SNC Former Public Company Limited and its Subsidiaries

Transcription

1 SNC Former Public Company Limited and its Subsidiaries Interim for the three-month and nine-month periods ended and Independent auditor s report on review of interim financial information

2 Independent auditor s report on review of interim financial information To the Board of Directors of SNC Former Public Company Limited I have reviewed the accompanying consolidated and separate of financial position of SNC Former Public Company Limited and its subsidiaries, and of SNC Former Public Company Limited, respectively, as at ; the consolidated and separate of comprehensive income for the three-month and nine-month periods ended ; the consolidated and separate of changes in equity and cash flows for the nine-month period ended ; and condensed notes ( interim financial information ). Management is responsible for the preparation and presentation of this interim financial information in accordance with Thai Accounting Standard 34, Interim Financial Reporting. My responsibility is to express a conclusion on this interim financial information based on my review. Scope of Review I conducted my review in accordance with Thai Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion. Conclusion Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34, Interim Financial Reporting. (Vipavan Pattavanvivek) Certified Public Accountant Registration No KPMG Phoomchai Audit Ltd. Bangkok 5 November

3 Statement of financial position Consolidated financial financial December December Assets Note (Unaudited) (Unaudited) Current assets Cash and cash equivalents 328, ,483 87, ,676 Trade and other accounts receivable 4 825, , , ,016 Short-term loans to related parties 3 83,000 64,000 0, ,877 Inventories 244, ,286 99,4 88,298 Other current assets 32,955 45,943 3,646 13,249 Assets classified as held for sale - 8, Total current assets 1,514,622 1,697, ,050 1,196,116 Non-current assets Investments in equity-accounted investees 5 72,459 56, ,050 91,050 Investments in subsidiaries ,9 643,009 Investment properties 7 1, , Property, plant and equipment 8 1,937,539 1,846, , ,602 Intangible assets 55,272 44,782 6,534 7,344 Deferred tax assets 26,948 17,291 5,400 5,006 Other non-current assets 36,794 43,068 29,246 34,361 Total non-current assets 2,259,776 2,123,497 1,692,075 1,647,372 Total assets 3,774,398 3,821,002 2,595,125 2,843,488 The accompanying notes are an integral part of these. 2

4 Statement of financial position Consolidated financial financial December December Liabilities and equity Note (Unaudited) (Unaudited) Current liabilities Short-term loans from financial institutions 85, ,000 85, ,000 Trade and other accounts payable 9 1,034,616 1,152, , ,929 Current portion of accounts payable -acquisition of assets 43, ,729 7,8 83,256 Current portion of long-term loans 28,522 7,200 12,000 - Current portion of finance lease liabilities 4,644 6, Short-term loans from related parties , ,086 Income tax payable 1,643 9, Other current liabilities 12,504 12,152 4,992 6,671 Total current liabilities 1,210,532 1,648, ,536 1,003,942 Non-current liabilities Accounts payable-acquisition of assets 20,980 10,759-1,341 Long-term loans 254,1 7,550 83,000 - Finance lease liabilities 325 3, Employee benefit obligations 47,329 39,355 19,885 15,166 Deferred tax liabilities 9,100 6, Total non-current liabilities 3,865 66, ,885 16,507 Total liabilities 1,542,397 1,714, ,421 1,020,449 The accompanying notes are an integral part of these. 3

5 Statement of financial position Consolidated financial financial December December Liabilities and equity Note (Unaudited) (Unaudited) Equity Share capital: Authorised share capital 287, , , ,777 Issued and paid-up share capital 287, , , ,777 Premium on ordinary shares 1,213,596 1,213,596 1,213,596 1,213,596 Retained earnings Appropriated Legal reserve 67,797 66,525,140,140 Unappropriated 569, , , ,526 Equity attributable to owners of the Company 2,138,764 2,040,532 1,649,704 1,823,039 Non-controlling interests 93,237 65, Total equity 2,232,001 2,106,094 1,649,704 1,823,039 Total liabilities and equity 3,774,398 3,821,002 2,595,125 2,843,488 The accompanying notes are an integral part of these. 4

6 Statement of comprehensive income (Unaudited) Consolidated financial financial Three-month period ended Three-month period ended Note Continuing operations Revenue from sales of goods and rendering of services 1,382,497 1,9, , ,085 Cost of sales and rendering of services (1,224,733) (1,149,492) (667,676) (500,320) Gross profit 157, ,392 19,728 17,765 Interest income ,567 3,847 Other income 6,813 7,378 1,818 2,535 Selling expenses (18,338) (20,435) (7,5) (8,553) Administrative expenses (55,949) (58,060) (14,025) (11,936) Directors and management benefit expenses 3 (16,026) (25,258) (1,326) (3,627) Finance costs (4,999) (1,215) (5,686) (3,534) Share of loss of jointly-controlled entities (6,060) (5,029) - - Profit (loss) before income tax 64,174 68,177 (2,454) (3,503) Income tax benefit (expense) 3,157 (3,868) 2,9 1,117 Profit (loss) for the period 67,3 64,9 (135) (2,386) Other comprehensive income Other comprehensive income for the period, net of income tax Total comprehensive income for the period 67,3 64,9 (135) (2,386) The accompanying notes are an integral part of these. 5

