Nutritional High International Inc. Ordinary Shares SPLID

RE:RE:Article mentions plus

[Tundra14]

Hey bud, in financial accounting terminology, SALES refers to DOLLAR SALES.  Sales makes up a company's revenue.  Accounting 101.
 

AFGKhan wrote: Well this article is misrepresentative to begin with. It misquotes the MD&A  which states that 80% of the SALES (not revenue) comes from one product supplier.  There is a big difference between the 2


Example :    I have 100 product (80 from supplier 1 and 20 from supplier 2)


supplier 1 retail price is 1$
supplier 2 retail price is 2$ ( premium product)


I sell them all.


revenue from supplier 1: 80$
revenue from supplier 2: 40$


percentage of supplier 1 revenue on total ; 67%
percentage of supplier 2 revenue on total : 33%



So even though Supplier 1 represents 80% of my sales, it accounts however for 67% of my revenues while Supplier 2 represents 20% of my sales, but accounts for 33% of my revenues


I wouldnt know if this case would apply specifically to Plus Products but according to their financial statements, their revenues were 3.5 million for the last quarter with a margin of 446K, which confirms their high COGS.  It is definately something to look more in details