02-301-2223 sale@pp.premier.co.th

Business Overview of the Company and Its Subsidiary

As the economic slow growth in 2019 therefore affecting the purchasing power of consumers as well as little growth in the real estate and construction sector causing the market competition situation to be more intense compared to the previous year. However, since the company has expanded its operations to alternative energy business whether the solar rooftop products or solar power plants. Therefore, the company still has consistent sales to compensate for the water management products that have reduced sales.

Summary of Operating Performance

According to the Company and its subsidiary’ business operational results for the year ended 31 December 2019, the net profit of the Company and its subsidiaries was Baht 131.25 million, increasing from the previous year by Baht 73.88 million or 128.78%. Such change was due to the Company’s subsidiary’s disposal of land and buildings not used for operation generating profit from sale of asset in the amount of Baht 71.59 million. The Company also disposed of machineries and equipment of Sanko roof products generating profit in the amount of Baht 7.72 million. In addition, due to the change in employment law, the Company and its subsidiary recognized an increase in post-employment benefit scheme as Past Service Cost in the amount of Baht 15.87 million. If excluding the above-mentioned items, the operating profit of the Company and its subsidiary was Baht 67.81 million, increasing from the previous year by Baht 10.44 million. The key changing items are as follows: 

  1. Revenue from sales and services of the Company and its subsidiary was Baht 1,329.05 million, a decrease of Baht 0.47 million from the previous year or 0.04%. The change was caused by sales of Water Management products decreased by Baht 78.96 million. The sales of Environmental Preservation products and solar rooftop products increased by Baht 73.67 million and the sale of electricity of the subsidiary increased by Baht 4.82 million, with a gross profit margin closed to the last year, is 34%.
  2. The Selling expenses of the company was Baht 180.23 million. The ratio of selling expenses to sales revenue was 16.63%, which higher than the previous year’s rate at 16.58% mostly from the employee expense to accommodate sale task.
  3. The administrative expense of the Company was Baht 147.04 million which was increased by Baht 6.68 million from the last year. The significant items had increased is allowance for doubtful debt of Baht 6.26 million, which is a debtor that is being monitored from late payment of some construction contractors’ customers. The R&D expenses increased by 1.11 million Baht following the new product development plan and other expenses decreased by 0.69 million Baht.
  4. The financial expenses of the Company was Baht 7.19 million, a decrease of Baht 0.45 million from the previous year due to the reduced principal of long-term loans.
  5. Corporate income tax was Baht 7.26 million, is deferred income tax. Most of them were from long-term employee benefit provision and accumulated tax losses.
  6. The operating results of the subsidiary (Infinite Green Company Limited) has a net profit in the amount of Baht 152.22 million, which includes the profit from the disposal of non-operating assets in the amount of Baht 71.59 million. The net profit from operations before such transaction will be Baht 80.63 million, increased from the previous year by Baht 9.82 million.

In the period, the total revenue from sale of electricity was Baht 246.79 million, increased from the prior year of Baht 4.82 million. Gross profit margin was 62.43%. The administrative expenses decreased by Baht 12.36 million due to the decrease of allowance for retirement assets decrease from last year by Baht12.41 million. Financial expenses decreased from the previous year by Baht 6.90 million due to repayment of long-term loans resulting in lower principal. And income tax expenses amounted to 13.74 million Baht, increased from last year because the first power plant (Tha Maprang) is exempt from BOI tax remaining 50% and profits from businesses that are not tax exempt from the sale of non-operating assets.

Statement of financial position As at 31 December
2019
2018
Increase (Decrease)
Assets
1,840.22
1,911.18
(70.96)
Liabilities
590.82
734.72
(143.90)
Shareholders’ equity
1,249.40
1,176.46
72.94

The Significant changes in the statement of financial position are as follows:

As at 31 December 2019, the Company and its subsidiary have total assets 1,840.22 million Baht, decreased from prior year by Baht 70.96 million. Total liabilities 590.82 million Baht, decreased from the prior by Baht 143.90 million and had the shareholders’ equity of 1,249.40 million, the Significant change are as follows;

  1. Current investments amounting to Baht 269.71 million, increasing from the previous year by Baht 118.10 million from the cash of disposal of non-operating assets.
  2. Trade and other receivables amounting to Baht 269.71 million. The increasing by Baht 10.76 million from increase in sale volume during the fourth quarter.
  3. Inventories amounting to Baht 129.04 million decreased by Baht 56.51 million from the previous year: work in process decreased by Baht 34.00 million, finished goods decreased by Baht 16.18 million, raw material decreased by Baht 6.33 million.
  4. The non-operating assets amounting to Baht 14.23 million, decreasing by Baht 104.42 million from the disposal of non-used land and buildings of a subsidiary.
  5. Other non-current assets amounted to Baht 24.08 million increasing from the previous year by Baht 6.80 million from refundable tax by Baht 7.52 million and others decreased by Baht 0.72 million.
  6. Trade and other payables amounted to Baht 185.33 million decreasing from the previous year by Baht 25.98 million. The main reason is decreasing of trade payables of the Company by Baht 14.18 million, Other payables increasing by Baht 2.58 million and Unearned revenue and Advances Received decreasing by Baht 14.38 million.
  7. Long term loan from financial institution decreased from the previous year by Baht 157.27 million from repayment the Company’s loan by 17.04 million and repayment the IGC’s loan by Baht 140.23 million..
  8. The Shareholders’ equity amounted to Baht 1,249.40 million, which Baht 1,022.19 million was for the Company only and the 227.21 million Baht is the non-controlling interest of the subsidiary. The change in company’s equity from the profit for the year by Baht 131.25 million, other comprehensive income decreased by Baht 0.85 million, dividend paid by Baht 15.00 million and the dividend paid to the non-controlling interest of the subsidiary by Baht 42.46 million.