irisonvlee11091961.files.wordpress.com · Web viewCHINA OUTFITTERS HOLDINGS LTD Unit Coordinator:...

Iris Onvlee 1 Assessment 1 – Step 3-5, 7 & 8

CHINA OUTFITTERS HOLDINGS LTDUnit Coordinator: Martin TurnerAuthored by: Iris OnvleeMy Blog: https://irisonvlee11091961.wordpress.com

ASSESSMENT 1 Steps 3-5, 7&8

https://irisonvlee11091961.wordpress.com/

ContentsCompany profile...................................................................................................................4Industry:............................................................................................................................... 4Currency............................................................................................................................... 4Management......................................................................................................................... 5Milestones:............................................................................................................................ 6Subsidiary Companies..........................................................................................................7Retail Network...................................................................................................................... 7Product Design..................................................................................................................... 8Supply Chain and Manufacturing..........................................................................................9Sales Network....................................................................................................................... 9Step 3................................................................................................................................. 10

Company Image..............................................................................................................10Financial Reports.............................................................................................................10Returns to Shareholders..................................................................................................11Accounting Standards......................................................................................................11

Economic Drivers................................................................................................................11Acquisitions..................................................................................................................... 11Sustainability................................................................................................................... 11E-Commerce.................................................................................................................... 12Digitisation...................................................................................................................... 12Economic Environments..................................................................................................12Sourcing Materials...........................................................................................................12

Strategy.............................................................................................................................. 13Opportunity or Challenge?..................................................................................................13

My Top bloggers..............................................................................................................14Blog Page – “My Company”.............................................................................................14

My Experiences................................................................................................................... 19Studiosity............................................................................................................................ 20

My Feedback:.................................................................................................................. 20Step 4................................................................................................................................. 21

What I saw as a challenge and how I was able to do to solve my misgivings?................21Step 5................................................................................................................................. 22

What did I get out of this exercise?.................................................................................22


Step 7................................................................................................................................. 23Ratio Analysis..................................................................................................................23Economic Profit................................................................................................................23

Step 8................................................................................................................................. 24Feedback Provided.............................................................................................................24

Feedback To: .........................................................................................................................Kim Chisholm24

Feedback To: Nicole Cartlidge.........................................................................................25Feedback To: ...........................................................................................................................Nicole Olsen

26Feedback To: ...........................................................................................................................Sharon Field

27Feedback To: Billy Van Moolenbroek.........................................................................29

Feedback Received.............................................................................................................30PEER FEEDBACK SHEET: ASS#1 From Billy Van Moolenbroek.........................................30PEER FEEDBACK SHEET: ASS#1 Feedback From: Sharon Field.......................................31Blog Page – “About Me”...................................................................................................34My Feedback Experience.................................................................................................35

References.......................................................................................................................... 36Links................................................................................................................................ 36


Company profile

China Outfitters Holdings Ltd - Weblink: http://www.cohl.hk

Of all the companies to be given I get one that has to do with Fashion. As I’m not the best person to say

what goes on in the fashion industry, I know that in some parts of this assessment it will be a

challenge. My company is China Outfitter Holdings Limited. The company is an investment holding

company which designs, manufactures, markets, and sells apparel and accessories in the People’s

Republic of China. Its main focus is on menswear. However, it also is involved in the sales of software

and the development, operation and management of properties for its subsidiaries - Doright Group

Limited, CEC Menswear, Faith Enterprise Limited and SKY Trend Hong Kong Investment Limited.

This company was founded in 2000. However, it became an Incorporated company on 7 March 2011.

As an incorporated company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as

consolidated and revised) of the Cayman Islands, its registered office is located in Grand Cayman. It

went public on 9 December 2011.

Its principal place of business is in Hong Kong and China Outfitters Holdings Ltd offices are located in

Hong Kong and China. The company as at 30 June 2017 had employed 2,629 people.

Industry:

China Outfitter Holdings has a unique industry where their product focuses on men’s wear. The

company operates a number of internationally renowned brands where their product is offered to a

wide range of men’s casual to middle/high income customers. The company also offers womenswear.

Its licensed brands include Barbour, Jeep, Santa Barbara Polo & Racquet Club (SBPRC), Maxim’s,

Sideout, and Koyo Jeans.

Currency

The official name for the Chinese currency is Renminbi which means People's currency and uses the

abbreviation RMB. However, in the international system the most widespread use is yuan (CNY) So it

can be written as CNY 1,000 or RMB 1,000. The Chinese yuan or RMB is only used in Mainland China

whereas Hong Kong uses the Hong Kong Dollar.


http://www.cohl.hk/

Management

Directors

Executive

Mr Lo Peter (Chairman and Executive Director)

Mr ZHANG Youngli (CEO and Executive Director)

Mr SUN David Lee (Executive Director)

Ms HUANG Xiaoyun (CFO and Executive Director)

Non-Executive

Mr WANG Wei (Non-Executive Director)

Independent Non-executive

Mr KWONG Wilson Wai Sun (Independent Executive Director)

Mr CUI Yi (Independent Executive Director)

Mr YEAUNG Chi Wai (Independent Executive Director)

Senior Management

Mr LU Li (Chief Branding Officer and Regional Sales Controller

Mr YAN Zhong (Regional Sales Controller)

Mr LIU Wenbo (Chief Procurement Officer – Accessories)

Ms LEUGN Shuk Li (Chief Design Officer)


Milestones:

2018 – the Group acquired 100% interest of Focus Asia Investment Holdings Limited

2016 – obtained license of “Greg Norman” brand https://thegolfwire.com/325210-2/

2015 – Marina Yachting (private equity of Emerisque) announces joint venture with China

Outfitters Holdings Ltd via the Luxembourg company – Spring, owner of the rights to the label

2014 – obtained license of “Barbour” brand and acquired the intellectual property rights of

“LINCS” brand and “Henry Cotton’s” brand through formation of joint ventures

2014 – Announced the formation of joint with MCS Group (a part of the Emerisque Group) –

Leading American West-inspired Italian Designed premium Men’s casualwear lifestyle brand.

