News Detail

Date/Time
14 Nov 2018 08:29:00
Headline
Management Discussion and Analysis Quarter 3 Ending 30 Sep 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 3
Ending                                   : 30-Sep-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 period
ended September 30, 2018 as follows:
Consolidated Financial Statements (the "Group")
Revenues
In the quarter 3/2018, the Group reported total revenues of Baht 165.51 million,
decreased by Baht 49.17 million or decreased by 22.9 percent from Baht 214.68
million in the same quarter of 2017. This was mainly due to the decrease of
revenue from sale of Elements Srinakarin project because the project has closed
its sale. However, in the quarter 3/2018, the Group reported increase in gain on
foreign exchange rate of Baht 111.98 million. Total revenue for the nine-month
period of 2018 amounting to Baht 340.29 million, decreased by Baht 127.45
million or decreased by 27.3 percent from Baht 467.74 million of the same period
 of 2017.
? Revenue from sale of condominium which was resulted from unit ownership 
transfer of Element Srinakarin project amounting to Baht 21.97 million,
decreased by Baht 163.23 million or decreased by 88.1 percent from Baht 185.20
million of the same period of 2017.
? Foreign subsidiary reported rental income from investment property which was 
resulted from rental income from property in Brighton, United Kingdom in the
quarter 3/2018 amounting to Baht 12.94 million, decreased by Baht 0.27 million
or decreased by 2.0 percent from Baht 13.21 million of the same period of 2017.
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? In the quarter 3/2018, the Group reported gain on foreign exchange rate of 
Baht 126.94 million, increased by Baht 111.98 million or increased by 748.3
percent from Baht 14.96 million of the same period of 2017. This was mainly due
to Thai Baht appreciation together with increase in USD loan of a local
subsidiary according to construction progress of Chao Phraya Estate Project
which has a lot of progress during 2018.
Expenses
In the quarter 3/2018, the Group reported total expenses of Baht 211.01 million,
decreased by Baht 110.77 million or decreased by 34.4 percent from Baht 321.78
million of the same period of 2017. This was mainly resulted from decrease of
cost of condominium sale which correlated with decrease of revenue from sale of
condominium, the decrease of distribution costs and the decrease of
administrative expenses. Total expenses for the nine-month period of 2018
amounting to Baht 657.50 million, decreased by Baht 104.22 million or decreased
by 13.7 percent from Baht 761.72 million of the same period of 2017.
? In the quarter 3/2018, the Group reported cost of condominium sale of Element 
Srinakarin condominium of Baht 15.10 million, decreased by 87.17 million or
decreased by 85.2 percent from Baht 102.27 million of the same period of 2017.
The percentage of deceasing in cost was less than the percentage of decreasing
in revenue from sale of condominium which was decreased by 88.1 percent compared
with the same quarter of 2017. This was due to promotion of unit sale price
reduction to close project's sale. Consequently, gross profit margin for the
quarter 3/2018 amounting to 31.3 percent, decreased from 44.8 percent of the
same period of 2017.
? In the quarter 3/2018, the Group reported distribution costs of Baht 59.23 
million, decreased by Baht 25.87 million or decreased by 30.4 percent from Baht
85.10 million of the same period of 2017. This was mainly due to the decrease of
expenses related to the marketing activities of Four Seasons Private Residences
Bangkok at Chao Phraya River and promotion expenses of Elements Srinakarin
project.
Page 3 of 6
? In the quarter 3/2018, the Group reported administrative expenses of Baht 
48.79 million, decreased by Baht 21.18 million or decreased by 30.3 percent from
Baht 69.97 million of the same period of 2017. This was mainly due to in the
same the quarter of 2017 a subsidiary recorded loss on impairment of sale
gallery amount of Baht 31.59 million. Administrative expenses consist of
personnel expense, advisory fee, utilities expense, depreciation and
miscellaneous expenses.
? In the quarter 3/2018, the Group reported finance costs of Baht 78.30 million,
increased by Baht 25.87 million or increased by 49.3 percent from Baht 52.43
million from the same period of 2017. The finance costs in the quarter 3/2018
was resulted from issuance of bills of exchange, issuance of long-term debenture
and long-term borrowing for being working capital and expansion of the Group's
business.
Consequently in the quarter 3/2018, the Group reported loss before income tax of
Baht 45.50 million, decreased by 61.60 million or decreased by 57.5 percent
from loss before income tax of Baht 107.10 million of the same period of 2017.
Income Tax Revenue
In the quarter 3/2018, the Group reported income tax revenue of Baht 0.09 
million, decreased by 6.16 million or decreased by 98.5 percent from income tax
expense of Baht 6.25 million of the same period of 2017. This was due to foreign
subsidiary utilized tax benefit from investment in investment property since
last the quarter 2017.
The Group reported income tax revenue for the nine-month period of 2018 
amounting to Baht 0.28 million, decreased by Baht 2.73 million or decreased by
90.7 percent from Baht 3.01 million of the same period of 2017.
Net Loss for the Period
The operating results mentioned above resulting the Group reported net loss in 
the quarter 3/2018 of Baht 45.41 million, decreased by Baht 55.43 million or
decreased by 55.0 percent from net loss of Baht 100.84 million of the same
period of 2017. In the quarter 3/2018, net loss of the Group amounting to Baht
45.41 million of which loss of Baht 53.52 million attributed to the parent and
the remaining gain of Baht 8.11 million
Page 4 of 6
attributed to non-controlling interests. Consequently, net loss which attributed
to the parent decreased by Baht 21.3 million or decreased by 28.5 percent from
net loss contributed to the parent of Baht 74.82 million of the same period of
2017.
