Page 48 - Annual Report English 2018

relationships and profile with Taiwanese customers. It can directly grasp the market information
based on the operation requirements and the transaction price is based on the market price. The
the
(2) Materials, supplies and fixed assets. : The transactions between the Company and the parent
company TGI and the associated company TY STEEL's for raw materials and fixed assets are
create conflict of
through it, and can avoid the sales expenses of the company to establish the marketing channel
understanding of the market and bargaining power in purchasing, which can reduce the waste
therefore will are sourced in Taiwan via TGE. The main consideration is still based on TGE
to produce fasteners specifically,
relative to Thai market, thus motivating TYCN selling to TGE in Taiwan. Some of wire rod
of the company’s manpower and time. The audit committee reviewed and commented that
annealed wire chemical component, die and machinery parts cannot be acquired locally,
and annealed wire sold to TGE will be used internally whilst most of it will be on sold to
Taiwanese customers. The logic behind selling through TGE is due to TGE’s long-term
(1) Sales for wire rod and annealed wire : The market in Taiwan is substantially large
has entered into connected transaction with persons/parties, which may
Pricing policy / Necessity and Appropriateness / Remarks
mainly used
The audit committee reviewed and commented as follows:
again or need to invest in marketing in Taiwan market.
from TGE are
raw materials purchased
purchase item from the parent company is considered to be normal trading. (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) The pricing policy for intercompany purchase and sale transactions with its related parties normal are at market price. 43

2017 1,584 331 - - 3,936 138 - - - 40 -
transaction (MB) Amount of connected 2018 1,726 196 7 272 4,095 104 48 5 992 195 6
year 2018 and 2017, the company

Revenue from sale Total Purchase of raw material and supplies fixed Purchase of assets Total Purchase of raw material and supplies Total Purchase of raw material Sales Sales of lands Other income Purchase of goods Sales Total Purchase of raw material

Person who may have conflict of interest
Tycoons Worldwide Group (Thailand) Plc.
11. Connected transactions

Holding 100% Shares of Parent company Parent company 30.57% owned of TYCN 19.75% owned of parent company

11.1 During the interest as follows: Relationship Transaction 1.Tycoons Group Enterprise (TGE) 2.Tycoons Group International 3.TY Steel Company Limited 4.Jing Hai Hardware Co.,

(TGI) Ltd.