Business Performance

  2014 2015 2016
Separate Consolidated Separate Consolidated Separate Consolidated
Million Baht % Million Baht % Million Baht % Million Baht % Million Baht % Million Baht %
Sales
816.54
98.77%
816.54
98.77%
721.4
95.78%
721.4
95.77%
752.35
95.91%
752.47
95.91%
Other income
9.98
1.21%
9.98
1.21%
31.77
4.22%
31.85
4.23%
32.07
4.07%
32.09
4.07%
Total revenues
826.52
100.00%
826.52
100.00%
753.17
100.00%
753.25
100.00%
784.42
100%
784.56
100.00%
Cost of sales
676.27
81.82%
676.56
81.86%
576.22
76.51%
577.65
76.67%
582.99
74.32%
581.82
74.16%
Selling expenses
22.77
2.77%
22.81
2.76%
22.17
2.94%
22.74
3.02%
26.58
3.37%
26.68
3.40%
Administrative expenses
18.01
2.18%
18.88
2.28%
23.14
3.07%
24.71
3.28%
23.12
2.97%
25.41
3.24%
Executive's remuneration
8.41
1.02%
8.70
1.07%
9.96
1.32%
10.71
1.42%
10.80
1.38%
11.51
1.47%
Other expenses
-
-
-
-
2.06
0.26%
2.06
0.26%
Total expenses
725.46
87.77%
726.95
87.97%
631.49
83.84%
635.81
84.41%
645.55
82.30%
647.48
82.53%
Finance cost
4.93
0.60%
4.93
0.60%
4.48
0.57%
4.48
0.57%
4.43
0.56%
4.43
0.56%
Income tax expense
19.4
2.37%
19.4
2.37%
23.65
3.14%
23.65
3.14%
27.12
3.46%
27.12
3.46%
Profit
76.73
9.28%
75.54*
9.14%
93.55
12.42%
90.15*
11.97%
107.32
13.68%
105.74*
13.47%

Remark:
*Profit attributable to less Non-controlling interests of the subsidiary 0.3 Million Baht in 2014, 0.85 Million Baht in 2015 and 0.22 Baht in 2016
Other income from Gains on exchange, Gains from sales of current and available-for-sale investments and Interest
Other expenses from Loss on exchange, Changes in inventories of raw material and finished goods

Revenue

In 2016, the Company was able to generate the revenue of 784.56 Million Baht, addition from the previous year by 4.16% due to the strong Sales and Marketing strategy, the expansion of new target customers and varieties of product. Also from the ability of retaining current customers as our loyal customer; this has a significant role in boosting up our sales revenue.

For other revenues, the Company earned 32.09 Million Baht in 2016 (+0.76%). It is consider to be stabilized from last year. The sources of other revenues in 2016 are profitability from temporary investment & securities available-for-sale as of 25.58 Million Baht, interest revenue by 1.86 Million Baht, dividend received for 1.52 Million Baht and other revenues for 3.13 Million Baht..

Cost of Goods Sold

Cost of goods sold in 2016 amounted to 581.82 Million Baht, which was up year on year by 0.72% due the increased in sales revenue.

Selling and Administrative Expenses

Sales operation cost in 2016 amounted to 26.68 Million Baht, increased by 17.36% mainly results of the expansion of human resources to enlarge the customer base and the preparation of business expansion in nearby future. The Company’s selling and administrative expenses composed of employees’ salary of 9.5 Million Baht, commission fee of 4.10 Million Baht, transportation cost as 8.97 Million Baht and other expenses of 1.86 Million Baht.

Management cost in 2016 amounted to 36.92 Million Baht, which was up from 2015 by 4.24% caused by the increase of main expenses including as follows:

Employees’ salaries and benefits of 6.72 Million Baht, increased by 20.43% from the previous year due to a higher number of human resources to support the business growth as planned.

Remuneration cost in 2016 amounted to 11.51 Million Baht, raised from 2015 by 7.84% due to a higher number of management people and the adjustment of salary and remuneration fee for executives.

Financial cost in 2016 amounted to 4.43 Million Baht, decreased from the previous year by 1.07%. Even though, the Company’s purchasing expenses had been slightly increased but due to the efficient of cash flows and bargaining power to banks and financial institution, the Company is able to manage for lowest financial cost possible.

Corporate income tax in 2016 amounted to 27.12 Million Baht, increased by 14.65% from 2015 due to the increase in net profit.

Net Profit and Profitability

In 2016, the Company’s operating profit accounted for 107.32 Million Baht compared to 2015, results of 93.55 Million Bah, it was increased by 13.77 Million Baht (+14.72%). Furthermore, considering from the consolidated financial statement in 2016 and its subsidiaries, both earned net profit of 105.74 Million Baht, compared to 2015 that generated 90.15 Million Baht (+17.27%). This result is from lowering cost of goods sold in finding higher quality with lower price of raw materials and increase in sales revenue from new customers and new products

Key Financial Ratios

In 2016, the Company’s gross profit margin is 22.68%, increased by 18.71% due to the ability to drive down the cost of goods sold from finding new suppliers that could deliver high quality of goods with reasonable prices. Moreover, the Company is able to retain good relationship with the current power which gives bargaining power in lowering price of raw materials. Furthermore, as the sales and finance team, has been closely monitored on the exchange rates, the sales team could estimate the cost in advance and was able to set up the selling price in order for maintaining the gross profit margin efficiently.

Return on Asset in 2016 amounted to 17.41%, increased from 2015 by 5.64% due to EBIT that has risen by 16.73% resulting from the lower cost of goods sold and the efficiency in managing selling and administrative expenses.

