News Detail

Date/Time
27 Feb 2019 19:55:00
Headline
Management Discussion and Analysis Yearly Ending 31 Dec 2018
Symbol
CGD
Source
CGD
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                Management Discussion and Analysis

Company name                             : COUNTRY GROUP DEVELOPMENT PUBLIC 
COMPANY LIMITED
Year                                     : 2018
Quarter                                  : Yearly
Ending                                   : 31-Dec-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 year ended 
December 31, 2018 as follows:
Consolidated Financial Statements (the "Group")
Revenues
The Group reported total revenues for the year ended December 31, 2018 of Baht 
369.64 million, decreased
by Baht 738.00 million or decreased by 66.63 percent compared to Baht 1,107.64 
million for the same period
of 2017. This was mainly due to the decrease revenue from sale of Element 
Srinakarin project by Baht 664.53
million because the project has closed its sale. In addition, gain on foreign 
exchange rate decreased by Baht
73.70 million. The majority of revenues for the year ended December 31, 2018 are
 as follows:
? The Company reported major revenue from the condominium unit transferred of 
Elements Srinakarin
Project of Baht 244.06 million, decreased by Baht 664.53 million or decreased by
 73.14 percent
compared to Baht 908.59 million for the same period of 2017.
? Foreign subsidiary reported rental income from investment property of Baht 
51.39 million, decreased
by Baht 1.12 million or decreased by 2.13 percent compared to Baht 52.51 million
 for the same
period of 2017.
? The Group reported gain on foreign exchange rate of Baht 51.16 million, 
decreased by Baht 73.70
million or decreased by 59.03 percent compared to Baht 124.86 million for the 
same period of 2017.
This was mainly because of during 2017 Thai Baht was appreciated while for 2018 
Thai Baht was
less appreciated when compare to 2017. However, the USD loan of a subsidiary was
 increased
Page 2 of 5
according to construction progress of Chao Phraya Estate Project which has a lot
 of progress during
2018.
Expenses
The Group reported total expenses for the year ended December 31, 2018 of Baht 
912.40 million, decreased by
Baht 391.62 million or decreased by 30.03 percent compared to Baht 1,304.03 
million for the same period of
2017. This mainly resulted from the decrease in cost of condominium sale by Baht
 397.49 million which correlated
with lower condominium sale and the Group. In addition, distribution costs 
decreased by Baht 106.06 million.
However, the finance costs increased by Baht 118.69 million. The majority of 
expenses for the year ended
December 31, 2018 are as follows:
? Cost of condominium sale of Elements Srinakarin Project of Baht 146.94 
million, decreased by Baht
397.49 million or decreased by 73.01 percent compared to Baht 544.43 million for
 the same period of
2017. The percentage of decreasing in cost was close to the percentage of 
decreasing in revenue from
unit transferred of Elements Srinakarin Project which was decreased by 73.14 
percent. Consequently,
gross profit margin for the year ended December 31, 2018 was 39.79 percent, 
decreasing from the same
period of 2017 which its gross profit margin was 40.08 percent. This was due to 
promotion of unit sale
price reduction to close project's sale.
? The Group reported distribution costs (selling expenses) of Baht 180.46 
million, decreased by Baht
106.06 million or decreased by 37.02 percent compared to Baht 286.52 million for
 the same period of
2017. The majority of distribution costs for the year ended December 31, 2018 
and 2017 came from
marketing activities of Four Seasons Private Residences Bangkok at Chao Phraya 
River and
promotion expenses of Elements Srinakarin Project.
? The Group reported administrative expenses of Baht 209.22 million, increased 
by Baht 1.84 million or
increased by 0.89 percent compared to Baht 207.37 million for the same period of
 2017. The majority
of administrative expenses consist of personnel expense, advisory fee, utilities
 expense, depreciation
and miscellaneous expenses.
? The Group reported finance costs for the year ended December 31, 2018 of Baht 
330.08 million,
increased by Baht 118.69 million or increased by 56.15 percent compared to Baht 
211.39 million in
the same period of 2017. The finance costs was resulted from issuance of bills 
of exchange,
Page 3 of 5
issuance of long-term debenture and long-term borrowing for being working 
capital and expansion of
the Group's business.
Consequently, the Group reported loss before income tax for the year ended 
December 31, 2018 of Baht
542.77 million, increased by Baht 346.38 million or increased by 176.38 percent 
compared to loss before
income tax of Baht 196.39 million for the same period of 2017.
Income tax revenue
The Group reported income tax revenue for the year ended December 31, 2018 of 
Baht 0.34 million, decreased
by Baht 2.66 million or decreased by 88.52 percent compared to Baht 3.00 million
 for the same period of
2017. This was due to in 2017, a foreign subsidiary utilized tax benefit from 
investment in investment property.
