17th – 19th of April

Cornelia Teu

INVESTMENT SUMMARY REPORT (2024)

Name: Cornelia Teu

Date: 19 of April, 2024

Investment Summary Report (2024) 1

17th – 19th of April

Cornelia Teu

TABLE OF CONTENT Page #

Introduction 3

Investment Summary 4

Financial Information 5-6

Conclusion 7-9

Investment Summary Report (2024) 2

17th – 19th of April

Cornelia Teu

INTRODUCTION
SMK Books is a small bookstores located in Nuku’alofa Shopping Centre. SMK Books has

been operating for just over two years and specializes in fiction books. Despite the

challenges posed by audiobooks and ebooks, SMK Books is thriving and continue to build

up a steady business, with many repeated customers from the local area.

Despite the changes in this sectors, over the past five years there has been a small but

steady increase in the number of bookstores in Australia, particularly after the closure of the

biggest player, RDE Group.

SMK Books’ vision is to create an environment, in-store and online, where client feel

welcome and are encouraged to engage in culture, conversation and stories.

SMK Books is an established Australian business, owned and operated by DJ Mathis. DJ

Mathis wants to expand the business next financial year and hopes to archive this with a

crowdfunding investment in the development of an online SMK rewards program for

repeated customers, and in its distribution center.

Crowdfunding* is a new investment option for all Australians over 18 years of age to fund

small business in return for equity. It is a chance to invest in a business you are passionate

about, and allows companies such as SMK Books to access much-needed capital. Read the

equity crowdfunding risk statement provided at the end of this document before deciding if

crowdfunding is right for you.

Investment Summary Report (2024) 3

17th – 19th of April

Cornelia Teu

INVESTMENT SUMMARY

Company info: SMK Books

ABN: 000 783 123 458

Sector: Bookstore – retail

Employees: 6

Stage of development: Growth

Investment required: $350,000

Management:

Owner and founder: DJ Mathis – over 25 years’ experience in sales and service

management. DJ Mathis is highly educated and has an MBA and a Bachelor of Business.

Commercial Manager: Arthur Flanam – over 15 years’ experience in retail, both online and

in-store. Arthur is passionate about building customer service and rewards programs.

Investment Summary Report (2024) 4

17th – 19th of April

Cornelia Teu

FINANCIAL INFORMATION

Last financial year

Sales revenue for the last financial year was $200,000 per annum, and $150,000 the

financial year before that. More information is presented in the company’s annual report.

This quarter

Teenage Fiction sales were up, as were Romance and General Fiction.

Other areas remained steady, with the exception of Children’s Fiction. Expenses remained

under control, and while the results were slightly lower than the previous financial year,

expenses were lower which brought a bigger revenue to the business. DJ Mathis is

committed to re-invest the revenue amount back into the business.

Quarterly results

Category/Sales Previous quarter This quarter

Children’s Fiction $14,267.00 $13,359.00

Teenage Fiction $15,608.00 $16,857.00

General Fiction $21,182.00 $21,591.00

Science Fiction $10,558.00 $9,029.00

Romance $11,393.00 $12,603.00

True Crime and Thriller $10,609.00 $9,922.00

Classic $7,371.00 $7,108.00

Total Sales $90,988.00 $90,469.00

EXPENSES

Investment Summary Report (2024) 5

17th – 19th of April

Cornelia Teu

Advertising $2,000.00 $2,000.00

Interesting Paid $734.00 $754.00

Category/Sales Previous quarter This quarter

Office Supplies $1,859.00 $1,708.00

Rent $7,500.00 $7,500.00

Salaries $24,897.00 $21,898.00

Taxes and Licences $3,152.00 $-

Telephone $621.00 $647.00

Utilities $1,898.00 $1,436.00

Total Expenses $42,661.00 $35,943.00

NET INCOME 48,327.00 $54,526.00

Investment Summary Report (2024) 6

17th – 19th of April

Cornelia Teu

CONCLUSION

SMK Book will continue to invest in its local community and the ‘shop local’ experience. It will also

continue to provide a cultural and social environment that is welcoming and encourages

engagement in culture, conversations and stories. You can be part of it by investing in our

organization.

SMK Books is seeking a crowdfunding investment to raise up to $350,000 for the business. This

means that customers have the opportunity to become shareholders. It provides a great opportunity

for one or more stakeholders to invest in a stable local business that will continue to grow year after

year.

The Future

SMK Books intends to invest in the following areas:

Online Business

The development of a customized online business will give SMK Books an opportunity to secure its

domain name and SSL certificate, cover web hosting costs and websites and social media design

expenses, and invest heavily in online marketing, search engine optimization (SEO) and social media.

SMK reward program

The SMK rewards program will be an email-based program that customers can use in-store as well as

online. Customers will earn points for every dollar spent. For every $150 a customer spends, they

earn $10 in store credit.

Investment Summary Report (2024) 7

17th – 19th of April

Cornelia Teu
The advance of investing in an email-based program is that SMK Books can

use its database to send promotional email as well as targeted emails to its

customers. SMK Books also believes the rewards program will increase sales and drive the loyalty of

online customers.

It is estimated that $15,000 will give the company the opportunity to develop a rewards program

app and websites, and invest in marketing to promote the rewards program to its customers.

Distribution Centre

SMK books believes that in order to remain competitive online, investment in its distribution Centre

is needed to increase automation and stock capacity.

Be part of our company. If you have any questions, suggestions or concerns about this report or SMK

Books in general, please contact Ashley Barnes on 07 9851 1234 or via email at

info@smkbooks.com.au.

Investment Summary Report (2024) 8

17th – 19th of April

Cornelia Teu

*Australian Equity Crowdfunding Risk Warning

Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures.

Investment in these types of ventures is speculative and carries high risks.

You may lose your entire investment, and you should be in a position to bear this risk without undue

hardship.

Even if the company is successful, the value of your investment and any return on the investment

could be reduced if the company issues more shares.

Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares

quickly or at all if you need the money or decide that this investment is not right for you.

Even though you have remedies for misleading statements in the offer document or misconduct by

the company, you may have difficulty recovering your money.

There are rules for handling your money. However, if your money is handled inappropriately or the

person operating this platform on which this offer is published becomes insolvent, you may have

difficulty recovering your money.

Ask questions, read all information given carefully, and seek independent financial advice before

committing yourself to any investment.

Courtesy of Australia Securities and Investment Commission (ASIC)

Investment Summary Report (2024) 9