Page 48 - Annual report eng 2020

Tycoons Worldwide Group (Thailand) Plc.

11. Connected transactions
11.1 During the year 2020 and 2019, the company has entered into connected transaction with persons/parties, which may create conflict of interest as follows:
Person who may have conflict of interest Amount of connected
Relationship transaction (MB) Pricing policy / Necessity and Appropriateness / Remarks
Transaction 2020 2019
1.Tycoons Group Holding Revenue from sale 282 673 The audit committee reviewed and commented as follows:
Enterprise (TGE) 100% (1) Sales for wire rod and annealed wire : The market in Taiwan is substantially large
Shares of Total Purchase of 113 68 relative to Thai market, thus motivating TYCN selling to TGE in Taiwan. Some of wire rod
Parent raw material and annealed wire sold to TGE will be used internally whilst most of it will be on sold to
company and supplies Taiwanese customers. The logic behind selling through TGE is due to TGE’s long-term
Purchase of fixed 2 6 relationships and profile with Taiwanese customers. It can directly grasp the market information
through it, and can avoid the sales expenses of the company to establish the marketing channel again or
assets need to invest in marketing in Taiwan market.
2.Tycoons Group Parent Total Purchase of - -
International company raw material (2) Materials, supplies and fixed assets. : The transactions between the Company and the parent company
(TGI) and supplies TGI and the associated company TY STEEL's for raw materials and fixed assets are based on the
3.TY Steel 30.84% Total Purchase of operation requirements and the transaction price is based on the market price. The raw materials
Company owned of raw material 1,844 2,812 purchased from TGE are mainly used to produce fasteners specifically, the annealed wire chemical
component, die and machinery parts cannot be acquired locally,
Limited TYCN therefore will are sourced in Taiwan via TGE. The main consideration is still based on TGE
Sales 950 84 understanding of the market and bargaining power in purchasing, which can reduce the waste
of the company’s manpower and time. The audit committee reviewed and commented that
Other income 9 8 purchase item from the parent company is considered to be normal trading.

Purchase of goods 456 2,326 (3) Credit terms for the related party was set to be 30 - 60 days, because of the transportation,
inventory and re-sale period of TGE to end-customers.
4.Jing Hai 19.75% Sales 124 99
Hardware Co., owned of (4) The pricing policy for intercompany purchase and sale transactions with its related parties normal are
at market price.
Ltd. parent Total Purchase of 1 1
company raw material
5. HuangHua 60% Sales of - -
Jujin Hardware owned of equipments
Products Co., parent
Ltd. company
6. Tycoons
Vietnam Co., 100% Total Purchase of - -
Ltd. owned of raw material
parent
company

41