3-year Financial summary

Financial Highlights (Consolidated Financial Statements)

  2017 2016 2015
  (Baht in millions, except share, per share data and ratio)
Statement of Income
Revenue from sales of real estate 2,866.26 5,073.58 5,042.34
Total revenues 3,015.90 5,206.43 5,145.49
Cost of sales of property 1,934.26 3,181.42 3,016.13
Selling and administrative expenses 754.40 855.63 830.02
Total expenses 2,688.66 4,037.05 3,846.15
Gross profit from real estate business 932.00 1,892.17 2,026.21
Profit (Loss) before finance costs and income tax expenses 327.24 1,169.38 1,299.34
Finance costs and income tax expenses 136.05 318.78 398.88
Net profit (Loss) 191.19 850.60 900.46
Profit (Loss) attributable to equity holders of the parent 191.44 850.63 900.90
Statement of Financial Position
Cash, cash equivalents and short-term investment 648.77 1,134.81 505.20
Total current assets 7,912.75 7,572.91 8,428.70
Other non-current assets 2,545.22 2,127.22 1,518.28
Total assets 10,457.97 9,700.13 9,946.98
Total current liabilities 3,608.44 2,513.47 4,035.45
Total non-current liabilities 1,782.81 2,078.77 1,460.54
Total borrowings from financial institutions, debentures and debt certificates 4,059.73 2,937.57 2,883.59
Total liabilities 5,391.25 4,592.24 5,495.99
Issued and fully paid-up share capital 3,575.48 3,575.48 3,575.48
Total equity 5,066.72 5,107.89 4,450.99
Liquidity Ratios (times)
Current ratio 2.19 3.01 2.09
Quick ratio 0.19 0.52 0.18
Profitability Ratios (%)
Gross profit margin (1) 32.52% 37.29% 40.18%
Net profit margin 6.35% 16.34% 17.50%
Return on equity (2) 3.76% 17.80% 22.54%
Return on assets 1.90% 8.66% 8.52%
Efficiency Ratios (times)
Total assets turnover 0.30 0.52 0.51
Leverage Ratios (times)
Debt to equity ratio 1.06 0.90 1.23
Interest-bearing debt to equity ratio 0.80 0.58 0.65
Net interest-bearing debt to equity ratio (3) 0.67 0.35 0.53
Interest coverage ratio   (4) 4.25 12.42 8.48
Growth (% per year)
Total asset growth 7.8% -2% -11%
Total liabilities growth 17.4% -16.4% -28.1%
Total shareholder’s equity growth -0.8% 14.8% 25.6%
Total revenues growth -42.1% 1.2% -22.6%
SG&A expenses growth -11.8% 3.1% -20.4%
Per Share Ratios (Baht)
Earning per share 0.05 0.24 0.25
Book value per share (5) 1.42 1.43 1.24
Other Financial Data
Beginning cash 1,133.73 505.20 497.74
Net cash flows from operating activities -904.69 1,592.63 657.76
Net cash flows from investing activities -458.26 -814.06 9.20
Net cash flows from financing activities 877.08 -148.99 -659.63
Ending cash 647.68 1,133.73 505.20

(1)Gross profit margin = (total sales – cost of sales) / total sales, whereas total sales consist of sale of residential condominium units

(2)Return on equity = Profit (loss) - Equity holders of the Company / the average of total shareholders' equity of this year and last year

(3)Net debt to equity = Total debt less cash and cash equivalent / total shareholders' equity

(4) Interest coverage ratio = Profit (loss) before finance cost and income tax / finance cost, finance cost means interest and other charges associated with financing e.g. front end fee, etc.

(5)  Book value include non-controlling interests of the subsidiaries

Management Discussion and Analysis

Major Events 2017

  • Mr. Lee Chey Cheng Adrian was appointed to be the Chief Executive Officer
  • Announced the transaction of entering a long-term lease of land plot on Ploenchit road to develop an office building and retail space for rent
March the Company’s head quarter was moved from 22fl, The Millennia Tower, Luangsuan Road to 19fl, Rajanakarn Building, South-Sathorn Road
June Issued unsecured debentures value of THB 711.7mn with interest rate 4.7% per annum
July Launched a luxury condominium project, “The Lofts Silom” with presale of 75.0% at end of December 2017. (including units under booking, and in process of signing sale and purchase agreement)
  • Incorporated a subsidiary, Siam Spoon Co., Ltd. (“Siam Spoon”) to be an investment arm in Food and Beverage business
  • Bought a plot of land in CBD area in Sukhumvit road for a luxury condominium project development
October Secured a plot of land in CBD area in Sathorn 12 road for a luxury condominium project development
December Siam Spoon entered a Joint Venture Agreement with Bangkok Wooden Spoon Co., Ltd. (a company under Baan Ying Group in Thailand) to jointly invest in Baan Ying Pte. Ltd., a registered company in Singapore, with an aim to expand growth in Food and Beverage business in ASEAN. The 1st branch is launching in 1Q18.