2013 – start off our e-commerce strategy and acquired the intellectual property rights of “MCS”

brand through formation of a joint venture

2012 – obtained license of Maxim’s brand and acquired the intellectual property rights of “Artful

Dodger” brand and “Zoo York” brand in Greater China region

2012 - Perry Ellis International Inc. formed a joint venture to introduce the Manhattan brand in

China, Hong Kong and Macau.

2011 – listed on the Main Board of the HKEx reached revenue of RMB1 billion and retail network

totalled over 1,000 retail points

2011 - Global private equity firm KKR & Co L.P. (KKR.N) invests $60 million as a cornerstone

investor in the Hong Kong initial public offering of China Outfitters Holdings Ltd 2009 – acquired the intellectual property rights of “London Fog” brand for Greater China region

2008 – became an authorised retailer of “Koyo Jeans” brand

2006 – developed first self-owned brand “Doright” brand

2003 – obtained license of “Sideout” brand

2002 – obtained license of “Jeep” brand and became a multi-brand apparel company


https://www.reuters.com/companies/KKR.N

2000 – obtained license of “SBPRC” brand

Subsidiary Companies

The company has within its portfolio subsidiary Investment Holding companies. These companies

either have a Direct or Indirect link to a percentage of equity attributable to China Outfitters Holdings

Limited

Companies with Direct Link are:

Doright Group Limited - Registered Share Capital UD$1 100% Direct

Zoo York (China) Limited - Registered Share Capital HK$10,000 88% Direct

Lincs (China) Limited - Registered Share Capital HK$13,750,000 84% Direct

Companies with Indirect link are:

CEC Menswear Limited - Registered Share Capital HK$100 100% Indirect

Faith Enterprises Limited - Registered Share Capital HK$100 100% Indirect

Sky Trend Hong Kong Investment Limited - Registered Share Capital HK$10,000 100% Indirect

Retail Network

Sales Network (as at 30 June 2017)

620 self-operated retail points

413 third-party operated retail points

Self-operated Retail Points

Major cities considered to be core markets:

Located in cities (Beijing, Shanghai, Chengdu, Tianjin, Shenzhen, Guangzhou, Nanjing,

Qingdao, Wuhan, Jinan, Taiyuan, Changsha, Wuxi)

Concession counter – 604 self-operator counters

Located within major departments stores such as Wagnfujing, Bailin, Parkson,

INZONE, Dayang, Golden Eagle, Van’s, Maoye, INTIME, New World.


Also, from popular shopping malls catering for mid-to-high income consumers

Standalone stores – 16 self-operator stores

Located in shopping malls with high levels of customer flow

Third-party operated retail Points

Purchase products from manufacturer before selling to retail customers according to the

company’s standardised nationwide pricing guidelines

Located in cities – Xian, Harbin, Urumqi, Xining, Hefei, Xiamen, Kunming, Guiyang,

Chongqing, Zhengzhou, Dalian, Hohhot and Shenyang

Product Design

The company also has obtained the right to use London fog, Zuyue, Artful Dodger brand in China as a

joint venture. This venture will allow the partners to operate the Manhattan and MCS brands also in

China. The company will also provide their own brand of Men’s Clothing called Derui. They are also the

authorised retailer of Koyo Jeans branded clothing in China. A report that was commissioned by

Euromonitor has shown that JEEP and SBPRC brands are the leading brands in China’s mid-to-high-end

casual men’s wear in terms of total retail sales.


Supply Chain and Manufacturing

China Outfitters Limited Company launch a series of new men’s styles every six months and introduce

them to third-party retailers through the order fair. The third-party retailer will place an order through

the ordering meeting, and we will determine the production plan based on the order and the internal

sales forecast of the self-operated retail store.

The company will set the Spring/Summer collections to June or July before each season, and the

Autumn/Winter collections will be held in December or January before each season. From receiving

orders to shipping products to retail stores, they have a longer production planning period, so they can

outsource production to third-party manufacturers to reduce production during off-peak production

hours (where prices are generally lower) cost.

Sales Network

China Outfitters Holdings have the belief that with a broad and well managed sales network it will help

to be able to establish a unified image of each brand and allow good penetration in the market of the

Group. As of December 31, 2018, the company’s sales network included 576 self-operated retail points

and 290 retail points operated by third-party retailers.

The following map shows the geographical distribution of our self-operated retail outlets and third-

party retail outlets in China on 30 June 2017:


Step 3

“You have to understand accounting and you have to understand the nuances of accounting. It’s the language of business and it’s an imperfect language, but unless you are willing to put in the effort to learn accounting – how to read and interpret financial statements – you really shouldn’t select stocks yourself” – Warren Buffett

Company Image

Working on this step has been quite a challenge putting into words what this company is all about. Reading through the reports I have found that the Menswear is only one section of a bigger picture with this company. From the companies that have invested finance into the company such as Kolberg Kravis Roberts & Co. (KKR), to those who have gone into a joint venture with the company like Henry Cotton's, MCS Group and Emerisque.

From the time that China Outfitter Holdings limited was founded, the company has evolved into a mega operation within the industry of menswear. It not only manufactures, markets and distributes middle to high range casual menswear, it with the merging of different company, is able to enhance its operation through other means. The company has an ever-changing and challenging market it is seen to be taking positive measures to continue to increase investments in brand, digitalisation and logistical warehousing for laying a foundation for future growth.

Financial Reports

China Outfitters Holdings Ltd makes it quite clear in its reports that revenue primarily comes from retail sales of their products to the end-consumer through self-operated retail points within department stores and shopping malls in major cities in the People’s Republic of China (PRC).

The revenue of the company is stated at the net invoiced value of goods sold after trade discounts. The company saw a decline in returns in 2018 which was attributable to the decline in proceeds from sale of products to third-party vendors.


