News Detail
Date/Time
16 Aug 2017 06:32:00
Headline
Management Discussion and Analysis Quarter 2 Ending 30 Jun 2017
Symbol
NUSA
Source
NUSA
Management Discussion and Analysis Company name : NUSASIRI PUBLIC COMPANY LIMITED Year : 2017 Quarter : Quarter 2 Ending : 30-Jun-2017 Note : Ref. NUSA.59/2017 14 August 2017 Subject: Clarification on Results of Operation of the Company and Subsidiaries for the year ended 30 June 2017 Attn: Director and Manager The Stock Exchange of Thailand Nusasiri Public Company Limited and its subsidiaries ("the Company") would like to clarify the Company's operating results for the year ended 30 June 2017 and the Company's financial position as at 30 June 2017 as follows; Total Revenue The Company wishes to clarify that the statement of income for the year ended 30 June 2017 that the Company had total consolidated revenues of Baht 835 million, an increase of Baht 384 million or 85 percent from the previous year mainly due to an increase of revenue from sales of land including houses and condominium units of Baht 282 million or 67 percent as the company has increased advertising and promotional expenses to increase the revenue. However the Company increased its revenue from rental income and service of Baht 12 million due to an increase of leased properties. There were a gain from disposal of investments of Bath 32 million and gain on fair value adjustments of investments of Baht 32 million. Cost of sales Cost of sales for the year ended 30 June 2017 are Baht 464 million, increasing by Baht 200 million or an increase of 75 percent from the previous year which is in line with the increment in revenue from sales of land including houses and condominium units. The Company carried its gross profit margin ratio at 33 which is quite similar to the previous year margin. Cost of rental income and services Cost of rental income and services for the year ended 30 June 2017 of Baht 59 million, increasing by Baht 34 million or an increase of 136 percent from the previous year which is related to the increase in revenue from rental income and service. However the Company is not able to generate profit from rental income and services business as additional leased properties are operated in the initial phase of business operation. In addition, the Company carries higher guarantee return cost on leased properties this year. In October 2016, the Company has entered into a management agreement with an international hotel chain to manage some operating assets of the Company and one of its subsidiaries for 15 years. The Company expects that the new hotel management would increase a greater proportion of revenue and profit from rental income and services business for incoming years. Selling and Administrative Expenses For the year ended 30 June 2017, the Company's selling and administrative expenses of Baht 297 million, an increase of Baht 108 million, representing 57 percent increase from the previous year, are mainly due to an increase of advertising and promotional expenses to boost up pre-sale amount and increase brand awareness to customers, an increase of personnel who have developed modifications to the management of the company to serve business expansion in the future including the management fee from international hotel chain. Financial Cost For the year ended 30 June 2017, finance costs of baht 67 million increased by Baht 22 million or 49 percent increase compared to the previous year. There are few condominium projects completed their construction but the projects are pending the completion of the sales and transfer that carried in 2017. This caused interest expense relating to these condominium projects recorded as financial cost increased. Profit / Loss for the period Results of Operations for the year ended 30 June 2017 present with a loss of Baht 65 million, increased loss by Baht 17 million compared to the previous year. This year the Company has recorded higher total revenue and maintains its gross profit margin ration close to it in the previous year. The Company carries net operating loss from rental income and services business as additional leased properties are operated in the initial phase of business operation. There are few increases in selling expenses especially promotion advertising to boost sales record and increase brand awareness to customers. In addition, there are additional related expenses to personnel required for its future business expansion which shall create steady revenue stream in a long run. Profit/Loss attribute to owners of the parent Loss attribute to owners of the parent for the year ended 30 June 2017 present Baht 65 million reduced by Baht 21 million compared to the previous year. This is in line with Profit/Loss for the period which is increase. Financial position As at 30 June 2017, the Company has total assets of Baht 12,637 million increased by Baht 292 million from total assets as at 31 December 2016. This is mainly due to the decrease of inventory Baht 505 million and increase of current investments of Baht 474 million Investments in Joint Ventures of Baht 287 million property, plant and equipment increased Baht 93 million resulted by an increase of operating assets to serve business expansion . Meanwhile the Company had total liabilities Baht 5,344 million increased Baht 359 million from the total liabilities as at 31 December 2016 mainly due to issued secured bond as at 01 June 2017 of Baht 674 million and Long-term borrowings and Current portion of Long-term loans decreased by Baht 251 million. In additional the company carries debt to equity ratio at 0.73 slightly increased from debt to equity ratio as at 31 December 2016 which was 0.68. Please be informed accordingly. Sincerely yours, (Mr.Sompijit Chaichanajarak and Mrs.Siriya Thepcharoen) Authorized Director Account and finance Dept. Tel.02- 030-1399 # 111 This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.