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
Full Detailed News
Download Full Detailed News
                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.