13 Nov 2019 08:15:00
Management Discussion and Analysis Quarter 3 Ending 30 Sep 2019
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2019 Quarter : Quarter 3 Ending : 30-Sep-2019 Note : CTW026/2019 November 12, 2019 Subject : Management Discussion and Analysis for the third 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 third quarter of 2019, three-month period, ended 30 September 2019 as follows: (Unit : Million Baht) Operating Results The third quarter (three-month period) 2019 2018 Change Million Baht % Total revenues 1,543.16 2,008.76 (465.60) (23.18) Profit attributable to equity holders of CTW 39.52 65.11 (25.59) (39.30) Earnings per share (Baht/Share) 0.10 0.16 Profit Profit attributable to equity holders of CTW was THB 39.52 million, decreasing by THB 25.59 million or 39.30% from the profit of THB 65.11 million in the same period of 2018, caused by the following main reasons: Revenue from Sales Revenue from sales of THB 1,524.48 million decreased by THB 469.61 million or 23.55% when compared with THB 1,994.10 million in the same period of the previous year, due to the Thai economic recession and 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 third quarter of 2019, three-month period, the Company and its subsidiaries had revenue from Enameled and non-enameled wire of THB 997.81 million, followed by Power cable of THB 502.09 million, Fiber optic cable of THB 14.66 million and Communication cable of THB 9.58 million, respectively. Other Income Other Income of THB 18.67 million increased by THB 4.01 million or 27.37% when compare with the same period of the previous year. In the third quarter of 2019, there was gain on exchange rate of THB 10.87 million, increasing by THB 3.01 million or 38.25% when compared with THB 7.86 million in the same period of the previous year. Expenses Total expenses of THB 1,490.98 million decreased by THB 441.20 million or 22.83% from THB 1,932.18 million in the same period of the previous year, details were summarized as follows. 1. Cost of Sales Total cost of sales of THB 1,430.05 million, representing 93.81% of sales, decreased by THB 424.39 million or 22.89%, which coincided with the sales decrease and gross profit margin was slightly decreased when compared with THB 1,854.45 million in the same period of the previous year, representing 93.00% of sales. In the third quarter of 2019, there was the reversal of allowance for diminution in value of inventory of THB 60.62 million, due to a decrease in the main raw material (copper) price. 2. Selling and Distribution Expenses The selling and distribution expenses of THB 22.63 million decreased by THB 8.49 million or 27.27% from THB 31.11 million in the third quarter of 2019, due to decrease in the sales promotion and transportation fee. 3. Administrative Expenses Administrative expenses of THB 38.30 million decreased by THB 8.32 million or 17.85% from THB 46.62 million in the same period of the previous year since there was the reversal of allowance for doubtful account of THB 7.54 million in the third quarter of 2019, arising from the repayment from trade accounts receivable of the Company and its subsidiaries. 4. Tax income (expenses) Tax income of THB 14.07 million in the third quarter of 2019 consisted of the corporate income tax of THB 0.37 million and relating to origination of temporary difference of THB 14.44 million in the same period of the previous year which increased by THB 5.23 million or 59.22% when compared with tax income of THB 8.84 million in the same period of the previous year, which consisted of the corporate income tax of THB 25.11 million and relating to reversal of temporary differences of THB 16.27 million. Please be informed accordingly. Sincerely yours, (Mrs. Sununtha Phaengsook) Deputy Managing Director (Finance) 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.