Part 3: Financial Status and Performance

13. Financial Highlights

13.1 Summary of financial status and performance

  ---------------- ----------- -------- ---------- -------- ---------- --------
  Type             2013                 2014                2015       

                   Million     %        Million    %        Million    %
                   Baht                 Baht                Baht       

  Total Assets     594.15      100.00   695.78     100.00   729.51     100.00

  Total            276.47      46.53    310.69     44.65    258.68     35.46
  Liabilities                                                          

  Total Equities   317.68      53.47    385.09     55.35    470.83     64.54

  Total Revenue    670.54      -        826.52     -        753.25     -

  Net Profit       49.54       7.39     75.54      9.14     90.15      11.97

  Earnings Per     0.23                 0.25                0.30       
  Share (Baht)                                                         
  ---------------- ----------- -------- ---------- -------- ---------- --------

Remark: Earnings Per Share is calculated from the total number of shares
in each year as follows:

2013: 212,332,877 ordinary shares

2014: 302,686,633 ordinary shares

2015: 302,686,717 ordinary shares

13.2 Financial Ratios

+--------------------------------+------------+-----------+-----------+
|                                | 2013       | 2014      | 2015      |
+--------------------------------+------------+-----------+-----------+
| Liquidity Ratios               | 1.75       | 1.72      | 2.11      |
|                                |            |           |           |
| Current Ratio                  | 1.29       | 1.29      | 1.60      |
|                                |            |           |           |
| Quick Ratio                    | 0.27       | 0.05      | 0.34      |
|                                |            |           |           |
| Cash Ratio                     | 4.12       | 4.05      | 3.39      |
|                                |            |           |           |
| Account Receivable Turnover    | 87.41      | 88.91     | 106.08    |
|                                |            |           |           |
| Average Collection Period      | 4.48       | 5.32      | 4.52      |
| (Day)                          |            |           |           |
|                                | 80.32      | 67.64     | 79.68     |
| Inventory Turnover             |            |           |           |
|                                | 8.30       | 8.77      | 9.01      |
| Days Sales of Inventory (Days) |            |           |           |
|                                | 43.36      | 41.04     | 39.98     |
| Account Payable Turnover       |            |           |           |
|                                | 124        | 116       | 146       |
| Day Payable Outstanding (Days) |            |           |           |
|                                |            |           |           |
| Cash Cycle (Days)              |            |           |           |
+--------------------------------+------------+-----------+-----------+
| Profitability Ratio            | 18.23%     | 17.14%    | 19.93%    |
|                                |            |           |           |
| Gross Profit Margin (%)        | 9.86%      | 12.20%    | 16.28%    |
|                                |            |           |           |
| Operating Profit Margin (%)    | 140.33%    | 20.11%    | 106.70%   |
|                                |            |           |           |
| Cash Profit Margin (%)         | 7.39%      | 9.14%     | 11.97%    |
|                                |            |           |           |
| Net Profit Margin (%)          | 16.65%     | 21.50%    | 21.06%    |
|                                |            |           |           |
| Return On Equity (%)           |            |           |           |
+--------------------------------+------------+-----------+-----------+
| Efficiency Ratio               | 11.90%     | 15.44%    | 16.48%    |
|                                |            |           |           |
| Return on Asset (%)            | 62.14%     | 83.66%    | 85.93%    |
|                                |            |           |           |
| Return on Fixed Asset (%)      | 1.22       | 1.28      | 1.06      |
|                                |            |           |           |
| Total Asset Turnover           |            |           |           |
+--------------------------------+------------+-----------+-----------+
| Financial Policy Ratio         | 0.87       | 0.81      | 0.55      |
|                                |            |           |           |
| Debt to Equity Ratio           | 24.85      | 8.00      | 27.54     |
|                                |            |           |           |
| Interest Coverage              | 89.47%     | 130.84%   | 22.65%    |
|                                |            |           |           |
| Dividend Payout (%)            |            |           |           |
+--------------------------------+------------+-----------+-----------+

14. Management Discussion and Analysis (MD&A)

Business Performance

  ---------------------------------------------------------------------------------------------------------------------------------
                   2013                 2014                                          2015                                
  ---------------- ---------- --------- ---------- --------- -------------- --------- ---------- --------- -------------- ---------
                   Separate             Separate             Consolidated             Separate             Consolidated   

