Overview

Referring to the operating performance in the consolidated financial statement for the first quarter, ending March 31, 2024, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 259.31 MB, increased by 18.38 MB or 7.63% YoY compared with revenue from sales and services of 240.93 MB, mainly from Occupational Safety, Health and Environment Products or ‘SAFETY’ increased from sales in the personal protective equipment and revenue from Water Solution Products or WATER were increase due to the number of construction projects, water treatment system installation services and revenue from selling products, machinery and equipment increased compared to the same period of the previous year. In addition, the Company had revenue from Healthcare Products increase from expanding into new product markets. However, revenue from Control Environment Products or ‘CE’ decreased due to the slowdown in the industry of main customers in electronic.

The gross profit increased in line with higher revenue from sales and services, for the first quarter of 2024, the company’s gross profit was 69.96 MB, representing gross profit margin of 26.98%, gross profit increased compared with gross profit of 65.28 MB, representing gross profit margin of 27.10% in the same quarter of previous year. Distribution costs and administrative expenses similar, compared to the same quarter of the previous year. The Company’s net profit for the first quarter of 2024 was 15.55 MB; equivalent to 5.97%, decreased 2.90 MB or 22.91% YoY at 12.65 MB; equivalent to 5.24%.

Operating performance

Unit : MB

Revenue

Unit : MB

In quarter 1/2024, the total revenue from sales and services provision were 259.31 MB, with 188.20 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 72.58%, 46.61 MB of Control Environment Products or CE accounting for 17.97%, 4.82 MB of Medical and Healthcare Products accounting for 1.86%, and 19.68 MB of Water Solution Products or WATER accounting for 7.59%.

The revenue from sales and services provision in SAFETY products was 188.20 MB, increased 9.09 MB or 5.08% compared to the same quarter of previous year, mainly from revenue from sales of personal protective equipment increased in accordance with the expansion of the industrial sector and services sector. In addition, the Company has developed new product items, resulting in increased sales for both existing and new customers.

The revenue from sales and services provision in CE products was 46.61 MB, decreased 8.69 MB or 15.71% compared to the same quarter of previous year. Major customers in the electronics industry have decreased production according to the slowdown in the electronics industry.

For the Medical and Healthcare Products, which is begin to expand market. In quarter 1/2024, revenue from sales provision in Medical and Healthcare Products was 4.82 MB increased 3.89 MB or 418.28% compared to the same quarter of previous year, mainly from the sales of adult diaper and healthcare products.

The revenue from sales and services provision in the WATER products was 19.68 MB, increased 14.09 MB or 252.06% compared to the same quarter of previous year, mainly due to the number of construction projects and water treatment system installation services increased compared to the same period of the previous year. In addition, revenue increased from selling products, machinery and equipment for construction projects of joint ventures.

Cost of Sales and Services

The Company’s total costs in quarter 1/2024 were 189.36 MB, comprising of 181.22 MB cost of sales and 8.14 MB cost of rendering of services. Cost of sales and services increased 13.71 MB or 7.81% proportionally with higher revenue from sales and services. In quarter 1/2024, costs of sales and services accounted for 73.02% of revenue from sales and services.

The Company’s gross profit was 69.96 MB, representing gross profit margin of 26.98%, gross profit increased 4.67 MB or 7.16% compared with gross profit of 65.28 MB, representing gross profit margin of 27.10% in the same quarter of previous year.

Distribution Costs and Administrative Expenses

In quarter 1/2024, Distribution costs and administrative expenses were 49.40 MB, consisting distribution costs of 24.67 MB and administrative expenses of 24.73 MB. Distribution costs and administrative expenses were similar compared to the same quarter of the last year, the expenses were increase, mainly from marketing expenses, advertising and promotion expenses and transportation expenses. Meanwhile, employee expenses and other administrative expenses were decrease.

In quarter 1/2024, the company had the loss on exchange rate of 1.96 MB, while there was the gain on exchange rate of 0.36 MB in the same quarter of the previous year.

The company’s financial cost was 0.76 MB, increasing by 0.13 MB or 20.70% according an increase interest rates compared to financial cost of 0.63 MB in the same quarter of previous year.

Net Profit

In quarter 1/2024, the company’s consolidate net profit attributable to equity holders was 15.55 MB, accounted for net profit margin 5.97%, increasing by 2.90 MB or 22.91% compared to net profit attributable to equity holders of 12.65 MB, accounted for net profit margin 5.24% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of March 31, 2024, the Company’s total assets were 645.37 MB, increased 1.98 MB or 0.31% from December 31, 2023. The assets increased from current assets, which increased 2.84 MB or 0.61% mainly from trade and other current receivables-net increased 20.47 MB. However, cash and cash equivalents decreased 11.06 MB and net-inventories decreased 6.06 MB. Non-current assets decreased 0.85 MB or 0.49%, mainly from investment in joint venture decreased 0.74 MB, property, plant and equipment-net decreased 1.02 MB, while, right of use asset-net increased 0.94 MB.

Liabilities

As of March 31, 2024, the Company’s total liabilities were 255.51 MB, decreased 13.48 MB or 5.01% from December 31, 2023. The liabilities decreased mainly from the decrease of 10.82 MB of short-term loans from financial institutions and trade and other payables decreased 7.81 MB. However, lease liabilities increased 0.81 MB and current income tax payable increased 3.32 MB.

Shareholder’s equity

As of March 31, 2024, Shareholders’ equity of the Company was 389.74 MB, increased 15.47 MB or 4.13% from December 31, 2023 from 15.47 MB of net profit for the period.

Cash Flows

Unit : MB

For the three month period, ending March 31, 2024, the Company’s net cash from the operating activities was 1.54 MB, with operating profits prior to changes in the operating assets and liabilities of 26 MB. Cash flow increased from inventories decreased 5.87 MB. While, cash flow decreased from trade and other receivables increased 20.25 MB and net- trade and other payables decreased 10.40 MB.

Cash flow used in investment activities was 0.36 MB to purchase fix assets of 0.79 MB while, cash flow acquired 0.40 MB from interest received.

Cash flow used in financing activities was 12.16 MB to repayment of short-term loan from financial institutions of 10.82 MB, repayment of liabilities under lease agreement of 0.61 MB and interest expense of 0.73 MB.

Overview

Referring to the operating performance in the consolidated financial statement for the year, ending December 31, 2023, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 971.43 MB, decreasing by 29.05 MB or 2.90% compared to the last year with revenue from sales and services of 1,000.48 MB, mainly from revenue from Occupational Safety, Health and Environment Products or ‘SAFETY’ and Control Environment Product or ‘CE’ were decrease mainly due to a significant drop in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY and CE products used in the industrial sector are still securing a continuous increase in purchase orders in pursuit of the expansion of the manufacturing sector in key industries, and the revenue increased from new customers and new products marketing in healthcare products. In addition, revenue from Water Solution Products or WATER were increase from selling products, machinery and equipment for construction projects and revenue from water treatment system installation services and maintenance services increased compared to the same period of the previous year. The gross profit increased compare to the previous year due to the proportion of sales of products with high gross profit margins increased and adding new products and increases of selling price in some product categories, as the result, the company’s gross profit was 258.67 MB, representing gross profit margin of 26.63%. Distribution costs and administrative expenses were increase mainly from advertising and promotion expenses and employee expenses. Other income increased mainly from receiving refunds on fines and fees from water treatment projects.

Summary of operating results for the 2023, the Company’s net profit attributable to equity holders of was 58.30 MB, representing a net profit margin of 5.93%, increasing by 4.26 MB or 7.89%, compared to the previous year with 54.04 MB of net profit attributable to equity holders, representing a net profit margin of 5.39%.

Operating performance

Unit : MB

Revenue

Unit : MB

In 2023, the total revenue from sales and services provision were 971.43 MB, with 722.85 MB of Occupational Safety, Health and Environment Products or ‘SAFETY’, accounting for 74.41%, 216.33 MB of Control Environment Products or ‘CE’, accounting for 22.27% and 32.25 MB of Water Solution Products or ‘WATER’, accounting for 3.32%.

The revenue from sales and services provision in SAFETY products was 722.85 MB, decreasing by 23.97 MB or 3.21% compared to the previous year, mainly due to a decrease in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY products in other categories increased in purchase orders from industrial customers in accordance with the expansion of the industrial sector and more revenue from technical and engineering safety and environment products. In addition, revenue from new customers increased from new products marketing in related to the chemical storage of hazardous chemicals and healthcare products.

The revenue from sales and services provision in CE products was 216.33 MB, decreasing by 6.37 MB or 2.86% compared to the previous year due to the main customers in the electronics industry reducing their order quantities according production decreased. In addition, revenue decreased from the decrease in market prices and demand of rubber gloves and nitrile gloves. However, revenue from CE products increased sales from adding item products to existing customers and new products marketing in the medical industry.

The revenue from sales and services provision in the WATER products was 32.25 MB, increasing by 1.28 MB or 4.13% compared to the previous year, mainly due to the revenue from water treatment system installation services and maintenance services increased compared to the the previous year0 In addition, revenue increased from selling products, machinery and equipment for construction projects of joint ventures.

Other Income

In 2023, the Company had other income of 11.51 MB, increasing by 8.65 MB compared with other income of 2.86 MB in the previous year. Other income increased mainly from debt repayment and refunds fines and fees from water treatment system projects that end of the lawsuit amount of 4.91 MB and gain on exchange rate of 1.50 MB and other income of 5.10 MB.

Cost of Sales and Services

The Company’s total costs in the year 2023 were 712.76 MB, comprising of 698 MB cost of sales and 14.76 MB cost of rendering of services. Cost of sales decreased proportionally with lower revenue from sales and cost of services increased proportionally with higher revenue from services. Costs of sales and services accounted for 73.37% of revenue from sales and services. The Company’s gross profit was 258.67 MB, representing gross profit margin of 26.63%.

Distribution Costs and Administrative Expenses

In 2023, distribution costs and administrative expenses were 194.63 MB, consisting distribution costs of 102.23 MB and administrative expenses of 92.40 MB. Distribution costs were increase mainly from salespersons’ travelling, advertising and promotion expenses in line with increased sales and marketing activities. Administrative expenses increased mainly from employee welfare and training, meanwhile, doubtful accounts and other administrative expenses decreased.

The company’s financial cost was 2.40 MB, decreasing by 0.42 MB or 14.79% compared to financial cost of 2.82 MB in the previous year.

Other Transactions

In 2023, the Company recorded loss arising from bad debt of financial assets of 9.31 MB, reversal of allowance for credit loss on financial assets-net of 9.14 MB and share of profit form investment in joint ventures of 0.92 MB.

Net Profit

In 2023, the company’s consolidate net profit attributable to equity holders was 58.30 MB, accounted for net profit margin 5.93%. Net profit increasing by 4.26 MB or 7.89% compared to net profit attributable to equity holders of 54.04 MB, accounted for net profit margin 5.39% in the previous year.

Financial Position

Unit : MB

Assets

As of December 31, 2023, the Company’s total assets were 643.39 MB, increasing by 4.57 MB or 0.72% from December 31, 2022. The assets increased from current assets, increasing by 12.49 MB or 2.74%, mainly from cash and cash equivalents increased by 8.13 MB, trade and other current receivables-net increased by 10.28 MB. However, short-term loans to relate parties decreased by 2.94 MB and net-inventories decreased by 3.06 MB. Non-current assets decreased by 7.92 MB or 4.33%, mainly from investment in joint venture decreased by 1.33 MB, property, plant and equipment-net decreased by 2.43 MB and deferred tax assets - net decreased by 2.65 MB.

Liabilities

As of December 31, 2023, the Company’s total liabilities were 268.99 MB, decreasing by 16.26 MB or 5.70% from December 31, 2022. Current liabilities decreased mainly from short-term loans from financial institutions decreased 13.27 MB while, trade payable increased by 6.03 MB.

Non-current liabilities decreased mainly from non-current provisions for employee benefit of 7.34 MB and lease liabilities decreased 1.42 MB.

Shareholder’s equity

As of December 31, 2023, Shareholders’ equity of the Company was 374.28 MB, increasing by 19.41 MB or 5.47% from December 31, 2022. Shareholders’ equity increased from 58.30 MB of net profit for the period and 3.64 MB of other comprehensive income, while shareholders’ equity decreased mainly from dividend payment of 42.53 MB.

Cash Flows

Unit : MB

For the year, ending December 31, 2023, the Company’s net cash from the operating activities was 68.08 MB, with operating profits prior to changes in the operating assets and liabilities of 88.98 MB. Cash flow increased from trade and other payables increased by 6.98 MB and inventories-net decreased by 1.20 MB. While, cash flow decreased from trade and other current receivables increased by 10.54 MB, payment for employee benefit of 6.29 MB, payment for income tax 13.25 MB, however, cash received from income tax return of 0.98 MB.

Cash flow from investment activities was 0.71 MB from received short-term loan to related parties of 4.44 MB, return of capital of investment in joint venture of 2 MB and interest received of 0.78 MB. However, cash used to payment short-term loan to related parties of 1.50 MB, to install solar rooftop and utility improvement of 3.32 MB, office building improvement and purchase equipment of 1.59 MB and purchase computer software of 0.45 MB.

Cash flow used in financing activities was 60.68 MB to repayment of short-term loan from financial institutions of 13.27 MB, repayment of long-term loans from financial institutions of 0.62 MB, repayment of liabilities under lease agreement of 2 MB, interest expense of 2.23 MB and dividend payment of 42.57 MB.

Overview

Referring to the operating performance in the consolidated financial statement in the third quarter, ending September 30, 2023, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 250.64 MB, decreasing by 2.45 MB or 0.97% compared to the same quarter of the last year with revenue from sales and services of 253.09 MB, mainly from revenue from Occupational Safety, Health and Environment Products or ‘SAFETY’ and Control Environment Product or ‘CE’ were decrease mainly due to a significant drop in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY and CE products used in the industrial sector are still securing a continuous increase in purchase orders in pursuit of the expansion of the manufacturing sector in key industries, and the revenue increased from new customers and new products marketing in healthcare products. In addition, revenue from Water Solution Products or WATER were increase from water treatment system installation services and maintenance services increased compared to the same period of the previous year. In quarter 3/2023, the Company’s gross profit was 66.09 MB, representing gross profit margin of 26.37%. And distribution costs and administrative expenses were decreases.

Summary of operating results for the quarter 3/2023, the Company’s net profit attributable to equity holders of was 14.62 MB, representing a net profit margin of 5.80%, increasing by 0.11 MB or 0.76%, similar compared to the same quarter of previous year with 14.51 MB of net profit attributable to equity holders, representing a net profit margin of 5.70%.

For the nine months period, ending September 30, 2023, the Company’s total revenue from sales and services were 730.57 MB, decreasing by 39.81 MB or 5.17% compared to the same period of previous year with revenue from sales and services of 770.38 MB. And the Company’s consolidate net profit attributable to equity holders of 41.33 MB, representing a net profit margin of 5.62%.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and services provision in the quarter 3/2023 were 250.64 MB, with 187.33 MB of Occupational Safety, Health and Environment Products or ‘SAFETY’, accounting for 74.74%, 54.09 MB of Control Environment Products or ‘CE’, accounting for 21.58% and 9.22 MB of Water Solution Products or ‘WATER’, accounting for 3.68%.

The revenue from sales and services provision in SAFETY products was 187.33 MB, decreasing by 4.53 MB or 2.36% compared to the same quarter of previous year, mainly due to a decrease in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY products in other categories increased in purchase orders from industrial customers in accordance with the expansion of the industrial sector and more revenue from technical and engineering safety and environment products. In addition, revenue from new customers increased from new products marketing in related to the chemical storage of hazardous chemicals and healthcare products.

The revenue from sales and services provision in CE products was 54.09 MB, decreasing by 3.27 MB or 5.69% compared to the same quarter of previous year due to the main customers in the electronics industry reducing their order quantities according production decreased. In addition, revenue decreased from the decrease in market prices and demand of rubber gloves and nitrile gloves. However, revenue from CE products increased sales from adding item products to existing customers and new products marketing in the medical industry.