Link to Financial Reports: http://www.cohl.hk/InvestorRelations/FinancialReports

Returns to Shareholders

Regarding the shareholder the board of China Outfitters Holdings Ltd through their corporate governance standards has set in place a framework that will safeguard the interests of its shareholders that will enhance corporate value and formulate its business strategies and policies. Also, to enhance the value of shareholders’ investments and preserve assets the company has set in place a risk management and internal control systems to manage and mitigate business risks.

Accounting Standards

It has been stated in the annual reports that the company has its Consolidated Financial Statements prepared in accordance with International Reporting Standards (IFRS) and International Accounting Standards (IAS) which have been issued by the International Accounting Standards Board (IASB) and the disclosure requirements of the Hong Kong Companies Ordinance. Also, the reports have been made under the historical cost convention. However, the equity investments that have been designated at fair value through the comprehensive income and financial assets have been measured at fair value through profit and loss. The Consolidated Financial Statements have been presented in Renminbi (RMB) currency and all values are rounded to the nearest thousand except when otherwise indicated.

Economic Drivers

Acquisitions

The business combinations within China Outfitters Holdings Limited have been accounted for through the acquisition method. Each business combination of the group may choose to measure non-controlling interests in the acquiree that are present proprietorship interests and warrants their holders to an equivalent share of net assets in the event of liquidation at fair value or at the proportionate share of the acquiree’s identifiable net assets. All other components of non-controlling


http://www.cohl.hk/InvestorRelations/FinancialReports

interests are measured at fair value. Acquisition-related costs are expensed as incurred.

Sustainability

China Outfitters Holdings Limited has a commitment to contribute to the sustainability of the environment and community where it conducts its business and considers this to be essential to maintain its long-term competitiveness within the business sector.

E-Commerce

January 1, 2019 saw China bring in new e-commerce law to improve the regulation of its booming e-commerce market and giving consumers and brand owners extended legal protection. There were several changes made when the law was introduced which included three recognised types of e-commerce operators, strengthening IP protections and regulating against unfair competition. One of these key changes was the inclusion of non-traditional shopping channels such as social media platforms We-Chat that can be used for e-commerce places.

The e-commerce sector has seen significant growth since 2015 and in 2018 e-commerce consumers can now use social marketing and e-commerce tools such as WeChat Public Account and Weimob and its WeChat business system to enhance their customer sales choice.

Digitisation

China Outfitters Holdings Ltd remains committed to the strategy of “Digitalisation driven, retail terminals empowerment” and aims to attract new customers, activate existing customers and through the improvement of their systems will improve their consumption of the use of digital tools such as O2O system, CRM system, Ali’s Smart Store, Weimob and its WeChat Business System.

Economic Environments

The company established a provision matrix which was based on its historical credit loss experience and adjusted for forward-looking factors to the debtors and


economic environment. There are risks and uncertainties that can affect the Retail and Apparel Industry. Through the changes in macroeconomic conditions may significantly affect business, financial condition, results of operations and prospects which may lead to instabilities in consumer spending. With the slow-down in economic growth in the past years robust growth rates cannot be guaranteed. Any further declines in the China Economy or consumer spending could materially or adversely affect the economic flow of the operational aspect of the business.

Sourcing Materials

China Outfitters Holdings Limited prefer manufacturers that pass quality control certifications such as ISO 9001-2000. The company will conduct a sample inspection of the products and require the raw materials and products to be certified by the quality control inspection agency designated by the relevant government authorities in China.

Strategy

Perusing through the Annual Report 2018 it has been noted that the company has a firm strategy set in place for the future. The key for sustaining expansion and growth will be through a continued implementation of the multi-branding. China Outfitters Holdings Ltd during the 2018 year completed the acquisition of MCS that has now become a brand wholly owned by the company in the Greater China Region. The company believes that having self-owned brands will benefit its strategic objectives to increase sales proportion from the self-owned brands. As well as the brand acquisition the company will further embrace a brand awareness through sponsored sports and culture events and film and television works from a number of their brands.

China Outfitters Holdings Limited also through a combined science and technology and retail has seen China’s retail industry gone into a transformative stage where conventional retail has been replaced by new retail. Through the new technologies’ customer experience has been enhanced and a reformation of their model of


operations to adapt to new retail models has taken place. This is where the digitalisation driven retail terminal empowerment was launched.

Opportunity or Challenge?

Opportunity knocks at China Outfitters Holdings Ltd Door when we can see that the Jeans market is set to grow even more. Many companies that produce this product know that for this particular market to grow the company will need to find new ways of marketing and selling their product. The opportunity here is that the door is open for any company to take the market to the consumer and grow. A company with vision can lead the way and China Outfitters Holdings Ltd are leading the way.

The Challenge for China Outfitters Holdings Ltd is to remain focused on what the company wants to achieve in the future. From the ‘Digitalisation driven, retail terminal empowerment’ to engage in attracting new customers, stimulating current customers and improve their consumption experience. The company will need to remain competitive in such a diverse market and safeguard the measures are set in place for increasing and developing the retail network of self-owned brands.

My Top bloggers

Sharon Field - http://sharonsaccountingdecision.blogspot.com/

Kim Chisholm - http://www.everydaymoola.com/?p=139&fbclid=IwAR1_FMB-a4A16Ud3FDr211cqiZ-nfrL-0BZcb9fgs9cDLv9JbbTfvidzTRk

Nicole Cartlidge - https://nuckersaurus.home.blog/2019/08/25/steps-3-5-6-8-ass1-drafts/?fbclid=IwAR0ZftoTQB-OiEN1SE6gK4j3-c-wLaIygNBhAeePJuSgKXXUlbJxS7cq_yo

Billy Van Moolenbroek - https://billyvanmool.wordpress.com/

Reply to Billy about his blog feedback. https://billyvanmool.wordpress.com/2019/08/24/ass1-feedback-hub/comment-page-1/#comment-125

