Ganoderma mushroom products are among the offerings by DXN Holdings Bhd.
GLOBAL health-oriented and wellness direct selling company DXN Holdings Bhd has been relisted on Bursa Malaysia’s main market on May 19, 2023 – on the heels of its recent announcement of profit after tax (PAT) of RM289.3mil for the financial year 2023 (FY23).
Having posted a 17.9% higher PAT over the previous financial year, while revenue jumped 28.8% to RM1.6bil in the same period, DXN Holdings Bhd founder and executive chairman Datuk Lim Siow Jin said this growth would continue to be driven by the expansion of its geographical market reach and the introduction of new products.
"In 2011 when we delisted, our sales was at RM279mil then. After 12 years, our sales is now about RM1.6bil. This is more than a four-fold increase, and we expect this growth to happen in the next few years because of the new markets that are expected to come in – such as Brazil, in North Africa or China," Lim said.
‘We expect this growth to happen in the next few years because of the new markets that are expected to come in,’ says DXN Holdings Bhd founder and executive chairman Datuk Lim Siow Jin.
DXN Holdings Bhd chief executive officer Teoh Hang Ching said that while the company prioritises growth, its policy is to pay 30% to 50% of dividend from the profit after tax and minority interests (PATAMI).
"In FY22 we paid 50% (of net profits) in dividends. We will pay good dividends and still be able to maintain our growth to have enough to finance our capital expenditures (capex)," Teoh said.
Lim said DXN had spent a considerable amount of money in the last few years to build factories around the world.
“This capex does not affect our dividend; our cash and cash equivalents is about RM457mil," he said, adding that DXN has allocated RM120mil for its capex plans this year.
DXN’s comeback will be the biggest public listing on Bursa Malaysia this year to date. The company hopes the listing would boost the company's profile especially on the international scene.
Wealth from the forest
IN 1995, Lim launched his range of Ganoderma mushroom products in the Malaysian market in spite of strong competition from imported stock.
With confidence and determination, he researched, improved and developed Ganoderma products for the local market.
Over the years, his enthusiasm for Ganoderma – better known as lingzhi – has never diminished and he has tirelessly promoted the benefits of this mushroom to people.
In the 1980s, Lim embarked on extracting nutrients from the tropical species of wild Ganoderma.
Starting out as a small and unknown company, DXN went on to become one of the largest manufacturers and exporters of Ganoderma worldwide within a decade.
Known for its biotechnology R&D into the mushroom, DXN developed an agroforestry system that regenerated Ganoderma in the wild.
In charge of own destiny
“Victory belongs to those who establish an invincible position before engaging in battle." This principle lies at the heart of DXN's business approach.
By focusing on achieving complete control over all aspects of its operations, DXN sets the stage for resilience and growth in the marketplace.
DXN's board of management adheres to two essential strategic guidelines: evading external control, and maintaining an invincible position.
By exercising full control over the supply and sales chains, DXN ensures complete autonomy – leading to enhanced cost-effectiveness. This enables DXN to offer competitive prices, unaffected by external influences.
As such, DXN confidently navigates the market and remains a formidable player in this industry. DXN's firm grip on its own destiny is a testament to its unwavering commitment to success.
Early on, Lim has expanded his business via online retail and direct selling companies.
Sustainability over grandiosity
“Surviving is winning” is the driving principle at DXN that sets it apart from other direct selling companies.
DXN's board of management prioritises sustainability over grandiosity, establishing a unique identity in the industry.
By focusing on survival, even during challenging times, DXN has positioned itself for future growth and success.
DXN’s factory in China, one of many around the world.
DXN's resilient approach has enabled the company to identify and capitalise on potential turning points within a year or two.
This adaptive mindset has paved the way for remarkable achievements.
The unwavering commitment to resilience distinguishes DXN, allowing the company to seize opportunities and achieve remarkable success in the marketplace.
With “surviving is winning” as its guiding strategy, DXN continues on this journey of resilience.
Sustainability remains at its core, driving DXN towards continued success in the dynamic and ever-evolving marketplace.