The revenue from sales and services provision in the WATER products was 9.22 MB, increasing by 4.99 MB or 130.59% compared to the same quarter of previous year, mainly due to the revenue from water treatment system installation services and maintenance services increased compared to the same period of the previous year

Cost of Sales and Services

The Company’s total costs in the quarter 3/2023 were 184.55 MB, comprising of 178.85 MB cost of sales and 5.71 MB cost of rendering of services. Cost of sales decreased proportionally with lower revenue from sales and cost of services increased proportionally with higher revenue from services. Costs of sales and services accounted for 73.63% of revenue from sales and services. The Company’s gross profit was 66.09 MB, representing gross profit margin of 26.37%.

Distribution Costs and Administrative Expenses

In the quarter 3/2023, distribution costs and administrative expenses were 48.54 MB, consisting distribution costs of 25.88 MB, administrative expenses of 22.25 MB and loss on exchange rate of 0.41 MB. Distribution costs and administrative expenses decreasing by 1.59 MB or 3.17% with administrative expenses and loss on exchange rate decreasing, however, distribution costs were increase mainly from advertising and exhibition expenses.

The company’s financial cost was 0.56 MB, decreasing by 0.14 MB or 20.34% compared to financial cost of 0.70 MB in the same quarter of previous year.

Other Transaction

In the quarter 3/2023, the Company recorded loss arising from bad debt of financial assets of 0.62 MB, allowance for credit loss on financial assets-net of 0.10 MB and share of profit form investment in joint ventures of 0.20 MB.

Net profit

In the quarter 3/2023, the company’s consolidate net profit attributable to equity holders was 14.62 MB, accounted for net profit margin 5.80%. Net profit increasing by 0.11 MB or 0.76% compared to net profit attributable to equity holders of 14.51 MB, accounted for net profit margin 5.70% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of September 30, 2023, the Company’s total assets were 651.68 MB, increasing by 12.86 MB or 2.01% from December 31, 2022. The assets increased from current assets, increasing by 18.05 MB or 3.96%, mainly from trade and other current receivables-net increased by 15.17 MB, most of which were receivables that had not yet been due. Cash and cash equivalents increased by 2.98 MB.

Non-current assets decreased by 5.19 MB or 2.84%, mainly from deferred tax assets - net decreased by 1.56 MB, investments in joint venture decrease by 1 MB and property, plant and equipment-net decreased by 1.18 MB from depreciation and amortization for the period by 5.49 MB, however, buildings and equipment increasing from solar rooftop installation of 2.96 MB, office building improvement and purchase equipment of 1.35 MB. Investment properties-net and right-of use assets-net mainly decreased from depreciation and amortization of 1.31 MB.

Liabilities

As of September 30, 2023, the Company’s total liabilities were 295.76 MB, increasing by 10.51 MB or 3.68% from December 31, 2022. Current liabilities increased mainly from trade payable increased by 46.98 MB, while, others current payable-net decreased by 4.14 MB. And short-term loans from financial institutions decreased 25.53 MB, current portion of long-term loan from financial institutions decreased 0.62 MB and defer tax assets-net decreased by 2.54 MB.

Non-current liabilities decreased mainly from non-current provisions for employee benefit of 2.43 MB and lease liabilities decreased 1.33 MB.

Shareholder's equity

As of September 30, 2023, Shareholders’ equity of the Company was 357.22 MB, increasing by 2.35 MB or 0.66% from December 31, 2022. Shareholders’ equity increased from 41.33 MB of net profit for the period and 3.62 MB of other comprehensive income, while shareholders’ equity decreased mainly from dividend payment of 42.53 MB.

Cash Flows

Unit : MB

For the nine month period, ending September 30, 2023, the Company’s net cash from the operating activities was 76.39 MB, with operating profits prior to changes in the operating assets and liabilities of 65.15 MB. Cash flow increased from trade and other payables increased by 39.41 MB. While, cash flow decreased from trade and other current receivables increased by 15.33 MB, payment for employee benefit of 0.61 MB, payment for income tax 6.51 MB, however, cash received from income tax return of 0.98 MB.

Cash flow used in investment activities was 1.58 MB to install solar rooftop of 2.96 MB, office building improvement and purchase equipment of 1.35 MB and purchase computer software of 0.45 MB. While, cash flow received from return of capital of investment in joint venture by 2 MB and loan to employees of 0.49 MB and interest received of 0.57 MB.

Cash flow used in financing activities was 71.75 MB to repayment of short-term loan from financial institutions of 25.53 MB, repayment of long-term loans from financial institutions of 0.62 MB, repayment of liabilities under lease agreement of 1.51 MB, interest expense of 1.51 MB and dividend payment of 42.58 MB.

Overview

Referring to the operating performance in the consolidated financial statement in the second quarter, ending June 30, 2023, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 239 MB, which were similar compared to the same quarter of the last year with revenue from sales and services of 240.75 MB, decreasing by 1.76 MB or 0.73% YoY. Revenue from Occupational Safety, Health and Environment Products or ‘SAFETY’ and Control Environment Product or ‘CE’ were decrease mainly due to a significant drop in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY and CE products used in the industrial sector are still securing a continuous increase in purchase orders in pursuit of the expansion of the manufacturing sector in key industries, in addition, the revenue increased from new customers and new products marketing. Furthermore, revenue from Water Solution Products or WATER increased from sales of products and equipment for construction project of a solid waste management centre of the joint venture and revenue from maintenance services increased compared to the same period of the previous year.

The gross profit increased due to adding new products and increases of selling price in some product categories, in addition, the proportion of sales of products with high gross profit margins increased. As the result, the company’s gross profit was 64.07 MB, representing gross profit margin of 26.81% in the second quarter of 2023, compare with gross profit of 60.57 MB, representing gross profit margin of 25.16% in the same quarter of previous year.

Distribution costs and administrative expenses increased mainly from traveling allowance, advertising expenses and product donations expenses. The Company’s net profit for the second quarter of 2023 was 14.06 MB; equivalent to 5.8%, increasing by 3.5 MB or 33.12% YoY at 10.56 MB; equivalent to 4.38%.

For the six months period, ending June 30, 2023, the Company’s total revenue from sales and services were 479.93 MB, decreasing by 37.36 MB or 7.22% YoY at 517.29 MB. The Company’s consolidate net profit attributable to equity holders of 26.71 MB, representing a net profit margin of 5.52%.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and services provision in the second quarter of 2023 were 239 MB, with 177.51 MB of Occupational Safety, Health and Environment Products or ‘SAFETY’, accounting for 74.27%, 53.8 MB of Control Environment Products or ‘CE’, accounting for 22.51% and 7.69 MB of Water Solution Products or ‘WATER’, accounting for 3.22%.

The revenue from sales and services provision in SAFETY products was 177.51 MB, decreasing by 3.48 MB or 1.92% compared to the same quarter of previous year, mainly due to a decrease in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY products in other categories increased in purchase orders from industrial customers in accordance with the expansion of the industrial sector and more revenue from technical and engineering safety and environment products and new products in related to the chemical storage of hazardous chemicals and healthcare products.

The revenue from sales and services provision in CE products was 53.8 MB, decreasing by 3.27 MB or 5.73% compared to the same quarter of previous year due to a decrease in market prices and demand of rubber gloves and nitrile gloves. However, revenue from CE products increased sales from new products marketing in the medical industry.

The revenue from sales and services provision in the WATER products was 7.69 MB, increasing by 4.99 MB or 184.85% compared to the same quarter of previous year, mainly due to the revenue from sales of products and equipment for construction project of a solid waste management centre of the joint venture and revenue from maintenance services increased compared to the same period of the previous year.

Cost of Sales and Services

The Company’s total costs in the second quarter of 2023 were 174.93 MB, comprising of 172.54 MB cost of sales and 2.39 MB cost of rendering of services. Cost of sales and services decreased proportionally with lower revenue from sales and services. In the second quarter of 2023, costs of sales and services accounted for 73.19% of revenue from sales and services. The Company’s gross profit was 64.07 MB, representing gross profit margin of 26.81%. Gross profit increased by 3.5 MB or 5.77%, compare with gross profit of 60.57 MB, representing gross profit margin of 25.16% in the same quarter of previous year, due to adding new products and increases of selling price in some product categories, in addition, the proportion of sales of products with high gross profit margins increased.

Distribution Costs and Administrative Expenses

In the second quarter of 2023, Distribution costs and administrative expenses were 50.49 MB, consisting distribution costs of 25.30 MB, administrative expenses of 23.69 MB and loss on exchange rate of 1.5 MB. Distribution costs and administrative expenses increasing by 4.2 MB or 9.07% compared with distribution costs and administrative expenses of 46.29 MB in the same quarter of the last year. Distribution costs were increase mainly from travelling allowance of salespersons, advertising and marketing expenses and product donations expenses to hospitals and educational institutions. Administrative expenses were increase mainly from welfare and training expenses of employee.

The company’s financial cost was 0.45 MB, decreasing by 0.24 MB or 34.45% compared to financial cost of 0.69 MB in the same quarter of previous year.

Other Transaction

In the second quarter of 2023, the Company recorded loss arising from bad debt of trade and other receivables of 3.6 MB, the reversal of allowance for credit loss on trade and other receivables-nets of 4.16 MB and share of profit form investment in joint ventures of 0.61 MB.

Net profit

In the second quarter of 2023, the company’s consolidate net profit attributable to equity holders was 14.06 MB, accounted for net profit margin 5.8%. Net profit increasing by 3.5 MB or 33.12% compared to net profit attributable to equity holders of 10.56 MB, accounted for net profit margin 4.38% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of June 30, 2023, the Company’s total assets were 614.56 MB, decreasing by 24.26 MB or 3.8% from December 31, 2022. The assets decreased mainly from current assets, which decreasing by 32.31 MB of net-inventories and cash and cash equivalents decreased by 8.31 MB. However, trade and other current receivables-net increase of 18.07 MB, most of which were receivables that had not yet been due.

Non-current assets increased mainly from property, plant and equipment increased from solar rooftop installation of 2.96 MB, office building improvement and purchase equipment of 1.04 MB and purchase computer software of 0.45 MB. In addition, investments in joint venture increase of 0.8 MB. However, property, plant and equipment-net mainly decreased from depreciation and amortization of 4.43 MB.

Liabilities

As of June 30, 2023, the Company’s total liabilities were 255 MB, decreasing by 30.25 MB or 10.61% from December 31, 2022. The Liabilities decreased mainly from short-term loans from financial institutions decreased 44.86 MB, current portion of long-term loan from financial institutions decreased 0.62 MB and other payables decreased 8.89 MB. However, trade payable increased 27.87 MB. Non-current liabilities decreased mainly from non-current provisions for employee benefit of 3.05 MB and lease liabilities decreased 0.88 MB.

Shareholder's equity

As of June 30, 2023, Shareholders’ equity of the Company was 360.86 MB, increasing by 5.99 MB or 1.69% from December 31, 2022. Shareholders’ equity increased from 26.71 MB of net profit for the period and 3.64 MB of other comprehensive income, while shareholders’ equity decreased from dividend payment of 24.3 MB.

Cash Flows

Unit : MB

For the six month period, ending June 30, 2023, the Company’s net cash from the operating activities was 67.23 MB, with operating profits prior to changes in the operating assets and liabilities of 42.41 MB. Cash flow increased from inventories decreased 32.03 MB and trade and other payables increased 16.11 MB. While, cash flow decreased from net- trade and other payables increased 16.92 MB.

Cash flow used in investment activities was 3.65 MB to install solar rooftop of 2.96 MB, office building improvement and purchase equipment of 1.04 MB and purchase computer software of 0.45 MB. While, cash flow acquired from loan to employees of 0.58 MB and interest received of 0.25 MB.

Cash flow used in financing activities was 71.85 MB to repayment of short-term loan from financial institutions amount of 44.87 MB, repayment of long-term loans from financial institutions of 0.62 MB, repayment of liabilities under lease agreement of 1.01 MB, interest expense of 1.01 MB and dividend payment of 24.36 MB.

Overview

Referring to the operating performance in the consolidated financial statement in the first quarter, ending March 31, 2023, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 240.93 MB, decreasing by 35.61 MB or 12.88% YoY at 276.54 MB. The decline in revenue is mainly from Occupational Safety, Health and Environment Products or ‘SAFETY’ due to a significant drop in market prices and demand of rubber gloves, nitrile gloves and disease related products. Furthermore, revenue from WATER products decreased from sales of equipment for waste landfill construction project in the same quarter of previous year. The gross profit decreased in line with lower revenue from sales and services, however, the gross profit margin increased due to adding new products and increases of selling price in some product categories, in addition, the proportion of sales of products with high gross profit margins increased. The first quarter of 2023, the company’s gross profit was 65.28 MB, representing gross profit margin of 27.10%, compare with gross profit of 68.39 MB, representing gross profit margin of 24.73% in the same quarter of previous year.

Distribution costs and administrative expenses slightly increased, compared to the same quarter of the previous year. The Company’s net profit for the first quarter of 2023 was 12.65 MB; equivalent to 5.24%, decreasing by 4.46 MB or 26.05% YoY at 17.11 MB; equivalent to 6.14%.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and services provision in the first quarter of 2023 were 240.93 MB, with 179.86 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 74.65%, 55.48 MB of Control Environment Products or CE accounting for 23.03% and 5.59 MB of Water Solution Products or WATER accounting for 2.32%.

The revenue from sales and services provision in SAFETY products was 179.86 MB, decreasing by 22.11 MB or 10.95% compared to the same quarter of previous year, mainly due to a decrease in market prices and demand of rubber gloves, nitrile gloves and disease related products. However, SAFETY products in other categories increased in purchase orders from industrial customers in accordance with the expansion of the industrial sector.

The revenue from sales and services provision in CE products was 55.48 MB, similar to the same period of the previous year. Major customers in the electronics industry have decreased production due to the shortage of raw materials, however, the CE products has increased sales from new products marketing in the electronics industry and medical industry.

The revenue from sales and services provision in the WATER products was 5.59 MB, decreasing by 13.44 MB or 70.62% compared to the same quarter of previous year, mainly due to the revenue from sales of equipment for waste landfill construction project, in collaboration with a business partner in the same quarter of previous year.

Cost of Sales and Services

The Company’s total costs in quarter 1/2023 were 175.65 MB, comprising of 171.05 MB cost of sales, 4.36 MB cost of rendering of services and 0.24 MB of cost of water treatment system installation. Cost of sales and services decreased proportionally with lower revenue from sales and services. In quarter 1/2023, costs of sales and services accounted for 72.90% of revenue from sales and services. The Company’s gross profit was 65.28 MB, decreased by 3.10 MB or 4.54% due to lower revenue from sales and services. However, gross profit margin was 27.10%, increase from the same quarter last year with a gross profit margin of 24.73%.

Distribution Costs and Administrative Expenses

In Quarter 1/2023, Distribution costs and administrative expenses were 49.59 MB, consisting distribution costs of 25.86 MB and administrative expenses of 23.73 MB. Distribution costs and administrative expenses were similar compared to the same quarter of the last year, the expenses were increase, mainly from salary and employee welfare, travelling allowance of salespersons and product donations expenses to hospitals and medical facilities. However, there was decreasing expenses in line with lower revenue from sales and services such as sales commissions.

The company’s financial cost was 0.63 MB, increasing by 0.05 MB or 8.01% compared to financial cost of 0.58 MB in the same quarter of previous year.

Other Transaction

In Quarter 1/2023, the Company recorded the reversal of allowance for credit loss on trade and other receivables-nets of 0.04 MB and share of profit form investment in joint ventures of 0.19 MB, while, there was credit loss from impairment on trade and other receivables-nets of 0.01 MB in the same quarter of previous year.

Net profit

In Quarter 1/2023, the company’s consolidate net profit attributable to equity holders was 12.65 MB, accounted for net profit margin 5.24%, decreasing by 4.46 MB or 26.05% compared to net profit attributable to equity holders of 17.11 MB, accounted for net profit margin 6.14% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of March 31, 2023, the Company’s total assets were 587.85 MB, decreasing by 50.97 MB or 7.98% from December 31, 2022. The assets decreased mainly from current assets, which decreasing by 42.98 MB of net-inventories and cash and cash equivalents decreased by 18.57 MB. However, trade and other current receivables-net increase of 11.89 MB, most of which were receivables that had not yet been due.