The Group reported net loss for the nine-month period of 2018 amounting to Baht 
316.93 million, increased by Baht 25.96 million or increased by 8.9 percent from
 Baht 290.97 million of the same period of 2017.
Separate Financial Statements (the "Company")
Revenues
In the quarter 3/2018, the Company reported revenues of Baht 71.64 million, 
decreased by Baht 148.65 million or decreased by 67.5 percent from Baht 220.29
million of the same period of 2017. This was mainly due to the decrease of
revenue from sale of Elements Srinakarin project because the project has closed
its sale and the decrease of interest income. However, in the quarter 3/2018,
the Company reported increasing in gain on foreign exchange rate of Baht 24.06
million. The Company reported revenues for the nine-month period of 2018
amounting to Baht 360.85 million, decreased by Baht 99.89 million or decreased
by 21.7 percent from Baht 460.74 million of the same period of 2017.
? In the quarter 3/2018, revenue from sale of condominium, a result of sale of 
Elements Srinakarin project amounting to Baht 21.97 million, decreased by 163.23
million or decreased by 88.1 percent from Baht 185.20 million from the same
period of 2017.
? In the quarter 3/2018, the Company reported interest income Baht 19.20 
million, decreased by Baht 8.42 million or decreased by 30.5 percent from Baht
27.62 million from the same period of 2017. This was mainly due to the Company
receiving loan repayment from a local subsidiary in 4th quarter of 2017 at the
amount of Baht 400 million.
? In the quarter 3/2018, the Company reported gain on foreign exchange rate Baht
15.61 million, increased by Baht 24.06 million or increased by 284.7 percent
from loss on foreign exchange rate baht 8.45 million of the same period of 2017.
 This was mainly due to Thai Baht appreciation.
Page 5 of 6
Expenses
In the quarter 3/2018, the Company reported total expense of Baht 134.66 
million, decreased by Baht 81.31 million or decreased by 37.6 percent from Baht
215.97 million of the same period of 2017. This was mainly due to the decrease
of cost of condominium sale which correlated with decreased of revenue from sale
of condominium and the decrease of distribution costs. Total expense for the
nine-month period of 2018 amounting to Baht 508.91 million, decreased by Baht
24.52 million or decreased by 4.6 percent from Baht 533.43 million of the same
period of 2017.
? In the quarter 3/2018, the Group reported cost of condominium sale of Element 
Srinakarin condominium of Baht 15.10 million, decreased by 87.17 million or
decreased by 85.2 percent from Baht 102.27 million of the same period of 2017.
The percentage of deceasing in cost was less than the percentage of decreasing
in revenue from sale of condominium which was decreased by 88.1 percent compared
with the same quarter of 2017. This was due to promotion of unit sale price
reduction to close project's sale. Consequently, gross profit margin for the
quarter 3/2018 amounting to 31.3 percent, decreased from 44.8 percent of the
same period of 2017.
? In the quarter 3/2018, the Company reported distribution costs of Baht 1.71 
million, decreased by Baht 15.12 million or decreased by 89.8 percent from Baht
16.83 million of the same period of 2017. This was mainly due to the decrease of
promotion expenses from Elements Srinakarin project which correlated with the
decrease of revenue from sale of condominium.
? In the quarter 3/2018, the Company reported administrative expense Baht 39.43 
million, increased by Baht 6.49 million or increased by 19.7 percent from Baht
32.94 million of the same period of 2017. Majorities of administrative expenses
consist of personnel expense, advisory fee, utilities expense, depreciation and
miscellaneous expenses.
? In the quarter 3/2018, the Company reported finance costs of Baht 69.58 
million, increased by Baht 25.37 million or increased by 57.4 percent from Baht
44.21 million of the same period of 2017. The finance costs in the quarter
3/2018 was resulted from issuance of bills of exchange, issuance of long-term
debenture for being working capital and expansion of the Company's business.
Page 6 of 6
Consequently in the quarter 3/2018, the Company reported loss before income tax 
of Baht 63.02 million, increased by 67.35 million or increased by 1,556.2
percent from profit before income tax of Baht 4.33 million of the same period of
 2017.
Income Tax Revenue
In the quarter 3/2018, the Company reported income tax revenue of Baht 0.09 
million, decreased by Baht 0.06 million or decreased by 37.5 percent from income
tax revenue of Baht 0.15 million of the same period of 2017. The Company
reported income tax revenue for the nine-month period of 2018 amounting to Baht
0.28 million, decreased by Baht 0.17 million or decreased by 37.5 percent from
income tax revenue of Baht 0.45 million from the same period of 2017.
Net Loss for the Period
The operating results mentioned above resulting the Company reported net loss in
the quarter 3/2018 of Baht 62.92 million, increased by Baht 67.40 million or
increased by 1,505.7 percent from net profit of Baht 4.48 million of the same
period of 2017.
The Company reported net loss for the nine-month period of 2018 amounting to 
Baht 147.78 million, increased by Baht 75.54 million or increased by 104.6
percent from net loss of Baht 72.24 million of the same period of 2017.
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