15 May 2020 07:55:00
Management Discussion and Analysis Quarter 1 Ending 31 Mar 2020
Management Discussion and Analysis Company name : CHAROONG THAI WIRE & CABLE PUBLIC COMPANY LIMITED Year : 2020 Quarter : Quarter 1 Ending : 31-Mar-2020 Note : CTW014/2020 May 15, 2020 Subject : Management Discussion and Analysis for the first quarter of 2020 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 first quarter of 2020, three- month period, ended 31 March 2020 as follows: (Unit : Million Baht) Operating Results The first quarter (three-month period) 2020 2019 Change Million Baht % Total revenues 1,163.53 1,580.22 (416.69) (26.37) Profit (Loss) attributable to equity holders of CTW (32.22) 36.67 (68.89) (187.85) Earnings (Loss) per share (Baht/Share) (0.08) 0.09 Profit & Loss Loss attributable to equity holders of CTW of THB 32.22 million decreased by THB 68.89 million or 187.85% from profit of THB 36.67 million in the same period of 2019, caused by the following main reasons: Revenue from Sales Revenue from sales of THB 1,161.75 million decreased by THB 398.40 million or 25.54% when compared with THB 1,560.14 million in the same period of the previous year. In the first quarter of 2020, the Company and its subsidiaries had revenue from Power cable of THB 574.38 million, followed by Enameled and non-enameled wire of THB 572.83 million, Fiber optic cable of THB 12.81 million and Communication cable of THB 1.73 million, respectively. Other Income Other Income of THB 1.79 million decreased by THB 18.30 million or 91.10% from THB 20.08 million 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 10.27 million and there was gain on exchange of THB 8.20 million in the same period of 2019. Expenses Total expenses of THB 1,210.22 million decreased by THB 319.71 million or 20.90% from THB 1,529.94 million in the first quarter of 2019, details were summarized as follows. 1. Cost of Sales Total cost of sales in the first quarter of 2020 of THB 1,135.06 million decreased by THB 325.52 million or 22.29% when compared with THB 1,460.58 million in the same period of 2019. In the first quarter of 2020, the gross profit was THB 26.69 million, decreasing by THB 72.88 million or 73.20% from THB 99.56 million in the same period of the previous year. The gross profit margin was 2.30% which decreased from 6.38% in the same period of 2019. 2. Selling and Distribution Expenses Selling and Distribution expenses of THB 20.27 million decreased by THB 7.90 million or 28.04% from THB 28.16 million in the same period of 2019 due to the new Coronavirus 2019 outbreak situation. Then the sales promotion plan to expanding the market in the first quarter of 2020 has been postponed. 3. Administrative Expenses Administrative expenses of THB 54.90 million increased by THB 13.70 million or 33.26% from THB 41.20 million in the same period of 2019 since there was loss on exchange of THB 12.63 million in the first quarter of 2020 arising from the weakness of the Thai Baht against the US dollar. 4. Finance Cost Finance cost of THB 1.36 million decreased by THB 2.25 million or 62.38% from THB 3.61 million in the same period of the previous year. The decreases were mainly from decrease in the interest expenses of trust receipts of its subsidiaries. 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.