Liabilities

As of March 31, 2023, the Company’s total liabilities were 217.99 MB, decreasing by 67.26 MB or 23.58% from December 31, 2022. The Liabilities decreased mainly from the decrease of 46.31 MB of short-term loans from financial institutions and trade and other payables decreased by 19.26 MB. However, current income tax payable increased by 3.07 MB. Non-current liabilities decreased mainly from non-current provisions for employee benefit of 3.82 MB.

Shareholder's equity

As of March 31, 2023, Shareholders’ equity of the Company was 371.16 MB, increasing by 16.29 MB or 4.59% from December 31, 2022 from 12.65 MB of net profit for the period and 3.64 MB of other comprehensive income.

Cash Flows

Unit : MB

For the three month period, ending March 31, 2023, the Company’s net cash from the operating activities was 31.55 MB, with operating profits prior to changes in the operating assets and liabilities of 20.92 MB. Cash flow increased from inventories decreased 42.27 MB. While, cash flow decreased from trade and other receivables increased 11.03 MB and net- trade and other payables decreased 19.94 MB.

Cash flow used in investment activities was 2.10 MB for short-term loans to the subsidiary in amount of 1.50 MB and purchase fix assets and intangible assets of 0.68 MB and 0.45 MB respectively. While, cash flow acquired 0.43 MB from loan to employees and interest received of 0.11 MB.

Cash flow used in financing activities was 48.03 MB to repayment of short-term loan from financial institutions amount of 46.31 MB, repayment of long-term loans from financial institutions of 0.62 MB, repayment of liabilities under lease agreement of 0.50 MB and interest expense of 0.60 MB.

Overview

Referring to the operating performance in the consolidated financial statement for the year, ending December 31, 2022, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 1,000.48 MB, decreasing by 225.28 MB or 18.38% YoY at 1,225.76 MB. The decline in revenue is mainly from the significant drop in market prices and demand for rubber and nitrile gloves, compared with the last year that still in the situation of the epidemic of the COVID virus that has demand for products in both industrial and medical sectors. Furthermore, the sales revenue from COVID related products also decreased in accordance with the intensity of the spread. However, the overall economy and production in the industrial sector are expanding and there is still an increase in orders among those customers. The gross profit decreased in line with lower revenue from sales and services, however, the gross profit margin increased due to effectively cost management and adjustment of selling price increases according to the cost price of certain products and the proportion of sales of products with high gross profit margins increased. In 2022, the Company’s gross profit was 257.74 MB, representing gross profit margin of 25.76%, compared to gross profit of 287.59 MB, representing gross profit margin of 23.46% in previous year. Distribution costs and administrative expenses were decrease from previous year. For the year 2022, the Company’s net profit attributable to equity holders of 54.04 MB, representing a net profit margin of 5.39%.

Operating performance

Unit : MB

Revenue

Unit : MB

In 2022, the total revenue from sales and services provision were 1,000.48 MB, with 746.81 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 74.65%, 222.69 MB of Control Environment Products or CE accounting for 22.26% and 30.97 MB of Water Solution Products or WATER accounting for 3.10%.

The revenue from sales and services provision in SAFETY products was 746.81 MB, decreasing by 143.07 MB or 16.08% compared to the previous year, mainly due to a decrease in market prices of rubber and nitrile gloves, coupled with lower purchase orders from distributors and medical sectors. In addition, the revenue from COVID-19 preventive equipment also dropped in relation to the intensity of the situation. However, SAFETY products in other categories are still generating a continuous increase in purchase orders both from existing customer bases and new customers in accordance with the expansion of the industrial sector.

The revenue from sales and services provision in CE products was 222.69 MB, has also dropped by 83.06 MB or 27.17% due to a decrease in market prices of rubber and nitrile gloves, and the quantity of orders decreased both in the key customers in the electronics industry and distributor customers compared to the last year when there was a product shortage caused by COVID-19, the customers have increased purchase orders to accumulate the inventory. However, the CE product has increased sales from new products marketing in the electronics industry and medical device industry.

The revenue from sales and service provision in the WATER products was 30.97 MB, similar to the previous year. Revenue from WATER products increased from sales of equipment for waste landfill construction, in collaboration with a business partner. However, revenue from construction projects of water treatment systems decreased mainly due to the impact of COVID-19, customers have decided to delay or cancel the water treatment projects.

Cost of Sales and Services

In 2022, the Company’s total costs were 742.74 MB, comprising of 732.12 MB cost of sales and 10.63 MB cost of services. Cost of sales and services decreased proportionally with lower revenue from sales and services, however, the cost of some products has been increased by manufacturers and the effect of depreciation of Baht.

Costs of sales and services accounted for 74.24% of revenue from sales and service. The Company’s gross profit was 257.74 MB, decreased by 29.85 MB or 10.38% due to lower revenue from sales and services. However, gross profit margin was 25.76%, increase from the last year with a gross profit margin of 23.46% due to effectively cost management and adjustment of the selling price increases according to the cost price, moreover the proportion of sales of products with high gross profit margins increased.

Distribution Costs and Administrative Expenses

In 2022, distribution costs and administrative expenses were 187.69 MB comprised 93.01 MB of distribution costs, 93.19 MB of administrative expenses and 1.49 MB of loss on exchange rate. Distribution costs increased mainly from sales and marketing activities compared to the previous year in the epidemic situation and transportation and traveling expenses in line with oil prices. Administrative expenses were increase, mainly from the employee compensation and the employee welfare and product donations expenses related to situation of the epidemic of COVID-19 decreased. And loss on exchange rate decreased compared to the previous year.

The company’s financial cost was 2.82 MB, similar to the previous year with financial cost of 2.76 MB.

Net Profit

In 2022, the company’s consolidate net profit attributable to equity holders was 54.04 MB, accounted for net profit margin 5.39%, decreasing by 27.86 MB or 34.02% compared to net profit attributable to equity holders of 81.89 MB, accounted for net profit margin 6.66% in the previous year.

Financial Position

Unit : MB

Assets

As of December 31, 2022, the Company’s total assets were 638.82 MB, increasing by 2.59 MB or 0.41% from December 31, 2021. Current assets increased from 23.15 MB of net-inventories and 2.94 MB of short-term loans to joint ventures. However, cash and cash equivalents decreasing by 5.16 MB and trade receivables-net decreased 25.43 MB. Non-current assets mainly increased from investments in joint venture of 10 MB and right-of-use office equipment of 3.40 MB. However, non-current assets decreasing by 8.21 MB from depreciation and amortization.

Liabilities

As of December 31, 2022, the Company’s total liabilities were 285.25 MB, decreasing by 2.81 MB or 0.98% from December 31, 2021. The Liabilities decreased mainly from 38.34 MB of trade and other payables, 6.53 MB of current portion of long-term loan from financial institution-net and 3.09 MB of current income tax payable. However, current liabilities increasing by 42.81 from short-term loans from financial institutions to pay for goods and working capital. Non-current asset mainly increased from lease liabilities 1.46 MB and non-current provisions for employee benefit 0.87 MB.

Shareholder’s equity

As of December 31, 2022, Shareholders’ equity of the Company was 354.87 MB, increasing by 5.40 MB or 1.55% from December 31, 2021. The shareholders' equity increased from the net profit for the period of 54.04 MB, however, shareholders' equity decreased from dividend payment of 48.60 MB and appropriated to legal reserve of 2.75 MB.

Cash Flows

Unit : MB

For the year, ending December 31, 2022, the Company’s net cash from the operating activities was 27.42 MB, with operating profits prior to changes in the operating assets and liabilities of 78.77 MB. Cash flow increased from trade and other receivables decreased 26.07 MB. However, cash flow decreased from inventories increased 20.43 MB, net- trade and other payables decreased 37.24 MB, paid for employee benefits of 2.09 MB and paid for corporate income tax of 17.74 MB.

Cash flow used in investment activities was 16.04 MB to investment in joint ventures of 10 MB and payment for short-term loans to joint ventures of 4.49 MB, purchase fix assets and intangible assets of 3.67 MB. However, cash flow receipt from short-term loans to related party of 1.55 MB, sales fix assets 0.25 MB and interest received of 0.86 MB.

Cash flow used in financing activities was 16.50 MB to repayment of long-term loans from financial institutions 7.14 MB, repayment of liabilities under lease agreement 0.67 MB, interest expense 2.95 MB and dividend payment 48.54 MB. While, cash flow acquired from short-term loan from financial institutions amount of 42.81 MB.

Overview

Referring to the operating performance in the consolidated financial statement for the third quarter, ending September 30, 2022, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 253.09 MB, decreasing by 76.58 MB or 23.23% YoY at 329.67 MB. The decline in revenue is mainly from the significant drop in market prices and demand for rubber and nitrile gloves, compared with the same period of time in the last year that still in the situation of the epidemic of the COVID virus that has demand for products in both industrial and medical sectors. Furthermore, the sales revenue from COVID related products also decreased in accordance with the intensity of the spread. However, the overall economy and production in the industrial sector are expanding and there is still an increase in orders among those customers. The gross profit decreased in line with lower revenue from sales and services, however, the gross profit margin increased due to effectively cost management and adjustment of selling price increases according to the cost price of certain products and the proportion of sales of products with high gross profit margins increased. In quarter 3/2022, the Company’s gross profit was 67.97 MB, representing gross profit margin of 26.86%, compared to gross profit of 75.48 MB, representing gross profit margin of 22.90% in the same quarter of previous year. Distribution costs and administrative expenses increased in line with the operational activities that return to normal after the epidemic situation of the coronavirus and there was loss on the exchange rate.

The Company’s net profit for the third quarter of 2022 was 14.51 MB, representing a net profit margin of 5.70%. For the nine months period, ending September 30, 2022, the Company’s total revenue from sales and service were 770.38 MB, and net profit attributable to equity holders of 42.18 MB, representing a net profit margin of 5.46%.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and services provision in the third quarter of 2022 were 253.09 MB, with 191.86 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 75.81%, 57.41 MB of Control Environment Products or CE accounting for 22.68% and 3.82 MB of Water Solution Products or WATER accounting for 1.51%.

The revenue from sales and services provision in SAFETY products was 191.86 MB, decreasing by 57.78 MB or 23.15%, mainly due to a decrease in market prices of rubber and nitrile gloves, coupled with lower purchase orders from distributors and medical sectors, compared with the same quarter in the last year. Meanwhile, the revenue from COVID-19 preventive equipment also dropped in relation to the intensity of the situation. However, SAFETY products in other categories are still generating a continuous increase in purchase orders both from existing customer bases and new customers in accordance with the expansion of the industrial sector.

The revenue from sales and services provision in CE products was 57.41 MB, has also dropped by 12.09 MB or 17.39% due to a decrease in market prices of rubber and nitrile gloves, and the quantity of orders decreased both in the key customers in the electronics industry and distributor customers compared with the same period of last year when there was a product shortage caused by COVID-19, the customers have increased purchase orders to accumulate the inventory. However, the CE product has increased sales from new products marketing in the medical device industry.

The revenue from sales and service provision in the WATER products was 3.82 MB, decreasing by 6.71 MB or 63.70% compare to the same quarter in the last year, revenue from sales and construction projects of water treatment systems decreased mainly due to the impact of COVID-19, customers have decided to delay or cancel the water treatment projects. However, in the quarter 3/2022, the company with partners setup 2 joint ventures, namely Loy Phol Joint Venture to carry out projects for construction of a solid waste management centre for a sub district municipality and Phol SK Joint Venture to carry out projects for construction of a solar water distribution system in the Department of Water Resources.

Cost of Sales and Services

The Company’s total costs in quarter 3/2022 were 185.12 MB, comprising of 183.43 MB cost of sales and 1.69 MB cost of services. Cost of sales and services decreased proportionally with lower revenue from sales and services, however, the cost of some products has been increased by manufacturers and the effect of depreciation of Baht.

In quarter 3/2022, costs of sales and services accounted for 73.14% of revenue from sales and service. The Company’s gross profit was 67.97 MB, decreased by 7.51 MB or 9.95% due to lower revenue from sales and services. However, gross profit margin was 26.86%, increase from the same quarter last year with a gross profit margin of 22.90% due to effectively cost management and adjustment of the selling price increases according to the cost price, moreover the proportion of sales of products with high gross profit margins increased.

Distribution Costs and Administrative Expenses

In Quarter 3/2022, Distribution costs and administrative expenses were 50.14 MB comprised 24.16 MB of distribution costs, 23.19 MB of administrative expenses and 2.79 MB of loss on exchange rate. Distribution costs and administrative expenses were increase, mainly increased transportation and traveling expenses in line with oil prices and sales and marketing activities increased compared to the previous year in the epidemic situation. Meanwhile, the employee welfare and product donations expenses related to situation of the epidemic of COVID-19 decreased compared to the same quarter of the last year.

The company’s financial cost was 0.70 MB, increasing by 0.16 MB or 18.45% compared to financial cost of 0.86 MB in the same quarter of previous year.

Net profit

In Quarter 3/2022, the company’s consolidate net profit attributable to equity holders was 14.51 MB, accounted for net profit margin 5.70%, decreasing by 9.19 MB or 38.77% compared to net profit attributable to equity holders of 23.70 MB, accounted for net profit margin 7.17% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of September, 2022, the Company’s total assets were 673.54 MB, increasing by 37.31 MB or 5.86% from December 31, 2021. The assets increased mainly from current assets, which increasing from 46.04 MB of net-inventories and 4.49 MB of short-term loans to joint ventures. However, cash and cash equivalents decreasing by 9.16 MB and trade receivables-net decreased 11.29 MB. Non-current assets mainly increased from investments in joint venture of 10 MB.

Liabilities

As of September, 2022, the Company’s total liabilities were 331.96 MB, increasing by 43.89 MB or 15.24% from December 31, 2021. The Liabilities increased mainly from current liabilities which increase from 44.72 MB of short-term loans from financial institutions to pay for goods and working capital and trade and other payables increased by 8.60 MB. However, current portion of long-term loan from financial institution-net decreased by 4.74 MB and current income tax payable decreased by 5.34 MB.

Shareholder's equity

As of September 30, 2022, Shareholders’ equity of the Company was 342.88 MB, decreasing by 6.58 MB or 1.88% from December 31, 2021. The shareholders' equity increased from the net profit for the period of 42.18 MB, while decreased from dividend payment of 48.60 MB.

Cash Flows

Unit : MB

For the nine month period, ending September 30, 2022, the Company’s net cash from the operating activities was 19.66 MB, with operating profits prior to changes in the operating assets and liabilities of 65.15 MB. Cash flow increased from trade and other receivables decreased 11.65 MB and net- trade and other payables increased 6.14 MB. However, cash flow decreased from inventories increased 45.80 MB and paid for corporate income tax of 17.57 MB.

Cash flow used in investment activities was 16.93 MB to investment in joint ventures of 10 MB and payment for short-term loans to joint ventures of 4.49 MB, purchase fix assets and intangible assets of 3.16 MB, while cash flow acquired 0.14 MB from sales fix assets and interest received of 0.69 MB.

Cash flow used in financing activities was 11.72 MB to repayment of long-term loans from financial institutions 5.36 MB, repayment of liabilities under lease agreement 0.60 MB, interest expense 1.90 MB and dividend payment 48.58 MB. While, cash flow acquired from short-term loan from financial institutions amount of 44.72 MB.

Overview

Referring to the operating performance in the consolidated financial statement for the second quarter, ending June 30, 2022, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 240.75 MB, decreasing by 60.09 MB or 19.97% YoY at 300.85 MB. The decline in revenue is mainly from Occupational Safety, Health and Environment Products or ‘SAFETY’ and Control Environment Products or ‘CE’, due to a significant drop in market prices of rubber and nitrile gloves, together with an excessive supply, compared with the same period of time in the last year when there was a product shortage in the supply chain, causing prices to go up. Furthermore, the sales revenue from COVID-19-related products also decreased in accordance with the intensity of the spread. However, SAFETY and CE products used in the industrial sector are still securing a continuous increase in purchase orders in pursuit of the expansion of the manufacturing sector in key industries. The gross profit decreased in line with lower revenue from sales and services, however, the gross profit margin increased due to effectively cost management and the proportion of sales of products with high gross profit margins increased with 60.57 MB of the Company’s gross profit, representing gross profit margin of 25.16%, compared to gross profit of 70.21 MB, representing gross profit margin of 23.34% in the same quarter of previous year. Distribution costs and administrative expenses were similar compared to the same quarter of the previous year. The Company’s net profit for the second quarter of 202 2 was 10.56 MB; equivalent to 4.38%, decreasing by 7.80 MB or 42.50% YoY at 18.36 MB; equivalent to 6.10%.

