28 Feb 2018 12:37:00
Management Discussion and Analysis Yearly Ending 31 Dec 2017
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2017 Quarter : Yearly Ending : 31-Dec-2017 Note : CTW005/2018 February 27, 2018 Subject : Management Discussion and Analysis for 2017 To : President The Stock Exchange of Thailand Charoong Thai Wire and Cable Plc.(CTW) would like to clarify the Company and its subsidiaries' 2017 operating results based on the consolidated financial statements for the year ended 31 December 2017 as follows: (Unit : Million Baht) Operating Results Period of the Year 2017 2016 % Change Total revenues 7,994.84 6,641.02 20.39 Net Profit attributable to equity holders of CTW 280.99 281.80 (0.29) Earnings per share (Baht/Share) 0.71 0.71 Net Profit Net profit was THB 280.99 million in 2017, slightly decreased by THB 0.81 million or 0.29% from net profit of THB 281.80 million in 2016 caused from the following main reasons: Revenue from Sales Revenue from sales of THB 7,902.40 million in 2017 increased by THB 1,474.46 million or 22.94% from THB 6,427.94 million in 2016. In 2017, the Company and its subsidiaries had revenue from local customers of THB 5,108.57 million and from overseas customers of THB 2,793.83 million. Other Income Other Income of THB 92.44 million decreased by THB 120.64 million or 56.62% from THB 213.08 million in 2016 since the Company had gain on sales of investment property amounting to THB 156.75 million from the sales of land not being used for operation in 2016. In 2016, there was gain on exchange of THB 19.30 million, while there was gain on exchange of THB 44.25 million in 2017. Expenses Total expenses of THB 7,635.95 million in 2017 increased by THB 1,378.02 million or 22.02% from THB 6,257.93 million in 2016, details were summarized as follows. 1. Cost of Sales Total cost of sales of THB 7,234.62 million in 2017, representing 91.55% of sales, increased by THB 1,326.59 million or 22.45%, which coincided with the sales increase, when compared with THB 5,908.03 million in 2016, representing 91.91% of sales. In 2016, there was the reversal of allowance for diminution in value of inventory of THB 102.22 million, while there was the of allowance for diminution in value of inventory of THB 13.51 million in 2017 due to decrease in the main raw material (copper) price. 2. Selling Expenses Selling expenses was THB 109.07 million in 2017, increased by THB 10.47 million or 10.62% from THB 98.60 million in 2016, which most were the tender fees, transportation fees, commission fees and advertising & sales promotion fees. 3. Administration Expenses Administration expenses was THB 255.68 million in 2017, increased by THB 4.37 million or 1.74% from THB 251.30 million in 2016. 4. Share of profit (loss) from investment in associate Share of profit from investment in associate company was THB 2.85 million in 2017, increased by THB 4.78 million or 247.91% from share of loss from investment in associate of THB 1.93 million in 2016 since its a subsidiary recognized share of profit (loss) from investment in Loxpac Hong Kong Co., Ltd. 5. Finance Cost Finance cost of THB 33.08 million, increased by THB 9.17 million or 38.38% from THB 23.90 million in 2016, which were mostly interest payments of trust receipts. 6. Tax expenses Tax expenses of THB 74.87 million in 2017 consisted of the corporate income tax of THB 71.74 million and relating to origination of temporary difference of THB 3.13 million, decreased by THB 22.05 million or 22.75% when compared with tax expenses of THB 96.91 million in 2016, which consisted of the corporate income tax of THB 68.19 million and relating to reversal of temporary differences of THB 28.72 million. The separate financial statements for the year 2017, the Company had net profit of Baht 236.63 million, decreased by Baht 54.50 million or 18.72%, when compared with the net profit of Baht 291.13 million in 2016. Please be informed accordingly. Sincerely yours, (Mrs. Sununtha Phaengsook) Asst. Managing Director (Finance) This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.