Net loss for the year ended December 31, 2018
The operating result mentioned above resulting the Group reported net loss of 
Baht 542.42 million, of which
Baht 464.17 million attributed to the parent and the remaining of Baht 78.25 
million attributed to noncontrolling
interests. Consequently, net loss which attributed to the parent increased by 
Baht 319.87 million or
increased by 221.68 percent, compared with a net loss attributed to the parent 
of Baht 144.30 million for the
same period of 2017.
Separate Financial Statements (the "Company")
Revenues
The Company reported total revenues for the year ended December 31, 2018 of Baht
 427.54 million,
decreased by Baht 627.37 million or decreased by 59.47 percent compared to Baht 
1,054.92 million for the
same period of 2017. This was due to the decrease revenue from sale of Element 
Srinakarin project by Baht 664.53
million because the project has closed its sale. And interest income decreased 
by Baht 33.73 million. However, the
gain on foreign exchange rate increased by Baht 43.22 million and other income 
increased by Baht 26.63 million,
compared to the same period of 2017. The majority of the Company's revenues for 
the year ended December 31,
2018 are as follows;
? The Company reported major revenue from the condominium unit transferred of 
Elements Srinakarin
Project of Baht 244.06 million, decreased by Baht 664.53 million or decreased by
 73.14 percent
compared to Baht 908.59 million for the same period of 2017.
Page 4 of 5
? The Company reported interest income of Baht 77.16 million, decreased by Baht 
33.73 million or
decreased by 30.41 percent compared to Baht 110.89 million for the same period 
of 2017 because
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 43.22 million, 
increased by Baht 43.22
million or increased by 100.00 percent compared to the same period of 2017. This
 was due to the
Company has liabilities in foreign currency liabilities more than assets in 
foreign currency. In
addition, during the year 2018 the Baht was appreciated.
? The Company reported other income of Baht 56.77 million, increased by Baht 
26.63 million or
increased by 88.38 percent compared to Baht 30.13 million for the same period of
 2017. This was
mainly due to increase in service fee income from its subsidiaries in accordance
 with the increasing
in business transactions of the subsidiaries.
Expenses
The Company reported total expenses for the year ended December 31, 2018 of Baht
 659.48 million,
decreased by Baht 347.16 million or decreased by 34.49 percent compared to Baht 
1,006.64 million for the
same period of 2017. This mainly resulted from decrease in cost of condominium 
sale by Baht 397.49 million
and decrease in distribution costs by Baht 43.16 million. However, the finance 
cost increased by Baht 113.98
million. The majority of expenses for the year ended December 31, 2018 are as 
follows :
? The Company reported cost of condominium sale of Elements Srinakarin Project 
of Baht 146.94 million,
decreased by Baht 397.49 million or decreased by 73.01 percent compared to Baht 
544.43 million for the
same period of 2017. The percentage of decreasing in cost was close to the 
percentage of decreasing in
revenue from unit transferred of Elements Srinakarin Project which was decreased
 by 73.14 percent. This
was due to promotion of unit sale price reduction to close project's sale. 
Consequently, gross profit margin
for the year ended December 31, 2018 was 39.79 percent, decreasing from 40.08 
percent for the same
period of 2017.
? The Company reported distribution costs (selling expenses) of Baht 22.89 
million, decreased by Baht
43.16 million or decreased by 65.34 percent compared to Baht 66.06 million for 
the same period of
2017. This was mainly caused from decreasing in sale commission, advertising and
 promotes
expenses for Elements Project which correlated with lower condominium sale 
because of the
Company closed the project's sale.
Page 5 of 5
? The Company reported administrative expenses of Baht 155.00 million, decreased
 by Baht 11.86
million or decreased by 7.11 percent compared to Baht 166.87 million for the 
same period of 2017.
The administrative expenses consist of personnel expense, advisory fee, 
utilities expense, depreciation
and miscellaneous expenses.
? The Company reported finance costs for the year ended December 31, 2018 of 
Baht 291.95 million,
increased by Baht 113.98 million or increased by 64.04 percent compared to Baht 
177.97 million in
the same period of 2017. The majority of finance costs for the year ended 
December 31, 2018
resulted from issuance of bills of exchange, issuance of long-term debentures 
for being working
capital and expansion of the Company's business.
Consequently, the Company reported loss before income tax for the year ended 
December 31, 2018 of Baht
231.94 million , increased by Baht 280.21 million or increased by 580.47 percent
 compared to the profit
before income tax of Baht 48.27 million for the same period of 2017.
Income tax revenue
The Company reported income tax revenue for the year ended December 31, 2018 of 
Baht 0.37 million,
decreased by Baht 0.16 million or decreased by 29.46 percent compared to Baht 
0.53 million for the same
period of 2017.
Net loss for the year ended December 31, 2018
The operating result mentioned above resulting in the Company reported net loss 
of Baht 231.57 million,
increased by Baht 280.37 million or increased by 574.52 percent compared to the 
net profit of Baht 48.80
million in same period of 2017.
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