For the six months period, ending June 30, 2022, the Company’s total revenue from sales and service were 517.29 MB, decreasing by 106.88 MB or 17.12% YoY at 624.17 MB. The Company’s consolidate net profit attributable to equity holders of 27.67 MB, representing a net profit margin of 5.33%.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and service provision in the second quarter of 202 2 were 240.75 MB, with 180.99 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 75.18%, 57.07 MB of Control Environment Products or CE accounting for 23.70% and 2.70 MB of Water Solution Products or WATER accounting for 1.12%.

The revenue from sales and service provision in SAFETY products was 180.99 MB, decreasing by 42.30 MB or 18.94%, mainly due to a decrease in prices of rubber and nitrile gloves, coupled with lower purchase orders from distributors and medical sectors, compared with the same quarter in the last year. Meanwhile, the revenue from COVID-19 preventive equipment also dropped in relation to the intensity of the situation. However, SAFETY products in other categories are still generating a continuous increase in purchase orders both from existing customer bases and new customers in accordance with the expansion of the industrial sector.

The revenue from sales and service provision in CE products was 57.07 MB, has also dropped by 17.29 MB or 23.25% due to a decrease in market prices of rubber and nitrile gloves, compared with the same period of time in the last year when there was a product shortage caused by COVID-19, causing product prices to soar. Hence, key customers in the electronics industry including distributor customers have increased purchase orders to accumulate the inventory,

The revenue from sales and service provision in the WATER products was 2.70 MB, decreasing by 0.50 MB or 15.70% compare to the same quarter in the last year, mainly due to the impact of COVID-19, customers have decided to delay or cancel the water treatment projects.

Cost of Sales and Services

The Company’s total costs in quarter 2/2022 were 180.19 MB, comprising of 178.56 MB cost of sales and 1.62 MB cost of services. Cost of sales and services decreased proportionally with lower revenue from sales and services. In quarter 2/2022, costs of sales and services accounted for 74.84% of revenue from sales and service. The Company’s gross profit was 60.57 MB, decreased by 9.64 MB or 13.74% due to lower revenue from sales and services. However, gross profit margin was 25.16%, increase from the same quarter last year with a gross profit margin of 23.34% due to effectively cost management and the proportion of sales of products with high gross profit margins increased.

Distribution Costs and Administrative Expenses

In Quarter 2/2022, Distribution costs and administrative expenses were 46.29 MB comprised 21.51 MB of distribution costs, 22.53 MB of administrative expenses and 2.25 MB. Of loss on exchange rate. Distribution costs and administrative expenses were similar compared to the same quarter of the previous year which mainly increased transportation and traveling expenses in line with oil prices, meanwhile, the employee welfare and product donations expenses related to situation of the epidemic of COVID-19 decreased compared to the same quarter of the last year.

The company’s financial cost was 0.69 MB, increasing by 0.06 MB or 9.97% compared to financial cost of 0.62 MB in the same quarter of previous year.

Net profit

In Quarter 2/2022, the company’s consolidate net profit attributable to equity holders was 10.56 MB, accounted for net profit margin 4.38%, decreasing by 7.80 MB or 42.50% compared to net profit attributable to equity holders of 18.36 MB, accounted for net profit margin 6.10% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of June, 2022, the Company’s total assets were 657.51 MB, increasing by 21.28 MB or 3.34% from December 31, 2021. The assets increased mainly from current assets, which increasing from 21.39 MB of cash and cash equivalents and 10.54 MB of net-inventories. However, trade and other current receivables-net decreased 12.10 MB. Non-current assets mainly increased from investments in joint venture of 3.72 MB in the construction of solid waste management center project. However, property, plant and equipment-net mainly decreased from depreciation and amortization.

Liabilities

As of June, 2022, the Company’s total liabilities were 314.14 MB, increasing by 26.07 MB or 9.05% from December 31, 2021. The Liabilities increased mainly from current liabilities which increase from 42.94 MB of short-term loans from financial institutions to pay for goods and working capital. However, trade and other payables decreased by 12.54 MB, current portion of long-term loan from financial institution-net decreased by 2.96 MB and current income tax payable decreased by 1.56 MB.

Shareholder's equity

As of June 30, 2022, Shareholders’ equity of the Company was 344.67 MB, decreasing by 4.80 MB or 1.37% from December 31, 2021 from net profit for the period. The shareholders' equity increased from the net profit for the period of 27.67 MB and decreased from dividend payment of 32.39 MB.

Cash Flows

Unit : MB

For the six month period, ending June 30, 2022, the Company’s net cash from the operating activities was 21.34 MB, with operating profits prior to changes in the operating assets and liabilities of 43.82 MB. Cash flow increased from trade and other receivables decreased 12.56 MB and nettrade and other payables decreased 13.47 MB. However, cash flow decreased from inventories increased 11.91 MB and paid for corporate income tax of 9.77 MB.

Cash flow used in investment activities was 5.24 MB to purchase fix assets of 2.27 MB, purchase intangible assets of 0.15 MB and investment in joint venture of 3.72 MB, while cash flow acquired 0.61 MB from loan to employees, 0.12 MB from sales fix assets and interest received of 0.19 MB.

Cash flow acquired from financing activities was 5.36 MB mainly from short-term loan from financial institutions amount of 42.93 MB, however, cash flow used to repayment of long-term loans from financial institutions of 3.57 MB, repayment of liabilities under lease agreement of 0.40 MB, interest expense of 1.22 MB and dividend payment of 32.38 MB.

Overview

Referring to the operating performance in the consolidated statement of financial position in the first quarter, ending March 31, 2022, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 276.54 MB, decreasing by 46.79 MB or 14.47% YoY at 323.32 MB. The decline in revenue is mainly from Occupational Safety, Health and Environment Products or ‘SAFETY’ and Control Environment Products or ‘CE’, due to a significant drop in market prices of rubber and nitrile gloves, together with an excessive supply, compared with the same period of time in the last year when there was a product shortage in the supply chain, causing prices to go up. Furthermore, the sales revenue from COVID-19-related products also decreased in accordance with the intensity of the spread. However, SAFETY and CE products used in the industrial sector are still securing a continuous increase in purchase orders in pursuit of the expansion of the manufacturing sector in key industries. The gross profit decreased in line with lower revenue from sales and services, in the first quarter of 2022, the company’s gross profit was 68.39 MB, representing gross profit margin of 24.73%.

Distribution costs and administrative expenses slightly increased, compared to the same quarter of the previous year. The Company’s net profit for the first quarter of 2022 was 17.11 MB; equivalent to 6.14%, decreasing by 9.72 MB or 36.22% YoY at 26.82 MB; equivalent to 8.28%.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and service provision in the first quarter of 2022 were 276.54 MB, with 201.53 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 72.88%, 55.53 MB of Control Environment Products or CE accounting for 20.28 % and 19.48 MB of Water Solution Products or WATER accounting for 7.04%.

The revenue from sales and service provision in SAFETY products was 201.53 MB, decreasing by 6.66 MB or 3.20%, mainly due to a decrease in prices of rubber and nitrile gloves, coupled with lower purchase orders from distributors, compared with the same quarter in the last year. Meanwhile, the revenue from COVID-19 preventive equipment also dropped in relation to the intensity of the situation. However, SAFETY products in other categories are still generating a continuous increase in purchase orders both from existing customer bases and new customers in accordance with the expansion of the industrial sector.

The revenue from sales and service provision in CE products was 55.53 MB, has also dropped by 52.13 MB or 48.42% due to a decrease in market prices of rubber and nitrile gloves, compared with the same period of time in the last year when there was a product shortage caused by COVID-19, causing product prices to soar. Hence, key customers in the electronics industry have increased purchase orders to accumulate the inventory, while there has been an increase in customers in the distributor market. There was a decline in purchase orders in the first quarter of 2022, while an oversupply of gloves still remains prevalent.

The revenue from sales and service provision in the WATER products was 19.48 MB, increasing by 12 MB or 160.55% compare to the same quarter in the last year, mainly due to sales of equipment for waste landfill construction, in collaboration with a business partner. However, due to the impact of COVID-19, customers have decided to delay or cancel the water treatment projects.

Distribution Costs and Administrative Expenses

In Quarter 1/2022, Distribution costs and administrative expenses were 48.39 MB comprised 25.59 MB of distribution costs and 22.80 MB of administrative expenses. Distribution costs mainly increased from employee compensation and transportation expenses, however, administrative expenses were similar compared to the same quarter of the last year

The company’s financial cost was 0.58 MB, increasing by 0.05 MB or 8.83% compared to financial cost of 0.53 MB in the same quarter of previous year.

Other Transaction

In Quarter 1/2022, the Company had loss from impairment on trade and other receivables-nets of 0.01 MB, while, reversed the impairment of trade receivables and other receivables of 4.46 MB in the same quarter of previous year, its comes from the operation of offsetting creditors, retention payments due to the debtor of sub-contractor, which the company has reserved the loss on impairment of receivables.

Net profit

In Quarter 1/2022, the company’s consolidate net profit attributable to equity holders was 17.11 MB, accounted for net profit margin 6.14%, decreasing by 9.72 MB or 36.22% compared to net profit attributable to equity holders of 26.82 MB, accounted for net profit margin 8.28% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of March 31, 2022, the Company’s total assets were 659.64 MB, increasing by 23.41 MB or 3.68% from December 31, 2021. The assets increased mainly from current assets, which increasing from 19.13 MB of trade and other current receivables-net, most of which were receivables that had not yet been due and cash and cash equivalents increased by 9.37 MB. However, net-inventories decreased by 4.83 MB. Non-current assets mainly increased from investments in joint venture of 1.09 MB in the construction of solid waste management center project.

Liabilities

As of March 31, 2022, the Company’s total liabilities were 294.36 MB, increasing by 6.30 MB or 2.19% from December 31, 2021. The Liabilities increased mainly from the increase of 34.84 MB of short-term loans from financial institutions to pay for goods and working capital. However, trade and other payables decreased by 31.18 MB.

Shareholder's equity

As of March 31, 2022, Shareholders’ equity of the Company was 366.58 MB, increasing by 17.11 MB or 4.90% from December 31, 2021 from net profit for the period.

Cash Flows

Unit : MB

For the three month period, ending March 31, 2022, the Company’s net cash used in the operating activities was 22.35 MB, with operating profits prior to changes in the operating assets and liabilities of 22.90 MB. Cash flow decreased from trade and other receivables increased 18.60 MB and net- trade and other payables decreased 32.98 MB. While, cash flow received from inventories decreased 6.58 MB

Cash flow used in investment activities was 0.59 MB to purchase fix assets of 0.21 MB and investment in joint venture of 1.09 MB, while cash flow acquired 0.49 MB from loan to employees, 0.12 MB from sales fix assets and interest received of 0.11 MB.

Cash flow acquired from financing activities was 32.31 MB mainly from short-term loan from financial institutions amount of 34.84 MB, however, cash flow used to repayment of long-term loans from financial institutions of 1.79 MB, repayment of liabilities under lease agreement of 0.20 MB and interest expense of 0.55 MB.

Overview

Referring to the operating performance in the consolidated financial statement for the year, ending December 31, 2021, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 1,225.76 MB, increasing by 170.25 MB or 16.13% YoY at 1,055.51 MB. Occupational Safety, health and personal protective equipment as well as control environment products with increase continuous purchase orders from major industrial customers such as electronics industry, foods industry and automotive industries that have expanded their production capacity compared to the previous year. And the situation of the epidemic of COVID-19, there is still the demand for disease prevention items continuously, both for the industrial and medical sectors, leading to increase the revenues from hospital, medical and public health organizations, including more dealer customers. In addition, revenue increased due to the price increased of nitrile gloves, rubber gloves, which significant at the beginning of this year, however, gloves normally do not secure high gross margin, despite higher sales. Meanwhile, sales of products with higher gross margin has decreased, leading to lower average gross margin compared to the last year. In 2021, the Company’s gross profit margin was 287.59 MB, or equivalent to 23.46%, the gross profit increased 13.45 MB or 4.91% compare with gross profit of 274.14 MB or equivalent to 25.97% in previous year and selling and administrative expenses slightly increased from the previous year.

As the result, the Company’s net profit attributable to equity holders of 81.89 MB, equivalent to 6.66%, increasing by 8.03 MB or 10.87% compare to net profit attributable to equity holders of 73.86 MB, equivalent to 6.94% in the previous year.

Operating performance

Unit : MB

Revenue

Unit : MB

In 2021, the total revenue from sales and services provision were 1,225.76 MB, with 889.88 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 72.60%, 305.75 MB of Control Environment Products or CE accounting for 24.94% and 30.13 MB of Water Solution Products or WATER accounting for 2.46%.

The revenue from sales and service provisions from SAFETY products was 889.88 MB, increasing by 89.48 MB or 11.18%, mainly from existing customers and new customers in the foods industry and electronics industry that have continue expanded their production capacity and other major industries, such as automotive, petrochemicals, have increased production compared to the previous year. And the situation of the epidemic of COVID-19, there is still the demand for disease prevention items continuously, leading to increased revenues from hospital, medical and public health organizations and more dealer customers, in addition, there was an increase in the revenue from consumer through online sales channels.

The revenue from sales and service provision in CE products was 305.75 MB, increasing by 90.82 MB or 42.26% mainly from key customers in the electronics industry that have continued expanded their production capacity, leading to higher demand for CE products. In addition, product prices have increased in pursuit of the higher market prices at the beginning of the year especially higher demand for clean room gloves and disposable gloves amidst COVID-19 has led to an increase in revenue for CE products both from existing and new customers.

The revenue from sales and service provision in WATER Products was 30.13 MB, decreasing by 10.05 MB or 25.02%, mainly from the installation of water supply system and continue providing services for existing customers, including after-sales services and maintenance. However, the COVID-19 situation has caused certain customers’ new projects to delay.

Other income

In 2021, the Company had other income 4.06 MB, decreasing by 5.38 MB or 56.99% compare to other income of 9.45 MB from previous year mainly due to the refund of penalties from the water supply projects.

Cost of Sales and Services

In 2021, the Company’s total costs was 938.17 MB, comprising of 921.75 MB cost of sales and 16.42 MB cost of services. Cost of sales increased proportionally with more revenue from sales and increased cost of goods in some product categories and from exchange rates. Cost of services decreased in line with lower sales of services compared to the previous year.

Costs of sales and services accounted for 76.54% of revenue from sales and service. Gross profit was 287.59 MB with gross profit margin 23.46%, gross profit increased 13.45 MB or 4.91% proportionally with more revenue from sales compare to gross profit of 274.14 MB with gross profit margin 25.97% in the previous year. However, the gross profit margin declined, due to increased cost of goods in some categories and the sales proportion of products with lower gross profit margins increased while the proportion of sales of products with higher gross profit margin decreased.

Selling and Administrative Expenses

In 2021, selling and administrative expenses were 191.77 MB comprised 92.61 MB of selling expenses, 96.51 MB of administrative expenses and 2.64 MB of loss from exchange rates. Selling expenses increased mainly from variable with revenue from sales, such as sales commissions, transportation expense, etc. and more promotional advertising expenses to expand consumer and online marketing. However, administrative expenses declined due to lower travelling and activities expenses due to the COVID-19 situation and reduced from employee benefit expenses.

The company’s financial cost was 2.76 MB, increasing by 0.36 MB or 14.76% compared to financial cost of 2.41 MB in the previous year due to the increase in short term loan from financial institution.

Other Transaction

The reversal of impairment loss on trade and other receivables of 5.81 MB and loss arising from bad debts of trade and other receivable of 0.70 MB, resulting from the operation of offsetting creditors, retention payments due to the debtor of sub-contractor, which the company has reserved the loss on impairment of receivables and the trial is over.

Net profit

In 2021, the company’s consolidate net profit attributable to equity holders was 81.89 MB, accounted for net profit margin 6.66%, net profit increase of 8.03 MB or 10.87% compared to net profit of 73.86 MB, accounted for net profit margin 6.94% in the previous year.

