PRC Bike & Toys - Everyone’s Toys Store
Min Target MYR 1,000,000
Min Equity 5.56%


Minimum Investment Amount
MYR 3,000.00


 INDUSTRY OVERVIEW


Bicycle

A large number of corporate embracing cycling as a sustainable alternative to commute will be a factor impacting the sales of bicycles in the next few years. At a CAGR of 4.2%, the global market for bicycles will attain the revenue approaching USD$80 billion during 2018-2026. The market was valued at around USD$55 billion in 2017.

Source: Bikebiz (2019)


E-Bike

The e-bike market was valued at USD$15.42 billion in 2019 and is expected to grow at a CAGR of 6.21%, during the forecast period, 2020-2025.

Source: GlobeNewswire (2020)


Toys & Baby

The revenue in the Toys & Baby segment amounted to USD$162m in 2020 and is expected to show a Compounded Annual Growth Rate of 15.6% from 2020 to 2024, resulting in a market revenue of US$290m by 2024.

In addition, the user penetration is 6.1% in 2020 and is expected to hit 9.7% by 2024. The average revenue per user (ARPU) currently amounts to USD$82.34.

 

Source: Statista (2020)



PROBLEM STATEMENT    

Consumers are unable to get good quality bikes and toys at affordable prices.




 SOLUTION   


PRC Bike and Toys aims to become a specialty store chain and one stop solution for the Toys and Bike market segment, where consumers are able to purchase their Toys and Bikes in a specialised environment, with competitive pricing, expert guidance and satisfying customer service.  

PRC Bike and Toys ensures its employees are well qualified, honest, customer centric and ready to build a great relationship with the customer, which in turn benefit the business and all stakeholders.



   INVESTMENT HIGHLIGHTS   


    Own brand of bikes via OEM – high quality and competitive margins.

    Strong financial growth due to aggressive business expansion plans.

    Experienced management team.

    8 outlets are strategically located at hypermarkets that have a high volume of shoppers.



FUNDING OBJECTIVES 


Targeted fundraise amount: RM 1 Million

Alternative scenario: Assuming RM 3 million is raised.




  SHARE OFFERING


 

PRC Bike & Toys is offering Redeemable Convertible Preference Shares (RCPS) to all potential investors through CrowdPlus.asia platform. The RCPS offers interest at the rate of 10% per annum on the Subscription Price for 3 years. Redemption premium of 30% upon maturity. 



 MANAGEMENT TEAM    


 

PRC Bike & Toys is led by a team of well-qualified professionals with extensive industry experience.

 

Ch’ng Wee Ping, Founder, Chief Executive Officer (CEO)

Mr Ch’ng was the founder of PRC Bike & Toys under his sole proprietorship for 10 years, with an additional 9 years of retail sales & service experience in the toys & bicycle industry. Mr Ch’ng started expanding his business when he met Mr Khor & Mr Tan.

 

Khor Kok Wei, Chief Operating Officer (COO)

Mr Khor graduated with Diploma of IPG College.  He previously worked in Wan Lee Brothers Sdn Bhd (Toys Company) distributing toys to all hypermarkets. He has a good relationship with management teams in hypermarkets such as Tesco & Mydin.

 

Tan Teik Zing, Chief Financial Officer (COO)

Mr Tan completed his Diploma from Han Chiang College. He was previously in Bintang Garment Sdn Bhd as a Retail Manager and managed 46 outlets in Malaysia. He has more than 10 years of experience in the retail field. His achievements include “The Largest Capsule Machine” in Megamal Pinang Shopping Centre in year 2018. 



THE BOARD         


Name

Position Held

Ch’ng Wee Ping

Founder, Chief Executive Officer

Khor Kok Wei

Chief Operating Officer

Tan Teik Zing

Chief Financial Officer




  SHAREHOLDING STRUCTURE 


     

 



  CORPORATE INFORMATION AT A GLANCE          


-      Company Name: PRC BIKE & TOYS SDN BHD

-      Brand Name: PRC BIKE & TOYS

-      Business Registration No.: 1308890-D

-      Business Operation Address: No 5, Lorong saga Jaya 5, Taman Perindustrian Saga Jaya, 13600 Perai, Penang.

