Hi Rafie, thank you for the wishes. Hope all is well at your end. My understanding of asset light and cash generative business model goes back to the elements within its income statement, balance sheet and cash flow statement. Often, it goes hand in hands. Basically, making it more efficient if you will resulting in higher returns of assets (ROA) - a measure of returns (net profit) for each dollar of assets invested. Asset light - items in current assets and non-current assets to be managed efficiently.. Example - just in time inventories, timely receivables, lesser depreciation, or intangible assets. You may have heard of some terms like lease vs own, make vs buy. As for cash generative business model - healthy free cash flow, net cash and low liabilities (debt). Basically, the business is generating cash to support its growth and dividends for the shareholders. Elements in cash flow statement - things like efficient working capital - receivables, payables, inventories.

It will be easier if you can pull one QR (any company that you are researching) and look at the elements in it. That will help your understanding of asset light and cash generative business model. Just my opinions, could be wrong. Hope it helps.

Nice sharing, Choon. The term asset light and cash generating business model is actually the business strategy adopted by DKSH. Hence, these terms will be used in their corporate updates. In terms of measurement towards the strategy, DKSH uses capex/net sales for asset light strategy and fcf/PAT for cash generation. I believed Rafie is reading through DKSH reports and hence the question. Different organisations may use similar asset light or cash generative business model strategies but very different measurements.