Business Performance

  2013 2014 2015
Separate financial statements Separate financial statements Consolidated financial statements Separate financial statements Consolidated financial statements
Million % Million % Million % Million % Million %
Sales 665.77 99.29% 816.54 98.79% 816.54 98.79% 721.40 95.78% 721.40 95.77%
Other income 4.77 0.71% 9.98 1.21% 9.98 1.21% 31.77 4.22% 31.85 4.23%
Total revenues 670.54 100.00% 826.52 100.00% 826.52 100.00% 753.17 100.00% 753.25 100.00%
Cost of sales 544.39 81.19% 676.27 81.82% 676.56 81.86% 576.22 76.51% 577.65 76.69%
Selling expenses 21.49 3.20% 22.77 2.75% 22.81 2.76% 22.17 2.94% 22.74 3.02%
Administrative expenses 16.73 2.50% 18.01 2.18% 18.88 2.28% 23.14 3.07% 24.71 3.28%
Executive's remuneration 7.46 1.11% 8.41 1.02% 8.70 1.05% 9.96 1.32% 10.71 1.42%
Other expenses 14.83 2.21% - -            
Total expenses 604.90 90.21% 725.46 87.77% 726.95 87.95% 631.49 83.84% 635.81 84.41%
Finance cost 3.45 0.51% 4.93 0.60% 4.93 0.60% 4.48 0.59% 4.48 0.59%
Income tax expense 12.66 1.89% 19.40 2.35% 19.40 2.35% 23.65 3.14% 23.65 3.14%
Profit 49.54 7.39% 76.73 9.28% 75.54* 9.14% 93.55 12.42% 90.15* 11.97%

Remark:
*Profit attributable to less Non-controlling interests of the subsidiary 0.3 Million Baht in 2014 and 0.85 Million Baht in 2015 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

The Company generated the revenue of 753.25 Million Baht in 2015, decreased from the revenue earned in 2014 by 8.87% due to the economic downturn resulting in lower sales volume. However, the Company is still able to maintain the gross profit stably.

For other income in 2015, the Company generated 31.85 Million Baht, increased by 218.82% from the previous year, resulted from sales of current and available-for-sale investments according to the uncertainty in political problems and gains on exchange rates from hedge preventive in risk management. As of 2015, the Company gained profit from sales of current and available-for-sale investments of 27.50 Million Baht, the exchange rate of 0.60 Million Baht, tax income of 0.38 Million Baht, dividend of 0.90 Million Baht, and other income of 2.39 Million Baht.

Cost of Goods Sold

Cost of goods sold in 2015 amounted to 577.65 Million Baht, which was down year on year by 14.62% due the decrease in oil price and the ability to negotiate for a lower price with foreign suppliers. Since the Company has repaid back on time, the Company therefore gained more trust from the sellers which made it easier for the Company to negotiate.

Selling and Administrative Expenses

Sales operation cost in 2015 amounted to 22.74 Million Baht, lowered by 0.31% year on year due to the decrease of the transportation cost regarding the decline in oil price resulting in the lower transportation cost by 14.22% from the year 2014. However, the reason that the total cost of sales operation was decreased only by 0.31% because of a higher number of human resources aiming to expand the customer base and increase sales volume as well as preparing for the business expansion in 2015. The Company's selling and administrative expenses composes of Employee's salary of 8.85 Million Baht, Bonuses of 1.52 Million Baht, Commission fee of 3 Million Baht, Transportation cost of 7.18 Million Baht and Other expenses of 2.19 Million Baht.

Management cost in 2015 amounted to 35.42 Million Baht, which was up from 2014 by 28.43% caused by the increase of main expenses included as follows:

Employee's salary and benefit of 5.98 Million Baht, increased by 39.07% from the previous year due to a higher number of human resources to support the business growth as planned.

Maintenance cost in 2015 amounted to 1.29 Million Baht, risen by 1,072.73% from 2014 due to that in the year 2015, the Company has renovated and repaired the office building as well as constructing more office buildings.

Financial Advisory fee in 2015 amounted to 2 Million Baht, which was up 66.67% year on year due to the increase of financial information caused from issuing warrants in 2015.

Remuneration cost in 2015 amounted to 10.71 Million Baht, risen from 2014 by 23.10% due to a higher number of management people and the adjustment of salary and remuneration fee for executives.

Finance cost in 2015 amounted to 4.48 Million Baht, dropped from the previous year by 9.13% due to the reduction of interest rates of 2015 regarding the new financial policy of Monetary Policy Committee that has announced the change of interest rates to be 1.5%. Another reason is because of the negotiation with the banks in reducing the Company's interest rates as well as the early repayment to lower down the finance cost.

Corporate income tax in 2015 amounted to 23.65 Million Baht, increased by 21.90% from 2014 due to the increase of net profit.

Net Profit and Profitability

In 2015, the Company's net profit (Separate financial statements) amounted to 93.35 Million Baht when compared to the previous year's net profit (Separate financial statements) of 76.73 Million Baht, it was increased by 16.82 Million Baht (+21.92%). However, considering from the consolidated financial statement in 2015 of the Company and its subsidiaries, both earned net profit of 89.30 Million Baht, and when compared with the year 2014 that generated 75.25 Million Baht, their net profit has increased by 14.05 Million Baht (+18.67%). The main cause of this increasing occurs from the increase of gross profit margin resulting from the lower cost of goods sold, the customer base expansion, profit from new products, and profit for exchange rates.

