News Detail

Date/Time
09 Aug 2018 20:54:00
Headline
Management Discussion and Analysis Quarter 2 Ending 30 Jun 2018
Symbol
CGD
Source
CGD
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                Management Discussion and Analysis

Company name                             : COUNTRY GROUP DEVELOPMENT PUBLIC 
COMPANY LIMITED
Year                                     : 2018
Quarter                                  : Quarter 2
Ending                                   : 30-Jun-2018
Note                                     :
Country Group Development Public Company Limited (the "Company") would like to 
report the
operating results of the Company and its subsidiaries for the three-month period
 ended June 30, 2018 as
follows:
Consolidated Financial Statements (the "Group")
? Revenues The Group reported total revenues for the three-month period ended 
June 30,
2018 of Baht 110.58 million increased by 11.80 percent compared to Baht 98.90 
million for
the same period of 2017. This was mainly because of higher revenue from sale of 
condominium
by Baht 8.39 million. The majority of revenues the three-month period ended June
 30, 2018
are as follows:
- The Group reported major revenue from the condominium unit transferred of
Elements Srinakarin Project of Baht 91.43 million which increased by 10.11 
percent
compared to Baht 83.04 million for the same period of 2017.
- Foreign subsidiary reported rental income from investment property of Baht 
12.87
million which equal to the same period of 2017.
? Expenses The Group reported total expenses for the three-month period ended 
June 30, 2018
of Baht 437.48 million increased by 103.16 percent compared to Baht 215.34 
million for the
same period of 2017. This mainly resulted from the increase in cost of 
condominium sale by
Baht 3.79 million which correlated with higher condominium sale. Loss on foreign
 exchange
rate increased by Baht 215.60 million. Together with the Group has increased in 
finance
costs of Baht 26.29 million. However, the Group has decreased in distribution 
costs by Baht
23.65 million. The expenses for the three-month period ended June 30, 2018 are 
as follows;
Page 2 of 5
- Cost of condominium sale of Elements Srinakarin Project of Baht 53.63 million 
increased
by 7.61 percent compared to Baht 49.83 million for the same period of 2017. The
percentage of increasing in cost was less than the percentage of increasing in 
revenue
from unit transferred of Elements Srinakarin Project. As a result, gross profit 
margin for
the three-month period ended June 30, 2018 of 41.34 percent increase when 
compared
to the same period of 2017 which reported gross profit margin 39.98 percent.
- Distribution costs of Baht 37.65 million, decreased by 38.58 percent compared 
to
Baht 61.30 million for the same period of 2017. The majority of distribution 
costs for
the three-month period ended June 30, 2018 and 2017 came from marketing
activities of Four Seasons Private Residences Bangkok at Chao Phraya River and
promotion expenses of Elements Srinakarin Project.
- Administrative expenses of Baht 39.88 million, increased by 5.12 percent 
compared
to Baht 37.94 million for the same period of 2017. Majority of administrative 
expenses
consist of personnel expense, advisory fee, utilities expense, depreciation and
miscellaneous expenses.
- The Group reported Loss on foreign exchange rate of Baht 216.82 million which
increased by Baht 17,654.96 percent compared to Baht 1.22 million for the same
period of 2017. This was due to depreciate of Thai Baht currency together with
increased in USD loan of a local subsidiary according to construction progress 
of
Chao Phraya Estate Project which has a lot of progress during 2018.
- Finance costs of Baht 80 million, increased by 48.95 percent compared to Baht
53.71 million in the same period of 2017. The majority of finance costs for the 
threemonth
period ended June 30, 2018 resulted from issuance of bills of exchange,
issuance of long-term debentures and long-term borrowings for being working
capital and expansion of the Group's business.
Consequently, the Group reported loss before income tax expense for the 
three-month
period ended June 30, 2018 of Baht 326.90 million which increased by 180.75 
percent compared to
loss before income tax expense of Baht 116.44 million for the same period of 
2017.
Page 3 of 5
? Income tax expense The Group reported income tax revenue for the three-month 
period ended
June 30, 2018 of Baht 0.09 million, increased by Baht 1.66 million compared to 
the same
period of 2017. This was due to foreign subsidiary utilized tax benefit from 
investment in
investment property since the last quarter of 2017.
