Page 54 - Annual report eng 2020

Tycoons Worldwide Group (Thailand) Plc.

13. Management discussion and analysis (MD&A)

13.1 Overall past performance
In 2020, sales revenue was 5,987MB decreased by 37.39% compared to 9,562MB in 2019.
This in total sales is attributable as to 73.98% to domestic and as to 26.02% in international
sales. Mainly due to the decrease in sales of steel products, and the severe economic
recession due to the global epidemics of COVID-19. Other income was 47 MB, decreased
16 MB or 25.35% compared to the year 2019, mainly due to gains on disposal of land,
building and equipment decrease, coupled with the decrease in foreign exchange gains and
other income increased in 2020.The net loss of 2020 was (321)MB decreased by 677 MB
or 67.82% compared to (998)MB of 2019. The main reason was due to increasing of gross
profit in the year 2020, and disposal of assets which cannot be used and impairment loss of
assets amounting to Baht 535 million in 2019.

14.2 Performance by product group

(1) Revenue from sales
Sales revenue of 2020 was 5,987MB decreased by 37.39% compared to 9,562MB of
2019. Mainly due to the severe economic recession due to the global epidemics of
COVID-19, which effect the decrease in sales of steel products.

Further details of sales revenue structure can be summarized as follows:
Sales from wire rods
In 2020 was 3,815MB, decreased by 12.16% compared to 2019, and
in 2019 was 4,343MB, decreased by 14% compared to 2018.

Sales from annealed wire
In 2020 was 576MB, decreased by 35.93% compared to 2019, and
In 2019 was 899MB, decreased by 26% compared to 2018.

Sales from Fastener
In 2020 was 1,004 MB, decreased by 37.68% compared to 2019, and
in 2019 was 1,611 MB, decreased by 24% compared to 2018.

(2) Expenses

Cost of sales
Cost of sales is primarily composed of conversion cost and raw materials, of which billet
is the main component. In year 2020, costs of sales were 5,760MB, decreased by 40.26%
compared to year 2019. This was mainly because the sales volume decreased.

Selling and administrative expenses (SG&A)
In year 2020, selling and administrative expenses were 255MB, and 24.62% decrease
from year 2019, The ratio of SG&A/Sales was 4.25% in 2020 and 3.53% in 2019. The
major components of SG&A are depreciation, salary and wages as well as transportation
costs, which vary directly with sales volume. The decrease in SG&A in 2020 is mainly
caused by the decrease in sales volume and the decrease in local
transportation and export related expenses.

46