Key Financial Ratios

In the year 2015, the Company has gross profit margin of 19.93% increased by 17.14% from the year 2014 due to the lower cost of goods sold related to the decrease in oil price and improved relationship with foreign suppliers resulted from on-time repayment. The Company is therefore able to negotiate for a lower price. 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 2015 amounted to 16.48%, increased from 2014 by 15.44% due to EBIT that has risen by 17.93% resulting from the lower cost of goods sold and the efficiency in managing selling and administrative expenses.

Return on Equity in 2015 has dropped from 21.50% to 21.06% year on year because of the increase in shareholding proportion of 85.59%.

Financial Status

  2013 2014 2015
Separate financial statements Separate financial statements Consolidated financial statements Separate financial statements Consolidated financial statements
Million % Million % Million % Million % Million %
Cash and cash equivalents 184.87 31.12% 154.38 22.31% 162.02 23.29% 210.33 28.85% 212.47 29.13%
Trade account receivable-net 171.24 28.82% 232.10 33.54% 232.10 33.36% 193.03 26.47% 193.03 26.46%
Inventories-net 124.42 20.94% 129.76 18.75% 129.84 18.66% 125.46 17.21% 125.86 17.25%
Other current assets 1.28 0.22% 2.82 0.41% 3.42 0.49% 0.51 0.07% 1.68 0.23%
Available-for-sale investments 21.63 3.64% 55.74 8.06% 55.74 8.01% 73.26 10.05% 73.26 10.04%
Investment in subsidiary company - - 20.00 2.89% - - 24.00 3.29% - -
Property, Plant and equipment-net 89.56 15.07% 96.69 13.97% 108.01 15.52% 102.14 14.01% 119.07 16.32%
Intangible assets 0.00 0.00% - - 4.11 0.59% - - 3.68 0.50%
Other non-current assets 1.15 0.19% 0.47 0.07% 0.54 0.08% 0.38 0.05% 0.46 0.07%
Total Asset 594.15 100.00% 691.96 100.00% 695.78 100.00% 729.11 100.00% 729.51 100.00%
Short-term loans from financial insti' 188.04 31.65% 216.53 31.29% 216.53 31.12% 182.65 25.05% 182.65 25.04%
Trade and other payables 82.07 13.81% 71.89 10.39% 72.18 10.37% 55.99 7.68% 56.12 7.69%
Other liabilities 6.36 1.07% 21.96 3.18% 21.98 3.16% 19.90 2.73% 19.91 2.73%
Total liabilities 276.47 46.53% 310.38 44.86% 310.69 44.65% 258.54 35.46% 258.68 35.46%
Total shareholders' equity 317.68 53.47% 381.58 55.14% 385.09 55.35% 470.57 64.54% 470.83 64.54%
Total liabilities and shareholders' equity 594.15 100.00% 691.96 100.00% 695.78 100.00% 729.11 100.00% 729.51 100.00%

Total Assets

The Company's total assets as of 2015 amounted to 728.51 Million Baht, which was up 33.73 Million Baht (4.85%) year on year. The Company's total assets comprise of 73.07% of current assets and 26.93% of non-current assets. The increasing in total assets occurred because of the higher amount of cash that was increased by 31.14% year on year and the increased amount of Property, Plant and Equipment of 10.24% from constructing additional office buildings, purchasing more transportation vehicles to support the increased number of sales and administrative workers.

Total Liabilities

The Company's total liabilities as of 2015 amounted to 258.68 Million Baht, reduced by 52.01 Million Baht from the previous year (-16.74%). The Company's liabilities consist of 34.68% of current liabilities and 0.78% of non-current liabilities. Current liabilities of the Company include of short-term loans from financial institutions and trade and other payables in which the amount is lower than the previous year due to early repayments purposing to reduce down the finance cost. The Company's non-current liabilities comprise of the long-term employee's benefit and deferred income tax.

The Shareholders' Equity

The Company's equity as of 2015 amounted to 465.98 Million Baht, increased from 2014 by 85.59 Million Baht, which was up 22.50% year on year resulting from the continuous increase in retained earnings.

Cash Flow

  2013
Million
2014
Million
2015
Million
Profit before tax 62.20 94.65 112.95
Net cash flows used in operating activities 69.52 15.13 95.28
Net cash flows from(used in) investing activities (24.56) (46.89) (14.90)
Net cash flows from financing activities (4.70) 8.91 (29.93)
Net cash flow 40.26 (22.85) 50.45
Cash and Cash equivalents at end of year 184.87 162.02 212.47

Remark: Cash flow statements only show the summary

Cash Flow

In 2015, the Company has net cash flows from operating activities of 95.28 Million Baht, increased from 2014 by 80.15 Million Baht (+529.74%) due to the lessening amount of account receivable and inventory of 43.17 Million Baht as the Company has tightened by shortening the credit period for new customers, including also the management of inventory that is more efficient.

The Company's net cash flows from investing activities in 2015 amounted to 14.90 Million Baht due to the increased expenses of 17.90 Million Baht on office equipment and constructing additional office buildings and for net cash flows from financing activities of 29.93 Million Baht and the main cause was because of the decreasing in account payable of 30.61 Million Baht as the Company has made some part of early repayments.

The aforementioned net cash flows of the Company resulted in the remaining cash balance and bank's deposit of 212.47 Million Baht