Page 60 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

before, however, these loans were used to purchase raw materials for normal business
operations. As a result, the company believes that the short-term maturity of such
current liabilities should not adversely affect the company’s liquidity.

Accounts payable turnover has been decreased from 19.02 times of year 2017 to
17.41 times of year 2018. It’s because accounts payable period of purchase of raw
materials got longer, therefore, the payment period increase 1.76 days from 18.92 days
of year 2017 to 20.68 days of year 2018.

(3) Capital expenditure

Capital expenditures amounted to 208MB and 40MB for the year 2018 and 2017
respectively.

(4) Sources of funds

Funds structure

The debt to equity ratio was 0.52 and 0.47 between the years 2018 and 2017. The
debt to assets ratio was 0.34 and 0.32 between 2018 and 2017. This indicated that
TYCN had only a small amount of risk and a healthy financial structure.

Shareholders’ equity

As of December 31, 2018, shareholders’ equity was 5,292MB, a decrease of 0.80%
or 42MB from year 2017. This was due to net loss in 2018.

Liabilities

At the end of 2018, TYCN’s liabilities amounted to 2,729MB, which is equivalent
to 34.03% of liabilities and shareholder’s equity, and company’s long-term Liabilities
and equity was 5,338MB, or 135% of net fixed assets. This indicates that TYCN had a
healthy financial structure.

(5) Factors potentially affecting company’s performance in the future

The company's products are mainly wire rod, annealed wire, screws, bolts and
reinforcing bars (including deformed bars and round bars) plus the raw material billet
produced by the subsidiary itself. Even if the market competition is more intense in the
future. The company believes that with its superior quality and diversity of products,
consistent production from top to bottom will bring competitive advantages to the company.

14. Financial Statements

If investors want to learn more information about issuing company, please review the
Thai registration statements for the year (56-1) on the website www.sec.co.th.

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