Page 56 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

13. Management discussion and analysis (MD&A)

13.1 Overall past performance

In 2018, sales revenue was 10,356MB increased by 37.78% compared to 7,517MB in 2017. This
in total sales is attributable as to 56.91% to domestic and as to 43.09% in international sales. The
increase in both sales volume and sales value of steel products. Other income 106 MB increased 36
MB or 51.26% comparing with 2017 mainly gain from subsidiary liquidation and foreign
exchange. The net loss of 2018 was 36MB decreased by 118% compared to 188MB of 2017. That
is because of the steep decline in international prices of finished steel and billets since November
2018. As a result of the decrease in selling price in quarter fourth, the company reports a decrease
in gross profit.

In 2017, sales revenue was 7,517MB increased by 21.19% compared to 6,202MB in 2016. This in
total sales is attributable as to 45.22% to domestic and as to 54.78% in international sales. The
increase was due to strong steel demand and China’s capacity cut, resulting in an increase in steel
prices. The net income of 2017 was 188MB increased by 168.42% compared to 70MB of 2016.
That is because of the cost-effectiveness of the company’s good efforts in the management of
production, marketing, and procurement. Besides, the investment in TY accomplished the
integration of upstream industry, which allowed TYCN to better control raw material quality.
Moreover, the integration benefit TYCN for keeping less inventories, which resulted in less price
fluctuation, less exposure of exchange position, less demand of working capital, and less interest
fees.

13.2 Performance by product group

(1) Revenue from sales
Sales revenue of 2018 was 10,356MB increased by 37.78% compared to 7,517MB
of 2017. That was because of the increase in both sales volume and sales value of steel
products. Sales revenue of 2017 was 7,517MB increased by 21.19% compared to
6,202MB of 2016. That was because of strong steel demand and China’s capacity cut,
resulting in an increase in steel prices and the company’s sales volume.

Further details of sales revenue structure can be summarized as follows:

Sales from wire rods in 2018 was 5,794MB, increased by 41% compared to 2017, and
in 2017 was 4,114MB, decreased by 36% compared to 2016.

Sales from annealed wire in 2018 was 1,201MB, decreased by 1% compared to 2017,
and in 2017 was 1,214MB, decreased by 11% compared to 2016.

Sales from screws in 2018 was 634 MB, decreased by 21% compared to 2017, and in
2017 was 799 MB, increased by 55% compared to 2016.

Sales bolts in 2018 was 1,594MB, increased by 27% compared to 2017, and
in 2017 was 1,257MB, increased by 1% compared to 2016.

49