Management outlook and future projects

In the past few years, the Company was taking conservative view which resulting in a long gap between launching each new project and less transfer revenue in late 2017 than other previous years. The low revenue from unit transfer will continue until end of 1H18 before project the Lofts Asoke is ready to be transferred by end of the year. The Company anticipated this effect and had adjusted the strategy to target at launching new projects yearly to gain revenue at least THB 5bn per year in the next few years. The Company also aims to develop recurring income project to generate revenue at least 30% of total revenue in the next 5 years. This is for stabilizing and giving higher flexibility in operation. From the new strategy, in 2017, the Company had secured 2 plots of land for developing new luxury condominium projects worth approximately THB 9bn. Moreover, the recurring income vision had shown substantial on our grade A office rental project on Ploenchit Road. This project will provide stable income to the Company from 2021 onwards. The Company remains the vision to be medium-size corporate which provide the best residential projects in Bangkok and tourist destination as well as provide grade A modern office rental space for leading Thai and international corporates.

For doing business under good corporate governance (“CG”), in 2017, the Company received CG rating 4 stars “very good” (full score is 5 stars), which improves from 2016 at 3 stars “good”. This brought up the pride of the Company and all management and employees and will fuel us to make best contribution to the Company’s future growth. 2018 will be the year of deriving result from the past successful projects. At the beginning of this year, the Company has inventory value of THB 5,235.4mn., of which, THB 2,923.6mn are ready-to-transfer and recognize revenue. The Company has policy to cash out this group of inventories this year for new project developments. For the future, 2 plots of land in CBD, Sathorn 12 road and Sukhumvit road, are secured and will be ready to launch late this year as luxury condominium projects, total worth of approximately THB 9bn. Funding of the projects is planned to be loan from financial institutions and internal cash, however, the debt’s policy is maintained by limiting D/E ratio1 at below 1.5 times.

The Company had started to incorporate in food and beverage business through a joint venture company. The target was set to open 7 branches. Of which, 6 branches will be in ASEAN countries and 1 branch in Bangkok. The target revenue from this business is at least THB 100mn in 2018.

2017 Financial Highlight

  • Net profit decreased by 77.5% YoY to THB 191.2mn while net profit margin decreased to 6.3%, from 16.3% in 2016.
  • Total revenue of THB 3,015.9mn, of which THB 2,866.3mn was from sales of residential condominium units.
  • Backlog of the Company and its subsidiaries stood at THB 4,754.5mn as of 31 Dec 2017
  • Total asset increased THB 757.8mn to THB 10,458.0mn as of 31 Dec 2017
  • Debt to Equity ratio stood at 0.67 times as of 31 Dec 2017

Operating result 2017


The Company and its subsidiaries (“the Company”) reported a total revenue of THB 3,015.9mn in 2017. This represented a decreased of THB 2,190.5mn or 42.1% YoY. Of which, THB 2,866.3mn, or 95.0% of total revenue was from sales of residential condominium unit from 5 projects which were UNIXX South Pattaya THB 496.1mn, 185 Rajdamri THB 414.5mn, The Lofts Ekkamai THB 1,283.6mn, Zire Wongamat THB 402.2mn and The River THB 269.9mn. Total revenue in 4Q17 decreased by 67.7% YoY or THB 947.5mn to THB 452.2mn.

Project FY2017   FY2016  
  Revenue (Million Baht) % Revenue (Million Baht) %
The River 269.9 9.0% 365.4 7.0%
185 Rajdamri 414.5 13.7% 1,194.6 22.9%
Zire Wongamat 402.2 13.3% 717.8 13.8%
The Lofts Ekkamai 496.1 16.4% 873.8 16.8%
UNIXX South Pattaya 1,283.6 42.6% 1,922.0 36.9%
Others1 149.6 5.0% 132.9 2.6%
Total 3,015.9 100% 5,206.4 100%

1Calculated from Interest-bearing Debt net of cash and cash equivalents

As of 31 December 2017, the Company recorded a total backlog of THB 4,754.5mn. Of the total backlog, 47.9% was from The Lofts Asoke, 42.9% was from The Lofts Silom, 3.1% was from 185 Rajdamri, 2.3% was from Mews Yen Akat, 1.6% was from The River, 1.5% was from UNIXX South Pattaya, 0.6% was from Zire Wongamat, and 0.1% was from The Lofts Ekkamai, totaling of 8 projects.

