News Detail

Date/Time
13 Nov 2019 08:15:00
Headline
Management Discussion and Analysis Quarter 3 Ending 30 Sep 2019
Symbol
CTW
Source
CTW
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                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)
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