News Detail

Date/Time
09 May 2019 20:55:00
Headline
Management Discussion and Analysis Quarter 1 Ending 31 Mar 2019
Symbol
CGD
Source
CGD
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                Management Discussion and Analysis

Company name                             : COUNTRY GROUP DEVELOPMENT PUBLIC 
COMPANY LIMITED
Year                                     : 2019
Quarter                                  : Quarter 1
Ending                                   : 31-Mar-2019
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 March
 31, 2019 as follows:
Consolidated Financial Statements (the "Group")
Revenues
In the quarter 1/2019, the Group reported total revenues of Baht 122.78 million,
 decreased by Baht 158.24
million or decreased by 56.31 percent compared to Baht 281.02 million for the 
same period of 2018. This was
mainly due to the decrease revenue from sale of Element Srinakarin project 
because the project has closed
its sale in 2018. The majority of revenues for the quarter 1/2019 are as 
follows:
? In the quarter 1/2019, the Company reported revenue from the condominium unit 
transferred of
Elements Srinakarin Project of Baht 5.43 million, decreased by Baht 112.88 
million or decreased by
95.41 percent compared to Baht 118.31 million for the same period of 2018 due to
 the project's close
in 2018.
? Foreign subsidiary reported rental income from investment property in 
Brighton, United Kingdom in
the quarter 1/2019 of Baht 12.25 million, decreased by Baht 0.74 million or 
decreased by 5.64
percent compared to Baht 12.99 million for the same period of 2018.
? In the quarter 1/2019, the Group reported gain on foreign exchange rate of 
Baht 98.79 million,
decreased by Baht 43.57 million or decreased by 30.61 percent compared to Baht 
142.36 million for
the same period of 2018. This was mainly because of during the quarter 1/2018 
Thai Baht was
appreciated while for the quarter 1/2019 Thai Baht was less appreciated when 
compare to the same
period of 2018. However, the USD loan of a subsidiary was increased according to
 construction
progress of Chao Phraya Estate Project which has a lot of progress.
Page 2 of 5
Expenses
In the quarter 1/2019, the Group reported total expenses of Baht 226.02 million,
 increased by Baht 0.01
million or increased by 0.01 percent compared to Baht 226.01 million for the 
same period of 2018. The
majority of expenses for the quarter 1/2019 are as follows:
? In the quarter 1/2019, the Group reported cost of condominium sale of Elements
 Srinakarin Project of
Baht 3.81 million, decreased by Baht 64.05 million or decreased by 94.39 percent
 compared to Baht
67.86 million for the same period of 2018. The percentage of decreasing in cost 
was less than the
percentage of decreasing in revenue from unit transferred of Elements Srinakarin
 Project which was
decreased by 95.41 percent compared to the same period of 2018. This was due to 
promotion of unit
sale price reduction to close project's sale. Consequently, in the quarter 
1/2019, gross profit margin
was 29.96 percent, decrease from the same period of 2018 which its gross profit 
margin was 42.64
percent.
? In the quarter 1/2019, the Group reported distribution costs of Baht 28.09 
million, decreased by Baht
3.93 million or decreased by 12.26 percent compared to Baht 32.02 million for 
the same period of
2018. This was mainly due to the decrease of expenses for marketing activities 
and promotion
expenses of Elements Srinakarin Project as the project was closed in 2018.
? In the quarter 1/2019, the Group reported administrative expenses of Baht 
83.07 million, increased
by Baht 44.48 million or increased by 117.26 percent compared to Baht 38.24 
million for the same
period of 2018 as a result of continuing business expansion. The majority of 
administrative expenses
consist of personnel expense, advisory fee, utilities expense, depreciation and 
miscellaneous
expenses.
? In the quarter 1/2019, the Group reported finance costs of Baht 101.06 
million, increased by Baht
23.09 million or increased by 29.62 percent compared to Baht 77.97 million in 
the same period of
2018. The finance costs for the quarter 1/2019 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 1/2019, the Group reported loss before income of 
Baht 103.24 million, increased
by Baht 158.25 million or increased by 287.67 percent compared to profit before 
income tax of Baht 55.01
million for the same period of 2018.
Page 3 of 5
Income tax expense
In the quarter 1/2019, the Group reported income tax expense of Baht 4.18 
million, increased by Baht 4.27
million or increased by 4,593.72 percent compared to income tax revenue of Baht 
0.09 million for the same
period of 2018. This was due to the record of deferred tax liabilities of cost 
to obtain contracts with customers
following Thai Financial Reporting Standard No.15 "Revenue from Contracts with 
Customers" which become
effective for the accounting periods beginning on or after January 1, 2019. The 
Group recognized the
cumulative effects of initially applying this standard as an adjustment to 
retained earnings as of January 1,
2019, the date of initial application. In accordance with such accounting 
standard, the Group required to
recognize cost to obtain contracts from customers as an asset and amortized to 
expenses on a systematic
basis that is consistent with the pattern of revenue recognition.