                   Million    %         Million    %         Million Baht   %         Million    %         Million Baht   %
                   Baht                 Baht                                          Baht                                

  Sales            665.77     99.29%    816.54     98.79%    816.54         98.79%    721.40     95.78%    721.40         95.77%

  Other income     4.77       0.71%     9.98       1.21%     9.98           1.21%     31.77      4.22%     31.85          4.23%

  Total revenues   670.54     100.00%   826.52     100.00%   826.52         100.00%   753.17     100.00%   753.25         100.00%

  Cost of sales    544.39     81.19%    676.27     81.82%    676.56         81.86%    576.22     76.51%    577.65         76.69%

  Selling expenses 21.49      3.20%     22.77      2.75%     22.81          2.76%     22.17      2.94%     22.74          3.02%

  Administrative   16.73      2.50%     18.01      2.18%     18.88          2.28%     23.14      3.07%     24.71          3.28%
  expenses                                                                                                                

  Executive’s      7.46       1.11%     8.41       1.02%     8.70           1.05%     9.96       1.32%     10.71          1.42%
  remuneration                                                                                                            

  Other expenses   14.83      2.21%     -          -         -              -                                             

  Total expenses   604.90     90.21%    725.46     87.77%    726.95         87.95%    631.49     83.84%    635.81         84.41%

  Finance cost     3.45       0.51%     4.93       0.60%     4.93           0.60%     4.48       0.59%     4.48           0.59%

  Income tax       12.66      1.89%     19.40      2.35%     19.40          2.35%     23.65      3.14%     23.65          3.14%
  expense                                                                                                                 

  Net profit       49.54      7.39%     76.73      9.28%     75.54*         9.14%     93.55      12.42%    90.15*         11.97%
  ---------------------------------------------------------------------------------------------------------------------------------

Remark: * Profit attributable to less Non-controlling interests of the
subsidiary 0.3 Million Baht in 2014 and 0.85 Million

Baht in 2015

Other income from Gains on exchange, Gains from sales of current and
available-for-sale investments and Interest

Other expenses from Loss on exchange, Changes in inventories of raw
material and finished goods

Revenue

The Company generated the revenue of 753.25 Million Baht in 2015,
decreased from the revenue earned in 2014 by 8.87% due to the economic
downturn resulting in lower sales volume. However, the Company is still
able to maintain the gross profit stably.

For other income in 2015, the Company generated 31.85 Million Baht,
increased by 218.82% from the previous year, resulted from sales of
current and available-for-sale investments according to the uncertainty
in political problems and gains on exchange rates from hedge preventive
in risk management. As of 2015, the Company gained profit from sales of
current and available-for-sale investments of 27.50 Million Baht, the
exchange rate of 0.60 Million Baht, tax income of 0.38 Million Baht,
dividend of 0.90 Million Baht, and other income of 2.39 Million Baht.

Cost of Goods Sold

Cost of goods sold in 2015 amounted to 577.65 Million Baht, which was
down year on year by 14.62% due the decrease in oil price and the
ability to negotiate for a lower price with foreign suppliers. Since the
Company has repaid back on time, the Company therefore gained more trust
from the sellers which made it easier for the Company to negotiate.

Selling and Administrative Expenses

Sales operation cost in 2015 amounted to 22.74 Million Baht, lowered by
0.31% year on year due to the decrease of the transportation cost
regarding the decline in oil price resulting in the lower transportation
cost by 14.22% from the year 2014. However, the reason that the total
cost of sales operation was decreased only by 0.31% because of a higher
number of human resources aiming to expand the customer base and
increase sales volume as well as preparing for the business expansion in
2015. The Company’s selling and administrative expenses composes of
Employee’s salary of 8.85 Million Baht, Bonuses of 1.52 Million Baht,
Commission fee of 3 Million Baht, Transportation cost of 7.18 Million
Baht and Other expenses of 2.19 Million Baht.

Management cost in 2015 amounted to 35.42 Million Baht, which was up
from 2014 by 28.43% caused by the increase of main expenses included as
follows:

Employee’s salary and benefit of 5.98 Million Baht, increased by 39.07%
from the previous year due to a higher number of human resources to
support the business growth as planned.

Maintenance cost in 2015 amounted to 1.29 Million Baht, risen by
1,072.73% from 2014 due to that in the year 2015, the Company has
renovated and repaired the office building as well as constructing more
office buildings.

