Management Discussion and Analysis

Golden Land Property Development Public Company Limited (“the Company”) would like to report the financial result of 3rd quarter ending 30th June, 2019 of the Company and its subsidiaries. The Company recorded net profit Baht 525 million, an increase of Baht 25 million or 5%. For the 9 months period ended 30th June, 2019 net profit was Baht 1,638.24 million, an increase of Baht 61.13 million or 4% increase from the same period of last year. The result was mainly from the following factors:

  1. The Company recognized the revenue for the 3rd quarter 2019 Baht 3,897.18 million, which increased Baht 152.90 million or 4.1% from the same quarter of last year, and reached the revenue of Baht 13,017.71 million for 9 months 2019, which increased Baht 1,535.88 million or 13.4% from the same period of last year.
    • The main revenue increase was from the sales of real estate at Baht 124.05 million or 3.7% increase for 3rd quarter 2019, and the increase of Baht 1,403.02 million or 13.8% increase for 9 months 2019. This was resulted from the success of new projects launched during the year 2019. The number of transferred units slow down by 96 units or 10.7% decrease during 3rd quarter but compensate with higher average selling price per unit and rose by 114 units or 4.3% increase during 9 months 2019 plus higher average selling price per unit.
    • An increase Baht 0.52 million for 3rd quarter 2019 and increase Baht 16.11 million or 2.3% for 9 months 2019 from revenues from rental and services, mainly drove from higher occupancy rate of FYI Center office building.
    • An increase Baht 5.53 million or 4.5% for 3rd quarter 2019 and increase Baht 20.73 million or 5.1% for 9 months 2019 from revenues from hotel business, mainly from higher occupancy rate and higher average daily room rate of Ascott and Mayfair Lung Suan.
    • An increase Baht 25.60 million or 57.9% for 3rd quarter 2019 and increase Baht 50.43 million or 43.3% for 9 months 2019 from Management fee income according to increasing rate of property management agreement.
    • An increase Baht 24.13 million or 52.8% for 9 months 2019 from other income resulting from reversal of litigation provision of subsidiary due to court order to dismiss the case.
  2. The Company has total expenses Baht 3,226.57 million which increased of Baht 99.16 million or 3.2% for 3rd quarter 2019 and total expenses for 9 months 2019 were Baht 11,003.60 which increased of Baht 1,474.60 million or 15.5% from the same period of last year. The increase of expenses was proportionated to growth of revenue by
    • An increase of costs of sale of real estate Baht 8.07 million or 0.4% that resulting to the increase of gross profit margin 2.2% for 3rd quarter 2019 and increase of cost for 9 months 2019 Baht 1,021.49 million or 14.8% effect on decrease of gross profit margin 0.6% caused by lower sale of luxury house which has high gross profit margin.
    • Slight increase from cost of rental and services was only 0.6% for 3rd quarter 2019 and for 9 months 2019. Cost of rental and service consisted of mostly fixed costs and small portion of variable costs. This led to insignificant change in overall cost.
    • A decrease from distribution cost Baht 24.07 million or 8.6% for 3rd quarter 2019 and increase Baht 133.70 million or 16.7% for 9 months of 2019 mainly increase of special business tax and transferred fee refer to sale growth, increase in sales promotion, advertising and marketing expenses relate to the increase of projects in order to stimulate backlog volume and turn to revenue in next quarters.
    • An increase of administrative expenses Baht 93.91 million or 28% for 3rd quarter 2019 and increase baht 266.29 million or 27.3% for 9 months 2019, major items are personnel expenses from the growing of headcount which correlate to the increase number of projects and employee benefit obligation which increase refer to labor law announcement amounting to Baht 11.59 million, 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, and consultancy fee for new information system.
  3. Income tax expense for 3rd quarter 2019 was Baht 146.39 million in respect of net profit before tax of Baht 671.39 million which was equivalent to corporate income tax rate at 21.8% compare to same quarter of last year which income tax expense was Baht 136.02 million in respect of net profit before tax of Baht 636.02 which was equivalent to corporate income tax rate at 21.4%.
  4. The Company generated net profit for the period in the amount of Baht 525 million increased Baht 25 million or 5% from increasing of revenue Baht 152.90 million and increasing of expenses baht 99.16 million in the 3rd quarter 2019 and profit for the period Baht 1,638.24 million for 9 months 2019 increase 3.9%.

  5. Financial position as of 30th June, 2019
    • Assets
      The Company had total asset of Baht 45,713.13 million, increasing Baht 6,511.47 million from 30th September 2018. The growth of the asset was driven by increase of Baht 5,953.19 million real estate projects under development resulting from acquire new land bank for development, increased Baht 678.78 million from deposit land - real estate projects under development, increased Baht 59.77 million from deferred tax assets, net increased from other current assets and other non-current assets Baht 76.3 million and net with decrease of investment properties, leasehold rights, and property, plant and equipment Baht 256.57 million from depreciation.
    • Liabilities and equity
      The Company had total liabilities of Baht 29,254.11 million, increasing Baht 5,942.14 million from 30th September 2018 mainly from issuing debentures Baht 3,000 million, net increase of loan from financial institutions of Baht 2,918.62 million, and net decrease of other current liabilities and other non-current liabilities Baht 23.52 million.

    Equity attributable to owners of the parent company was Baht 16,763.99 million, increasing Baht 576 million from 30th September, 2018 resulting from net profit of 9 months period less dividend paid.

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