? Net loss for the three-month period ended June 30, 2018 The operating result 
mentioned
above resulting the Group reported net loss of Baht 326.81 million, of which 
Baht 247.32
million attributed to the parent and the remaining of Baht 79.49 million 
attributed to noncontrolling
interests. Consequently, net loss which attributed to the parent increased by 
Baht
142.02 million or increased by 134.87 percent, compared with a net loss 
attributed to the
parent of Baht 105.30 million for the same period of 2017.
Separate Financial Statements (the "Company")
? Revenues The Company reported total revenues for the three-month period ended 
June 30,
2018 of Baht 130.93 million, increased by 10.17 percent compared to Baht 118.84 
million for
the same period of 2017. This was mainly because for the three-month period 
ended June 30,
2018 the Company reported higher revenue from sale of condominium by Baht 8.39 
million
and reported higher other income by Baht 7.70 million when compared to the same 
period
of 2017. The majority of the Company's revenues for the three-month period ended
 June 30,
2018 are as follows;
- The Company reported major revenue from the condominium unit transferred of
Elements Srinakarin Project of Baht 91.43 million which increased by 10.11 
percent
compared to Baht 83.04 million for the same period of 2017.
- The Company reported interest income of Baht 18.79 million which decreased by
34.19 percent compared to Baht 28.54 million for the same period of 2017. This
was mainly the Company received loan repayment from a local subsidiary in the 
4th
quarter of 2017 amount of Baht 400 million.
- The Company reported gain on foreign exchange rate of Baht 6.02 million while 
the
same period of 2017 the Company reported loss on foreign exchange rate of Baht
18.83 million. This was resulted from depreciation in Thai Baht currency while 
the
Page 4 of 5
Company has outstanding loan to foreign subsidiary more than the outstanding of
loan from foreign subsidiary.
- The Company reported other income of Baht 14.56 million which increased by
112.14 percent compared to Baht 6.86 million for the same period of 2017. This
was resulted from increasing in management fee from the Company's subsidiaries.
? Expenses The Company reported total expenses for the three-month period ended 
June 30,
2018 of Baht 178.14 million which increased by 2.97 percent compared to Baht 173
 million for
the same period of 2017. This mainly resulted from increase in cost of 
condominium sale by
Baht 3.79 million and increase in finance costs by Baht 26.69 million. However, 
loss on
foreign exchange rate all decreased of Baht 18.83 million as mentioned above. 
The majority
of expenses for the three-month period ended June 30, 2018 are as follows :
- Cost of condominium sale of Elements Srinakarin Project of Baht 53.63 million 
increased
by 7.61 percent compared to Baht 49.83 million for the same period of 2017. The
percentage of increasing in cost was less than the percentage of increasing in 
revenue
from unit transferred of Elements Srinakarin Project. As a result, gross profit 
margin for
the three-month period ended June 30, 2018 of 41.34 percent increase when
compared to the same period of 2017 which reported gross profit margin 39.98
percent.
- Distribution costs of Baht 8.53 million decreased by 31.25 percent when 
compared
to Baht 12.40 million for the same period of 2017. This was mainly caused from
decreasing in sale commission, advertising and promotes expenses for Elements
Srinakarin Project because Company has closed sale the project.
- Administrative expenses of Baht 35.60 million decreased by 2.21 percent 
compared
to Baht 36.40 million for the same period of 2017. The administrative expenses
consist of personnel expense, advisory fee, utilities expense, depreciation and
miscellaneous expenses.
- Finance costs of Baht 71.65 million which increased by 59.36 percent compared 
to
Baht 44.96 million in the same period of 2017. The majority of finance costs 
resulted
from issuance of bills of exchange, issuance of long-term debentures for being
working capital and expansion of the Company's business.
Page 5 of 5
Consequently, the Company reported loss before income tax expense for the 
three-month
period ended June 30, 2018 of Baht 47.21 million which decreased by 12.83 
percent compared to
the loss before income tax expense of Baht 54.16 million for the same period of 
2017. The mainly
result of increased in gain on foreign exchange rate and revenue from management
 fee of
subsidiaries.
? Net loss for the three-month period ended June 30, 2018 The operating result 
mentioned
above resulting in the Company reported net loss of Baht 47.12 million decreased
 by 12.76
percent, compared to the net loss of Baht 54.01 million in same period of 2017.
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