Nicole Olsen - https://nicolsenblog.wordpress.com/


https://nicolsenblog.wordpress.com/

https://billyvanmool.wordpress.com/2019/08/24/ass1-feedback-hub/comment-page-1/#comment-125

https://billyvanmool.wordpress.com/2019/08/24/ass1-feedback-hub/comment-page-1/#comment-125

https://billyvanmool.wordpress.com/

https://nuckersaurus.home.blog/2019/08/25/steps-3-5-6-8-ass1-drafts/?fbclid=IwAR0ZftoTQB-OiEN1SE6gK4j3-c-wLaIygNBhAeePJuSgKXXUlbJxS7cq_yo



http://www.everydaymoola.com/?p=139&fbclid=IwAR1_FMB-a4A16Ud3FDr211cqiZ-nfrL-0BZcb9fgs9cDLv9JbbTfvidzTRk

http://www.everydaymoola.com/?p=139&fbclid=IwAR1_FMB-a4A16Ud3FDr211cqiZ-nfrL-0BZcb9fgs9cDLv9JbbTfvidzTRk

http://sharonsaccountingdecision.blogspot.com/

Each one in their own way were my top blog. Each had a different focus on what they wrote but their interpretations of the content made it difficult to pick a winner. To me anyone who has written a blog is a winner because you have attempted and succeeded in doing something that may or may not be easy for you to do.

Blog Page – “My Company”

Sharon Field 4 August 2019

My company is also based in China. It’s difficult to wrap my head around a state asset owned company, especially one that seems so successful. I also have a limited fashion sense, but I know who Greg Norman is, so I am assuming it’s some sort of golf attire collection? It’s my understanding that China is the leading country in textiles, this is sure to give them an edge on international competition.

Billy Van Moolenbroek 9 August 2019

Hi Iris

Great read. You have written a thorough overview of your company! 🙂 Don’t worry, I have no clue how the fashion industry works either.

I find the company logo interesting (warning, weird analysis coming). The Chinese is written in the blue font, while the English is written in the orange font. The blue and orange semi-circle shapes are also arranged in the same way as the yin yang symbol. I interpret this as the coming together of Western and Chinese culture.

Your paragraph that starts with ‘China Outfitter Holdings has a unique industry…’ repeats at the end of the paragraph.

I love your layout for this blog post, in particular how you display the management team and company milestones.

In the introduction, you state the company was founded in 2000, but was established in 2011. The company milestones show China Outfitter Holdings was acquiring licences and developing in-house brands. Does this mean they weren’t retailing the brands during the 11-year period? It feels a little odd that the


company would have enough capital to acquire all of these different licences, set up different retail outlets and such without operating and earning income. AirAsia was founded in 1993 but began operations in 1996. So, I wonder if that is the same situation.

Disregarding the above confusion, I believe I have worked it out. The 2011 milestone states that the company was listed on the Main Board of the Hong Kong Exchange, which would suggest it was private for the 11 years and went public in 2011. So, this would suggest they were operating during that period, just now they can raise more capital through the exchange. If you have a different understanding or evidence to the contrary, please let me know. 🙂

I found it really interesting to learn about the supply chain and manufacturing process. Also, I have completed a quality management unit and am familiar with the ISO9001 system, so I appreciate that little titbit of information. It is quite a rigorous and thorough quality system.

I look forward to reading your analysis of the financials and restatement. 🙂

Jackson Hutchins 17 August 2019

Hi Iris,

Thank you for the opportunity to learn more about the company that you were allocated for this unit, China Outfitter Holdings Limited. I feel that your company shares similarities to that of the company that I was allocated in the previous unit ACCT11081, specifically geographically. I understand that this company may be outside of your comfort zone, but I feel like being allocated a company that falls outside your comfort zone will lead to further research and ultimately a better comprehensive understanding of various aspects of the company.

I really enjoyed the format that you utilised for presenting information on your company but breaking it into sub-headings and dot points it was much easier to learn important milestones and aspects of China Outfitter’s. I did also notice that the geographical spread of retailers spans the majority of China which requires you


to consider the economic industry trends of a whole country whereas my company only operates throughout New South Wales!

I look forward to learning more about your entity, particularly the financial statements and your subsequent analysis of the trends and ratios.

My Reply on https://jacksonhutchinsaccounting.wordpress.com/2019/08/17/draft-assessment-1/comment-page-1 to his response on my company and how his assignment (WORD Document was going)

Nicole Olsen 17 August 2019

Iris, the first thing I did was open your annual reports to find out if your company (as a Chinese company like mine) was also incorporated in the Cayman Islands – and yes, it is! This is good news for me as it settles some of my KCQ’s regarding the Cayman Islands and the tax haven concept. I completed some further research on why Chinese companies incorporate in the Caymans.

These articles are pretty intense with information may help you to understand too if you need to get your head around it like I had to!

http://www.chinainvestin.com/index.php/en/china-offshore/news/1293/china-offshore-the-cayman-islands-still-atop-the-incorporation-destinations-list-for-chinese-companieshttps://www.lexology.com/library/detail.aspx?g=cd220a3b-a1ff-4f09-9331-da56f9f9dbddhttp://www.mondaq.com/caymanislands/x/573138/offshore+financial+centres/How+China+Supercharged+The+Offshore+Market+In+Cayman+And+BVI

From how I understand it and have explored in my own analysis of my company is that it is a necessity for publicly traded Chinese companies to incorporate in offshore locations such as the Cayman Islands. This is because Chinese laws exclude non-Chinese investors from owning a direct stake in Chinese entities.

