43understand DXN, they look at DXN's presence overseas. And then they try to understand that
10:48DXN is a company present in exotic countries like Peru, Bolivia, and to Malaysian market. I mean,
10:55Peru and Bolivia is something that, you know, not many of our Malaysian people are aware of, you know.
11:01Having said that, you know, this is something that has been, you know, it's a misconception to
11:05understand, you know, that DXN, although in Peru and Bolivia, we have been steadfast, we have been
11:11very stable, we have a very sustainable growth all these years. You know, when you talk about overseas
11:15market, especially Latin America, Malaysians do understand about Brazil, they do understand about
11:21Argentina, they do understand about Chile. Now, these are the markets that we have just penetrated
11:25and the business is doing wonderful. Brazil, we just started a year ago, now we have around 900 to
11:321000% growth. And last month was amazing, actually. Argentina, we have started six months ago,
11:40and we have over 500% growth in sales. And Argentina right now is among the top 15 nations
11:45already within the last six months. So we sense the same pattern of growth in other Latin markets,
11:50replicated in Argentina and Brazil. So these investors who had overlooked the stock and the
11:56company for this while, I'm sure they're going to come back to us, looking at the trajectory of DXN,
12:00looking at the stability and growth, looking at the initiatives that we have taken going forward.
12:04Last financial year, we had a Patami of 17.2%. And that is a growth of 8.6% from the
12:12preceding year. Look at any other direct selling companies, and many of the top direct selling
12:16companies, as you can see, many of them are publicly listed. So you can see the financial
12:20results and the sales are dwindling for these companies, you know, whereby we have maintained a
12:25Kager trajectory of 15.4% in the last three years. So the investors can closely follow all these
12:30things, you know, maybe it's an initial impression about what this company and where this company is
12:34doing. But looking at that trajectory, looking at the growth records of DXN, looking at the plans and
12:39programs that we have put in place, I'm sure all these investors are going to come back to us.
12:43We have a good dividend payout ratio also around last year, we paid around 56.1% as a dividend, and we
12:50have set a 50% payout ratio. Yeah, which translates to around 7% dividend. 7%, you know, which is
12:56pretty impressive. Right, so just out of curiosity, because you have been continually penetrating
13:04into very exotic countries. So how do you actually do that? How does your first member appear in those
13:11markets? Okay, it's what we call as organic growth in the business. Organic growth in a sense, like you
13:19have come to know about the coffee, and you're trying this coffee, and you find some beautiful
13:24results out of the coffee. You introduce this coffee to your family, to your mom, to your brothers,
13:29to your siblings, and all. And then you introduce it to your friends, and their friends have got some
13:34friends in other countries, and they try to introduce it. So the consumer base is constantly
13:39increasing. And many of those consumers are also distributors, you know. The expansion into America
13:45came from, you'll be surprised to hear this, expansion into America came from Indonesia.
13:49Oh, yeah. Really? So from Malaysia, we expanded to Indonesia. It's not us, actually. The distributors
13:55expand. It's organic growth, actually. They introduced it to their friends and families, expanded to
13:59Indonesia. And Indonesia, they have got friends and families in the United States, and they expanded
14:05the concept to the United States. Then we set up the business over there, and from USA, it went down south
14:09through word of mouth. So this is a very organic, very stable growth pattern that we have been
14:14following all these years. And as a result, today, we have crossed over 20 million distributors in the
14:19business already. Wow. Okay. Well, in business, you're doing great, but like you mentioned, it's
14:24really overlooked by investors. Yes, it is. So much so that I think your PE valuation is only around 8 times.
14:29Yeah, 8 times. But do you also think that it's also, there's a stigma around these investors that, ah,
14:36because DXN is a direct selling company. And yeah, somehow people don't value direct selling company
14:42too high. Now, this is a reflection of overlooked perception, you know, from the market, actually.
14:47Now, direct selling, you know, you take a look at direct selling industry. Worldwide, the direct selling
14:54industry has crossed $170 billion. Take a look at Malaysian direct selling industry. It has crossed $34.4
15:04billion last, last 2024. That is a growth of around 7.4% growth. If you take a look at the top
15:12performing countries in this industry, let's start with USA, the number one direct selling country.
15:19Number two is China, then comes Brazil, then comes Japan, then comes South Korea, then comes Germany,
15:25and then comes Malaysia. So Malaysia is one of the top direct selling market in the world.