Financial Position

Unit : MB

Assets

As of December 31, 2021, the Company’s total assets were 636.23 MB, increasing by 30.23 MB or 4.99% from December 31, 2020. The assets increased mainly from current assets, which increased from 66.66 MB of net-inventories, while, cash and cash equivalents decreased by 33.67 MB. And non-current assets decreased mainly from depreciation and amortization.

Liabilities

As of December 31, 2021, the Company’s total liabilities were 288.06 MB, increasing by 9.22 MB or 3.31% from December 31, 2020. The Liabilities increased mainly from the increase of 7.13 MB of short-term loans-trust receipt from financial institutions, 9.14 MB of trade payables and 3.65 MB of accrued income tax. However, other payables decreased 5.29 MB. Non-current liabilities decreased mainly from 5.36 MB of long-term loans from financial institutions and 0.29 MB of lease liabilities-net while the provision for employee benefit liabilities increasing by 1.65 MB.

Shareholder's equity

As of December 31, 2021, Shareholders’ equity of the Company was 349.47 MB, increasing by 21.01 MB or 6.40% from December 31, 2020 from the resulting from net profit of 81.89 MB, while, decreasing by 60.75 MB from dividend payment and allocated as a legal reserve of 3.96 MB.

Cash Flows

Unit : MB

The Company’s net cash from the operating activities was 35.31 MB, with operating profits prior to changes in the operating assets and liabilities of 116.38 MB. Cash flow received from trade and other receivables decreased 5.50 MB and net- trade and other payables increased 3.81 MB. While, cash flow used for 72.42 MB of inventories 72.42 MB, 1.31 MB to paid employee benefits and 17.19 MB of income tax.

Cash flow used in investment activities was 4.64 MB to purchase 0.77 MB of equipment, 1.94 MB to improved public utilities and 1.93 MB of assets under water sales agreement and purchased 0.49 MB of intangible assets, while cash flow acquired 0.23 MB from loan to employees and interest received of 0.37 MB.

Cash flow used in financing activities was 64.22 MB mainly used to repayment of loans from financial institutions 7.14 MB, repayment of liabilities under lease agreement 0.80 MB, interest expense 2.67 MB and dividend payment of 60.74 MB. However, cash flow acquired 7.13 MB from short-term loans-trust receipt from financial institutions.

Overview

Referring to the operating performance in the consolidated financial statement in the third quarter, ending September 30, 2021, Phol Dhanya PCL (the Company)’s total revenue from sales and services were 329.67 MB, increasing by 58.80 MB or 21.71% YoY at 270.87 MB. Occupational Safety, health and personal protective equipment as well as control environment products with increase continuous purchase orders from electronics industry and foods industry that have continue expanded their production capacity and other major industries, such as automotive, petrochemicals, have increased production compared to the same quarter of previous year. In addition, the situation of the epidemic of COVID-19, there is still the demand for disease prevention items continuously, both for the industrial and medical sectors, leading to increase the revenues from hospital, medical and public health organizations, including more dealer customers. In the third quarter of 2021, the gross profit margin standing at 75.48 MB, or equivalent to 22.90%, the gross profit increased in line with the increase in sales revenue and selling and administrative expenses did not differ much from the same quarter of previous year as the result the Company’s net profit for the third quarter of 2021 was 23.70 MB; equivalent to 7.17%, increasing by 11.58 MB or 95.59% compared to net profit attributable to equity holders of 12.12 MB; equivalent to 4.47% in the same quarter of previous year.

For the nine month period, ending September 30, 2021, the Company’s total revenue from sales and services were 953.84 MB, increasing by 164.15 MB or 20.79%, compared to the revenue from sales and services of 789.69 MB in the same period of previous year. The Company’s net profit for the nine months period of 2021 was 68.89 MB; equivalent to 7.21%, increasing by 8.04 MB or 13.22% compared to net profit attributable to equity holders of 60.84 MB; equivalent to 7.66% in the same period of previous year.

Operating performance

Unit : MB

Revenue

Unit : MB

The total revenue from sales and services provision in the third quarter of 2021 were 329.67 MB, with 249.64 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 75.72%, 69.50 MB of Control Environment Products or CE accounting for 21.08% and 10.53 MB of Water Solution Products or WATER accounting for 3.19%.

The revenue from sales and service provisions from SAFETY products was 249.64 MB, increasing by 58.52 MB or 30.62%, mainly from existing customers and new customers in the foods industry and electronics industry that have continue expanded their production capacity and other major industries, such as automotive, petrochemicals, have increased production compared to the same quarter of previous year. Moreover, the situation of the epidemic of COVID-19, there is still the demand for disease prevention items continuously, leading to increased revenues from hospital, medical and public health organizations and more dealer customers, in addition, there was an increase in the revenue from consumer through online sales channels.

The revenue from sales and service provision in CE products was 69.50 MB, increasing by 16.08 MB or 30.10% mainly from customers in the electronics industry that have continued expanded their production capacity and expanded by hiring subcontractors to produce, that’s the opportunity for the company to expand sales to their subcontractors, leading to increased revenues from both existing customers and new customers

The revenue from sales and service provision in WATER Products was 10.53 MB, decreasing by 15.80 MB or 60.01% mainly due to the COVID-19 situation has caused certain customers’ new projects to delay.

Cost of Sales and Services

The Company’s total costs in the third quarter of 2021 was 254.19 MB, comprising of 250.15 MB cost of sales and 4.03 MB cost of services. Cost of sales increased proportionally with more revenue from sales and increased cost of goods in some product categories and from exchange rates. Cost of services decreased in line with lower sales of services compared to the same quarter of the previous year.

In the third quarter of 2021, costs of sales and services accounted for 77.10% of revenue from sales and service. Gross profit was 75.48 MB with gross profit margin 22.90%, gross profit increased 14.66 MB or 24.11% proportionally with more revenue from sales compare to gross profit of 60.82 MB with gross profit margin 22.45% in the same quarter of pervious year.

Selling and Administrative Expenses

In the third quarter of 2021, selling and administrative expenses were 45.95 MB comprised 22.35 MB of selling expenses, 22.30 MB of administrative expenses and 1.30 MB of loss from exchange rates. Total selling and administrative expenses were similar compared to 46.06 MB of selling and administrative expenses in the same quarter of previous year. Mainly from expenses that were variable with revenue from sales and services, such as sales commissions, etc. However, there was the decrease in expenses mainly from lower travelling and expenses for marketing activities and events due to the spread of the COVID-19 virus.

The company’s financial cost was 0.86 MB, increasing by 0.19 MB or 27.47% compared to financial cost of 0.68 MB in the same quarter of previous year due to the increase in short term loan from financial institution.

Net profit

In the third quarter of 2021, the company’s consolidate net profit attributable to equity holders was 23.70 MB, accounted for net profit margin 7.17%, an increase of 11.58 MB or 95.59% compared to the same quarter of the previous year with a net profit of 12.12 MB, accounted for net profit margin 4.47%

Financial Position

Unit : MB

Assets

As of September 30, 2021, the Company’s total assets were 670.53 MB, increasing by 64.53 MB or 10.65% from December 31, 2020. The assets increased mainly from current assets, which increased from 70.49 MB of net-inventories, 43.06 MB of trade receivables-net from higher sales revenue. While, cash and cash equivalents decreased by 43.26 MB. And non-current assets decreased mainly from depreciation and amortization.

Liabilities

As of September 30, 2021, the Company’s total liabilities were 335.39 MB, increasing by 56.54 MB or 20.27% from December 31, 2020. The Liabilities increased mainly from the increase of 49.85 MB of overdraft and short-term loans from financial institutions, 22.05 MB of trade payables and 0.94 MB of accrued income tax. However, other payables decreased 13.58 MB. Non-current liabilities decreased mainly from 5.36 MB of long-term loans from financial institutions and 0.48 MB of lease liabilities-net while the provision for employee benefit liabilities increasing by 2.22 MB.

Shareholder's equity

As of September 30, 2021, Shareholders’ equity of the Company was 336.45 MB, increasing by 7.99 MB or 2.43% from December 31, 2020 from the resulting from net profit of 68.89 MB, while, decreasing by 60.75 MB from dividend payment.

Cash Flows

Unit : MB

The Company’s net cash used in the operating activities was 23.16 MB, with operating profits prior to changes in the operating assets and liabilities of 96.97 MB. Cash flow used for trade and other receivables increased 35.23 MB and inventories increased 74.19 MB, while cash flow received from net- trade and other payables increased 6.33 MB.

Cash flow used in investment activities was 1.17 MB to purchase 1.73 MB of fix assets and 0.49 MB of intangible assets, while cash flow acquired 0.78 MB from loan to employees and interest received of 0.28 MB.

Cash flow used in financing activities was 18.78 MB mainly used to repayment of loans from financial institutions of 5.36 MB, repayment of liabilities under lease agreement of 0.60 MB, interest expense of 1.94 MB and dividend payment of 60.74 MB. However, cash flow acquired 49.85 MB from overdraft and short-term loans-trust receipt from financial institutions.

Overview

Referring to the operating performance in the consolidated financial statement in the second quarter, ending June 30, 2021, Phol Dhanya PCL (the Company)’s total revenue from sales and service provision stood at 300.85 MB, increasing by 55.37 MB or 22.56% YoY at 245.47 MB. Occupational Safety, health and personal protective equipment as well as control environment products with continuous purchase orders from electronics industry and foods industry that have continue expanded their production capacity and core customers in automotive have increased production compared to the same quarter of previous year. In addition, the situation of the epidemic of COVID-19, there is still the demand for disease prevention items continuously, leading to increase the revenues from hospital, medical and public health organizations, especially gloves that have high demand both for the industrial and medical sectors. However, gloves normally do not secure high gross margin, despite higher sales, leading to lower average gross margin compared to the same time last year. The gross profit margin in the second quarter of 2021 standing at 70.21 MB, or equivalent to 23.34%. Selling and administrative expenses did not differ much from the same quarter of previous year. The Company’s net profit for the second quarter of 2021 stood at 18.36 MB; equivalent to 6.10%.

For the six months period, ending June 30, 2021, the Company’s total revenue from sales and service provision stood at 624.17 MB, increasing by 105.35 MB or 20.30%, compared to the revenue from sales and services of 518.82 MB in the same period of previous year. The Company’s net profit for the six months period of 2021 stood at 45.19 MB; equivalent to 7.23%.

Operating performance

Unit: Million baht

Revenue

Unit: Million baht

The total revenue from sales and service provision in the second quarter of 2021 stood at 300.85 MB, with 223.29 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 74.22%, 74.36 MB of Control Environment Products or CE accounting for 24.72% and 3.20 MB of Water Solution Products or WATER accounting for 1.06%.

The revenue from sales and service provisions from SAFETY products stood at 223.29 MB, increasing by 37.69 MB or 20.31%, mainly from existing customers and new customers in the foods industry and electronics industry that have continue expanded their production capacity and core customers in automotive have increased production compared to the same quarter of previous year. In addition, the situation of the epidemic of COVID-19, there is still the demand for disease prevention items continuously, leading to increased revenues from hospital, medical and public health organizations.

The revenue from sales and service provision in CE products stood at 74.36 MB, increasing by 21.36 MB or 40.31% mainly from customers in the electronics industry that have continued expanded their production capacity and expanded by hiring subcontractors to produce, that’s the opportunity for the company to expand sales to their subcontractors, leading to increased revenues from both existing customers and new customers

The revenue from sales and service provision in WATER Products stood at 3.20 MB, decreasing by 3.68 MB or 53.46% mainly due to the COVID-19 situation has caused certain customers’ new projects to delay.

Cost of Sales and Services

The Company’s total costs in the second quarter of 2021 stood at 230.63 MB, comprising of 228.85 MB cost of sales and 1.78 MB cost of services. Cost of sales increased proportionally with more revenue from sales and cost of sales in some product categories increased. The cost of services was similar compared to the same quarter of the previous year.

In the second quarter of 2021, costs of sales and services accounted for 76.66% of revenue from sales and service. Gross profit was 70.21 MB with gross profit margin 23.34%, increased proportionally with more revenue from sales compare to gross profit of 65.49 MB with gross profit margin 26.68% in the same quarter of pervious year. However, gross profit margin decreased due to the proportion of sales of products with lower gross profit margins increased while the proportion of sales of products with higher gross profit margin decreased/p>

Selling and Administrative Expenses

In the second quarter of 2021, selling and administrative expenses were 46.71 MB comprised 21.71 MB of selling expenses, 24.28 MB of administrative expenses and 0.72 MB of loss from exchange rates. Total selling and administrative expenses increasing by 1.30 MB or 2.86% compare to the same quarter of previous year mainly from expenses that were variable with revenue from sales and services, such as sales commissions, etc. However, there was the decrease in expenses mainly from lower travelling and expenses for marketing activities and events due to the spread of the COVID-19 virus.

The company’s financial cost was 0.62 MB, increasing by 0.13 MB or 27.29% compared to financial cost of 0.49 MB in the same quarter of previous year due to the increase in short term loan from financial institution.

Other Transaction

In the second quarter of 2021, the Company recorded Loss arising from bad debt of trade and other receivables of 0.70 MB and reversed the impairment of trade receivables and other receivables of 0.70 MB, its comes from the operation of offsetting creditors, retention payments due to the debtor of sub-contractor, which the company has reserved the loss on impairment of receivables.

Net profit

In the second quarter of 2021, the company’s consolidate net profit attributable to equity holders was 18.36 MB, accounted for net profit margin 6.10%, similar with the net profit of 18.37 MB, accounted for net profit margin 7.38% in the same quarter of the previous year

Financial Position

Unit: Million baht

Assets

As of June 30, 2021, the Company’s total assets were 675.85 MB, increasing by 69.85 MB or 11.53% from December 31, 2020. The assets increased mainly from current assets, which increased from 83.46 MB of net-inventories, 26.63 MB of trade receivables-net from higher sales revenue. While, cash and cash equivalents decreased by 31.68 MB. And non-current assets decreased mainly from depreciation and amortization.

Liabilities

As of June 30, 2021, the Company’s total liabilities were 331.94 MB, increasing by 53.09 MB or 19.04% from December 31, 2020. The Liabilities increased mainly from the increase of 27.94 MB of short-term loans from financial institutions, 43.74 MB of trade payables and 5.14 MB of accrued income tax. However, other payables decreased 22.23 MB. Non-current liabilities decreased mainly from 3.57 MB of long-term loans from financial institutions and 0.66 MB of lease liabilities-net while the provision for employee benefit liabilities increasing by 1.48 MB.

Shareholder's equity

As of June 30, 2021, Shareholders’ equity of the Company was 345.22 MB, increasing by 16.76 MB or 5.10% from December 31, 2020 from the resulting from net profit of 45.19 MB, while, decreasing by 28.35 MB from dividend payment.

Cash Flows

Unit: Million Baht

The Company’s net cash used in the operating activities was 25.52 MB, with operating profits prior to changes in the operating assets and liabilities of 61.26 MB. Cash flow used for trade and other receivables increased 16.22 MB and inventories increased 83.76 MB, while cash flow received from net- trade and other payables increased 19.35 MB.

Cash flow used in investment activities was 0.61 MB to purchase fix assets and intangible assets of 1.47 MB, while cash flow acquired 0.65 MB from loan to employees and interest received of 0.20 MB.

Cash flow used in financing activities was 5.47 MB mainly used to repayment of loans from financial institutions of 3.57 MB, repayment of liabilities under lease agreement of 0.40 MB, interest expense of 1.11 MB and dividend payment of 28.34 MB. However, cash flow acquired 27.94 MB from short-term loans-trust receipt from financial institutions.

Overview

Referring to the operating performance in the consolidated statement of financial position in the first quarter, ending March 31, 2021, Phol Dhanya PCL (the Company)'s total revenue from sales and service provision stood at 323.32 MB, increasing by 49.97 MB or 18.28% YoY at 273.35 MB, and increasing by 57.50 MB or 21.63% QoQ at 265.83MB. Safety, occupational health and personal protective equipment as well as control environment products are still top-selling items with continuous purchase orders from the COVID-19 situation, especially gloves that have high demand both for the industrial and medical sectors. The effective supply chain management system has contributed to the increase in revenue both from existing customer base and new customers. However, gloves normally do not secure high gross margin, despite higher sales. Meanwhile, sales of products with higher gross margin has decreased, leading to lower average gross margin compared to the same time last year. The gross margin was not much different from the previous quarter, with the gross margin in the first quarter of 2021 standing at 75.88 MB, or equivalent to 23.47%.

