Performance and Financial Position

In 2018, the Company sold it’s products both domestically and internationally. Domestic sales were 51% and export sales were 49% of total sales of the total unit of 1.71 million sets of compressors sold. Total revenues from sales and services income was Baht 7,428.50 million, with a 0.52% gross profit margin and a net loss operation of Baht 605.79 million. This operation loss was impacted by the world economic situations, and stiff competition from China for compressors. This pressure of high competition continues to effect prices especially for small reciprocating motor compressors for household refrigerators refleted in the lower sales amount and quantity, while at the same time higher costs of product impacted by increasing price of main materials such as copper and steel. Copper prices increased by more than 10% in the last year and steel prices by more then 11%.

Under such circumstances, the Company has employed many strategies in order to respond to customers’ needs in terms of prices, develop strong relationship with its customers, improve production productivity, as well as reducing the product costs by using alternative raw materials and aims to make the product technology and production of motor compressor congruent with market needs and comply with the rules and regulation of refrigerants in relation to environmental issues.

Performance

(1) Revenues from sales and services income

The revenues from sales and services income of the Company and its subsidiary for 2018 was Baht 7,428.502 million, compared to the approximated Baht 9,476.91 million of sales and services income of the previous year, a decrease of Baht 2,048.41 million or 21.61%, was due to less demand which effected by both the world wide and Thailand economic situations. There was a high competition in the industry, which caused continuing price reductions especially for small reciprocating motor compressors for household refrigerators that is refleted in the lower sales amount and quantity.

(2) Gross profit margin

The gross profit margin of 2018 and 2017 of the company were 0.52% and 5.90%, a decrease of 5.38% caused from the increasing price of main materials of copper and steels, which increased respectively by more than 10% and 11%. In addition, the appreciated value of Thai Baht affected the selling price in a competive sales market.

(3) Operation Expenses

  • Selling Expenses of the Company and its subsidiary for 2018 approximated Baht 86.99 million, compared to the approximated Baht 136.22 million of the previous year, a decrease of Baht 49.23 million caused from the decrease amount of warranty products and commission expenses of sales.
  • Administrative Expenses of the Company and its subsidiary for 2018 approximated Baht 545.86 million, compared to the approximated Baht 522.15 million of 2017 was nearly same amount.
  • The company and its subsidiaries got gain on foreign exchange rate for 2018 approximated Baht 6.54 million while the 2017 got gain on foreign exchange rate approximated Baht 17.93 million which resulted from import transactions of copper and steel materials and export sales of compressors and the efficient management for forward exchange contracts.

(4) Others Income

Income from scrap sales of the Company and its subsidiary for 2018 approximated Baht 27.36 million, compared to the approximated Baht 32.00 million of the previous year, a decreasing of Baht 4.64 million or 14.50%

(5) Finance Cost

Finance cost of the Company and its subsidiany for 2018 was Baht 187.13 million whil it was Baht 183.17 million in year 2017.

Financial Position

Finance cost of the Company and its subsidiany for 2018 was Baht 187.13 million whil it was Baht 183.17 million in year 2017.

The consolidated total assets in 2018 was Baht 7,142.11 million, a decrease of Baht 115.22 million from Baht 7,297.33 million in 2017.

The consolidated total liabilities in 2018, was Baht 5,573.81 million, an increase of of Baht 501.97 million from Baht 5,071.84 million in 2017, mainly resulted by the increase of long term loans, net of current portion approximated of Baht 475.50 million.

The consolidated total shareholders’ equity in 2018 was Baht 1,568.29 million, compared to the approximated Baht 2,225.49 million of the previous year, a decrease of Baht 657.20 million caused from the loss operations of 2018 approximated Baht 605.79 million.