15:31Right? Meaning to say, like, there are a lot of Malaysians, significant population of the country
15:36are consuming and using products coming out of direct selling. To take a look at direct selling,
15:40you know, what, what do the direct sellers look at, actually? Basically, the, the, the market,
15:45I mean, they look at the right company, a good company, and how do you determine a good direct
15:49selling company? A good direct selling company is a company that has good products, viable products,
15:55fast moving products. We look at a system, a system that is sustainable, that is achievable, that is a,
16:00that is growth oriented, and a company in a company that is looking and taking care of distributors,
16:06and taking care of the growth and expansion of distributors, expansion of the company.
16:11If you compare DXN with any other direct selling companies, you know, Malaysians should feel very
16:16proud that we have one company that unlike its peers, that is looking, taking care of distributors,
16:22like looking at growth and expansion, that is coming up with innovative products, uh, every year,
16:28and, uh, business is growing and thriving, even during, uh, you know, the, despite economic headwinds,
16:34you know, we have, we have reported a growth, a profit, you know, for our, uh, distributors. So,
16:39all in all, you know, uh, this is how people need to look at DXN, you know, so that's why I always say in
16:45Malaysia, it's, it's highly overlooked, you know, and that's when, you know, you will have a lot of
16:51investors coming in and trying to embrace it. Yes, I would have to agree because you have,
16:54you have 20 million distributors, distributors worldwide. That's a 12% growth, uh, uh, compared
17:01to the previous year. Right. Right. Okay. There's also some headlines that might spook investors,
17:06right? Um, especially the ones where, um, there's the news saying that DSN is chartering a private
17:13jet from, uh, Datuk. Yeah. And that raised eyebrows, like, hey, why are you doing these related party
17:19transactions and all that? And subsequently to the news, we saw some big investors actually
17:23trim their sticks in the company. Uh, how do you address this issue? Okay. Actually, uh, again,
17:30I would say it's a misconception. When you talk about private jet or an aircraft in a direct selling
17:35company, direct selling business, people should understand that it is not a luxury statement for
17:40the company. I have hardly flown this private jet. Oh, then why do you buy it for? I take commercial jets,
17:46you know, when I come from United States here, I travel around, I take commercial jets. Private
17:50jet is mainly used as a marketing tool to grow our business. How do we use a marketing tool is
17:56basically to motivate and inspire the market, inspire the distributors. Now we have taken some good
18:02exercise about this private jet, uh, in, uh, Middle East, India, Arab market, in Africa, Latin America,
18:08in Asia to fly our top performers in this private jet. Top performers, meaning to say like we have people
18:14who have achieved the level of crown ambassador, crown ambassador is a top level in this company.
18:19And we have, uh, around 73 crown ambassadors around the world. And we have taken this exercise
18:25as a, to fly these people just to motivate the next line of distributors and inspire them to achieve the
18:31level of crown ambassadors. It's a statement that if you are a crown ambassador, you get this free
18:36lifestyle, you know, that that's a thing. And that has actually translated to revenue. That has actually
18:41translated to growth. Although it's too early to really analyze the growth stages, but still
18:47we chartered this aircraft in November. All right. Of course we have, we went through all the due
18:52diligence and we had this third party evaluation and everything. And we came out with a conclusion
18:56that this is the best option. If you want to charter, you know, charter from there is the best
19:00rate and everything, the best price. So since then, until now we have seen growth in all the markets
19:06wherever we have the first quarter this year, compared to the corresponding quarter last year,
19:12we have seen a growth of around 15.6%. The fourth quarter last year, compared to the corresponding
19:17fourth quarter, we have seen a growth of around 13 to 14%. And the major growth is basically in,
19:23in those pockets where we have taken up this exercise. Why? Because if you look at the top
19:28achievers flying in a crown ambassador, it is going to motivate the next line of people. And they also
19:33want to become a crown ambassador. It's not just about the money. It's not just about the freedom,
19:37but it's also about, you know, showcasing like I have achieved something, I have come from nowhere
19:42to somewhere, you know, in this business. So this is more of a marketing tool, rather a luxury
19:47statement. So our goal is to maximize the company's revenue, grow the company's revenue, maximize the
19:53profits for our shareholders through this private jet, you know, in the coming months and years. So that's
19:57why I'm saying it's a misconception for the market. People do take it in a wrong sense. It is
20:02basically as a marketing tool, you know, to maximize the business.
20:06I see. How does one become a crown ambassador?
20:08Crown ambassador is a different levels of growth in this company. You start as a distributor,
20:13you know, there are like 23 stages of growth in this company. So you start as a distributor,
20:18then you achieve, you make a certain production in your group, you have a lot of people doing.