Financial Advisory fee in 2015 amounted to 2 Million Baht, which was up
66.67% year on year due to the increase of financial information caused
from issuing warrants in 2015.

Remuneration cost in 2015 amounted to 10.71 Million Baht, risen from
2014 by 23.10% due to a higher number of management people and the
adjustment of salary and remuneration fee for executives.

Finance cost in 2015 amounted to 4.48 Million Baht, dropped from the
previous year by 9.13% due to the reduction of interest rates of 2015
regarding the new financial policy of Monetary Policy Committee that has
announced the change of interest rates to be 1.5%. Another reason is
because of the negotiation with the banks in reducing the Company’s
interest rates as well as the early repayment to lower down the finance
cost.

Corporate income tax in 2015 amounted to 23.65 Million Baht, increased
by 21.90% from 2014 due to the increase of net profit.

Net Profit and Profitability

In 2015, the Company’s net profit (Separate financial statements)
amounted to 93.35 Million Baht when compared to the previous year’s net
profit (Separate financial statements) of 76.73 Million Baht, it was
increased by 16.82 Million Baht (+21.92%). However, considering from the
consolidated financial statement in 2015 of the Company and its
subsidiaries, both earned net profit of 89.30 Million Baht, and when
compared with the year 2014 that generated 75.25 Million Baht, their net
profit has increased by 14.05 Million Baht (+18.67%). The main cause of
this increasing occurs from the increase of gross profit margin
resulting from the lower cost of goods sold, the customer base
expansion, profit from new products, and profit for exchange rates.

  Key Financial Ratios

In the year 2015, the Company has gross profit margin of 19.93%
increased by 17.14% from the year 2014 due to the lower cost of goods
sold related to the decrease in oil price and improved relationship with
foreign suppliers resulted from on-time repayment. The Company is
therefore able to negotiate for a lower price. Furthermore, as the sales
and finance team, has been closely monitored on the exchange rates, the
sales team could estimate the cost in advance and was able to set up the
selling price in order for maintaining the gross profit margin
efficiently.

Return on Asset in 2015 amounted to 16.48%, increased from 2014 by
15.44% due to EBIT that has risen by 17.93% resulting from the lower
cost of goods sold and the efficiency in managing selling and
administrative expenses.

Return on Equity in 2015 has dropped from 21.50% to 21.06% year on year
because of the increase in shareholding proportion of 85.59%.

Financial Status

  -------------------- ---------- --------- -------- ---------- --------- -------------- --------- -------- ---------- --------- -------------- ---------
                       2013                          2014                                                   2015                                

                       Separate                      Separate             Consolidated                      Separate             Consolidated   

                       Million    %                  Million    %         Million Baht   %                  Million    %         Million Baht   %
                       Baht                          Baht                                                   Baht                                

  Cash and cash        184.87     31.12%    154.38              22.31%    162.02         23.29%    210.33              28.85%    212.47         29.12%
  equivalents                                                                                                                                   

  Trade account        171.24     28.82%    232.10              33.54%    232.10         33.36%    193.03              26.47%    193.03         26.46%
  receivable-net                                                                                                                                

  Inventories          124.42     20.94%    129.76              18.75%    129.84         18.66%    125.46              17.21%    125.86         17.25%

  Other current assets 1.28       0.22%     2.82                0.41%     3.42           0.49%     0.51                0.07%     1.68           0.24%

  Available-for-sale   21.63      3.64%     55.74               8.06%     55.74          8.01%     73.26               10.05%    73.26          10.04%
  investments                                                                                                                                   

  Investment in        -          -         20.00               2.89%     -              -         24.00               3.29%     -              -
  subsidiary company                                                                                                                            

  Property, Plant and  89.56      15.07%    96.69               13.97%    108.01         15.52%    102.14              14.01%    119.07         16.32%
  Equipment                                                                                                                                     

  Intangible assets    0.00       0.00%     -                   -         4.11           0.59%     -                   -         3.68           0.50%

  Other non-current    1.15       0.19%     0.47                0.07%     0.54           0.08%     0.38                0.05%     0.46           0.07%
  assets                                                                                                                                        

  Total assets         594.15     100.00%   691.96              100.00%   695.78         100.00%   729.11              100.00%   729.51         100.00%

  Short-term loans     188.04     31.65%    216.53              31.29%    216.53         31.12%    182.65              25.05%    182.65         25.04%
  from financial                                                                                                                                
  institution                                                                                                                                   