Blog Page – Step 3

Sharon Field 24 August 2019


http://www.mondaq.com/caymanislands/x/573138/offshore+financial+centres/How+China+Supercharged+The+Offshore+Market+In+Cayman+And+BVI

http://www.mondaq.com/caymanislands/x/573138/offshore+financial+centres/How+China+Supercharged+The+Offshore+Market+In+Cayman+And+BVI

https://www.lexology.com/library/detail.aspx?g=cd220a3b-a1ff-4f09-9331-da56f9f9dbdd

https://www.lexology.com/library/detail.aspx?g=cd220a3b-a1ff-4f09-9331-da56f9f9dbdd

http://www.chinainvestin.com/index.php/en/china-offshore/news/1293/china-offshore-the-cayman-islands-still-atop-the-incorporation-destinations-list-for-chinese-companies



https://jacksonhutchinsaccounting.wordpress.com/2019/08/17/draft-assessment-1/comment-page-1

https://jacksonhutchinsaccounting.wordpress.com/2019/08/17/draft-assessment-1/comment-page-1

I can understand your confusion. My company is based in China also and the economic playing field is

somewhat different to its capitalist counterparts. So, what are the real drivers? Is your company state-

owned like mine? My thoughts on the fashion industry is that fashion is fleeting and ever changing. It’s

so hard to predict the demand. I’m curious about the e-commerce being limited to WeChat when the

rest of the world has Boohoo, Iconic, Amazon, eBay and Facebook and their ability to remain

competitive. I also noticed in the financials the high cost of selling and distributing and wondered if

that was due to tariffs and embargos. I also saw in the Balance sheet some weird bank deposits, sort of

like my company, which I think is somehow related to the Chinese government policy. Is some of your

company financed by government grants and have obligatory payments to the government also? I’m

finding it difficult to understand the Chinese business culture and how companies conduct business

and how can the financial statements reveal the real picture.

Zhanye Dai 29 August 2019

Hi, Iris

I just read your article and feel enjoyed it. You provide plenty of information about your firm in

excellent format. The pictures and video attached give a really convenient access for me to learn your

firm and obtain information about it.


Comments from other Student blogsToday was a good day in checking other students question on her spreadsheet. She was having an issue with where she thought there was a dodgy tax issue within her workings. On perusal of her statements I may have found her error. This is the transcript of that conversation

It was also great to have positive feedback from Maria Tyler in regard to a statement I wrote in my Step 5 Page of my Blog.


Just like Sharon Field I also had some issues with my Income Statement and Balance Sheet Nicki Carlidge was able to lead me in the right direction when it came to work out where I was going wrong.

My Experiences

Looking back over the past six weeks and seeing where I started to today has been one big rollercoaster ride. I stepped onto the ride and way I went. There were obstacles, high points and low points, followed by the long stretch where I wondered if I would ever get off the ride. Well I have got there. Between the different posts on Facebook, to emails from other peers and the feedback occasionally from lectures it has been an experience. I’m thankful that this course has been one where there has been much engagement. I can honestly say that at the beginning I saw a mountain that could not be moved and today that mountain was smashed.


Studiosity

In my attempt to be a diligent student I wish I had taken more notice of this particular site. I can see that it would be of value to students in regard to their writing skills. I will give it a try tonight to see how it goes (Friday 30/08/2019) Hopefully I will have an answer about how I am going with my assessment.

I have got my feedback from Studiosity and very happy with the results.

My Feedback:

General

Welcome, and thank you for submitting your work to Studiosity for review! I’ve provided comments

throughout the file to assist you with improving the work. Do make sure you use these as a starting

point and conduct additional editing from there.

Structure

As you noted, the document was still a draft, so it looked like this might still be in progress in terms of

the structure. It does seem that you're generally using paragraph formatting, however, and

consistently including section headings throughout.

Choice of language

There are some language choices you may want to reconsider. Examples of what I have advised

working on included 'apparel' not usually needing an 's' and cutting down 'on in' to just one word.

Furthermore, it seemed that 'launch' needed to b in the past tense. I've also noticed that you're writing

in quite an informal style throughout. If you've been advised that this is okay then that's fine,

otherwise you may want to double check with your teacher whether this needs to be have an

academic tone throughout. An example of informal writing would be 'statement above sums it all up'

and 'I plugged away'.

Spelling / Grammar


The comments will assist with a few different grammatical points to work on. For example, in the

Milestones list you're sometimes capitalising words and in other places are not. I would advise that you

be consistent with whether you do, or don't, capitalise these dot points.

I'd also recommend you check your writing for instances where you may have used American-English

spelling instead of British/Australian-English spelling. Remember that some of the key differences are -

ize/-ise and -or/-our.

Finally, commas should be used to separate interrupting words/phrases/clauses from the rest of the

sentence. These interrupting words/phrases/clauses should add extra information, but they should not

change the actual meaning of the sentence if removed. For example: That student, John, was very

helpful today. Mrs Smith, the new sports teacher, showed us a new technique. John, who has just been

made a Student Councillor, is presenting his speech at assembly. This is missing from quite a few places

in the writing and it does result in some unclear phrasing. A key example of this was 'with the merging

of different company'.

Did you know you can use Writing Feedback in any subject where you're looking for feedback to

improve your writing? We look forward to providing you with feedback on your next assignment!

Step 4

What I saw as a challenge and how I was able to do to solve my misgivings?

The link to the first part of my spreadsheets are here https://irisonvlee11091961.wordpress.com/step-4-2/

This step was quite interesting as when using my firm’s statements. Instead of being straight forward and be able to find the Income Statement and balance sheet. As I wasn’t sure what to use, I emailed Martin Turner for advice on which to use and was advised to use both the Consolidated Statement of Profit or Loss and the Consolidated Statement of Comprehensive Income for the Income Statement and use the Consolidated Statement of Financial Position for the Balance Sheet.

The one area which I needed to touch up on was how to lay out the Income Statement and Balance Sheet correctly I used the video to refresh my skills. Also,


https://irisonvlee11091961.wordpress.com/step-4-2/%20

during the first few weeks have used the Excel Crash Course to revise the skills that I had problems with. This has been a very valuable resource to use. Following up on old skills and developing new ways of looking at statements helped with inputting the data into the spreadsheets.

Step 5

"Financial winners don’t run sprints, they run marathons. They don't rush. The do it step by step over time." Dave Ramsey

The statement above sums it all up. This has been a marathon working out the restatements. However, I plugged away step by step and was able to complete the spreadsheet.

What did I get out of this exercise?

Firstly, a massive headache and hardly any sleep the last two nights. Seriously I have learnt a that no matter what mistakes are made a solution will be found. Whether it be redoing the spreadsheet or putting it out there and allowing another set of eyes to help with and maybe finding out where you went wrong. Without the help that I have received over the past couple of days I would probably still be hitting my head against that brick wall and wondering why my head still hurts.