20:22So you achieve points, actually, once you achieve a certain level of points, you come up to the level
20:26of star agent, then you go to star ruby, then you go to star diamond, then you have senior diamond,
20:30double diamonds, and eventually you become crown diamond, and then senior crown, double crown,
20:35and go to the crown ambassador level. So among the 20 million distributors we have, we have only 73
20:40crown ambassadors. And many of them are in the pipeline to become the next crown ambassadors.
20:45And I'm sure with all this exercise that you're doing, you know, setting up a beautiful corporate
20:49office here, I hope you have seen our office already. So what is your impression about the corporate
20:54office of DXN? It's just like the motto, one dragon. One dragon. Yeah, everything is one.
20:59Everything. So we do have a miniature of the production of spirulina, of the production of
21:04Garo Derma to showcase what DXN is doing on global stage. This is definitely going to inspire a lot
21:08of people. Then this private jet exercise, and it's going to inspire a lot of people to gear up and to
21:13expand the business faster and to achieve the levels in the company. So it's all basically a business
21:18initiatives taken by the company. So how much sales does a crown ambassador need to do to achieve
21:24that status? A crown ambassador needs to develop 20 star diamond lines under them. 20 lines of
21:31star diamond. Every star diamond needs to have at least six star agents in the group. So that's how
21:37the level goes. And every star agent needs to produce a certain level of production in order to
21:43achieve the level of star agent. So it's a process actually. I mean, normally it takes around 10 years to
21:4712 years for a person. If the person stays focused, they achieve a level of crown ambassador.
21:52Level of crown ambassador is a title, but most importantly, it's also achieving freedom in life.
21:57Financial freedom, health freedom, freedom to travel, freedom to do anything in this world,
22:01you know. So all these things. Just know we briefly mentioned about dividend, right? You pay
22:07out like over 50% of your profit as dividend, which translates to around 7%. At the same time,
22:13I see that you put in a lot of money to do all these R&D, all these investments,
22:16come up with new product lines and stuff. How do you balance between all these expansion plans and
22:23rewarding shareholders? You know, our philosophy is very straightforward, you know. So we reward
22:29our shareholders today while building for tomorrow. Our focus in DXN is to make the business
22:36sustainable. Meaning to say like, you know, DXN is a company with a big global presence. It's not just in
22:43Malaysia. If we are only dependent on the facilities in Malaysia, we might end up in a huge crisis,
22:49because we are a global company. So the goal of DXN is to make the business sustainable, localized.
22:55In the last four years, four to five years time, we have established 11 factories around the world.
23:00We have established factories in India, we have established facilities in China, we have established
23:04factories in Dubai, in Bangladesh, Nepal. And now we are going forward from here to establish new
23:10factories in Morocco for the North African market. We are going to set up a new establishment of
23:15factories in Peru, South America, then in Bolivia. And going forward, we are also planning to set up in
23:20Saudi Arabia, Guyana, Brazil. By doing so, we are able to make the business localized. We are able to
23:27reduce the impact of forex losses. We are going to reduce substantial cost. And by sourcing out raw materials
23:35locally for the factories. And we are we are going to maximize the profits for the company. And we'll
23:41be able to continue paying a good dividends to our shareholders. Right. So that's the plan for us
23:47going forward. We do have sufficient because we are a vertically integrated company, you know, with a
23:52very good balance sheet, you know, we have good fund reserves. So we try to invest our own fund into
23:57the growth and expansion, but make sure that we are able to also pay good dividends to our shareholders as
24:02well. So the initiative here is basically to make the business sustainable. So in order to make sure
24:08that we continue paying good dividends to our shareholders. So that's why I'm saying, you know,
24:12we reward our shareholders today while building for tomorrow in the exit. So that's a straightforward
24:18principle that we have. Okay. Just now I heard you say that the company has a good balance sheet,
24:23right? So in terms of cash position, and then you say you want the sustainability and all that. Can I get an
24:30understanding of what is the cash position right now in the company? Do you have like borrowings?
24:35No, no, we are a very, we do have a good cash position at the moment. Last financial year,
24:42we have declared around 672 million as a cash and cash equivalents we have.
24:46Wow. That's a lot of cash. Yeah. And located in various overseas markets and dollars as well as in
24:52other currencies, including Malaysian currencies as well. So we are a very sound company when it comes to
24:57finance actually. Okay. And we are able to manage the resources. Now we have set up,
25:01allocated a certain fund for investment as capex for this year and next actually. This is going to
25:06be spread out in the next two to three years time to carry out all these initiatives. Okay. There's
25:11a saying among retail investors that if a company can pay good dividend, generally they are already
25:18mature. You don't expect a lot of growth. It's just smooth sailing. Do you think that is a fair
25:24statement to put that statement on DXN? No, that is not a fair statement when it comes to DXN. Right.