Selling and administrative expenses decreased YoY and did not differ much from the previous quarter. The Company's net profit for the first quarter of 2021 stood at 26.82 MB; equivalent to 8.28%, decreasing by 3.54 MB or 11.65% YoY at 30.36 MB; equivalent to 10.96%. However, the net profit increased by 13.81 MB or 106.10% QoQ at 13.01; equivalent to 4.86 %.

Operating performance

Unit: Million baht

Revenue

Unit: Million baht

The total revenue from sales and service provision in the first quarter of 2021 stood at 323.32 MB, with 208.19 MB of Occupational Safety, Health and Environment Products or SAFETY accounting for 64.39%, 107.66 MB of Control Environment Products or CE accounting for 33.30 % and 7.48 MB of Water Solution Product or WATER accounting for 2.31%.

The revenue from sales and service provisions from SAFETY business stood at 208.19 MB, from increased revenue from industrial customers. Existing customers in the core industries such as automotive and petrochemicals have started to resume production, though not to the point where it used to be pre-COVID-19. Furthermore, the Company generated higher revenue from new customers in the food industry, medical and public health organizations. Nevertheless, the overall revenue landscape in the SAFETY business decreased from COVID-related products, disease prevention items such as face masks and preventive gears that have had lower sales following market demand and price compared to the same time in 2020, which was the beginning period of the transmission, leading to increased demand in every sector.

The revenue from sales and service provision in CE business stood at 107.66 MB, mainly from customers in the electronics industry that have expanded their production capacity, leading to higher demand for CE products, while product prices have increased in pursuit of the higher market prices. Besides, higher demand for clean room gloves and disposable gloves amidst COVID-19 has led to an increase in revenue for CE products both from existing and new customers, compared to the same time in 2020 and the previous quarter.

The revenue from sales and service provision in WATER business stood at 7.48 MB, from the installation of water supply system for existing customers who have allowed the Company to continue providing services, as well as from after-sales services and maintenance. However, the COVID-19 situation has caused certain customers' new projects to delay.

Cost of Sales and Services

The Company's total costs in Quarter 1/2021 were 247.45 MB, comprising of 241.04 MB cost of sales and 6.40 MB cost of services. Cost of sales and services increased proportionally with more revenue from sales and services and cost of sales in some product categories increased.

In quarter 1/2021, costs of sales and services accounted for 76.53% of revenue from sales and service. Gross profit was 75.88 MB with gross profit margin 23.47%, decreased from gross profit of 85.76 MB with gross profit margin 31.37% in the same quarter of previous year, due to the proportion of sales of products with lower gross profit margins increased while the proportion of sales of products with higher gross profit margin decreased. However, gross profit increased 13.80 MB or 22.23% compared to the previous quarter with a gross profit of 203.75 MB with Gross profit margin 23.35%.

Selling and Administrative Expenses

In Quarter 1/2021, selling and administrative expenses were 46.43 MB comprised 22.58 MB of selling expenses, 22.59 MB of administrative expenses and 1.46 MB of loss from exchange rates. Total selling and administrative expenses decreased by 4.46 MB or 8.73% compare to the same quarter of previous year mainly from lower travelling expenses and expenses for marketing activities and events due to the spread of the COVID-19 virus. However, there was the increase in expenses that were variable with revenue from sales and services, such as sales commissions, etc.

The company's financial cost was 0.53 MB, decreasing by 0.11 MB or 16.65% compared to financial cost of 0.64 MB in the same quarter of previous year and decreasing by 0.07 MB or 10.93% compared to the previous quarter due to the decrease in loan from financial institution.

Other Transaction

In Quarter 1/2021, the Company reversed the impairment of trade receivables and other receivables of 4.46 MB, its comes from the operation of offsetting creditors, retention payments due to the debtor of sub-contractor, which the company has reserved the loss on impairment of receivables.

Net profit

In Quarter 1/2021, the company's consolidate net profit attributable to equity holders was 26.82 MB, accounted for net profit margin 8.28%, decreasing by 3.54 MB or 11.65% compared to net profit attributable to equity holders of 30.36 MB, accounted for net profit margin 10.96% in the same quarter of previous year. However, net profit increasing by 13.81 MB or 106.10% compared to net profit attributable to equity holders of 13.81 MB, accounted for net profit margin 4.86% in the previous quarter.

Financial Position

Unit: Million baht

Assets

As of March 31, 2021, the Company's total assets were 650.17 MB, increasing by 44.17 MB or 7.29% from December 31, 2020. The assets increased mainly from current assets, which increasing from 30.02 MB of trade and other current receivables-net, trade accounts receivable increased from higher sales revenue and other receivables increased mainly from advance payments for inventories. And net-inventories increasing by 38.07 MB due to purchases of inventory in the first quarter of 2021 While, cash and cash equivalents decreased by 21.59 MB.

Liabilities

As of March 31, 2021, the Company's total liabilities were 296.24 MB, increasing by 17.39 MB or 6.24% from December 31, 2020. The Liabilities increased mainly from the increase of 38.67 MB of trade payables and 5.93 MB of accrued income tax. However, other payables decreased 24.59 MB. Non-current liabilities decreased mainly from 1.79 MB of long-term loans from financial institutions and 0.84 MB of lease liabilities-net while the provision for employee benefit liabilities increasing by 0.74 MB.

Shareholder's equity

As of March 31, 2021, Shareholders' equity of the Company was 355.23 MB, increasing by 26.77 MB or 8.15% from December 31, 2020 from net profit for the period.

Cash Flows

Unit: Million Baht

The Company's net cash used in the operating activities was 16.46 MB, with operating profits prior to changes in the operating assets and liabilities of 34.98 MB. Cash flow used for trade and other receivables increased 24.45 MB and inventories increased 38.31 MB, while cash flow received from net- trade and other payables increased 11.76 MB.

Cash flow used in investment activities was 0.21 MB to purchase fix assets and intangible assets of 0.66 MB, while cash flow acquired 0.35 MB from loan to employees and interest received of 0.10 MB.

Cash flow used in financing activities was 4.88 MB mainly used to repayment of loans from financial institutions of 4.17 MB, repayment of liabilities under lease agreement of 0.20 MB and interest expense of 0.51 MB.

Overview

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the year, ending December 31, 202 0 reported the revenue from sales and services of 1 ,055.51 MB, comprise 1,019.23 MB of revenue from sales and 36.28 MB of revenue from services. Revenue from sales and services increased by 143.66 MB or 15.76%, compared to the revenue from sales and services of 911.85 MB in the previous year mainly due to the increase of revenue from sales of Occupational safety, health and personal protective equipment due to the spread of the COVID-19 virus including latex gloves and nitrile gloves, protection suits and protection masks which is still need to use the product continuously. Revenue from services were increase mainly from installation services of recycled water treatment systems for industrial customers. In 2020, the Company’s gross profit was 274.14 MB, accounted for gross profit margin of 25.97%, increasing by 38.14 MB or 16.16% compare with gross profit of 236 MB, accounted for gross profit margin of 25.88% in previous year. Selling and administrative expenses were similar compared to the previous year, as the result, the Company’s net profit attributable to equity holders of 73.86 MB, accounted for net profit margin of 6.94%, increasing by 32.44 MB or 7 8 . 3 2% compare to net profit attributable to equity holders of 41.42 MB, accounted for net profit margin of 4.45% in the previous year.

Operating performance

Unit: Million baht

Revenue

Unit: Million baht

In 2020, revenue by products of the Company comprise 800.40 MB of Occupational Safety, Health and Environment Products or SAFETY account for 75.83%, 214.93 MB of Control Environment Products or CE account for 20.36% and 40.18 MB of Water Solution Products or WATER account for 3.81%.

Revenue from SAFETY products increased by 80.99 MB or 11.26% compare to the previous year, mainly due to the increase of revenue from sales of products for the safety in the spread of the COVID-19 virus including latex gloves and nitrile gloves, protection suits and protection masks, etc. And the COVID-19 virus outbreak, resulting in continued demand for such products throughout the year 2020 with increased in dealer customers, Government and state enterprises and food industry customers who have been growing up. In addition, proportion of revenues from new customers in consumer group increase from previous year. However, in the situation of the COVID-19 epidemic, affected to industrial customers like Auto and Petrochemical which orders decrease in order based on production. Revenue from CE products increased 46.97 MB or 27.97%, major customers in the electronics industry increase production expansion, In addition, the product price has been increased according to the market price as a result, higher revenue from CE products. And revenue from Water Solution Products increased 15.70 MB or 64.13%, mainly due to revenue from sales and installation services of water treatment systems for industrial customers.

Cost of Sales and Services

The Company’s total costs in 2020 were 781.38 MB, comprising of 752.56 MB cost of sales, and 28.81 MB cost of services. Cost of sales and services increased proportionally with more revenue from sales and services. In 2020, costs of sales and services accounted for 74.03% of revenue from sales and service. The Company’s gross profit was 274.14 MB, accounted for gross profit margin 25.97% which increased, compare with 236 MB of gross profit, accounted for gross profit margin 25.88% in the previous year.

Selling and Administrative Expenses

In 2020, selling and administrative expenses were 190.05 MB comprised 88.02 MB of selling expenses and 102.02 MB of administrative expenses. Total selling and administrative expenses were decrease compare to the previous year mainly from expenses for marketing activities and events that suspended due to the spread of the COVID-1 virus and employee benefit expense decreased resulting from the change in related laws in the previous year. However, there was the increase in expenses that were variable with revenue from sales and services, such as sales commissions, etc.

The company’s financial cost was 2.41 MB, decreasing by 2.76 MB or 53.42% compared to financial cost of 5.17 MB in the previous year due to the decrease in loan from financial institution.

Net profit

In 2020, the company’s consolidate net profit attributable to equity holders was 73.86 MB, accounted for net profit margin 6.94%, increasing by 32.44 MB or 78.32% compared to net profit attributable to equity holders of 41.42 MB, accounted for net profit margin 4.45% in the previous year.

Financial Position

Unit: Million baht

Assets

As of December 31, 2020, the Company’s total assets were 606 MB, increased by 38.85 MB or 6.85% from December 31, 2019. The assets increased mainly from current assets, which increasing from 6.63 MB of cash and cash equivalents, trade receivables-net increased by 25.71 MB in line with higher revenue from sales. In addition, other receivables increased from an increase in advance payments for inventories by 7.02 MB and an increase in refundable import duty of 1.16 MB and increase of 1.72 MB in net-inventories. However, non-current assets mainly decreased from amortization and depreciation.

Liabilities

As of December 31, 2020, the Company’s total liabilities were 278.85 MB, increased by 1 2 . 6 9 MB or 4.77% from December 31, 2019. Current Liabilities increased mainly due to the increase of 25.33 MB of trade and other payables, while short-term loans from financial institution was decrease 7.43 MB and accrued income tax decreased 0.62 MB. Non-current liabilities decreased mainly from 7.14 MB of long-term loans from financial institutions, however, net-liabilities under lease agreement increased 1.31 MB.

Shareholder’s equity

As of December 31, 2020, Shareholders’ equity of the Company was 328.45 MB, increased from the resulting from net profit of 73.86 MB and decreased by 50.63 MB from dividend payment.

Cash Flows

Unit: Million Baht

The Company’s net cash acquired from the operating activities was 79.93 MB, with operating profits prior to changes in the operating assets and liabilities of 111 MB and cash flow received from net- trade and other payables increased 25.51 MB. While, cash flow used for inventories 5.03 MB, trade and other receivables increased 33.10 MB and income tax of 18.94 MB.

Cash flow used in investment activities was 5.10 MB to purchase vehicles and equipment of 4.98 MB and purchase intangible assets of 0.71 MB, while, cash flow acquired from interest received of 0.47 MB.

Cash flow used in financing activities was 68.01 MB mainly used to repayment of loans from financial institutions of 14.56 MB, repayment of liabilities under lease agreement of 0.47 MB, interest expense of 2.34 MB and dividend payment of 50.63 MB.

Overview

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the nine months period, ending September 30, 2020, reported the total revenue from sales and services of 789.69 MB, increasing by 100.35 MB or 14.56%, compared to the revenue from sales and services of 689.34 MB in the same period of previous year. The Company’s consolidate net profit attributable to equity holders of 60.84 MB, representing a net profit margin of 7.66%, increasing by 34.47 MB or 130.73% compared to net profit attributable to equity holders of 26.37 MB, accounted for net profit margin of 3.78% in the same period of previous year.

The Company consolidated financial statement of the third quarter, ending September 30, 2020 reported the total revenue from sales and services of 270.87 MB comprise 252.03 MB of revenue from sales and 18.84 MB of revenue from services. Revenue from sales and services increases by 43.29 MB or 19.02%, compared to the total revenue from sales and services of 227.58 MB in the same quarter of previous year mainly due to the increase of revenue from sales of Occupational safety, health and personal protective equipment due to the spread of the COVID-19 virus including latex gloves and nitrile gloves, protection suits which is still need to use the product continuously, however, the cost of such products has increased, causing the company to have a lower gross profit margin. Revenue from services were increase mainly from installation services of recycled water treatment systems. In quarter 3/2020, the Company’s gross profit was 60.82 MB, accounted for gross profit margin of 22.45%. Selling and administrative expenses were similar compared to the same quarter of the previous year, the Company’s net profit attributable to equity holders of 12.12 MB, accounted for net profit margin of 4.47%.

Operating performance

Unit : MB

Revenue

Unit : MB

In Quarter 3/2020, revenue by products of the Company comprise 191.12 MB of Occupational Safety, Health and Environment Products or SAFETY account for 70.56%, 53.42 MB of Control Environment Products or CE account for 19.72% and 26.33 MB of Water Solution Products or WATER account for 9.72%.

Revenue from SAFETY products increased 16.75 MB or 9.60% compare to the same quarter of previous year, mainly due to the increase of revenue from sales of products for the safety in the spread of the COVID-19 virus including latex gloves and nitrile gloves and protection suits with increased in dealer customers, Government and state enterprises and food industry customers who have been growing up. Revenue from CE products increased 11.14 MB or 26.35% compare to the same quarter of previous year, major customers in the electronics industry increase production expansion, as a result, more orders for CE products. And revenue from Water Solution Products increased 15.0 MB or 140.86%, mainly due to revenue from installation services of recycled water treatment systems project to a private customer valued approximately 12 MB.

Cost of Sales and Services

The Company’s total costs in Quarter 3/2020 were 210.05 MB, comprising of 194.41 MB cost of sales, and 15.64 MB cost of services. Cost of sales increased proportionally with more revenue from sales and cost of glove category increase due to the product shortage according the rising market demand. Cost of services increased proportionally with more revenue from services. In quarter 3/2020, costs of sales and services account for 77.55% of revenue from sales and service. Gross profit margin was 22.45% which decreased, compare with gross profit margin 26.65% in the same quarter of previous year. The Company’s gross profit was 60.82 MB, similar to gross profit of 60.64 MB in the same quarter of previous year.

Selling and Administrative Expenses

In Quarter 3/2020, selling and administrative expenses were 46.06 MB comprised 21.37 MB of selling expenses and 23.37 MB of administrative expenses and 1.32 MB of loss from exchange rate. Total selling and administrative expenses were decrease compare to the same quarter of previous year mainly from exhibitions and events that suspended due to the spread of the COVID-1 virus. However, in quarter 3/2019 there was the reversal of the loss of asset impairment of 1.74 MB due to the disposition of assets, as a result, total selling and administrative expenses were decreased.

The company’s financial cost was 0.68 MB, decreased by 0.55 MB or 44.76% compared to financial cost of 1.22 MB in the same quarter of previous year due to the decrease in loan from financial institution.

Net profit

In Quarter 3/2020, the company’s consolidate net profit attributable to equity holders was 12.12 MB, accounted for net profit margin 4.47%, similar to net profit attributable to equity holders of 12.12 MB, accounted for net profit margin 5.28% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of September 30, 2020, the Company’s total assets were 602.49 MB, increased by 35.34 MB or 6.23% from December 31, 2019. The assets increased mainly from current assets, which increasing from 33.48 MB of trade receivables-net, 22.39 MB of net-inventories. However, cash and cash equivalents decreased 20.04 MB.

