27 Feb 2020 21:20:00
Management Discussion and Analysis Yearly Ending 31 Dec 2019
Management Discussion and Analysis Company name : AQ ESTATE PUBLIC COMPANY LIMITED Year : 2019 Quarter : Yearly Ending : 31-Dec-2019 Note : -Translation- SET. 007/2020 27 February 2020 Subject: Clarification of the annual operating result 2019 To: Directors and the Manager The Stock Exchange of Thailand CC: Secretary of the SEC Office According to the resolution of the Board of Directors' Meeting of AQ Estate Public Company Limited No. 2/2020 on 27 February 2020 at 15.00 p.m., the Board of Director have considered the information items that could notify the resolution of Board of Directors meeting to the SET.office, are to approve the reviewed annual financial statements 2019 ended 31 December 2019 by the certified public accountant successfully. AQ Estate Public Company Limited hereby reported its operating results for the year 2019 with net loss of Baht 186.37 million and net Profit of Baht 74.89 million in 2018 for the period then ended, resulting in an increase in losses of Baht 261.26 million from 2018 with more than 20% due to the following reasons. Unit: Million Baht 2019 2018 Increase (Decrease %Increase (Decrease) Revenues from Sales and Services 642.23 521.05 121.18 23.26 Cost of Sales and Services 582.33 445.32 137.01 30.77 Gross Profits 59.90 75.73 (15.83) (20.90) Other Incomes 134.57 303.38 (168.81) (55.64) Expenses 379.77 304.29 75.48 24.81 Financial Costs 1.33 0.14 1.19 850.00 Income Tax (revenues) 260.00 204.00 56.00 27.45 Profit (loss) for the year (186.37) 74.89 (261.26) (348.86) Revenues from sales and services of the company and its subsidiaries amounted to Baht 642.23 million for the year 2019, compared with amounting to Baht 521.05 million in 2018 for the period then ended, an increase of Baht 121.18 million or 23.26 % due to the following reasons: 1. Revenues from sale of property was Baht 489.37 million. In the year 2018 amounted to Baht 399.82 million, an increase of Baht 89.55 million or 22.40%, mainly due to the increase in single house sales. 2. Revenues from hotel operations and services of the company and its subsidiaries amounted to Baht 131.41 million for the year 2019. In the year 2018 amounted to Baht 100.73 million for the period then ended, an increase of Baht 30.68 million or 30.46% due to the better performance of the hotels in Chiang Mai and the subsidiary opened the Alix hotel service, Soi Soonwijai and hotels in Koh Tao, resulting in more revenues. 3. Other incomes of company and its subsidiaries amounted to Baht 134.57 million for the year 2019, a decrease of Baht 172.81 million from 2018 or 56.96%, mainly reason due to the subsidiary has recognized income from debt restructuring and accounts payable and the company had interest income decreased in the year 2019. 4. Cost of sales and services amounted to Baht 582.33 million in 2019, compared with amounting to Baht 445.32 million in 2018 for the period then ended, an increase of Baht 137.01 million or 30.77 % because cost of property sold compared to sales with a rate of 75.99% in 2019 and cost of property sold compared to sales with a rate of 68.58% in 2018. 5. Gross profit of company and its subsidiaries amounted to Baht 59.90 million in 2019, compared with amounting to Baht 75.73 million in 2018 for the period then ended, a decrease of Baht 15.83 million, representing 20.90% due to property sold increased for the year 2019 and gross margin dropped from 2018 because the company has organized promotions to stimulate sales in economic recession. 6. Selling and administrative expenses were Baht 334.45 million in 2019 and Baht 266.60 million in 2018 for the period then ended, an increase of Baht 67.84 million or 25.45% due to the increased personnel expenses and litigation costs. 7. Income tax (revenues) of the company and its subsidiaries were Baht 0.26 million for the year 2019 and Baht 0.21 million in 2018 for the period then ended, an increase of Baht 0.05 million or 2.81%. For the reason mentioned above, the net loss of company and its subsidiaries amounted to Baht 186.37 million for the year 2019. Please be aware and please spread further. Yours Sincerely, (Mr. Suthad Chankingthong) (Ms. Ranchana Rajatanavin) Director 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.