News Detail

Date/Time
14 Nov 2017 22:11:00
Headline
Management Discussion and Analysis Quarter 3 Ending 30 Sep 2017
Symbol
NUSA
Source
NUSA
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                Management Discussion and Analysis

Company name                             : NUSASIRI PUBLIC COMPANY LIMITED
Year                                     : 2017
Quarter                                  : Quarter 3
Ending                                   : 30-Sep-2017
Note                                     :
Ref. NUSA.073/2017

14 November 2017

Subject:           Clarification on Results of Operation of the Company and 
Subsidiaries for the year ended 30 September 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 September 2017
and the Company's financial position as at 30 September 2017 as follows;
Total Revenue
The Company wishes to clarify that the statement of income for the year ended 30
September 2017 that the Company had total consolidated revenues of Baht 1,320
million, an increase of Baht 484 million or 57 percent from the previous year
mainly due to an increase of revenue from sales of land including houses and
condominium units of Baht 376 million or 48 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 17 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 September 2017 are Baht 761 million, 
increasing by Baht 277 million or an increase of 59 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 34 and decreased of 4 percent  from the previous year.

Cost of rental income and services
Cost of rental income and services for the year ended 30 September 2017 of Baht 
108 million, increasing by Baht 52 million or an increase of 93 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 September 2017, the Company's selling and administrative 
expenses of Baht 422 million, an increase of Baht 119 million, representing 39
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 30September 2017, finance costs of baht 113 million increased
by Baht 49 million or 76 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 and including finance costs of issued secure Bond.

Profit / Loss for the period
Results of Operations for the year ended 30 September 2017 present with a loss 
of Baht 105 million, increased loss by Baht 14 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 September 2017 
present Baht 101 million reduced by Baht 3 million compared to the previous
year.
 
Financial position
As at 30 September 2017, the Company has total assets of Baht 12,194 million 
decreased by Baht 151 million from total assets as at 31 December 2016. This is
mainly due to the decrease of inventory Baht 659 million  and increase of
investments in Joint Ventures of Baht 280 million property, plant and equipment
increased Baht 119 million resulted by an increase of operating assets to serve
business expansion . Meanwhile the Company had total liabilities Baht 4,943
million decreased Baht 429 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 507 million. In additional the company carries debt to equity ratio at 0.68
which is quite similar 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
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