Page 60 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

however, these loans were used to purchase raw materials for normal business operations.
As a result, the company believes that the short-term maturity of such current liabilities
should not adversely affect the company’s liquidity.

Accounts payable turnover has been decreased from 17.41 times of year 2018 to 14.37
times of year 2019. It’s because accounts payable period of purchase of raw materials got
longer, therefore, the payment period increase 4.38days from 20.68 days of year 2018 to
25.06 days of year 2019.

(3) Capital expenditure

Capital expenditures amounted to 112MB and 208MB for the year 2019 and 2018
respectively.

(4) Sources of funds
Funds structure

The debt to equity ratio was 0.52 and 0.52 between the years 2019 and 2018. The debt
to assets ratio was 0.34 and 0.34 between 2019 and 2018. This indicated that TYCN had
only a small amount of risk and a healthy financial structure.

Shareholders’ equity

As of December 31, 2019, shareholders’ equity was 4,292MB, a decrease of 18.90% or
1,000MB from year 2018. This was due to net loss in 2019.

Liabilities

At the end of 2019, TYCN’s liabilities amounted to 2,223MB, which is equivalent to
34.13% of liabilities and shareholder’s equity, and company’s long-term Liabilities and
equity was 4,334MB, or 134% of net fixed assets. This indicates that TYCN had a healthy
financial structure.

(5) Factors potentially affecting company’s performance in the future

The company's products are mainly wire rod, annealed wire, screws, bolts and
reinforcing bars (including deformed bars and round bars) plus the raw material billet
produced by the subsidiary itself. Even if the market competition is more intense in the
future. The company believes that with its superior quality and diversity of products,
consistent production from top to bottom will bring competitive advantages to the company.

14. Financial Statements

If investors want to learn more information about issuing company, please review the Thai
registration statements for the year (56-1) on the website www.sec.or.th / www.set.or.th

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