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24 Feb 2020 17:32:00
Management Discussion and Analysis Yearly Ending 31 Dec 2019
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                Management Discussion and Analysis

Company name                             : CHAROONG THAI WIRE & CABLE PUBLIC 
Year                                     : 2019
Quarter                                  : Yearly
Ending                                   : 31-Dec-2019
Note                                     :
                                                           February 24, 2020

Subject  : Management Discussion and Analysis for 2019's
                   operating results

To           : President
                  The Stock Exchange of Thailand     

          Charoong Thai Wire and Cable Plc.(CTW) would like to clarify
the Company and its subsidiaries' 2019 operating results based on
the consolidated financial statements for the year ended 31 December
2019 as follows:

           (Unit : Million Baht)
     Operating Results                                                Period of the
                                                               2019            2018   
Total revenues                                   6,031.75       8,019.04        
Net Profit attributable to
equity holders of CTW                        77.24          287.49        (73.13)
Earnings per share (Baht/Share)          0.19              0.72    

Net Profit
     Net profit was THB 77.24 million in 2019, decreasing by THB
210.25 million or 73.13% from THB 287.49 million in 2018 caused
from the following main reasons:

Revenue from Sales
     Revenue from sales of THB 5,960.72 million in 2019 decreased
by THB 1,999.37 million or 25.12% from THB 7,960.09 million in 2018.
In 2019, the Company and its subsidiaries had revenue from local
customers of THB 3,584.60 million and from overseas customers of
THB 2,376.12 million.

Other Income
     Other Income of THB 71.03 million increased by THB 12.08 million
or 20.49% from THB 58.95 million in 2018 because a subsidiary
company received compensation from the Chinese government on
rebuilding the factory fence due to road expansion project in the
amount of THB 12.07 million.

     Total expenses of THB 5,925.33 million in 2019 decreased by THB
1,721.05 million or 22.51% from THB 7,646.38 million in 2018, details
were summarized as follows.

   1.    Cost of Sales
       Total cost of sales of THB 5,571.19 million in 2019, representing
93.48% of sales, decreased by THB 1,712.08 million or 23.51%,
which coincided with the sales decrease, when compared with THB
7,283.87 million in 2018, representing 91.50% of sales.  In 2019, there
was the reversal of allowance for diminution in value of inventory of
THB 25.64 million, due to decrease in the main raw material (copper)
   2.    Selling and Distribution Expenses
       Selling and distribution expenses was THB 102.37 million in
2019, decreasing by THB 9.83 million or 8.76% from THB 112.20
million in 2018, which most were the commission fees and
transportation fees.

   3.    Administrative Expenses
       Administrative expenses of THB 237.35 million decreased by
THB 12.96 million or 5.18% from THB 250.31 million in 2018 since
there was reversal of allowance for doubtful account of THB 6.93
million in 2019, arising from the repayment from trade receivables.

   4.    Finance Cost
       Finance cost of THB 23.68 million, decreased by THB 14.29
million or 37.65% from THB 37.97 million in 2018, which were mostly
interest payments of decreased trust receipts.

   5. Tax expenses
    Tax expenses of THB 40.93 million in 2019 consisted of the
corporate income tax of THB 30.30 million and relating to reversal of
temporary difference of THB 10.63 million, while Tax expenses of THB
69.72 million in 2018 consisted of the corporate income tax of THB
79.91 million and relating to origination of temporary differences of
THB 10.19 million.

          The separate financial statements for the year 2019, the
Company had net profit of Baht 111.93 million, decreasing by Baht
171.60 million or 60.52%, when compared with the net profit of Baht
283.54 million in 2018.

          Please be informed accordingly.

                                                          Sincerely yours,
                                                      (Mr. Sun Tao-Heng)
                                                        Managing Director
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