24 Feb 2020 17:32:00
Management Discussion and Analysis Yearly Ending 31 Dec 2019
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2019 Quarter : Yearly Ending : 31-Dec-2019 Note : CTW003/2020 February 24, 2020 Subject : Management Discussion and Analysis for 2019's operating results To : President The Stock Exchange of Thailand Charoong Thai Wire and Cable Plc.(CTW) would like to clarify the Company and its subsidiaries' 2019 operating results based on the consolidated financial statements for the year ended 31 December 2019 as follows: (Unit : Million Baht) Operating Results Period of the Year 2019 2018 %Change Total revenues 6,031.75 8,019.04 (24.78) Net Profit attributable to equity holders of CTW 77.24 287.49 (73.13) Earnings per share (Baht/Share) 0.19 0.72 Net Profit Net profit was THB 77.24 million in 2019, decreasing by THB 210.25 million or 73.13% from THB 287.49 million in 2018 caused from the following main reasons: Revenue from Sales Revenue from sales of THB 5,960.72 million in 2019 decreased by THB 1,999.37 million or 25.12% from THB 7,960.09 million in 2018. In 2019, the Company and its subsidiaries had revenue from local customers of THB 3,584.60 million and from overseas customers of THB 2,376.12 million. Other Income Other Income of THB 71.03 million increased by THB 12.08 million or 20.49% from THB 58.95 million in 2018 because a subsidiary company received compensation from the Chinese government on rebuilding the factory fence due to road expansion project in the amount of THB 12.07 million. Expenses Total expenses of THB 5,925.33 million in 2019 decreased by THB 1,721.05 million or 22.51% from THB 7,646.38 million in 2018, details were summarized as follows. 1. Cost of Sales Total cost of sales of THB 5,571.19 million in 2019, representing 93.48% of sales, decreased by THB 1,712.08 million or 23.51%, which coincided with the sales decrease, when compared with THB 7,283.87 million in 2018, representing 91.50% of sales. In 2019, there was the reversal of allowance for diminution in value of inventory of THB 25.64 million, due to decrease in the main raw material (copper) price. 2. Selling and Distribution Expenses Selling and distribution expenses was THB 102.37 million in 2019, decreasing by THB 9.83 million or 8.76% from THB 112.20 million in 2018, which most were the commission fees and transportation fees. 3. Administrative Expenses Administrative expenses of THB 237.35 million decreased by THB 12.96 million or 5.18% from THB 250.31 million in 2018 since there was reversal of allowance for doubtful account of THB 6.93 million in 2019, arising from the repayment from trade receivables. 4. Finance Cost Finance cost of THB 23.68 million, decreased by THB 14.29 million or 37.65% from THB 37.97 million in 2018, which were mostly interest payments of decreased trust receipts. 5. Tax expenses Tax expenses of THB 40.93 million in 2019 consisted of the corporate income tax of THB 30.30 million and relating to reversal of temporary difference of THB 10.63 million, while Tax expenses of THB 69.72 million in 2018 consisted of the corporate income tax of THB 79.91 million and relating to origination of temporary differences of THB 10.19 million. The separate financial statements for the year 2019, the Company had net profit of Baht 111.93 million, decreasing by Baht 171.60 million or 60.52%, when compared with the net profit of Baht 283.54 million in 2018. 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.