News Detail

Date/Time
12 Nov 2019 18:47:00
Headline
Management Discussion and Analysis Quarter 3 Ending 12 Nov 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 3
Ending                                   : 12-Nov-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 September 30, 2019 as follows:
Consolidated Financial Statements (the "Group")
Revenues
In the quarter 3/2019, the Group reported total revenues of Baht 15.97 million, 
decreased by Baht 149.54 million or decreased by 90.35 percent compared to Baht
165.51 million for the same period of 2018. This was mainly due to a decrease of
gain on foreign exchange rate by Baht 126.94 million when compared to the same
period of 2018. In addition, revenue from the condominium sale of condominium
from Elements Srinakarin Project decreased by Baht 19.61 million. The Group
reported total revenues of Baht 395.40 million for the nine-month period of
2019, increased by Baht 55.11 million or increased by 16.20 percent compared to
Baht 340.29 million for the same period of 2018.
The majority of revenues for the quarter 3/2019 are as follows:
?    In the quarter 3/2019, the Group reported revenue from sale of condominium 
from Elements Srinakarin Project of Baht 2.36 million, decreased by Baht 19.61
million or decreased by 89.27 percent compared to Baht 21.97 from the same
period of 2018 because the project was closed in 2018.
?    Foreign subsidiary reported rental income from investment property in 
Brighton, United Kingdom in the quarter 3/2019 of Baht 11.39 million, decreased
by Baht 1.55 million or decreased by 11.99 percent compared to Baht 12.94
million for the same period of 2018.
?

Expenses
In the quarter 3/2019, the Group reported total expenses of Baht 379.48 million,
increased by Baht 168.47 million or increased by 79.83 percent compared to Baht
211.01 million for the same period of 2018. This was mainly due to an increase
of loss on foreign exchange rate and an increase of administrative expenses of
Baht 111.00 million and Baht 71.24 million, respectively. The Group reported
total expense of Baht 760.15 million for the nine-month period of 2019,
increased by Baht 102.65 million or increased by 15.61 percent compared to Baht
657.50 million for the same period of 2018.
The majority of expenses for the quarter 3/2019 are as follows:
?    In the quarter 3/2019, the Group reported cost of condominium sale of Elements
Srinakarin Project of Baht 1.51 million, decreased by Baht 13.59 million or
decreased by 89.99 percent compared to Baht 15.10 million for the same period of
2018. The percentage of decreasing in cost was more than the percentage of
decreasing in revenue from unit transferred of Elements Srinakarin Project which
was decreased by 89.27 percent compared to the same period of 2018.
Consequently, in the quarter 3/2019, gross profit margin was 35.92 percent,
increased from the same period of 2018 which its gross profit margin was 31.27
percent.
?    In the quarter 3/2019, the Group reported administrative expenses of Baht 
120.03 million, increased by Baht 71.24 million or increased by 146.02 percent
compared to Baht 48.79 million for the same period of 2018 as a result of an
increase of pre-operating expenses of Capella Hotel Bangkok and Four Seasons
Hotel Bangkok at Chao Phraya River which will be open in early 2020. The
majority of administrative expenses consist of personnel expense, advisory fee,
utilities expense, depreciation and miscellaneous expenses.
?    In the quarter 3/2019, the Group reported loss on foreign exchange rate of 
Baht 111.00 million, increased by Baht 111.00 million or increased by 100.00
percent compared to the same period of 2018. The main reason of increase is that
the Company received paid back share capital from CGD Data Limited, foreign
subsidiary which is on the liquidation process. When the Company invested, the
Baht was weaker compared to when the Group received paid back share capital
during the quarter 3/2019.
?

?    In the quarter 3/2019, the Group reported finance costs of Baht 111.68 
million, increased by Baht 33.38 million or increased by 42.64 percent compared
to Baht 78.30 million in the same period of 2018. The finance costs for the
quarter 3/2019 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 3/2019, the Group reported loss before income tax 
of Baht 363.51 million, loss increased by Baht 318.01 million or loss increased
by 698.87 percent compared to loss before income tax of Baht 45.50 million for
the same period of 2018. The Group reported loss before income tax of Baht
364.75 million for the nine-month period of 2019, loss increased by Baht 47.54
million or loss increased by 14.98 percent compared to loss before income tax of
 Baht 317.21 million for the same period of 2018.
Income tax expense
In the quarter 3/2019, the Group reported income tax expense of Baht 0.67 
million, increased by Baht 0.76 million or increased by 821.60 percent compared
to income tax revenue of Baht 0.09 million for the same period of 2018. This was
due in the quarter 3/2018 a foreign subsidiary utilized tax benefit from
investment in investment property but in the quarter of 3/2019, the foreign
subsidiary did not use such benefit due to fully utilized such benefit. The
Group reported income tax expense of Baht 0.44 million for the nine-month period
of 2019, increased by Baht 0.72 million or increased by 259.53 percent compared
 to income tax revenue of Baht 0.28 million for the same period of 2018.
Net loss for the period
The operating result mentioned above resulting in the quarter 3/2019, the Group 
reported net loss of Baht 364.18 million, loss increased by Baht 318.77 million
or loss increased by 701.98 percent compared to net loss of Baht 45.41 million
for the same period of 2018. Net loss of Baht 364.18 million for the quarter
3/2019 of which Baht 335.16 million attributed to the parent and the remaining
of Baht 29.01 million attributed to non-controlling interests. Consequently, net
loss which attributed to the parent increased by Baht 281.64 million or
increased by 526.27 percent, compared with a net loss attributed to the parent
of Baht 53.52 million for the same period of 2018.

