13 Aug 2019 12:34:00
Management Discussion and Analysis Quarter 2 Ending 30 Jun 2019
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2019 Quarter : Quarter 2 Ending : 30-Jun-2019 Note : CTW021/2019 August 13, 2019 Subject : Management Discussion and Analysis for the second quarter of 2019 To : President The Stock Exchange of Thailand Charoong Thai Wire and Cable Plc.(CTW) would like to clarify the Company and its subsidiaries' operating results based on the consolidated financial statements for the second quarter of 2019, three-month period, ended 30 June 2019 as follows: (Unit : Million Baht) Operating Results The second quarter (three-month period) 2019 2018 Change Million Baht % Total revenues 1,395.67 1,917.77 (522.10) (27.22) Profit (loss) attributable to equity holders of CTW (51.60) 108.58 (160.18) (147.52) Earnings (loss) per share (Baht/Share) (0.13) 0.27 Profit (loss) Loss attributable to equity holders of CTW was THB 51.60 million, decreasing by THB 160.18 million or 147.52% from the profit of THB 108.58 million in the same period of 2018, caused by the following main reasons: Revenue from Sales Revenue from sales of THB 1,378.97 million decreased by THB 534.68 million or 27.94% when compared with THB 1,913.65 million in the same period of the previous year, due to the transition of the new method of procurement of the Electricity Authorities. As a result, the procurement of the Electricity Authorities and the delivery schedules are delayed and a decrease in the revenue from sales of the Company and its subsidiaries. In the second quarter of 2019, three-month period, the Company and its subsidiaries had revenue from Enameled and non-enameled wire of THB 980.18 million, followed by Power cable of THB 375.56 million, Fiber optic cable of THB 15.25 million and Communication cable of THB 4.08 million, respectively. Other Income Other Income of THB 16.70 million increased by THB 12.59 million or 306.03% when compare with the same period of the previous year. In the second quarter of 2019, there was gain on exchange rate of THB 11.29 million, while there was loss on exchange rate of THB 7.19 million in the second quarter of 2018. Expenses Total expenses of THB 1,457.27 million decreased by THB 315.59 million or 17.80% from THB 1,772.86 million in the second quarter of the previous year, details were summarized as follows. 1. Cost of Sales Total cost of sales of THB 1,375.24 million decreased by THB 322.93 million or 19.02% when compared with THB 1,698.17 million in the same period of the previous year. In the second quarter of 2019, the gross profit was THB 3.74 million, decreasing by THB 211.75 million or 98.27% from THB 215.49 million in the same period of the previous year. The gross profit margin was 0.27% which decreased from 11.26% in the same period of 2018. 2. Selling and Distribution Expenses The selling and distribution expenses of THB 28.00 million increased by THB 4.17 million or 17.50% from THB 23.83 million in the same period of the previous year due to an increase of the bidding fee. 3. Administrative Expenses Administrative expenses of THB 54.04 million increased by THB 3.17 million or 6.23% from THB 50.87 million in the same period of the previous year since they have recognized the effect of the new Labor Protection Act (B.E. 2562), resulting increase in provision for long- term employee benefits. Please be informed accordingly. Sincerely yours, (Mr. Sun Tao-Heng) Managing Director 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.