The Company’s core business is producing die-casted Aluminum and Zinc parts from molds as required by the customers from various industries such as the automobile industry, electrical goods industry, and agricultural machinery industry.

In the year 2023, the Company had improved the manufacturing methods and effectively controlled the costs making the gross profit of 2023 higher than the previous year. The sales increased 7.23% when compared to the year 2022. The business performance and current cashflow of the Company for both the present and the future are as follows;

Business operation and financial status

In 2023, the Company’s net profit was 54.61 million Baht or 7.10% of the total revenue. In this year, the Company’s total revenue was 769.56 million Baht, a 51.91 million Baht increase from the previous year or 7.23%. This is due to the increase in the customers’ orders both old and new who had placed their confidence in the Company’s products. The Company’s gross profit was at 19.32%, profit from operation was at 69.58 million or 9.04% of the total revenue.

In 2022, the Company’s net profit was 22.01 million Baht or 3.07% of the total revenue. In this year, the Company’s total revenue was 717.65 million Baht, a 66.40 million Baht increase from the previous year or 10.19%. This is due to the increase in the customers’ orders both old and new who had placed their confidence in the Company’s products. The Company’s gross profit was at 14.42%, profit from operation was at 16.92 million or 2.60% of the total revenue.

In 2021, the Company’s net profit was 13.50 million Baht or 2.07% of the total revenue. In this year, the Company’s total revenue was 651.25 million Baht, a 201.46 million Baht increase from the previous year or 44.79%. This is due to the increase in the customers’ orders both old and new who had placed their confidence in the Company’s products. The Company’s gross profit was at 14.65%, profit from operation was at 16.92 million or 3.90% of the total revenue.

This is from the costs management, inventories management and effectively adjusting the production capacity, including the lower costs of ingredients and the means of production.

Revenue

The Company had incorporated the improved financial reports standard as the guidelines for accounting purposes, which had been in effect since the 1st of January 2023. The financial reports standard had been adjusted so that the content is equivalent to that of the international reports standard with the main emphasis on the clear explanation of the guidelines and practices for the accounting standards.

Assets

The Company’s total assets at the end of the year 2023, 2022 and 2021 was 541.99 million Baht, 513.67 million Baht and 497.80 million Baht respectively.

In 2023, the Company’s total assets were 541.99 million Baht, a 28.32 million Baht increase from 2022 or 5.51%. This is due to the increase of lands, buildings and equipment of 35.35 million Baht from acquiring the machineries for the manufacturing, following the rise of the customers’ orders.

The total assets can be divided into current assets of 279.33 million Baht or 51.54% of the total assets and non-current assets of 262.66 million Baht or 48.46% of the total assets.

In 2022, the Company’s total assets were 513.67 million Baht, a 15.87 million Baht increase from 2021 or 3.19%. This is due to the increase of lands, buildings and equipment and the increase in the investments following the rise in the customers’ orders.

The total assets can be divided into current assets of 231.03 million Baht or 44.98% of the total assets and non-current assets of 282.64 million Baht or 55.02% of the total assets.

In 2021, the Company’s total assets were 497.80 million Baht, a 62.98 million Baht increase from 2020 or 14.48% from the account receivables, inventories, lands, buildings and equipment. This also includes the increase in investments to improve the production process according to the rise of the customers’ demands.

The total assets can be divided into current assets of 238.06 million Baht or 47.82% of the total assets and non-current assets of 259.74 million Baht or 52.18% of the total assets.

Accounts receivables, accrued revenues, allowance for doubtful accounts and expected credit loss

With the new accounting policy, the Company must allocate the sales of molds and Aluminum parts. The Company recognizes the income and costs of selling molds when the customers approve the design of the molds, as well as the expected values of the accrued revenue, which is a part of the accounts receivables.

The Company establishes the credit term for the customers between 30 – 90 days. The Company will consider the length of payments depending on the orders and the financial status of each customer.

At the end of the year 2023, 2022 and 2021, the Company’s accounts receivables and other receivables were net total of 121.40 million Baht, 122.72 million Baht and 114.26 million Baht respectively, according to the debts analysis tables.

Inventory and allowance to reduce inventory to net realized value

At the end of the year 2023, 2022 and 2021, the Company’s inventory was 92.91 million Baht, 72.14 million Baht and 87.05 million Baht respectively. The Company’s current inventory ratio was at 7.52 times in 2023, at 7.72 times in 2022 and at 7.69 times in 2021 with the average sales ratio of 48 days, 47 days and 47 days in the year 2023, 2022 and the year 2021 respectively.

Liabilities

The Company’s total liabilities at the end of the year 2023, 2022 and 2021 was at 281.61 million Baht, 305.25 million Baht and 310.97 million Baht respectively and consisting of the current assets amounting to 223.86 million Baht, 223.65 million Baht and 234.91 million Baht per year respectively.

In 2023, the non-current assets of the Company were 61.75 million Baht, a 19.85 million Baht decrease from the year 2022 from the increase in the repayment to the long-term loans of financial institutions of 15.72 million baht and the decrease in the long-term contractual debts of 10.39 million Baht which was the payment of the machineries.