  Trade and other      82.07      13.81%    71.89               10.39%    72.18          10.37%    55.99               7.68%     56.12          7.69%
  payables                                                                                                                                      

  Other liabilities    6.36       1.07%     21.96               3.18%     21.98          3.16%     19.90               2.73%     19.91          2.73%

  Total liabilities    276.47     46.53%    310.38              44.86%    310.69         44.65%    258.54              35.46%    258.68         35.46%

  Total shareholders’  317.68     53.47%    381.58              55.14%    385.09         55.35%    470.57              64.54%    470.83         64.54%
  equity                                                                                                                                        

  Total liabilities    594.15     100.00%   691.96              100.00%   695.78         100.00%   729.11              100.00%   729.51         100.00%
  and shareholders’                                                                                                                             
  equity                                                                                                                                        
  -------------------- ---------- --------- -------- ---------- --------- -------------- --------- -------- ---------- --------- -------------- ---------

  Total Assets

The Company’s total assets as of 2015 amounted to 728.51 Million Baht,
which was up 33.73 Million Baht (4.85%) year on year. The Company’s
total assets comprise of 73.07% of current assets and 26.93% of
non-current assets. The increasing in total assets occurred because of
the higher amount of cash that was increased by 31.14% year on year and
the increased amount of Property, Plant and Equipment of 10.24% from
constructing additional office buildings, purchasing more transportation
vehicles to support the increased number of sales and administrative
workers.

Total Liabilities

The Company’s total liabilities as of 2015 amounted to 258.68 Million
Baht, reduced by 52.01 Million Baht from the previous year (-16.74%).
The Company’s liabilities consist of 34.68% of current liabilities and
0.78% of non-current liabilities. Current liabilities of the Company
include of short-term loans from financial institutions and trade and
other payables in which the amount is lower than the previous year due
to early repayments purposing to reduce down the finance cost. The
Company’s non-current liabilities comprise of the long-term employee’s
benefit and deferred income tax.

  The Shareholders’ Equity

The Company’s equity as of 2015 amounted to 465.98 Million Baht,
increased from 2014 by 85.59 Million Baht, which was up 22.50% year on
year resulting from the continuous increase in retained earnings.

Cash Flow Statements

+------------------------------+------------+------------+------------+
|                              | 2013       | 2014       | 2015       |
|                              |            | (Con       |            |
|                              |            | solidated) | (Con       |
|                              |            |            | solidated) |
+------------------------------+------------+------------+------------+
|                              | Million    | Million    | Million    |
|                              | Baht       | Baht       | Baht       |
+------------------------------+------------+------------+------------+
| Profit before tax            | 62.20      | 94.65      | 112.95     |
+------------------------------+------------+------------+------------+
| Net cash flows from (used    | 69.52      | 15.13      | 95.28      |
| in) operating activities     |            |            |            |
+------------------------------+------------+------------+------------+
| Net cash flows from (used    | (24.56)    | (46.89)    | (14.90)    |
| in) investing activities     |            |            |            |
+------------------------------+------------+------------+------------+
| Net cash flows from (used    | (4.70)     | 8.91       | (29.93)    |
| in) financing activities     |            |            |            |
+------------------------------+------------+------------+------------+
| Net cash flow                | 40.26      | (22.85)    | 50.45      |
+------------------------------+------------+------------+------------+
| Cash and Cash equivalents at | 184.87     | 162.02     | 212.47     |
| end of year                  |            |            |            |
+------------------------------+------------+------------+------------+

Remark: Cash flow statements only show the summary

  Cash Flow

In 2015, the Company has net cash flows from operating activities of
95.28 Million Baht, increased from 2014 by 80.15 Million Baht (+529.74%)
due to the lessening amount of account receivable and inventory of 43.17
Million Baht as the Company has tightened by shortening the credit
period for new customers, including also the management of inventory
that is more efficient.

The Company’s net cash flows from investing activities in 2015 amounted
to 14.90 Million Baht due to the increased expenses of 17.90 Million
Baht on office equipment and constructing additional office buildings
and for net cash flows from financing activities of 29.93 Million Baht
and the main cause was because of the decreasing in account payable of
30.61 Million Baht as the Company has made some part of early
repayments.

The aforementioned net cash flows of the Company resulted in the
remaining cash balance and bank’s deposit of 212.47 Million Baht.