I read in Valuebuddies some comments and think that the missing piece in the poster's understanding is as follows:
1. Best World has a number of SKUs sold in China. Each has an import licence and an import agent.
2. When BW converts from "export" model to "China wholesale" model, the import agent changes to BW subsidiary (ie BW China Pharmaceutical).
3. About S$6m of "export" revenue was recognised fr China (to replenish fast-depleting inventory of certain SKU). This means the SKU(s) went through the previous agent, not BW China Pharmaceutical.
The previous agent has yet to be permanently replaced by BW China Pharmaceutical for those SKU(s). Once the licence has been switched to BWCP, the "export" revenue model for those SKUs will not apply anymore.
Another post in VB suggests that the true China revenue is much lower. The post is erroneous.
The post takes 'export revenue' in 4Q17 and 1Q18 and totals them up. Then divide it to get an average figure for each of the two quarters.
This is erroneous as it has not recognised that BW is stocking up in 1Q and 2Q18 under its "China Wholesale" business model.Under this model, the revenue is not recognised upon export from Singapore but only upon sale to consumers by BW subsidiary.
You can see this is clearly the case if you understand the change in revenue recognition from export model to "wholesale" model.
The 1Q18 export revenue was not the usual stocking up for the 2Q sales.
It was actually just to replenish the faster-than-expected depletion of export agent's inventory for certain SKUs of the Dr's Secret range.