The Company’s debts to equity ratio was at 1.11 times in 2023, at 1.46 times in 2022 and 1.66 times in 2021. In 2023, this had decreased due to the increase in the repayment of long-term loans, as well as the Company performing better when compared to the year 2022 at 32.60 million Baht. The Company strives to maintain the financial ratio as regulated by the financial institutions.

Shareholders’ Equity

At the end of the year 2023, 2022 and 2021, the Company’s shareholders’ equity was 256.39 million Baht, 208.42 million Baht and 186.84 million Baht respectively. In 2023, the amount of shareholders’ equity was 256.39 million Baht consisting of paid-up common stocks of 316,662,232 stocks at 0.50 Baht or 158.33 million Baht, share premium of 20.83 million Baht, reserved shares by law of no less than 5% of the annual net profit minus accumulated loss (if any) until the amount of reserve capital is no less than 10 times of the registered capital of 7.20 million Baht, including accumulated profits at the end of 2023 of 70.02 million Baht. The shareholders’ equity increased from the year 2022 at 47.97 million Baht, from the net profit that had increased in the year 2023 of 54.62 million Baht.

The Company’s return on equity in the year 2023 was 21.30%, 10.56% in 2022 and 7.23% in 2021 respectively.

Cashflow

From the Company’s operation, at the end of the year 2023, 2022 and 2021, the cashflow and cash equivalence were 36.72 million Baht, 13.28 million Baht and 17.15 million Baht respectively.

In 2023, the Company’s cashflow from operations was 90.44 million Baht from the annual net profit and from efficiently managing the assets and the current liabilities when compared to the year 2022.

In 2023, the Company’s cashflow from investment was (12.48) million Baht from investing in new machineries to satisfy the increase in demands and to improve the manufacturing capacity.

In 2023, the Company’s cashflow from procurement was (54.52) million Baht from repaying the long-term loans to the financial institution of (17.55) million Baht and from repaying the leasing contract of (20.04) million Baht.

In 2022, the Company’s cashflow from operations was 80.12 million Baht from the annual net profit and from efficiently managing the assets and the current liabilities when compared to the year 2021 where the cash from operation was (2.13) million Baht, an 82.25 million Baht increase, and a 55.41 million Baht increase from 2021.

In 2022, the Company’s cashflow from investment was (39.90) million Baht from investing in machineries to satisfy the increase in demands and to significantly improve production.

In 2022, the Company’s cashflow from procurement was (44.41) million Baht from repaying the overdraft account from (12.76) million Baht and to repay the Company’s loans of (17) million Baht.

In 2021, the Company’s cashflow and cash equivalence was (5.07) million Baht and from the cashflow from operations of (2.13) million Baht.

In 2021, the Company’s cashflow from investment was (6.46) million Baht from buying the machineries and equipment of 6.43 million Baht, buying software assets for developing computer systems of 0.17 million Baht and from selling equipment of 0.15 million Baht.

In 2021, the Company’s cashflow from procurement was 3.52 million Baht from receiving the loans and repaying the loans to financial institutions of 27.59 million Baht and from repaying the loans from relating companies from 5.74 million Baht and from repaying the leasing contract of 22.24 million Baht, including repaying the interests from loans of 7.57 million Baht.

Factors affecting the financial status and future operations

From 2022 to 2023, the Company received orders from customers which had been increasing gradually and continuously. The price of the core material (Aluminum) had been fluctuating less, including being able to control the costs of production, promoting resources conservation and improving the performance of the staff by continuously preparing the workshops and seminars for the staff members adequately.

However, the Company continuously improves its marketing strategies and creates standards that the customers can trust both from the quality and the on-time delivery service. The Company has also expanded the customers base and added new products to improve sales.

The Company emphasizes on sustainability by considering the effect of ESG and reduce the environmental impact as much as possible.
1. Zero wastes policy.
2. Utilizing electricity and water efficiently.
3. use environmentally friendly products.
4. Reducing greenhouse gas emission.

Financial Ratio

Liquidity Ratio

The liquidity ratio for current assets to current liabilities each year were as follows; 1.25 times from the previous year in 2023, due to the Company gaining better cashflows from operations and managing the current assets and current liabilities efficiently. The liquidity ratio in 2023 had increased from the year 2022 and 2021 at 1.03 times and 1.01 times respectively. Other liquidity ratio in the year 2022 was as normal.

The cash cycle in 2023 was 34 days which was an improvement (reduction means good), meaning that the Company’s financial cash flows had performed better from the year 2022 and 2021.

The Company has sufficient cash flow to operate the business and will continue to develop the products and services that will always satisfy the customers.

Profitability Ratio

The profitability ratio is according to the table below. In the year 2023, the Company turned profitable with the gross profit margin of 19.32%, net profit of 7.10% including the return on shareholders of 21.30% which stemmed from several factor affecting the operations such as increasing in salary, better production performance. All the details had been explained under the business operations earlier.

Financial policy ratio

As for the financial policy ratio, the Company strives to maintain the appropriate financial ratio from financial institutions and has been improving continuously as stated previously. The Company believes that it will be able to repay all financial contracts until the end of the agreements.