Cost of Sales

Cost of residential condominium units sold in 2017 decreased to THB 1,934.3mn from THB 3,181.4mn in 2016.

Gross Profit

Gross profit margin of the Company in 2017 was maintained at higher-than-average of the market, though the margin decreased to 32.5% from 37.3% in 2016. Gross profit in 2017 decreased to THB 932.0mn followed the decreasing in revenue.

Selling and Administrative Expenses (SG&A)

SG&A in 2017 was THB 754.4mn, a decrease of THB 101.2mn or 11.8% YoY from THB 855.6mn in 2016. This was primarily due to tightening internal cost control.

SG&A 2017
(THB mn)
(THB mn)
Salary and staff benefits and management’s remuneration 228.9 223.1 + 2.6%
Special business tax & transfer fees 117.7 190.2 - 38.1%
Other selling expenses 127.4 100.9 + 26.3%
Other administrative expenses 280.4 341.4 - 17.9%
Total 754.4 341.4 - 11.8%

Financial Cost

Total cost of financing primarily resulted from interest costs in association with project loans, which are capitalized as development costs for respective projects till completion. Thereafter, such interest costs will be recorded as finance costs in the Statement of Income. Upon project completion, loans are repaid in installments along with transfer of ownerships. In 2017, the Company recorded financial cost of THB 77.1mn, a decreasing of THB 17.1mn or 18.2% YoY from THB 94.2mn in 2016. This was due to 1) the recognition of the cost of interest for 2 new project developments in 2017 were capitalized as project development cost; 2) loans associated with The Lofts Ekkamai were paid in full during the year as 98.0% of total project value were transferred; and 3) debenture with lower interest rate were issued during the year to pay back loan with higher interest rate.

In 2017, the Company had consolidated net profit of THB 191.2mn, which decreased by 77.5% YoY or THB 659.4mn from THB 850.6mn in 2016.

Financial Position (as of 31 December 2017)


Total assets of the Company stood at THB 10,458.0mn, an increase of THB 757.84mn or 7.8% from 31 December 2016. The increase was primarily attributed to the surplus net in project development costs which increased from new project “The Lofts Silom”, with project value of THB 3,461.5mn, and reduction from units transfer of finished projects.


Total liabilities increased from 31 December 2016 by 17.4% or THB 799.0mn to stand at THB 5,391.3mn mainly due to an increase in short-term loan from financial institution of THB 361.4mn for working capital as well as an increase in long-term debenture of THB 711.7mn issued in June 2017.


Total equity decreased from 31 December 2016 by THB 41.2mn or 0.8% to THB 5,066.7mn, mainly from dividend payment based on an approval of shareholders meeting in April 2017.

Debt to Equity Ratio

As of 31 December 2017, interest bearing debt of the Company stood at THB 4,059.7mn while cash and cash equivalents stood at THB 648.8mn. As a result, the debt to equity ratio was 0.67 times, increased from 0.35 times as of 31 December 2016. The increase was primarily attributed to 1) loan for new development luxury condominium project “the Lofts Silom” which was launched in July 2017; and 2) loan for land plots for 2 new luxury condominium projects which will be lunched in 2018.

Cash Flows

(THB mn)
Cash and cash equivalents at the beginning of the year 1,133.7
Net cash flow from operating activities (904.7)
Net cash flow from investing activities (458.3)
Net cash flow from financing activities 877.1
Cash and cash equivalents at the end of the year 647.7

During the year, net cash used in operating activities was THB 904.7mn. The key components were net cash paid for project development cost for project “the Lofts Asoke” and “the Lofts Silom” as well as the reduction profit before tax of this year. Net cash used in investing activities was THB 458.3mn. The key components were restricted bank deposits of THB 356.2mn and advance payment to contractors for building design and other works of THB 61.2mn. Net cash from financing activities was THB 877.1mn. The key components were 1) an increase in short-term loan from financial institution of THB 361.4mn; 2) an increase in long-term loan from financial institution of THB 49.5mn; 3) net cash received from debenture issuance of THB 707.9mn; 4) dividend paid of THB 250.3mn (dividend was paid from the Company’s operating result in 2016, paid on 19 May 2017).

Cash flow movement in 2017 (unit: THB mn)