| Current Status | Break-Even, Profitable |
| Amount Invested | RM86,700 |
| Funding Required | RM300,000 or less |
| Description |
We specialize in import and export of a product which is only available in Japan Domestic Market.(ie Engine Parts,Aftermarket Parts, Gadgets and anything that was requested)
While importing goods,we also learn about the technology can be brought here to Malaysia at the same time improvise that technology to suit local feasibility. (Ie. Camshaft,EEV Technology, Compact Paddy Mower) And InsyaAllah, once we are stable enough,bringing in these product would not be a burden to support local automotive and agricultural business. |
| Business Opportunity |
Firstly,
Malaysia have a stigma of overseas product being far better than local products or product Made In China. We took advantage of that stigma and the rise of Japanese Automotive Culture here in Malaysia.(Where people convert their car from a Myvi to their Japanese counterparts). The market was huge,with Perodua Myvi being the highest volume in Malaysia. This trend is set off to see another 20 years or so before Malaysian mindset would change to another path. |
| Revenue / Business Model |
We did a few test with:
Bringing RM20,000 to Japan,sourced from the owner himself and try to see how much money would be made. The sales was RM46,000 with one of the transaction being a ridiculous purchase of RM80 and sold it off for RM2100 after negotiation. Due to the fact that it was a Japanese trash,but a treasure for Malaysians. (Myvi/Passo are not very popular in Japan). However,the net profit was only a mere RM8,300 because the expenditure for transport,yard rental and more is so expensive. A second trial was done in 2018 with RM40,000. This time the results were better with RM23,400 as net profit. Its about meeting the demands,go with the current trends in Malaysia ranging from beginners (who would want to convert their car), Intermediate (Who purchase everything in their car from Japan) Hard Fans (Who would literally by a car from Japan, and yes we can make this happen). From our papers and documentation, the minimum average margin was at a staggering 210%. By the time you read this,we are actually picking up orders of what the market wants from Japan and if we could work this funding out from Capital, we could assemble another trip with a 40ft container. |
| Management Team |
This company is lead by Mohammad Afiq, a Management and Science University Alumni, obtaining his Bachelor’s Degree at 22 years old (2014) specializing in International Business.
Worked a year with Sime Darby Auto Bavaria, and another year with Berjaya Corporation before heading out to the business world and formed the company. Joined by Banuri Jamian (44 years old) A Diploma Holder from UITM in Accounting to manage day to day operation and financial portfolios. |
| Company Background |
Started with a small amount of RM20,000 ringgit in April 2016 with RM11,000 to pay the rental deposit for a shop in Glenmarie Shah Alam, while the balance of RM9000 was used as working capital and asset purchasing. To be honest we started with only RM2,300 in the bank and we start collecting the money for Japan Project with that amount at hand.
We did a lot of investment in learning because we believe that Malaysians (mostly) are still not used to purchasing international item. We collected RM20,000 for a year just to go to Japan and the most valuable experience was able to have a network there. With RM20,000 in 6 months we made it turn to RM40,000 despite monthly overheads, salary and rental paid with no delays. We survive till this date by selling Japanese products that we brought in and a few autoworks once in a while. For the past 2 years the company made an annual RM340,500 sales. |
| Funding Milestone |
We humbly request a sum of RM120,000 for the next project as we want to be independently well and we believe that with the mass quantities,we can actually take it further to the next level.
We want to use it 100% for working capital only. From there we can utilize the full advantage of the transport expenses and also the economies of scale. |
| % Equity Allocation | 25% |
| Expected ROI | 2 years maximum |
| Risks and Mitigation |
So far we abandoned the Classic Car project due to the change in government policies where instead of 25 years for the car to be brought in to Malaysia via Classic AP,now its at 35 years. We are not fully leaving the project,but we are putting it in hibernation for the next 9 years to come.
There is an external risk that must be kept updated on a daily basis where government in the new Malaysia might change their policies,therefore, there is a need to always follow closely with our Ministry of International Trade network. Lastly,it is important to know that we would not allow any margin for errors especially involving investors money where we could make losses. That is why investors money would not be use to pay monthly operations but instead it would only be use as purchasing and transport costs to mitigate the risk where a loss would occur. |
| Exit Strategies |
For investors, the exit opportunity would always be available only after the first year of investing.
This is due to the fact that a year, we can only have a maximum of 5 purchasing from Japan due to we personally would go there for a period of 3 weeks each time and choose the products ourselves. For the exit clause,it is best that we be honest of an investor would like to exit below a year time,the fund given might not be return at a 100%. If after a year and below 2 years,the fund would be return accordingly and the profit would be on a project sales report basis. After deduct cost of the project to the total sales so far. It is best to know we are Muslims where whatever that does not belong to us must be return accordingly. |
| Company Name | Ark Innovation Industry |
| Business Address | No 66 Jalan Penyair U1/44 Hicom Glenmarie Industrial Park,Seksyen u1 Shah Alam Selangor. |
| Contact Person | Mohammad Afiq |
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