25:30What would be a fair statement when it comes to DXN? Basically, this is a company that is looking
25:35into growth and expansion and make the business more resilient and promising in the future.
25:40If an investor wants to understand DXN, they should understand DXN. What is this company doing now?
25:46As I said, we have around 596 products in our portfolios. Yeah. Out of this 596, 80 products
25:52was introduced last year. We have 60 more products lined up to be launched by this year and next year.
25:58We are now expanding into new markets. So it's not just we are just sitting on the existing markets
26:02and trying to maximize the profits. No, we are now expanding new markets. Recent markets that we
26:07expanded is in Argentina, Brazil, Egypt. Now new markets we are going to enter would be in Chile,
26:12Algeria, Tunisia, Ghana, Dambia. And of course, we also expanded to other European markets like UK,
26:18Germany, Netherlands, we have recently expanded also. So the investors should look at like,
26:24where is this company going from here? Is this company just sitting on whatever they have done
26:28in the past and trying to rebuild their future? No, we are actually redefining the future for the
26:34people. Argentina, Brazil is going to follow the same pattern that of Peru. If they haven't heard
26:38about Peru, they should look at how Peru is stable. But most importantly, they should look at
26:42Argentina is coming up just like Peru, maybe it's going to be even bigger. Brazil is the largest economy
26:48in the Latin America. I mean, it has a country with the largest population. It is a country with
26:52years and years. I mean, the most experienced direct selling country in the whole Latin America.
26:57And DXN is already there and we are doing good. So more products comes in and the market will thrive.
27:02And I'm sure in the coming years, Brazil, Argentina, Chile, these are going to be the top markets
27:07besides Peru, Bolivia and other existing markets as well. Those are the growth drivers of the
27:12growth drivers of this company. In the next three to five years? Three to five years.
27:15Okay. Interesting. All right. So DXN started business in 1993. That's more than 30 years ago.
27:21Then it got listed, but subsequently it got privatized in year 2011. Then in 2023, it got re-listed again.
27:28Looking at the shareholding structure, right? Datuk Lim and his family still hold a big chunk of
27:33of the whole share. So how do you evaluate the corporate governance of the company after all this corporate exercises?
27:42In DXN, we have built a multi-layered framework that scales with us. We have set a global oversight
27:49while focusing on the local accountability as well. At the top, we have a board with a majority
27:55who are independent directors, who sets the tone and standards for the company. We do have robust
28:02policies, which we have implemented in all the operational units around the world. We do have
28:08independent checks and verification for all the material contracts, for any transaction. There
28:13is a related party transaction center. We do have independent checks and verification. It's all
28:18carried out. As part of the compliance procedures, we are strictly maintaining that. Apart from that,
28:23we have continuous training and enhancement for the management and for the distributors throughout the
28:28world as well. So we saw the set-in framework that we have implemented in DXN globally.
28:33And that is actually something that we stand by. This is what it is all about when it comes to corporate
28:38governance. Nice, nice. Well, thank you so much for your time, Mr. Prajit. But one last question before
28:43I let you go, right? In one sentence, what would you say to new investors who never heard of DXN before
28:50as to why they should keep an eye on DXN now? To let you know that DXN is the only, not just Malaysian,
28:56only Asian company that has taken this initiative and we are very proud of that. And I want all of
29:02you to know and let's look forward to doing that. I mean, we are a very responsible manufacturing company,
29:08not just in Malaysia, but throughout the world as well. So looking at all these things, I think,
29:12I believe DXN is a good investment for you and I want all of you to come forward and invest in DXN.
29:17We can all, you know, look to a brighter future in the coming years. So thank you.
29:22Right. So there's good growth, there's good dividend. It's also a very ESG conscious company
29:28for everyone to look at. So I help you to summarize into one sentence. Thank you very much, Mr. Prajit.
29:33Thanks for your time. Thank you, thank you, thank you very much. It's a pleasure meeting you.
29:37So, DXN is a cash-generative, dividend-paying, international growth company. It's not very often
29:44that you find a 30-year-old company that is still expanding into countries like Brazil, Argentina,
29:50and places like that. Most of the time, they're already mature and just give out decent dividends.
29:55And note that despite the strong fundamentals, the company is still under the radar. Meaning,
30:01not many people are looking at the company. Anyways, I hope that through this interview,
30:05you'll know a little bit more about DXN Holdings. If you liked today's video, don't forget to like
30:09and subscribe to the video and stay tuned for more videos like this. See you in the next video.
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