After Restating my Income Statement (Comprehensive Income Statement) I found it took 3 attempts to see where I went wrong. Through watching the video, I was able to ascertain where I was going wrong. In the end I found that my Comprehensive Net Profit after tax (CI) also matched my original Income Statement. With the balance Sheet I had an error where a fellow student after posting on Facebook for evaluation showed that I had missed two rows totally in my Restated Balance Sheet. Once I corrected those two mistakes it also balanced out with Net Operating Assets (NOA) equalling Total Equity minus NFA. What I have discovered is that China Outfitters Holdings Ltd has a very high Reserve cash which makes the Equity Higher than the Net Operating Assets.


From 2014 through to 2018 the Board of China Outfitter Holdings Ltd did not recommend declaring any final dividends for the years ending 31 December 2015, 31 December 2016, 31 December 2017 and 31 December 2018.

The calculation of basic earnings per share was based on the profit attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares of 3,435,162,000 in issue during the year stated. This made it impossible to work out some figures due to dividends not being paid in 2016, 2017 & 2018.

It is interesting to note when going through the annual reports small titbits of information come to the fore. In this instance for the year 2018 there has been a change in the way it will do its curent year’s financial statements.

The Company has adopted the following new and revised IFRSs:

Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions

Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts

IFRS 9 Financial Instruments

IFRS 15 Revenue from Contracts with Customers

Amendments to IFRS 15 Clarifications to IFRS 15 Revenue from Contracts with Customers

Amendments to IAS 40 Transfers of Investment Property

IFRIC 22 Foreign Currency Transactions and Advance Consideration

Annual Improvements 2014- 2016 Cycle

Amendments to IFRS 1 and IAS 28


Step 7

Ratio Analysis

Calculating the ratios of my company in some areas was not able to be completed. When a company does not pay dividends to its shareholders due to the Board of China Outfitter’s Holdings Ltd making it clear in their reports that dividends would not be reported on (Annual Report 2018 – Page 36)

Economic Profit

In this area I was to work out the Economic Profit of China Outfitters Holdings Ltd by using 8% as the firm’s cost of capital (WACC). This is an interesting area and when you look at the repayment of bank loans for 2018 the report shows that there were no outstanding loans.

Step 8

Feedback Provided

Feedback To: Kim Chisholm

My CommentsStep 1KCQs

Focus on Reality. What a way to start your blog!! I love the way you have set up your blog. It shows a well thought out and interesting concept. Manipulating figures to get to a targeted end shows that you have thought about what this whole concept of Financial Accounting Analysis is all about.

Step 2KCQs

This was a great read and the way in which you used different analogies to approach your readings lead to a better read from my side of things.

Step 3 Well what can I say here! One of my top blogs. There have been so many good ones. Your blog is easy to follow and well laid out.

Background information on companyComments/KCQsComments on other’s blogs

Step 4 The way in which you have laid out your spreadsheets have


made it easier to read. Input company’s financial statements

Step 5

Restated Income statement

Restated Balance sheet

Commentary & discussion with others

Using the slicing and dicing analogy in this step makes it really easy to understand where you are coming from. Your thought on how you were going to attack the Restated Spreadsheets leads me to read even further on how your company is making its way in the business arena.

Step 6

KCQs

What a way to start this Step. Who would have thought that Sesame Street would be used in an accounting blog to help with remembering the 5P’s? Thank you I loved this.

Step 7

Calculation of ratios

Nice to see that I wasn’t just the only one that was still working on my ratios.

Overall ASS#1 Great work.

Feedback To: Nicole Cartlidge


I can relate to your first step where each person has their own way of interpreting answers, but I suppose as long as we all come to the right conclusion it may not matter how we get there.

Step 2KCQs

Your train station analogy at the start of this made a great start to your KCQ’s. The getting your head around the discounted dividends and discounted cash flows and the acronyms used sometimes confuses most of us. I agree with the statement about the downside of doing a degree over eight years. I have been going for six and changing half way through made it interesting. Keep your focus on the goal that lies ahead.

Step 3 I can relate to your frustration with your company. Having a foreign company can make it extremely difficult to find information however I see that you were able to get the information required. I haven’t looked at Studiosity, but I see from your comment that I would need to take up the advantage of having someone else’s



eyes look over my assessmentStep 4 Great work here on your input of statementsInput company’s financial statements

Step 5




Thank you for your guidance during this week on finding my mistakes within my statements. You have done a fantastic job on your statements and I couldn’t find any errors here.

Step 6

KCQs

Nicole, I like how you have added your journey in learning throughout this step. The remembering of details after studying for so long. I can empathise with you on this. The abnormal earnings and formulas are definitely something which I think most of us would have to touch up on. I’m grateful for the examples which we have been given from Ryman Healthcare to assist us with our assignment. Keep up the great work

Step 7


Great work on your ratios. It made it easy to understand. Great to see a note within the document of your quick ration 2 it helped me understand how you ascertained that figure

Overall ASS#1 Excellent work. Thanks again for your input into my assessment.

Feedback To: Nicole Olsen


Nicole – Your step 1 here was quite informative and how you have related this topic to your own experiences with your new job. Relating your everyday situations within this shows great thought went into what you have written. The cold facts the end of your degree is near.

Step 2KCQs

You have shown a great understanding in this step. Your personal journey looks like it has taken a path that now shows you what lies ahead for you. Having a great understanding of a firm’s strategies and whether what


you have been told is truth or not will be a question until you find the answer you are looking for. We all have our different interpretations of a chapter but reading other thoughts on the content helps engage the reader to fill the gaps which they do not understand.

Step 3 It is quite daunting when you know that there are other students who are dealing with the same country when it comes to their financial dealings. Your comment on my blog about being incorporated in the Cayman Islands led me to delve a bit further. Unlike other countries in the world the Cayman island doesn’t have corporate tax which makes it an ideal place for multinational corporations to base subsidiary entities to shield all of their income from taxation. I like how you pointed out that it is a necessity for publicly traded Chinese companies to incorporate in offshore locations such as the Cayman Islands and how Chinese legislation excludes non-Chinese investors from owning a direct stake in Chinese entities.


