Management Discussion and Analysis

Golden Land Property Development Public Company Limited (“the Company”) would like to report the financial result of operation for the year ended 30th September, 2018 of the Company and its subsidiaries. Since 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 nine month result.

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 for the year ended 30th September 2018 to be compared with 12 month period of last year. Users can see details at the accompany note 43 Supplementary information.

For the period 1 October 2017 - 30 September 2018, the Company recognized the revenue of Baht 15,795.67 million increase 29% and net profit of Baht 2,100.61 million, increased Baht 907.70 million or 76% compared with 12 month period of last year. The result is mainly caused from the following factors:

  1. The Company recognized the revenue of Baht 15,795.67 million for the year ended 30th September 2018 which increased of Baht 3,540.79 million or 29% from the same period of last year.
    • An increase Baht 3,481.54 million or 33% from revenue from the sales of real estate was resulted from sale and transferred success of new projects launched during the year 2018 including continuously sale and transferred of ongoing projects. The number of transferred units went up by 784 units during the year, from 50 projects compare to 36 projects of last year.
    • An increase Baht 121.65 million or 15% from revenue from rental and services, mainly drove from higher occupancy rate of FYI Center office building.
    • A decrease Baht 90.04 million from gain from sales investment in associates taken last year.
  2. Total expenses of 2018 were Baht 13,198.44 million which increased of Baht 2,357.40 million or 22% from last year. The increase of expenses was proportionate to growth of revenue.
    • An increase from cost of sale of real estate Baht 2,230.60 million, in tandem with an increase of sale with gross profit margin 32.4% increased 1.2% reflect cost control and sale pricing strategy better than last year.
    • An increase from distribution cost Baht 244.29 million or 27%, mainly increasing of specific business tax and sales promotion to promote selling, which were correlate to the recognize sales of real estate.
    • A decrease from administrative expenses Baht 79.21 million or 5%, due to increase of personnel expenses which correlate to the increase of projects and central management expenses in tandem with growing of a numbers of housing projects offset with reduction of Baht 174.36 million because of no impairment of assets and provision for litigation loss with previously record last year.
    • Finance costs were substantially decreased 60% mainly resulting from lower cost of fund and adjustment of capitalized cost of project under development for sales.
  3. Income tax expenses were Baht 572.24 million from net profit before tax of Baht 2,672.85 million which was equivalent to corporate income tax rate at 21%. Last year, the Company had income tax expenses Baht 277.68 million from net profit before tax of Baht 1,470.60 million which was equivalent to corporate income tax rate at 19%. This was due to the fact that last year the Company recognized deferred tax assets from loss carry forward.

    The Company generated net profit in the amount of Baht 2,100.61 million increased Baht 907.70 million or 76% from revenue increase Baht 3,559.65 million and expenses increase Baht 2,651.95 million. For the net profit which attributable to the owners of the parent was Baht 2,109.61 million increased Baht 907.09 million for 12 month result refer to supplementary information.

  4. Financial position as of 30th September, 2018
    • Assets
      The Company had total assets of Baht 39,201.66 million, increasing Baht 8,396.99 million from 30th September, 2017. The growth of the assets was driven by increase of Baht 8,193.97 million real estate projects under development resulting from acquire new land bank for development plus increase investment in joint venture - Kasemsubbhakdi Co., Ltd., Baht 539 million for development of Samyan Mitrtown and net with decrease of investment properties Baht 334.56 million from depreciation. During the year 2018, there is no material investment or divestment.
    • Liabilities and equity
      The Company had total liabilities of Baht 23,311.96 million, increasing Baht 6,871.03 million from 30th September, 2017 mainly from issuing new debentures Baht 2 billion, plus increase of loan from financial institutions and long-term note payables of Baht 4,110.70 million.

    Equity attributable to owners of the parent company was Baht 15,889.70 million, increasing Baht 1,525.96 million from 30th September, 2017 resulting from net profit during 2018 deducted with dividend payment Baht 580.93 million.

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