Liabilities

As of September 30, 2020, the Company’s total liabilities were 288.41 MB, increased by 22.25 MB or 8.36% from December 31, 2019. Current Liabilities increased mainly due to the increase of 23.05 MB of trade and other payables, 5.63 of short-term loans from financial institution while accrued income tax decreased 2.98 MB. Non-current liabilities decreased mainly from 5.36 MB of long-term loans from financial institutions, however, net-liabilities under lease agreement increased 1.39 MB.

Shareholder's equity

As of September 30, 2020, Shareholders’ equity of the Company was 315.38 MB, increased from the resulting from net profit of 60.84 MB and decreased by 50.63 MB from dividend payment.

Cash Flows

Unit : MB

The Company’s net cash acquired from the operating activities was 37.48 MB, with operating profits prior to changes in the operating assets and liabilities of 91.64 MB and cash flow received from net- trade and other payables increased 22.37 MB. While, cash flow used for inventories 25.83 MB and trade and other receivables increased 33.37 MB.

Cash flow used in investment activities was 4.94 MB to purchase vehicles and equipment of 4.51 MB and purchase intangible assets of 0.61 MB, while, cash flow acquired from interest received of 0.34 MB.

Cash flow used in financing activities was 52.36 MB mainly used to repayment of loans from financial institutions of 5.36 MB, repayment of liabilities under lease agreement of 0.28 MB, interest expense of 1.78 MB and dividend payment of 50.63 MB. However, cash flow acquired 5.68 MB from short-term loans-trust receipt from financial institutions.

Overview

For the six months period, ending June 30, 2020, The Company’s revenue from sales and services totals 581.82 MB, increasing by 57.06 MB or 12.36%, compared to the revenue from sales and services of 461.76 MB in the same period of previous year. The Company’s consolidate net profit attributable to equity holders of 48.73 MB, representing a net profit margin of 9.82%, increasing by 34.48 MB or 242.04% compared to net profit attributable to equity holders of 14.25 MB, accounted for net profit margin of 3.05% in the same period of previous year.

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the second quarter, ending June 30, 2020 reported the total revenue from sales and services of 245.47 MB comprise 242.98 MB of revenue from sales and 2.49 MB of revenue from services. Revenue from sales and services increases by 23.68 MB or 10.68%, compared to the total revenue from sales and services of 221.79 MB in the same quarter of previous year mainly due to the increase of revenue from sales of Occupational safety, health, personal protective equipment and other related products due to the spread of the COVID-19 virus such as protection masks, protection suits, latex gloves and nitrile gloves , there is still need to use the product continuously. In quarter 2/2020, the Company’s gross profit was 65.49 MB, accounted for gross profit margin of 26.68%, increasing by 10.42 MB or 18.93% compared to a gross profit of 55.06 MB, accounted for gross profit margin of 24.83% in the same quarter of the previous year. In addition, selling and administrative expenses were decreases, as a result, the Company’s net profit attributable to equity holders of 18.37 MB, accounted for net profit margin of 7.38%, increasing by 16.63 MB or 958.82% compared to net profit attributable to equity holders of 1.73 MB, accounted for net profit margin of 0.77% in the same quarter of previous year.

Operating performance

Unit : MB

Revenue

Unit : MB

In Quarter 2/2020, revenue by products of the Company comprise 185.60 MB of Occupational Safety, Health and Environment Products or SAFETY account for 75.61%, 52.99 MB of Control Environment Products or CE account for 21.59% and 6.88 MB of Water Solution Products or WATER account for 2.80%.

Revenue from SAFETY products increased 14.68 MB or 8.59% and revenue from CE products increased 12 MB or 29.27% compare to the same quarter of previous year, mainly due to the increase of revenue from sales of products for the safety in the spread of the COVID-19 virus, especially personal protective equipment such as protection suits, gloves, protection masks, etc. Regarding to the epidemic of Virus COVID-19 shall be effected a constant demand for the aforementioned products according to new practices to prevent the spread of pathogens. However, revenue from Water Solution Products decrease 3 MB or 30.37%, because some customers have delayed their orders and temporarily stopped operating in accordance with government measures.

Cost of Sales and Services

The Company’s total costs in Quarter 2/2020 were 179.99 MB, comprising of 178.16 MB cost of sales, and 1.83 MB cost of services. Cost of sales increased proportionally with more revenue from sales and cost of services decreased in line with the lower revenue of services. In quarter 2/2020, costs of sales and services account for 73.32% of revenue from sales and service. Gross profit margin was 26.68% which increase, compare with gross profit margin 24.83% in the same quarter of previous year, due to the proportion of sales of products with high gross profit margins increased including increasing sales of new customers. As a result, the Company’s gross profit was 65.49 MB, increasing by 10.42 MB or 18.93% compared to gross profit of 55.06 MB in the same quarter of previous year.

Selling and Administrative Expenses

In Quarter 2/2020, selling and administrative expenses were 45.41 MB comprised 21.95 MB of selling expenses and 23.46 MB of administrative expenses. Total selling and administrative expenses decreased by 9.78 MB or 17.72% compare with selling and administrative expenses of 55.19 MB in the same quarter of previous year mainly from employee benefit expense.

The company’s financial cost was 0.49 MB, decreasing by 0.64 MB or 56.77% compared to financial cost of 1.13 MB in the same quarter of previous year due to the decrease in loan from financial institution.

Net profit

In Quarter 2/2020, the company’s consolidate net profit attributable to equity holders was 18.37 MB, accounted for net profit margin 7.38%, increasing by 16.63 MB or 958.82% compared to net profit attributable to equity holders of 1.73 MB, accounted for net profit margin 0.77% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of June 30, 2020, the Company’s total assets were 679.46 MB, increasing by 112.31 MB or 19.80% from December 31, 2019. The assets increased mainly from current assets, which increasing from 38.59 MB of cash and cash equivalents, 73.05 MB of net-inventories and 2.04 MB of trade and other current receivables-net.

Liabilities

As of June 30, 2020, the Company’s total liabilities were 347.10 MB, increasing by 80.94 MB or 30.41% from December 31, 2019. The Liabilities increased mainly due to the increase of 65.36 MB of trade and other payables, 5.92 MB of accrued income tax and 13.70 of short-term loans from financial institution. However, Non-current liabilities decreased mainly from 3.57 MB of long-term loans from financial institutions and 1.18 MB of provision for employee benefit liabilities.

Shareholder's equity

As of June 30, 2020, Shareholders’ equity of the Company was 333.36 MB, increased from the resulting from net profit of 48.73 MB, while, decreasing by 20.25 MB from dividend payment.

Cash Flows

Unit : MB

The Company’s net cash acquired from the operating activities was 53.67 MB, with operating profits prior to changes in the operating assets and liabilities of 68.65 MB and cash flow received from net- trade and other payables increased 67.01 MB. While, cash flow used for inventories 73.33 MB and trade and other receivables increased 2.30 MB.

Cash flow used in investment activities was 3.57 MB to building improvement of 2.33 MB and purchase tools and equipment of 1.73 MB and purchase intangible assets of 0.25 MB, while, cash flow acquired from loan to employees of 0.43 MB and interest received of 0.25 MB.

Cash flow used in financing activities was 11.31 MB mainly used to repayment of loans from financial institutions of 3.57 MB, repayment of liabilities under lease agreement of 0.19 MB, interest expense of 1.10 MB and dividend payment of 20.25 MB. However, cash flow acquired 13.80 MB from short-term loans-trust receipt from financial institutions.

Overview

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the first quarter, ending March 31, 2020 reported the total revenue from sales and services of 273.35 MB, increasing by 33.38 MB or 13.91%, compared to the total revenue from sales and services of 239.97 MB in the same quarter of previous year mainly due to the increase of revenue from sales of Occupational safety, health, personal protective equipment and other related products due to the spread of the COVID-19 virus, resulting in increased demand for such products in many customer groups. As a result, the Company’s gross profit was 85.76 MB, accounted for gross profit margin of 31.37% in quarter 1/2020, increasing by 23.43 MB or 37.56% compared to a gross profit of 62.34 MB, accounted for gross profit margin of 25.98% in the same quarter of the previous year. Selling and administrative expenses were 51.09 MB with variable expenses increased according to increase of revenue from sales and services

Operating performance

Unit: Million baht

Revenue

Unit: Million baht

In Quarter 1/2020, the Company’s revenue from sales and services were 273.35 MB, comprise 265.89 MB of revenue from sales, 7.31 MB of revenue from services and 0.15 MB of revenue from construction contracts. Revenues from sales and services increasing by 33.38 MB or 13.91% compared to the total revenue from sales and services of 239.97 MB in the same quarter of previous year.

Revenue from Occupational Safety, Health and Environment Products or SAFETY was 213.81 MB, increasing by 17.99 MB or 9.19% and revenue from Control Environment Products or CE was 53.26 MB, increasing by 12.32 MB or 30.11% compared to the same quarter of previous year, Revenues from the SAFETY Products and CE Products were increases mainly due to the increase of revenue from sales of products for the safety in the spread of the COVID-19 virus, especially personal protective equipment such as protection suits, protection masks, gloves, etc. Furthermore, the Company also sourced other relevant products to sell; temperature measurement tools, disinfectants, and alcohol gel. Regarding to the epidemic of Virus COVID-19, the demand for the above mentioned products has increased in many customer groups, both in hospitals and public health groups, dealers, new customer needs such products to use and to donation for medical staff. In addition, partly of industrial customers required more orders to prevent product shortages. Revenue from Water Solution Products or WATER was 6.29 MB, increasing by 3.06 MB or 95.13% compared to the same quarter of previous year, due to the increase from sales and services in industrial project sector.

Cost of Sales and Services

The Company’s total costs in Quarter 1/2020 were 187.59 MB, comprising of 182.65 MB cost of sales, 4.83 MB cost of services and 0.11 MB cost of construction. Cost of sales and services increased proportionally with more revenue from sales and services.

In quarter 1/2020, costs of sales and services account for 68.63% of revenue from sales and service. Gross profit margin was 31.37% which increase, compare with Gross profit margin 25.98% in the same quarter of previous year, due to the proportion of sales of products with high gross profit margins increased including increasing sales of new customers as mentioned above. In Quarter 1/2020, the Company’s gross profit was 85.76 MB, increasing by 23.42 MB or 37.56% compared to gross profit of 62.34 MB in the same quarter of previous year.

Selling and Administrative Expenses

In Quarter 1/2020, selling and administrative expenses were 51.09 MB comprised 23.42 MB of selling expenses, 26.52 MB of administrative expenses and 1.15 of loss from exchange rates. Total selling and administrative expenses increased by 4.28 MB or 9.14% compare with selling and administrative expenses of 46.81 MB in the same quarter of previous year mainly from variable expenses which increased according to revenue from sales and services.

The company’s financial cost was 0.64 MB, decreasing by 0.86 MB or 57.29% compared to financial cost of 1.50 MB in the same quarter of previous year due to the decrease in loan from financial institution.

Net profit

In Quarter 1/2020, the company’s consolidate net profit attributable to equity holders was 30.36 MB, accounted for net profit margin 10.96%, increasing by 17.85 MB or 142.67% compared to net profit attributable to equity holders of 12.51 MB, accounted for net profit margin 3.49% in the same quarter of previous year.

Financial Position

Unit: Million baht

Assets

As of March 31, 2020, the Company’s total assets were 606.87 MB, increasing by 39.72 MB or 7% from December 31, 2019. The assets increased mainly from current assets, which increasing from 49.97 MB of trade and other current receivables-net. While, cash and cash equivalents decreased by 7.94 MB and net-inventories decreased 1.36 MB.

Liabilities

As of March 31, 2020, the Company’s total liabilities were 272.69 MB, increasing by 6.53 MB or 2.45% from December 31, 2019. The Liabilities increased mainly due to the increase of 25.80 MB of trade and other payables, 7.73 MB of accrued income tax, however, short-term loans from financial institution decreased 24.16 MB. Non-current liabilities decreased mainly from 1.79 MB of long-term loans from financial institutions and 1.90 MB of provision for employee benefit liabilities.

Shareholder’s equity

As of March 31, 2020, Shareholders’ equity of the Company was 335.48 MB, increased from the resulting from net profit of 30.36 MB.

Cash Flows

Unit: Million Baht

The Company’s net cash acquired from the operating activities was 20.55 MB, with operating profits prior to changes in the operating assets and liabilities of 43.48 MB and cash flow received from net-inventories decreased 1.05 MB and trade and other payables increased 25.82 MB. While, cash flow used for trade and other receivables increased 49.34 MB.

Cash flow used in investment activities was 1.58 MB to purchase fix assets and intangible assets of 1.69 MB, while, cash flow acquired from interest received of 0.12 MB.

Cash flow used in financing activities was 26.69 MB mainly used to repayment of loans from financial institutions of 25.94 MB and repayment of liabilities under lease agreement of 0.10 MB and interest expense of 0.64 MB.

Overview

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the year, ending December 31, 2019 reported the revenue from sales and services of 911.85 MB decreasing by 12.60 MB or 1.36%, compared to the revenue from sales and services of 924.45 MB in the previous year. Revenue from sales and services were increasing, while, revenue from construction and service contracts were decrease because there have no new project of the community water supply. However, in 2019, the Company’s gross profit was 236 MB, accounted for gross profit margin of 25.88%, gross profit was increase by 8.39 MB or 3.68% compare with gross profit of 227.62 MB, accounted for gross profit margin of 24.62% in the previous year due to cost of sales has dropped following the Baht appreciation and cost overrun for the community water supply construction projects was decrease. In addition, selling and administrative expenses were decreases, as the results for the Company’s net profit attributable to equity holders of 41.42 MB, accounted for net profit margin of 4.49% in 2019, increasing by 4.91 MB or 13.44% compare with net profit attributable to equity holders of 36.51 MB, accounted for net profit margin of 3.91% in the previous year.

Operating performance

Unit: Million baht

Revenue

Unit: Million baht

In 2019, the Company’s revenue from sales and services were 911.85 MB, comprise 890.79 MB of revenue from sales, 20.95 MB of revenue from services and 0.11 MB of revenue from construction and service contracts. Revenues from sales and services decreases by 12.60 MB or 1.36% compared to the previous year.

Revenue from Occupational Safety, Health and Environment Products or SAFETY was 719.42 MB, increasing by 3.69 MB or 0.52% compared to the previous year. Revenue from sales in government sector and new customers were increase, however, revenue from existing customers in some sectors were decrease such as petrochemical industry and automotive industry, due to competition situation and reduced budget for orders following reduction in production capacity as a result of economic slowdown and revenue from services decreased due to the nature of the project.

The revenue from Control Environment Products or CE was 167.96 MB, decreasing by 4.61 MB or 2.67% compared to the previous year, major customers are in the electronics industry reduce production capacity according to the slowing export market which affected by US-China trade war and global economic slowdown.

Revenue from Water Solution Products or WATER was 24.48 MB, decreasing by 11.67 MB or 32.28% compared to the previous year. Revenue from sales and services of water project in industrial customer sector were increase, however, revenue from construction and service contracts were decrease because there have been no new assignments of community water supply construction projects.

In 2019, the company’s other incomes of 11.35 MB, derived from gain on exchange rate of 6.50 MB and other incomes of 4.85 MB.

Cost of Sales and Services

In 2019, The Company’s total costs were 675.85 MB, comprising of 657.30 MB costs of sales, 17.17 MB cost of services and 1.38 MB cost of construction. Cost of sales increase proportionally with revenue from sales, however, cost of sales from some products had lower than previous year due to the Baht appreciation and cost of services decreased proportionally with less revenue from services. Cost of construction was repairing expenses for the community water supply construction projects after delivered.

In 2019, costs of sales and services account for 74.12% of revenue from sales and service. The Company’s gross profit was 236 MB accounted for gross profit margin 25.88% which increases, compare with 227.62 MB of gross profit, accounted for gross profit margin 24.62% in previous year.

Selling and Administrative Expenses

In 2019, selling and administrative expenses were 188.61 MB comprised 89.90 MB of selling expenses, 102.10 MB of administrative expenses, 0.58 MB of penalties arising from delays projects and 3.28 MB of loss on disposal of fixed assets, with a reversal of loss on impairment of assets of 7.24 MB.