Step 4 You have done a great job on your Financial Statement and Balance SheetInput company’s financial statements

Step 5




I can see you have started on your restatement of both of your financials. Remember if you have any problems the video’s that are posted on Martin’s blog are a good place to start.

Step 6

KCQs

N/A

Step 7

Calculation of ratios N/A

Overall ASS#1 Great work so far on your blog and spreadsheets

Feedback To: Sharon Field

My Comments


Step 1KCQs

This step was very thought provoking and thinking back to when I completed my Step 1 this term. Thank you for opening my eyes to what you have written here. I like how you have used the past to help predict the future analogy and the framework which you have related to.

Step 2KCQs

Your analogy here using how you have succeeded over the year show the reader that you have made valuable ground. You have cemented your learning and now you have a focus on the end. The 4P’s of marketing leaves us with some great thought and how using Richard Branson as an example shows how you have related it back to how people are treated.

Step 3 It was great to see how you related my company with yours and used the following as a discussion point. I can understand your confusion. My company is based in China also and the economic playing field is somewhat different to its capitalist counterparts. So, what are the real drivers? Is your company state-owned like mine? My thoughts on the fashion industry is that fashion is fleeting and ever changing. It’s so hard to predict the demand. I’m curious about the e-commerce being limited to WeChat when the rest of the world has Boohoo, Iconic, Amazon, eBay and Facebook and their ability to remain competitive. I also noticed in the financials the high cost of selling and distributing and wondered if that was due to tariffs and embargos. I also saw in the Balance sheet some weird bank deposits, sort of like my company, which I think is somehow related to the Chinese government policy. Is some of your company financed by government grants and have obligatory payments to the government also? I’m finding it difficult to understand the Chinese business culture and how companies conduct business and how can the financial statements reveal the real picture.Knowing that my company was incorporated in the Cayman Islands has left some speculation on my part on why the company has such a weird way about doing business.


Step 4


N/AInput company’s financial statements

Step 5




Your commentary to your restated Income Statement and Restated Balance sheet are very informative. Your work in this area gives the reader an understanding of what you have completed within this area.

Step 6

KCQs

This part of your blog was very good. I liked how you have referred to the different formulas that will be used within this assignment. You have shown us that your focus within this assignment and the country in which your company operates needed to change from a democratic focus to a communist focus.

Step 7

Calculation of ratios N/A

Overall ASS#1 Overall you blog. I couldn’t find your spreadsheets to look at.

Feedback To: Billy Van Moolenbroek


N/A

Step 2KCQs

N/A

Step 3 Well What Can I say Billy – You Can Fly!!! Your amazing interpretation of what others write gives a sense of great understanding in what you are doing. Your insight into my company has shown me that there is a lot more going than what can be found on the net. Your explanation of your company has made the reader aware of the many changes that have occurred over the years. Having so many subsidiaries attached to it no wonder it represents itself as a low-budget air travel solution.


Step 4 Great work in your setting out of your spreadsheets


Input company’s financial statements

Step 5




You have done a great job here with your workings and setting out. It is easy to read and understand. Your observation in this area have shown that you understand your company and how they run their business.

Step 6

KCQs

N/A

Step 7


Having added your comment in your blog has given the reader a better understanding of how your ratios and have been calculated and where there have been some mass differences within this area.

Overall ASS#1 This a great example of the work produced, and time and effort given

Feedback Received

PEER FEEDBACK SHEET: ASS#1 From Billy Van Moolenbroek

To: Iris Onvlee

My CommentsStep 3 I love your cover page for your document, it is very professional

and aesthetically pleasing. I also like how you used font colours similar to the company logo.You have written a comprehensive overview of your company, which was engaging, entertaining and educational. You have repeated a sentence in your paragraph below.“Industry:China Outfitter Holdings has a unique industry where their product focuses on men’s wear. The company operates a number of internationally renowned brands where their product is offered to a wide range of men’s casual to middle/high income customers. The company also offers womenswear. Its licensed brands include Barbour, Jeep, Santa Barbara Polo & Racquet Club (SBPRC), Maxim’s, Sideout, and Koyo Jeans. The company operates a number of internationally renowned brands where their product is offered to a wide range of men’s casual to middle/high income



customers.”You have also written a comprehensive overview of the company’s operations and processes; however, the wording is hard to follow at times. I suggest you use Microsoft Word’s in-built text-to-speech function to read your work back to you so you can identify some issues.Good job on your top five blogs. You also need to demonstrate your comments on others’ blogs either by screenshot or copy and paste. I see you’ve pasted at the end of your document other peoples’ comments on your blog. I would recommend placing them underneath the relevant section being discussed and perhaps providing a hyperlink to them as well.

Step 4 Your financial statements are formatted consistently, and you have used the SUM() formula for your totals. Good work!


Step 5




Your restated financial statements are formatted consistently, you have linked to figures from the FS tab and the checks balance. Good work! It is also good that explained your issues and frustrations with the restatement and how you solved them. As in Step 3, make sure you add in screenshots or copy and paste your discussions with others.

Step 7


Your ratios appear to be calculated correctly; no figures stand out as being visibly incorrect. Your notes on the ratio calculations clearly demonstrate why you were unable to calculate some of the ratios.

Overall ASS#1 Overall, great work. You have provided a comprehensive overview into your company and your experiences with the restatement process.

PEER FEEDBACK SHEET: ASS#1 Feedback From: Sharon Field

To: Iris Onvlee


I can totally relate to over thinking and being personal is very daunting. I think you have absorbed some concepts well and it does help to connect with personal scenarios like the pocket money example.


You may not get all the answers but it’s important to keep asking questions!

Step 2KCQs

I agree that a firm’s strategy gives an insight to the firm’s direction. I love how you have incorporated some history when assessing value, it’s so true, never put all your eggs in one basket. Going backwards to look forward. You have hit the nail on the head here, your insights are well conveyed.

