Management Discussion and Analysis

Change in accounting period

The Group has changed the accounting period starting from 1st January to 31st December of every year to the period from 1st October to 30th September of next year, starting from the period ended 30th September, 2017 onward. The statements of comprehensive income and statements of cash flows for the period ended 30th September, 2017 have been prepared under this new accounting period, presented from 1st January, 2017 to 30th September, 2017.

For the benefits of users in comparing and analyzing the financial information, including the suitable explanation notes for the increases or decreases, an analysis of operating results and cash flows will be for the 9 months period ended 30th September, 2017 and be compared with the same period of last year. Users can see details at the accompany note of financial statements 44 Supplementary information.

Analysis of operating results and financial position

The Company having total revenues increasing 18.5% and net profit Baht 1,086.48 million, increased of Baht 156.23 million increasing 16.8% compared with the same period of last year. The result is mainly caused from the following factors:

  1. The Company recognized the revenue Baht 9,352.12 million for the 9 months period of 2017 which increased of Baht 1,458.54 million from the same period of last year.
    • An increase Baht 1,092.12 million increases 15.7% from revenue from sales of real estate is resulted from sale and transferred success in 7 new projects launched during the year 2017 including continuously sale and transferred of outstanding projects.
    • An increase Baht 188.72 million increases 42.1% from revenue from rental and services, mainly from FYI Center office building which has more occupancy and full year income recognized compared with the year 2016 which completed in the second quarter of 2016.
    • An increase Baht 90.04 million from gain on disposal some part of investment.
  2. Total expenses for 9 months of 2017 were Baht 8,098.91 million which increased of Baht 1,264.32 million from the same period of last year.
    • An increase from cost of sale of real estate Baht 839.20 million, in tandem with an increase sale with gross profit margin 31.6% decreased 1.3%. Because the Company increased budget in improvement project utility infrastructure and landscape to increase sale.
    • An increase from cost of rental and services Baht 62.29 million, gross profit margin of this business unit was 34.6% increase 13.7% due to increasing of sale but majority of cost is fixed cost.
    • An increase from selling expenses Baht 75.29 million, mainly increasing of specific business tax, sales promotion to promote selling and transferring house, which were correlate to the recognize sales of real estate.
    • An increase from administrative expenses Baht 160.40 million, mainly increasing of staff expenses correlate to increase of projects and central management expenses in tandem with growing of a number of housing projects.
    • Finance costs were increased Baht 46.29 million resulted mainly from increasing loan to purchase land bank for expanding more housing projects compared with 2016 which had repayment loan by fund received from capital increase Baht 4,971.33 million and advance received of rental from Golden Ventures REIT Baht 6,777.23 million.
  3. Income tax expenses were Baht 236.35 million from net profit before tax of Baht 1,322.83 million converted to corporate income tax rate at 17.9%. But in the last year the Company had income tax expenses Baht 178.52 million from net profit before tax of Baht 1,108.77 million converted to corporate income tax rate at 16.1%.
    The Company recorded net profit attributable to the equity holders in the amount of Baht 1,086.48 million in the 9 months period ended 30th September, 2017 compared with operating results for the year ended 31st December, 2016 following the submitted statements of comprehensive income, the Company has profit increase Baht 49.80 million from revenue decrease Baht 1,444.22 million and expenses decrease Baht 1,477.83 million.
  4. Financial position as of 30th September, 2017
    • Assets
      The Company had total assets of Baht 30,804.67 million, Baht 1,981.02 million increasing from 31st December, 2016 mainly due to the increase Baht 1,764.69 million in real estate projects under development resulting from acquire new land bank for development and investment in Kasemsubbhakdi Co., Ltd. Baht 538.90 million.
    • Liabilities and equity
      The Company had total liabilities of Baht 16,440.93 million, Baht 1,431.12 million increasing from 31st December, 2016 mainly from issuing new debentures Baht 2,000 million, increase in trade accounts payable and other payable Baht 659.30 million and decrease in loan from financial institution Baht 757.97 million.

Equity attributable to equity holder of the Company was Baht 14,363.74 million, Baht 549.90 million increasing from 31st December, 2016 due to net profit during 2017 deducted with dividend payment Baht 534.46 million.

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