The Group reported net loss of Baht 365.19 million for nine-month period of 
2019, loss increased by Baht 48.25 million or loss increased by 15.23 percent
compared to net loss of Baht 316.94 million for the same period of 2018.?

Separate Financial Statements (the "Company")
Revenues
In the quarter 3/2019, the Company reported total revenues of Baht 39.56 
million, decreased by Baht 32.08 million or decreased by 44.77 percent compared
to Baht 71.64 million for the same period of 2018. This was mainly due to a
decrease of revenue from sale of condominium Element Srinakarin project which
was closed in 2018 and a decrease of gain on foreign exchange rate by Baht 19.61
million and Baht 15.61 million, consecutively, compared to the same period of
2018. The Company reported total revenues of Baht 114.60 million for the
nine-month period of 2019, decreased by Baht 246.25 million or decreased by
68.24 percent compared to Baht 360.85 million for the same period of 2018.
The majority of revenues for the quarter 3/2019 are as follows:
?    In the quarter 3/2019, the Company reported revenue from sale of condominium 
from Elements Srinakarin Project of Baht 2.36 million, decreased by Baht 19.61
million or decreased by 89.27 percent compared to Baht 21.97 from the same
period of last year because the project was closed in 2018.
?    In the quarter 3/2019, the Company reported interest income of Baht 19.90 
million, increased by Baht 0.70 million or increased by 3.63 percent compared to
 Baht 19.20 million for the same period of 2018.
?    In the quarter 3/2019, the Company reported other income of Baht 16.54 
million, increased by Baht 2.02 million or increased by 13.89 percent compared
to Baht 14.52 million for the same period of 2018.
Expenses
In the quarter 3/2019, the Company reported total expenses of Baht 287.52 
million, increased by Baht 152.86 million or increased by 113.52 percent
compared to Baht 134.66 million for the same period of 2018. This mainly due to
an increase of loss on foreign exchange rate by Baht 153.86 million. The Company
reported total expense of Baht 517.51 million for the nine-month period of
2019, increased by Baht 8.60 million or increased by 1.69 percent compared to
Baht 508.91 million for the nine-month period of 2018.
?

The majority of expenses for the quarter 3/2019 are as follows:
?    In the quarter 3/2019, the Company reported cost of condominium sale of 
Elements Srinakarin Project of Baht 1.51 million, decreased by Baht 13.59
million or decreased by 89.99 percent compared to Baht 15.10 million for the
same period of 2018. The percentage of decreasing in cost was more than the
percentage of decreasing in revenue from unit transferred of Elements Srinakarin
Project which was decreased by 89.27 percent compared to the same period of
2018. Consequently, in the quarter 3/2019, gross profit margin was 35.92
percent, increase from the same period of 2018 which its gross profit margin was
 31.27 percent.
?    In the quarter 3/2019, the Company reported administrative expenses of Baht 
37.36 million, decreased by Baht 2.07 million or decreased by 5.27 percent
compared to Baht 39.43 million for the same period of 2018. The majority of
administrative expenses consist of personnel expense, advisory fee, utilities
expense, depreciation and miscellaneous expenses.
?    In the quarter 3/2019, the Company reported directors and managements' 
remuneration of Baht 8.37 million, decreased by Baht 0.46 million or decreased
by 5.16 percent compared to Baht 8.83 million for the same period of 2018.
?    In the quarter 3/2019, the Company reported loss on foreign exchange rate of 
Baht 153.86 million, increased by Baht 153.86 million or increased by 100.00
percent compared to the same period of 2018. The main reason of increase is that
the Company received paid back share capital from CGD Data Limited, foreign
subsidiary which is on the liquidation process. When the Company invested, the
Baht was weaker compared to when the Group received paid back share capital
during the quarter 3/2019.
?    In the quarter 3/2019, the Company reported finance costs of Baht 83.39 
million, increased by Baht 13.81 million or increased by 19.84 percent compared
to Baht 69.58 million for the same period of 2018. The finance costs for the
quarter 3/2019  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 3/2019, the Company reported loss before income tax
of Baht 247.95 million, loss increased by Baht 184.93 million or increased by
293.47 percent compared to the loss before income tax of Baht 63.02 million for
the same period of 2018. The Company reported loss before income tax of Baht
402.91 million for the nine-month period of 2019, loss increased by Baht 254.85
million or increased by 172.13 percent compared to loss before income tax of
Baht 148.06 million for the nine-month period of 2018.

Income tax revenue
The Company reported income tax revenue in the quarter 3/2019 of Baht 0.13 
million, increased by Baht 0.04 million or increased by 40.64 percent compared
to income tax revenue of Baht 0.09 million for the same period of 2018. The
Company reported income tax revenue of Baht 0.74 million for nine-month period
of 2019, increased by Baht 0.46 million or increased by 164.66 percent compared
to income tax revenue of Baht 0.28 million for the nine-month period of 2018.
Net loss for the period
The operating result mentioned above resulting in the Company reported net loss 
for the quarter 3/2019 of Baht 247.82 million, loss increased by Baht 184.90
million or increased by 293.85 percent compared to the net loss of Baht 62.92
million in same period of 2018. The Company reported net loss of Baht 402.17
million for nine-month period of 2019, loss increased by Baht 254.39 million or
loss increased by 172.14 percent compared to loss before income tax of Baht
147.78 million for the nine-month period of 2018.
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