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14 Aug 2020 17:03:00
Management Discussion and Analysis Quarter 1 Ending 30 Jun 2020
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                Management Discussion and Analysis

Company name                             : THAI MITSUWA PUBLIC COMPANY LIMITED
Year                                     : 2021
Quarter                                  : Quarter 1
Ending                                   : 30-Jun-2020
Note                                     :
To     President  of  The Stock Exchange of Thailand
From     Thai  Mitsuwa  Public  Company Limited
Date     14  August   2020
Subject  Net profit  for the first quarter  2020  compared with the same quarter
 of 2019
Thai Mitsuwa Public Company Limited (TMW)  summarizes   the operation results  
for the three-month period  from 1  April  2020  to 30  June 2020  compared
with the same period of  2019 as follows :
                                                       (unit : thousand baht)
Income Statement  (April  -  June )    2020        2019        Change
Revenue from sales  - plastic parts    200,886    100.0%    477,202    100.0%    -57.9%
Revenue from sales -  magnesium parts    134,876    100.0%    212,589    100.0%    -36.6%
Revenue from sales - molds    74,285    100.0%    42,105    100.0%    76.4%
     Total revenue from sales    410,047    100.0%    731,896    100.0%    -44.0%
Cost of sales  - plastic parts    174,608    86.9%    385,000    80.7%    -54.6%
Cost of sales  - magnesium  parts    110,942    82.3%    188,768    88.8%    -41.2%
Cost of sales  - mold parts    51,548    69.4%    31,970    75.9%    61.2%
     Total  cost of sales     337,098    82.2%    605,738    82.8%    -44.3%
Gross profit  -  plastic parts    26,278    13.1%    92,202    19.3%    -71.5%
Gross profit  -  magnesium parts    23,934    17.7%    23,821    11.2%    0.5%
Gross profit  -  mold parts    22,737    30.6%    10,135    24.1%    124.3%
     Total  gross profit     72,949    17.8%    126,158    17.2%    -42.2%
Other income    3,975    1.0%    2,335    0.3%    70.2%
Selling  expenses    13,657    3.3%    16,462    2.2%    -17.0%
Administrative expenses    113,620     27.7%    54,575     7.5%    108.2%
Finance cost    1,749     0.4%    1,106     0.2%    39.8%
Income tax expenses    1,546     0.4%    4,699     0.6%    -67.1%
Net profit    -53,648    -13.1%    51,651    7.1%    -203.9%

    Operating results for the first quarter of 2020  from April 1, 2020 to June 30,
2020, the company has been greatly impacted by the situation of the coronavirus
epidemic in 2019 resulting in  businesses and industries being slow down  and
leading to  drop in customer orders.
    Total sales  decreased 321.8 million baht or 44%. Plastic parts sales decreased
276.3 million baht or 57.9%.   Magnesium sales decreased by 77.7 million baht
or 36.6%.  But  mold  salws  increases  by 32.8 million baht or 76.4%.
    Total cost of sales decreased by 268.6 million baht or 44.3%, in line with the 
decrease in total sales.
    Cost of plastic parts decreased by 54.6%, in line with the decrease  in plastic
 parts sales.
    The cost of  sales of magnesium parts was down 41.2%, which is more than the 
reduction in sales of magnesium parts  because  the company has sufficient
production capacity from a factory located in Navanakorn Industrial Zone, Nakhon
Ratchasima, it is able to inject enough magnesium parts  to replace the import
of injection parts from Japan which has higher cost of work  as well as reducing
  outsourcing costs  as well.
    The cost of mold sales increased by 61.2% I n line with the 76.4% increase in 
mold sales.
    Gross profit of 72.9 million baht, a decrease of 53.2 million baht from the 
same period of the previous year, separated into the gross profit of  plastic
parts  26.3 million baht, a decrease of 65.9 million baht, the gross profit of
magnesium parts 23.9 million baht, an increase of 0.1 million baht and  gross
profit  of mold 22.7 million baht, an increase of 12.6 million baht.
    Selling expenses decreased 2.8 million baht or 17%, some  of which were 
expenses that did not vary according to the sales volume  such as employee
salary and annual salary adjustment, etc.
    Administrative expenses 113.6 million baht, an increase of 59 million baht or 
108.2% due to normal business conditions. Depreciation of factory machinery and
equipment is the cost of finished goods produced. But in the first trimester The
situation of the epidemic of coronavirus 2019 significantly reduced the
production capacity of factories in Pathum Thani and Nakhon Ratchasima. To
comply with accounting standards, Depreciation of machinery and equipment in the
part affected by such  situation is an administrative expense instead of
product cost.
    However, for the time being  the company has a policy to reduce expenses of all
departments and improve work changes to suit the situation fully  to control
various expenses in all departments.
    At present, the company has been monitoring and assessing the progress of the 
situation in the hope that future events will move in a better direction.
         (Mr.Tetsuji  Takeguchi)
           Account and Finance Manager
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