Step 3 I could develop a real sense of what your company is all about with your explanation. There was much interaction with others, and I think that will help with your analysis. I like that you added press releases to give an understanding of the joint ventures involved as a major part of their operations. I really enjoyed reading the positive comments on other people’s blogs, I really liked Kim Chisholm’s blog too. Overall, you have your finger on the button of this company, despite the overwhelming aspects of analysis.


Step 4 You didn’t seem to have too many issues with inputting the company’s financial statements. They were fairly straight forward and easy to link to from your blog.


Step 5Restated Income statementRestated Balance sheetCommentary & discussion with others

I think we all had issues with the restatement, and this is where you utilised feedback from others so well. Reaching out on the Facebook page was most effective and help was readily available. I really appreciated the assistance from you concerning my own statements, which really made a confusing time much clearer. I like the ideas you have expressed in your discussions and the positive encouragement, it means a lot.

Step 6KCQs

It does make your head hurt but you seem to have a firm grip on the business realities. I’m sure application with your company will further cement these ideas. I don’t expect to remember everything by rote, but the deeper meaning is already emerging, keep going!!

Step 7Calculation of ratios

I thought it was interesting to see no dividends paid and how you factored that into the calculations. I am yet to understand what all these figures mean,


especially after the complications of calculations. I really liked that you included a commentary right beside the restatements and the ratios. It makes it easy to follow your thinking when entering all the data.

Overall ASS#1 Overall, I thought you handled this challenge well. Your blog was easy to navigate, informative and interesting. I think you have applied your personal experience well to help gain understanding. You have interacted well with others on many platforms and it shows in your writing style that these interactions have expanded your knowledge. Well done and I look forward to continuing learning with you.

PEER FEEDBACK SHEET: ASS#1 Feedback From: Katrina Brown s0030976

Feedback To: Iris Onvlee .

My CommentsStep 3 - It is great to see you have really spent time to get to

know your company, you have a thorough understanding of the company’s structure, its background and its direction. I am also adding in here that I am very excited to have found a fellow student with a very similar company to mine! I also have a company that specialises in textile and garment manufacturing in China, it will be very interesting how similar the annual reports and statements will be.- Great read on your economic drivers. Do you think these could link very closely with opportunity and most of all, its challenges? I think so, they are an important factor of the success of the company. Another challenge I thought is competition and customer expectations. Competition is quite obvious, but also consumers are expecting a higher quality product for a cheaper price. Hopefully that is food for



thought.- Have you got any real concerns that you wanted to voice for instance, anything you did not understand after first reading the reports?- You really got into some others’ blogs, great to see. And I agree, there are some really good ones there that you have chosen. Perhaps you could add in some extracts of the comments you have left with your favourite bloggers.- Great use of articles, and you clearly listed them on your blog too

Step 4 - I had a little trouble finding your excel file, perhaps a link to your blog added in your Word Doc will assist too. I know that the Excel file will be additionally submitted but this may be a good back up, I think I am going to do the same.- Good presentation!- Formulas correctly used- Operating & financial activities look correctly portioned, we have some very similar accounts. I wonder if this is something to do with Chinese policy. The annual report notes are so helpful in to identifying what type of activity it may be


Step 5Restated Income statementRestated Balance sheetCommentary & discussion with others

- I enjoyed reading your thoughts on restating the financials, to tell you the truth, I felt the same. There were some reflections there that also helped me understand a few things. My company also did not pay dividends in the last couple of years, is that reflecting the markets? - Linking has been utilised- I also used 25% company tax rate for my Chinese company- Statement & restatement of Income matches – great!- Restatement of Balance sheet also matches, very good. - I really like that you highlighted in yellow those figures that we use to check for balance. Very handy! - Great presentation again.

Step 7 - Ratios look really good, although I am not confident


Calculation of ratios enough to say if they are correct or not- You have linked and that is really important- Correct information has been recorded in the working area to be able to link to

Overall ASS#1 - Great presentation! Made me feel a bit inspired. - Encouraging and helpful feedback, good job.- You have done your research, and that is clear from the beginning, I can see the effort that has been put in.

Blog Page – “About Me”

Sharon Field 8 July 2019

Wow, what an epic journey! So inspirational and close to the finish line too. Thanks for sharing, it’s a pleasure to be studying with you!

Martin Turner 2 July 2019

Hi Iris

Welcome to our unit. Great to hear your story – and what a story! I trust you have a great term with us as you complete your Bachelor of Accounting. Lots of fun ahead as we can review what we have learnt (and not learnt) throughout our degree. 🙂

Natasha Hodgson 7 July 2019

Hi Iris,

Such an interesting story and an amazing accomplishment. I look forward to studying with you this term.

Evelyn Peltohaka 27 July 2019

Hi Iris,Loved reading your story.


Our best laid plans do not always follow our planned path. It is good to be flexible.Thank you for sharing your journey.

Reply to Ev Pelto:

Kym Chisholm 17 August 2019Hi Iris,I haven’t commented on your blog yet, but I found it pretty cool. Step 3 asks us to pick our top three blogs and your one is on the list 🙂 Look forward to more posts

My Feedback Experience

This has been the journey of an Accounting lifetime. Through wading through company reports and added information from the internet and seeing what could be written has been an experience well worth the effort that has been put in to successfully complete this assessment. Reading about other people’s experience and their companies has given me a new understanding of what the accounting world is like. The feedback that I have received has shown me that although I have struggled in some areas the encouragement and valued feedback has been worthwhile.

References

Links

https://www.msn.com/en-us/money/stockdetails/company/fra-cfo/fi-af6rkr

https://www.thechinaguide.com/blog/chinese-currency


https://www.thechinaguide.com/blog/chinese-currency

https://www.msn.com/en-us/money/stockdetails/company/fra-cfo/fi-af6rkr

China Outfitters Holdings Ltd - Weblink: http://www.cohl.hk




http://www.cohl.hk/

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