Net loss for the period
The operating result mentioned above resulting in the quarter 1/2019, the Group 
reported net loss of Baht
107.42 million, increased by Baht 162.53 million or increased by 294.94 percent 
compared to net profit of
55.11 million for the same period of 2018. Net loss of Baht 107.42 million for 
the quarter 1/2019 of which Baht
108.32 million attributed to the parent and the remaining of Baht 0.90 million 
attributed to non-controlling
interests. Consequently, net loss which attributed to the parent increased by 
Baht 132.37 million or increased
by 550.30 percent, compared with a net loss attributed to the parent of Baht 
24.05 million for the same period of 2018.
Separate Financial Statements (the "Company")
Revenues
In the quarter 1/2019, the Company reported total revenues of Baht 40.53 
million, decreased by Baht 117.75
million or decreased by 74.40 percent compared to Baht 158.28 million for the 
same period of 2018. This was
due to the decrease revenue from sale of Element Srinakarin project because the 
project has closed its sale
in 2018. However, in the quarter 1/2019 the Company reported gain on remeasuring
 current investments
increased by Baht 1.11 million and other income increased by Baht 1.15 million, 
compared to the same
period of 2018. The majority of revenues for the quarter 1/2019 are as follows:
? In the quarter 1/2019, the Company reported revenue from the condominium unit 
transferred of
Elements Srinakarin Project of Baht 5.43 million, decreased by Baht 112.88 
million or decreased by
95.41 percent compared to Baht 118.31 million for the same period of 2018 due to
 the project's close
in 2018.
Page 4 of 5
? In the quarter 1/2019, the Company reported interest income of Baht 19.41 
million, increased by Baht
0.64 million or increased by 3.44 percent compared to Baht 18.77 million for the
 same period of
2018.
? In the quarter 1/2019, the Company reported other income of Baht 14.57 
million, increased by Baht
1.15 million or increased by 8.56 percent compared to Baht 13.42 million for the
 same period of
2018. 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
In the quarter 1/2019, the Company reported total expenses of Baht 136.81 
million, decreased by Baht 59.49
million or decreased by 30.30 percent compared to Baht 196.30 million for the 
same period of 2018. This
mainly resulted from decrease in cost of condominium sale and distribution costs
 which correlated with the
decrease of revenue from sale of condominium.
? In the quarter 1/2019, the Company reported cost of condominium sale of 
Elements Srinakarin
Project of Baht 3.81 million, decreased by Baht 64.05 million or decreased by 
94.39 percent
compared to Baht 67.86 million for the same period of 2018. The percentage of 
decreasing in cost
was less than the percentage of decreasing in revenue from unit transferred of 
Elements Srinakarin
Project which was decreased by 95.41 percent compare to the same period of 2018.
 This was due to
promotion of unit sale price reduction of available units. Consequently, gross 
profit margin for the
quarter 1/2019 was 29.96 percent, decreasing from 42.64 percent for the same 
period of 2018.
? In the quarter 1/2019, the Company reported distribution costs of Baht 1.40 
million, decreased by
Baht 9.17 million or decreased by 86.77 percent compared to Baht 10.57 million 
for the same period
of 2018. This was mainly caused from decreasing in sale commission, advertising 
and promotes
expenses for Elements Srinakarin Project which correlated with the decrease of 
revenue from sale of
condominium.
? In the quarter 1/2019, the Company reported administrative expenses of Baht 
35.50 million,
decreased by Baht 0.45 million or decreased by 1.25 percent compared to Baht 
35.95 million for the same
period of 2018. The administrative expenses consist of personnel expense, 
advisory fee, utilities
expense, depreciation and miscellaneous expenses.
Page 5 of 5
? In the quarter 1/2019, the Company reported directors and managements' 
remuneration of Baht 9.26
million, increased by Baht 0.08 million or increased by 0.89 percent compared to
 Baht 9.18 million for
the same period of 2018. The increase correlated with business expansion.
? In the quarter 1/2019, the Company reported loss on foreign exchange rate all 
increased by Baht
6.59 million, compared to the same period of 2018 because the Company had 
financial liabilities in
foreign currency more than financial assets in foreign currency together with 
that in the quarter
1/2019, Baht was appreciated when compared to as at year end 2018.
? In the quarter 1/2019, the Company reported finance costs of Baht 80.26 
million, increased by Baht
7.52 million or increased by 10.34 percent compared to Baht 72.74 million in the
 same period of
2018. The majority of finance costs in the quarter 1/2019 from issuance of bills
 of exchange, issuance
of long-term debentures for being working capital and expansion of the Company's
 business.
Consequently, in the quarter 1/2019, the Company reported loss before income tax
 of Baht 96.29 million, loss
increased by Baht 58.28 million or increased by 153.30 percent compared to the 
loss before income tax of
Baht 38.01 million for the same period of 2018.
Income tax revenue
The Company reported income tax revenue in the quarter 1/2019 of Baht 0.11 
million, increased by Baht 0.02
million or increased by 14.66 percent compared to Baht 0.09 million for the same
 period of 2018.
Net loss for the period
The operating result mentioned above resulting in the Company reported net loss 
in the quarter 1/2019 of
Baht 96.18 million, increased by Baht 58.26 million or increased by 153.64 
percent compared to the net loss
of Baht 37.92 million in same period of 2018.
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