Return on Equity in 2016 amounted to 20.62%, decreased from year to year by 3.17% because the increase in shareholding proportion of 18.88%

Financial Status

  2014 2015 2016
Separate Consolidated Separate Consolidated Separate Consolidated
Million Baht % Million Baht % Million Baht % Million Baht % Million Baht % Million Baht %
Cash and cash equivalents
154.38
22.31%
162.02
23.27%
210.33
28.87%
212.47
29.13%
289.57
33.93%
299.44
35.43%
Trade account receivable-net
232.10
33.54%
232.10
33.36%
193.03
26.48%
193.03
26.46%
179.05
20.98%
179.06
21.17%
Inventories-net
129.76
18.77%
129.84
18.66%
125.46
17.21%
125.86
17.27%
128.68
15.08%
128.48
15.20%
Other current assets
2.82
0.41%
3.42
0.47%
0.51
0.07%
1.68
0.23%
5.28
0.62%
6.41
0.76%
Available-for-sale investments
55.74
8.06%
55.74
8.01%
73.26
10.07%
73.26
10.04%
113.90
13.37%
113.90
13.48%
Investment in subsidiary company
20.00
2.87%
-
-
24.00
3.27%
-
-
37.80
4.43%
Property, Plant and equipment-net
96.69
13.97%
108.01
15.52%
102.14
14.01%
119.07
16.32%
98.94
11.57%
114.22
13.52%
Intangible assets
-
-
4.11
0.57%
-
-
3.68
0.50%
3.25
0.38%
Other non-current assets
0.47
0.07%
0.54
0.08%
0.37
0.04%
0.46
0.07%
0.24
0.02%
0.32
0.04%
Total Asset
691.96
100.00%
695.78
100.00%
729.10
100.00%
729.51
100.00%
853.46
100.00%
845.08
100.00%
Short-term loans from financial insti'
216.53
31.27%
216.53
31.12%
182.65
25.07%
182.65
25.04%
194.06
22.74%
194.06
22.96%
Trade and other payables
71.89
10.37%
72.18
10.37%
55.99
7.68%
56.12
7.67%
58.37
6.84%
57.17
6.77%
Other liabilities
21.96
3.18%
21.98
3.16%
19.90
2.73%
19.91
2.73%
34.00
3.98%
34.15
4.04%
Total liabilities
310.38
44.86%
310.69
44.67%
258.54
35.46%
258.68
35.46%
286.43
33.56%
285.38
33.77%
Total shareholders' equity
381.58
55.14%
385.09
55.37%
470.57
64.54%
470.83
64.54%
567.03
66.44%
559.70
66.23%
Total liabilities and shareholders' equity
691.96
100.00%
695.78
100.00%
729.11
100.00%
729.51
100.00%
853.46
100.00%
845.08
100.00%

Total Assets

The Company’s total assets as of 2016 amounted to 845.08 Million Baht, which increased 115.75 Million Baht (15.84%) from year to year. The Company’s total assets comprised of 72.58% of current assets and 27.42% of non-current assets. The increasing in total assets occurred because of the higher amount of cash that was increased by 40.93% year on year due an increase in sales revenue in 2016, the improvement in managing debtors’ credit and higher return on securities trading which have been improved from 2015 due to the high ability in managing investments..

Total Liabilities

The Company’s total liabilities as of 2016 amounted to 285.38 Million Baht, increased by 26.70 Million Baht from previous year (+10.32%). The Company’s liabilities consist of current liabilities accounted for 32.36% and 1.41% of noncurrent liabilities. Current liabilities of the Company includes short-term loans from financial institutions, trade payables and other payables which enlarged by 8.08% as a result from the increase in numbers of trust-receipts creditors and other current liabilities. To extend, the Company needs to hold on more cash for the preparation of business expansion by using the trustreceipts creditors as given. Furthermore, non-current liabilities of the Company comprised of installment contracts, longterm employees’ benefits and deferred income tax..

The Shareholders' Equity

The Company’s equity as of 2016 amounted to 559.71 Million Baht, increased from 2015 by 88.87 Million Baht, which was up 18.88% year on year resulting from the continuous increase in retained earnings..

Cash Flow

  2014(consolidated)
Million Baht
2015(consolidated)
Million Baht
2016(consolidated)
Million Baht
Profit before tax
94.65
112.95
132.64
Net cash flows from (used in) operating activities
15.13
95.28
103.09
Net cash flows from (used in) investing activities
(46.89)
(14.90)
(0.04)
Net cash flows from (used in) financing activities
8.91
(29.93)
(16.08)
Net cash flow
(22.85)
50.45
86.97
Cash and Cash equivalents at end of year
162.02
212.47
299.44

Remark: Cash flow statements only show the summary

Cash Flow

In 2016, the Company has net cash flows from operating activities of 103.09 Million Baht, increased from 2015 by 7.81 Million Baht (+8.20%) due to the lessening amount of account receivable as the Company has tightened by shortening the credit period for new customers.

The Company’s net cash flows from investing activities in 2016 amounted to 0.04 Million Baht due to the increased expenses of 14.86 Million Baht on office equipment and constructing additional office buildings and for net cash flows from financing activities of 16.08 Million Baht and the main cause was because of the decreasing in account payables by early payments due to the cash needs to be ready for nearby business expansion.

The aforementioned net cash flows of the Company resulted in the remaining cash balance and bank’s deposit of 299.44 Million Baht.