-      Company’s Email: prceventmanagement@gmail.com

-      Office No.: 04-383 1991

-      Website: N/A

-      Social Media Addresses: https://www.facebook.com/PRCBIKEANDTOYS/




    PRODUCT/SERVICE (BUSINESS MODEL) 

    


PRC Bike & Toys is an established toys & bicycles specialty store, offering retail sales of children toys, children’s playground, bicycles, electrical bicycles & repair services. It currently has 8 outlets which are strategically located in hypermarket such as Tesco and Mydin that have a high volume of shoppers.

 

PRC Bike & Toys offer three main products as follows:

·                 bicycle products such as Baby tricycle, Children bicycle, Adult bicycle, which normally have a growth rate of approximately 20% every month.

·                 electrical bikes such as children e-car, teenager e-scooter & adult e-bike.

·                 children & baby toys.

 

The primary target market for PRC Bike & Toys is the low & middle income class population living around the hypermarkets, which comprises 70% of its total customers.

 

The location of its 8 outlets are as follows:

 

1.                   PRC Tesco Sungai Petani

2.                   PRC Tesco Alma

3.                   PRC Mydin Bukit Mertajam

4.                   PRC Tesco Seberang Jaya

5.                   PRC Tesco Stargate Alor Setar

6.                   PRC Tesco Menjelara Kepong

7.                   PRC Tesco Taiping

8.                   PRC Tesco Selayang (Newly open on July 2020)



 SALES AND MARKETING STRATEGIES


PRC Bike & Toys will conduct a market survey and feasibility studies before setting up shop at a particular location. PRC Bike & Toys currently possess customer information and data in order to advertise and market its products to existing customers.

In summary, PRC Bike & Toys Sdn Bhd will adopt the following sales and marketing approach to attract customers and market its own brand to the public for awareness purposes:

-        promoting its Toys and Bike goods store by distributing flyers to schools, residents, and other key stakeholders      around the outlet’s vicinity.

-        Organizing events and/or parties for children in the community in order to promote its Toys and Bike store.

-        Engaging in roadshows from time to time near to PRC Toys and Bike goods store.

-        Leveraging on the power of the internet to promote its business such as social media platforms.

-        Engaging in direct marketing.

-        Encouraging referrals from satisfied and loyal customers.

-        Sponsoring relevant community programs.

-        Distributing its flyers and handbills in targeted areas in the community especially when new outlets are opened.



  COMPETITOR ANALYSIS     


  

Within the Toys & Bike industry, there are a number of retailers that are well established. PRC Bike & Toys have identified 2 main competitors which are selling the same products and have a higher number of outlet locations but they are different in terms of store location, store layout & services provided. The 2 competitors outlets are located in shoplots which have lesser number of shoppers as compared to hypermarkets (where PRC Bike and Toys operates in).

 

UNIQUE SELLING PROPOSITION       


PRC Bike & Toys will be focusing on new outlet expansion, advertising and its growing popularity to build a household brand for Toys and Bikes.

It aims to build a brand of great value and affordability in the minds of its customers. PRC is one of the top brands in the customer’s list when they want to purchase children toys and adult bikes. PRC continuously sources for new products in the toys & bike industry in order to excite its customers and differentiate itself from its competitors.



 HISTORICAL FINANCIALS   


   



 FINANCIAL FORECASTS 










Balance Sheet


 


INVESTMENT OFFERING 

 






Valuation


The Pre-Money valuation is RM 17,000,000.

PRC Bike & Toys will dilute approximately 5.55% equity by raising RM 1 Million.

PRC Bike & Toys will dilute approximately 15% equity by raising RM 3 Million



Exit Plan


PRC Bike & Toys aims to go initial public offering after 4 years, subject to various factors such as the performance of its business and the market conditions at that particular point in time.



Investors' Information Right


A progress report with relevant performance indicators shall be published on quarterly basis to keep the investors informed of progress and achievements. A briefing and investor meeting shall be held on quarterly basis.

 

The Investors shall be provided the audited financial statements within 60 calendar days after the end of financial year end