Total selling and administrative expenses were decrease by 1.45 MB or 0.76% compare to the previous year, mainly due to the record of allowance for doubtful debt for receivables for penalties arising from delays of construction in previous year and the legal expenses was decrease because most of expenses occurred in previous year. However, selling and administrative expenses increase mainly due to the record of employee benefit expense of approximately 8 MB resulting from the change in related laws.

Loss on disposal of fixed assets of 3.28 MB from the disposition of water well drilling machines assets, however, the Company reversal of the loss of asset impairment of 7.24 MB due to already recorded loss from disposal of fixed assets.

The company’s financial cost was 5.17 MB, decreasing by 3 MB or 36.76% compared to financial cost of 8.17 MB in the previous year due to the Company has more financial liquidity. Therefore, the Company paid up the loan from financial institutions.

Net profit

In 2019, the company’s consolidate net profit attributable to equity holders was 41.42 MB, accounted for net profit margin 4.49%, increasing by 4.91 MB or 13.44% compared to net profit of 36.51 MB, accounted for net profit margin 3.91% in the previous year.

Financial Position

Unit: Million baht

Assets

As of December 31, 2019, the Company’s total assets were 567.15 MB, decreasing by 84.97 MB or 13.03% from December 31, 2018. The decreased assets were mainly from current assets, which decreasing from 64.34 MB of net-inventories, 9.71 MB of trade receivables and other receivables decrease 12.42 MB of contract assets of community water supply construction projects. However, cash and cash equivalents increase 28.54 MB. Non-current assets mainly decrease from property, plant and equipment-net of 14.52 MB from 11.80 MB of depreciation and amortization for the period and disposition of water well drilling machines assets 21.40 MB, the Company has already recorded loss from disposal of fixed assets. Therefore there is a reversal transaction of asset impairment.

Liabilities

As of December 31, 2019, the Company’s total liabilities were 266.16 MB, decreasing by 112.98 MB or 29.80% from December 31, 2018. The decreased of current liabilities mainly due to the decreased of 72.07 MB in short-term loans from financial institution, 37.02 MB of trade and other payables and 4.75 MB of current portion of long-term liabilities under finance leases while current income tax payable increase by 1.56 MB. Non-current liabilities were decrease from 7.95 MB of liabilities under finance lease agreement and 7.14 MB of long-term loan from financial institution, however, provisions for employee benefits was increase 15.16 MB resulting from the change in related laws.

Shareholder’s equity

The company has decreased the registered capital from the original registered capital of 251 MB to the registered capital of 210.50 MB by cutting ordinary shares to support the exercise of warrants PHOL-W1 that has not yet been released and clear the accumulated losses of 89.26 MB by transferring legal reserve amount of 16.20 MB and share premium of 73.06 MB regarding the AGM’s resolution on 24 April 2019.

As of December 31, 2019, Shareholders’ equity was 302.29 MB, increased by 28.01 MB or 10.21% from the resulting from net profit for the period of 41.42 MB, which decreased from the interim dividend payment of 10.13 MB and legal reserve of 2 MB.

Cash Flows

Unit: Million Baht

The Company’s net cash acquired from the operating activities was 128.62 MB, with operating profits prior to changes in the operating assets and liabilities of 82.60 MB and cash flow received from net-inventories decreased by 60.77 MB, trade and other receivables decreased by 30.62 MB and cash received from income tax refund amounted to 4.29 MB. While, cash flow used for trade and other payables of 36.65 MB and paid for employee benefit of 0.59 MB and income tax of 11.85 MB.

Cash flow acquired from investment activities was 7.11 MB, cash flow received from disposal of fixed assets of 9.26 MB and interest received of 0.57 MB. While, cash flow used to purchase fix assets of 2.57 MB.

Cash flow utilized in financing activities was 107.22 MB mainly used to repayment of loans from financial institutions of 79.21 MB, repayment of liabilities under lease agreement of 13.36 MB, interim dividend payment of 10.13 MB and interest expense of 4.52 MB.

Overview

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the third quarter, ending September 30, 2019 reported the revenue from sales and services of 227.58 MB decreasing by 6.92 MB or 2.95%, compared to the revenue from sales and services of 234.50 MB in the same quarter of previous year. Revenue from sales decreased because industrial sector customers have reduced their production capacity due to the economic slowdown. Revenue from services decreased due to project postponement. However, in Quarter 3/2019, the Company’s gross profit was 60.64 MB, accounted for gross profit margin of 26.65%, gross profit was increase, compare with gross profit of 58.97 MB, accounted for gross profit margin of 25.15% in the same quarter of previous year. In addition, selling and administrative expenses were decreases, as the results for the Company’s net profit attributable to equity holders of 12.12 MB, accounted for net profit margin of 5.28% in quarter 3/2019, increasing by 7.03 MB or 138.05% compare with net profit attributable to equity holders of 5.09 MB, accounted for net profit margin of 2.15% in the same quarter of previous year

For the nine months period, ending September 30, 2019, The Company’s revenue from sales and services totals 689.34 MB, decreasing by 2.63 MB or 0.38%, compared to the revenue from sales and services of 691.97 MB in the same period of previous year. The Company’s consolidate net profit attributable to equity holders of 26.37 MB, representing a net profit margin of 3.78%

Operating performance

Revenue

In Quarter 3/2019, the Company’s revenue from sales and services were 227.58 MB, comprise 223.46 MB of revenue from sales and 4.12 MB of revenue from services. Revenues from sales and services decreases by 6.92 MB or 2.95% compared to the same quarter of previous year.

Revenue from Occupational Safety, Health and Environment Products or SAFETY was 174.37 MB, decreasing by 5.78 MB or 3.21% compared to the same quarter of previous year, Revenue from sales decreased from economic slowdown. Revenue from services decreased due to Customers reduced budget and postponed project. However, revenue from government sector and new customers were increase. The revenue from Control Environment Products or CE was 42.28 MB, decreasing by 2.71 MB or 6.03% compared to the same quarter of previous year, major customers are in the electronics industry reduce production capacity according to the slowing export market. Revenue from Water Solution Products or WATER was 10.93 MB, increasing by 1.57 MB or 16.73% compared to the same quarter of previous year, due to revenue from sales and services in industrial project sector.

Cost of Sales and Services

The Company’s total costs in Quarter 3/2019 were 166.94 MB, comprising of 163.64 MB cost of sales, 3.29 MB cost of services and 0.01 MB cost of construction. Cost of sales and services decreased proportionally with less revenue from sales and services and cost of sales has dropped following the Baht appreciation and cost of sales had lower than previous year. In quarter 3/2019, costs of sales and services account for 73.35% of revenue from sales and service. Gross profit margin was 26.65% which increase, compare with 25.15% in the same quarter of previous year.

Selling and Administrative Expenses

In Quarter 3/2019, selling and administrative expenses were 45.89 MB comprised 22.20 MB of selling expenses and 25.44 MB of administrative expenses, with a reversal of loss on impairment of assets of 1.74 MB. Total selling and administrative expenses were decrease by 7.09 MB or 13.38% compare to the same quarter of previous year, mainly due to the record of allowance for doubtful debt for receivables for penalties arising from delays of construction in previous year and the legal expenses was decrease because most of expenses occurred in previous year. In addition, the Company reversal of the loss of asset impairment of 1.74 MB due to the disposition of assets in quarter 3/2019, while loss for impairment of asset of 3.99 MB in the same quarter of previous year.

The company’s financial cost was 1.22 MB, decreasing by 0.49 MB or 28.67% compared to financial cost of 1.72 MB in the same quarter of previous year due to the Company has more financial liquidity. Therefore, the Company paid up the loan from financial institutions.

Net profit

In Quarter 3/2019, the company’s consolidate net profit attributable to equity holders was 12.12 MB, accounted for net profit margin 5.28%, increasing by 7.03 MB or 138.05% compared to net profit of 5.09 MB, accounted for net profit margin 2.15% in the same quarter of previous year.

Financial Position

Unit : MB

Assets

As of September 30, 2019, the Company’s total assets were 596.94 MB, decreasing by 55.17 MB or 8.46% from December 31, 2018. The decreased assets were mainly from current assets, which decreasing from 37.90 MB of net-inventories, 11.01 MB of unbilled receivables to the subcontractors for the construction and 10.91 MB of other receivables. However, cash and cash equivalents increase 10.46 MB and trade receivables increase 2.72 MB. Non-Current Assets mainly decrease from property, plant and equipment-net of 9.87 MB from disposition some of assets for drilling machines and depreciation and amortization for the period.

Liabilities

As of September 30, 2019, the Company’s total liabilities were 307.65 MB, decreasing by 71.49 MB or 18.86% from December 31, 2018. The decreased of current liabilities mainly due to the decreased of 42.02 MB in short-term loans from financial institution and 26.71 MB of trade and other payables. Non-Current Liabilities were decrease from 5.10 MB of liabilities under finance lease agreement and 5.36 MB of long-term loan from financial institution however, provisions for employee benefits was increase 10.42 MB.

Shareholder's equity

The company has decreased the registered capital from the original registered capital of 251 MB to the registered capital of 210.50 MB by cutting ordinary shares to support the exercise of warrants PHOL-W1 that has not yet been released and clear the accumulated losses of 89.26 MB by transferring legal reserve amount of 16.20 MB and share premium of 73.06 MB regarding the AGM’s resolution on 24 April 2019.

As of September 30, 2019, Shareholders’ equity was 290.60 MB, increased from the resulting from net profit for the period of 26.37 MB, which decreased from the interim dividend payment of 10.12 MB and legal reserve of 0.72 MB.

Cash Flows

Unit : MB

The Company’s net cash acquired from the operating activities was 77.90 MB, with operating profits prior to changes in the operating assets and liabilities of 60.43 MB and cash flow received from net-inventories decreased by 35.47 MB, unbilled receivables for the construction 11.01 MB, trade and other payables decreased by 4.24 MB and Cash received from income tax refund amounted to 4.29 MB. While, cash flow used for trade and other payables of 25.26 MB and paid for income tax of 11.54 MB.

Cash flow acquired from investment activities was 0.82 MB, cash flow received from disposal of fixed assets of 3.04 MB and interest received of 0.41 MB. While, cash flow used to purchase fix assets of 2.32 MB.

Cash flow utilized in financing activities was 68.33 MB mainly used to repayment of loans from financial institutions of 47.38 MB, repayment of liabilities under lease agreement of 7.22 MB, interim dividend payment of 10.12 MB and interest expense of 3.61 MB.

Overview

Phol Dhanya Public Company Limited (the Company) consolidated financial statement of the second quarter, ending June 30, 2019 reported the revenue from sales and services of 221.79 MB increasing by 2.72 MB or 1.24%, compared to the revenue from sales and services of 219.07 MB in the same quarter of previous year. In Quarter 2/2019, the Company’s gross profit was 55.06 MB, accounted for gross profit margin of 24.83%, gross profit was decrease, compare with gross profit of 62.53 MB, accounted for gross profit margin of 28.54% in the same quarter of previous year due to competition situation and the proportion of sales of products with low gross margin increases. Selling and administrative expenses were 55.19 MB increasing by 5.64 MB or 11.39%, due to the record of employee benefit expense. As the operating results for Quarter 2/2019, the Company’s net profit attributable to equity holders of 1.73 MB, accounted for net profit margin of 0.77%,

For the six months period, ending June 30, 2019, The Company’s revenue from sales and services totals 461.76 MB, increasing 4.29 MB or 0.94%, compared to the revenue from sales and services of 457.47 MB in the same period of previous year. The Company’s consolidate net profit attributable to equity holders of 14.25 MB, representing a net profit margin of 3.05%.

Operating performance

Unit : MB

Revenue

Unit : MB

In Quarter 2/2019, the Company’s revenue from sales and services were 221.79 MB, comprise 213.98 MB of revenue from sales and 7.82 MB of revenue from services. Revenues from sales and services increased slightly to 1.24% compared to the same quarter of previous year.

Revenue from Occupational Safety, Health and Environment Products or SAFETY was 170.92 MB, increasing by 1.09 MB or 0.64% compared to the same quarter of previous year, revenue from government sector and new customers were increase, however, revenue from existing customers in some sectors were decrease such as petrochemical industry, due to competition situation and reduced budget for orders. The revenue from Control Environment Products or CE was 40.99 MB, decreasing by 1.58 MB or 3.70% compared to the same quarter of previous year, major customers are in the electronics industry reduce production capacity according to the slowing export market. Revenue from Water Solution Products or WATER was 9.88 MB, increasing by 3.21 MB or 48.05% compared to the same quarter of previous year, due to revenue from sales and services in industrial project sector.

Cost of Sales and Services

The Company’s total costs in Quarter 2/2019 were 166.73 MB, comprising of 159.76 MB cost of sales, 6.26 MB cost of services and 0.71 MB cost of construction. Cost of sales and services increased proportionally with more revenue from sales and services. Cost of construction was repairing expenses for the community water supply construction projects after delivered.

In quarter 2/2019, costs of sales and services account for 75.17% of revenue from sales and service. Gross profit margin was 24.83% which decrease, compare with 28.54% in the same quarter of previous year, due to competition situation and the proportion of sales of products with low gross margin increases. In addition, revenue from services in water projects had a low gross profit margin.

Selling and Administrative Expenses

In Quarter 2/2019, selling and administrative expenses were 55.19 MB comprised 23.94 MB of selling expenses, 31.03 MB of administrative expenses and 0.22 of penalties arising from delays projects. Total selling and administrative expenses were decrease by 5.64 MB or 11.39% compare to the same quarter of previous year, mainly due to the record of employee benefit expense, however, the legal expenses was decrease from previous year.

The company’s financial cost was 1.32 MB, decreasing by 0.86 MB or 39.43% compared to financial cost of 2.18 MB in the same quarter of previous year due to the decrease in loan from financial institution.

Net profit

In Quarter 2/2019, the company’s consolidate net profit attributable to equity holders was 1.73 MB, accounted for net profit margin 0.77%.

Financial Position

Unit : MB

Assets

As of June 30, 2019, the Company’s total assets were 633.07 MB, decreasing by 19.05 MB or 2.92% from December 31, 2018. The decreased assets were mainly from current assets, which decreasing from 9.50 MB of unbilled receivables to the subcontractors for the construction, 14.14 MB of net-inventories. While, cash and cash equivalents increase 10.89 MB and trade receivables increase 3.63 MB. Non-Current Assets mainly decrease from property, plant and equipment-net of 6.92 MB from disposition of assets for drilling machines and depreciation and amortization for the period.

Liabilities

As of June 30, 2019, the Company’s total liabilities were 345.49 MB, decreasing by 33.65 MB or 8.88% from December 31, 2018. The decreased of current liabilities mainly due to the decreased of 26.56 MB in short-term loans from financial institution and 10.77 MB of trade and other payables, however, accrued income tax was increase 1.99 MB. Non-Current Liabilities were increase from 9.31 MB of provisions for employee benefits, while, liabilities under finance lease agreement was decrease 3.02 MB and long-term loan from financial institution was decrease 3.57 MB

Shareholder's equity

The company has decreased the registered capital from the original registered capital of 251 MB to the registered capital of 210.50 MB by cutting ordinary shares to support the exercise of warrants PHOL-W1 that has not yet been released and clear the accumulated losses of 89.26 MB by transferring legal reserve amount of 16.20 MB and share premium of 73.06 MB regarding the AGM’s resolution on 24 April 2019.

As of June 30, 2019, Shareholders’ equity was 288.89 MB, with the premium on share of 64.78 MB and unappropriated retained earnings of 22.80 MB.

Cash Flows

Unit : MB

The Company’s net cash acquired from the operating activities was 47.05 MB, with operating profits prior to changes in the operating assets and liabilities of 40.06 MB and cash flow received from 9.50 MB of unbilled receivables for the construction, net-inventories decreased 11.35 MB and trade and other payables decreased 2.60 MB. While, cash flow used for trade and other payables of 11.26 MB and paid for income tax of 5.18 MB.

Cash flow acquired from investment activities was 0.36 MB, cash flow received from disposal of fixed assets of 1.23 MB and interest received of 0.27 MB. While, cash flow used to purchase fix assets of 0.82 MB.

Cash flow utilized in financing activities was 36.84 MB mainly used to repayment of loans from financial institutions of 30.13 MB and repayment of liabilities under lease agreement of 4.24 MB and interest expense of 2.48 MB.