14 Aug 2020 17:03:00
Management Discussion and Analysis Quarter 1 Ending 30 Jun 2020
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. Signature (Mr.Tetsuji Takeguchi) Account and Finance Manager 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.