Page 56 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

13. Management discussion and analysis (MD&A)

13.1 Overall past performance

In 2019, sales revenue was 9,562MB decreased by 7.66% compared to 10,356MB in 2018.
This in total sales is attributable as to 72.10% to domestic and as to 27.90% in international
sales. The reason was due to the decrease in selling price of steel products and the
appreciation of the baht caused the sales volume to decrease, other income was 65 million
baht, decreased 41 million baht or 50.61% compared to the year 2018, mainly due to the
profit from liquidation. Of the subsidiary in 2018, together with the decrease in foreign
exchange gain in 2019, the net loss of the year 2019 was 998 million baht, a decrease of
2,713.18 percent compared to 36 million baht of 2018 The main reason was that in the year
2019, the selling price of finished steel and billet in foreign countries decreased resulting in
the selling price of various products of the company decreased together with the appreciation
of the baht which resulted in a decrease in sales resulting in profits. The gross margin of the
company decreased in addition, in 2019, there were write-off of unused assets and loss from
listed securities by 5.35 million baht resulting in an increase in net loss.
In 2018, sales revenue was 10,356MB increased by 37.78% compared to 7,517MB in
2017. This in total sales is attributable as to 56.91% to domestic and as to 43.09% in
international sales. The increase in both sales volume and sales value of steel products. The
net loss of 2018 was 36MB decreased by 118% compared to 188MB of 2017. That is because
of the steep decline in international prices of finished steel and billets since November 2018.
As a result of the decrease in selling price in quarter fourth, the company reports a decrease
in gross profit.

13.2 Performance by product group

(1) Revenue from sales
Sales revenue of 2019 was 9,562MB decreased by 7.66% compared to 10,356MB of
2018. Due to sales volume and sales price decreased.
Sales revenue of 2018 was 10,356MB increased by 37.78% compared to 7,517MB of
2017. That was because of the increase in both sales volume and sales value of steel
products.

Further details of sales revenue structure can be summarized as follows:

Sales from wire rods
In 2019 was 4,343MB, decreased by 14% compared to 2018, and
in 2018 was 5,021MB, increased by 28% compared to 2017.

Sales from annealed wire
In 2019 was 899MB, decreased by 26% compared to 2018, and
in 2018 was 1,218MB, decreased by 1% compared to 2017.

Sales from Fastener
In 2019 was 1,611 MB, decreased by 24% compared to 2018, and
in 2018 was 2,112 MB, increased by 22% compared to 2017

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