Management Discussion & Analysis (MD&A)

Golden Land Property Development Public Company Limited (“the Company”) would like to report the financial result of operation for the 1st quarter ended 31st December, 2019 of the Company and its subsidiaries. The Company recognized the revenue of Baht 4,015.35 million decrease 5.2% and net profit of Baht 361.43 million, decrease Baht 95.06 million or 20.8% compared with the same period of last year. The result is mainly caused from the following factors:

  1. The Company recognized the revenue of Baht 4,015.35 million for the 1st quarter ended 31st December, 2019 which decreased of Baht 220.56 million or 5.2% from the same period of last year.
    • A decrease Baht 210.01 million or 5.6% from revenues from sale of real estate caused by lower sale from single detached house and town home about Baht (545) million but increase from Neo Home (twin home) and upcountry projects approximately Baht 343 million.
    • An increase from revenue from rental and services amounting to Baht 12.81 million or 5.4%, mainly drove from higher occupancy rate and average rental rate of FYI Center office tower.
    • An increase Baht 4.82 million or 10% from Management fee income, according to increasing rate of property management agreement and new projects management.
    • A decrease Baht 27.46 million from other income resulting from there was reversal of litigation provision of subsidiary due to court order to dismiss the case in same period of last year.
  2. The Company has total expenses Baht 3,482.33 million which decreased of Baht 190.48 million or 5.2%, same rate of decrease in revenue, from the same period of last year.
    • A decrease from costs of sale of real estate Baht 229.0 million or 8.6% which increase gross profit margin of 2.3% reflect cost control and pricing strategy.
    • A decrease in distribution cost Baht 28.85 million or 9.0% mainly decrease of special business tax and sales promotion, advertising and marketing expenses.
    • An increase of administrative expenses Baht 56.32 million or 14.1%, due to increase of personnel expenses which correlate to the increase of projects and central management expenses together with public utility expenses in tandem with growing of a numbers of housing projects which some projects is not yet recognized sale until the transferring of land and house in future, including rental and services expense and depreciation related to relocated head office and more consultancy fee.
    These resulting to net profit before share of profit (loss) of associates and joint ventures at Baht 533.02 million which reduced Baht 30.09 million or 5.3% same rate of decrease of total revenues compare to the same period of last year.
  3. The Company recognize share loss from investments in associates and joint ventures increased from same period of last year by Baht 73.09 million. Mainly lead by share loss from investment in joint ventures which start operation of Samyan Mitrtown on 20th September 2019 and there is a need to spend high marketing expenses while the occupancy rate is gradually increased but with low rental rate then caused loss of operation.
  4. Income tax expenses were Baht 118.35 million from net profit before tax of Baht 479.78 million which was equivalent to corporate income tax rate at 24.7% resulting from no deferred tax assets recognition from loss from investments in Joint Ventures at this stage.
    From the operation above, the Company generated profit for the period of Baht 361.43 million decreased by Baht 95.06 million or 20.8% and net profit which attributable to the owners of the parent in the amount of Baht 363.10 million decreased Baht 95.96 million or 20.9%.
  5. Financial position as of 31st December, 2019
    • Assets
      The Company had total assets of Baht 50,377.89 million, increasing Baht 3,179.79 million from 30th September 2019. The growth of the assets was driven by increase of Baht 3,935.92 million in real estate projects under development resulting from acquire new land bank for development and net with decrease from investments in joint ventures Baht 79.74 million and from investment properties, leasehold rights, and property, plant and equipment Baht 114.26 million from depreciation.
    • Liabilities and equity
      The Company had total liabilities of Baht 33,025.46 million, increasing Baht 2,818.36 million from 30th September 2019 mainly from increase of loan from financial institutions of Baht 3,250.84 million.

    Equity attributable to owners of the parent company was Baht 17,662.18 million, increasing Baht 363.10 million from 30th September, 2019 resulting from net profit during this quarter.

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