Page 51 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

(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 2022, costs of sales were 8,784MB, increased by 9.96%
compared to year 2021. This was mainly due to the sales volume increased in 2022.

Selling and administrative expenses (SG&A)
In year 2022, selling and administrative expenses were 399MB, an 6.06% increased from
year 2021, The ratio of SG&A/Sales was 4.26% in 2022 and 4.19% in 2021. The major
components of SG&A are depreciation, salary and wages as well as transportation costs,
which vary directly with sales volume. The increase in SG&A in 2022 is mainly due to
the sales volume increased and transportation, export-related expenses increased.

(3) Profit

Gross profit

In 2022, gross margin was 610MB. The rate decreased from 12.13% of 2021 to 6.51% of
2022, mainly due to the year 2022 mainly due to the decreased was the unit sales price
decreased in Q3 2022. However, raw material inventory costs are still high and rising of the
energy prices, lead to a substantial increase in production costs, resulting in a decreased in
gross profit margins.

Operating profit

Operating profit in 2022 was 211MB, the rate decreased from 7.94% of 2021 to (70.68)% of

2022, resulted from the decrease in gross profit rate.

Net income

The net profit of 2022 was 162MB decreased 215MB by 5.62% compared to net profit
377MB of 2021. That is because mainly due to the operating income gain were 221MB,
none-operating gain were 56MB, Share of loss from investment in associate of 0.98MB,
Income tax expense 48MB, Finance cost of 67MB.

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