7 Statement of comprehensive income (Unaudited) Consolidated financial financial Three-month period ended Three-month period ended Note Profit (loss) attributable to: Owners of the Company 67,093 61,221 (135) (2,386) Non-controlling interests 238 3, Profit (loss) for the period 67,3 64,9 (135) (2,386) Total comprehensive income attributable to: Owners of the Company 67,093 61,221 (135) (2,386) Non-controlling interests 238 3, Total comprehensive income for the period 67,3 64,9 (135) (2,386) Earnings (loss) per share 12 Basic earnings (loss) per share (in Baht) (0.0005) (0.0083) The accompanying notes are an integral part of these. 6

8 Statement of comprehensive income (Unaudited) Consolidated financial financial Nine-month period ended Nine-month period ended Note Continuing operations Revenue from sales of goods and rendering of services 5,645,082 5,622,395 3,127,117 2,825,257 Cost of sales and rendering of services (5,025,013) (4,939,122) (3,022,178) (2,712,488) Gross profit 620, , , ,769 Interest income 2,681 2,139 14,765 11,627 Other income 25,020 35,424 5,533 15,933 Selling expenses (55,224) (67,426) (22,380) (25,859) Administrative expenses (200,008) (173,974) (54,254) (45,113) Directors and management benefit expenses 3 (62,822) (75,821) (5,808) (10,936) Finance costs (11,499) (4,099) (13,734) (7,194) Share of loss of associates and jointly-controlled entity 5 (14,090) (14,152) - - Profit before income tax 4, ,364 29,061 51,227 Income tax expense 10 (3,476) (20,924) (952) (2,943) Profit for the period 0, ,440 28,109 48,284 Other comprehensive income Other comprehensive income for the period, net of income tax Total comprehensive income for the period 0, ,440 28,109 48,284 The accompanying notes are an integral part of these. 7

9 Statement of comprehensive income (Unaudited) Consolidated financial financial Nine-month period ended Nine-month period ended Note Profit attributable to: Owners of the Company 299, ,060 28,109 48,284 Non-controlling interests 975 3, Profit for the period 0, ,440 28,109 48,284 Total comprehensive income attributable to: Owners of the Company 299, ,060 28,109 48,284 Non-controlling interests 975 3, Total comprehensive income for the period 0, ,440 28,109 48,284 Earnings per share 12 Basic earnings per share (in Baht) The accompanying notes are an integral part of these. 8

10 Statement of changes in equity (Unaudited) Consolidated Retained earnings Nine-month period ended Equity Issued and attributable to Nonpaid-up Premium on Legal owners of controlling Total Note share capital ordinary shares reserve Unappropriated the Company interests equity Balance at 1 January 287,777 1,213,596 61, ,627 1,962,659 58,616 2,021,275 Transactions with owners, recorded directly in equity Contributions by and distributions to owners of the Company Dividends to owners of the Company (345,332) (345,332) - (345,332) Total contributions by and distributions to owners of the Company (345,332) (345,332) - (345,332) Comprehensive income for the period Profit or loss , ,060 3, ,440 Other comprehensive income Total comprehensive income for the period , ,060 3, ,440 Balance at 287,777 1,213,596 61, ,355 1,978,387 61,996 2,040,383 The accompanying notes are an integral part of these. 9

11 Statement of changes in equity (Unaudited) Nine-month period ended Consolidated Retained earnings Equity Issued and attributable to Nonpaid-up Premium on Legal owners of controlling Total Note share capital ordinary shares reserve Unappropriated the Company interests equity Balance at 1 January 287,777 1,213,596 66, ,634 2,040,532 65,562 2,106,094 Transactions with owners, recorded directly in equity Contributions by and distributions to owners of the Company Dividends to owners of the Company (201,444) (201,444) - (201,444) Total contributions by and distributions to owners of the Company (201,444) (201,444) - (201,444) Changes in ownership interests in subsidiary Acquisition of subsidiaries with non-controlling interests ,700 26,700 Total transactions with owners, recorded directly in equity ,700 26,700 Comprehensive income for the period Profit or loss , , ,651 Other comprehensive income Total comprehensive income for the period , , ,651 Appropriated for legal reserve - - 1,272 (1,272) Balance at 287,777 1,213,596 67, ,594 2,138,764 93,237 2,232,001 The accompanying notes are an integral part of these. 10

12 Statement of changes in equity (Unaudited) Nine-month period ended Issued and paid-up Premium on Legal Total Note share capital ordinary shares reserve Unappropriated equity Balance at 1 January 287,777 1,213,596, ,243 1,828,756 Transactions with owners, recorded directly in equity Contributions by and distributions to owners of the Company Dividends to owners of the Company (345,332) (345,332) Total contributions by and distributions to owners of the Company (345,332) (345,332) Comprehensive income for the period Retained earnings Profit or loss ,284 48,284 Other comprehensive income Total comprehensive income for the period ,284 48,284 Balance at 287,777 1,213,596, ,5,708 The accompanying notes are an integral part of these. 11

13 Statement of changes in equity (Unaudited) Retained earnings Issued and paid-up Premium on Legal Total Note share capital ordinary shares reserve Unappropriated equity Nine-month period ended Balance at 1 January 287,777 1,213,596, ,526 1,823,039 Transactions with owners, recorded directly in equity Contributions by and distributions to owners of the Company Dividends to owners of the Company (201,444) (201,444) Total contributions by and distributions to owners of the Company (201,444) (201,444) Comprehensive income for the period Profit or loss ,109 28,109 Other comprehensive income Total comprehensive income for the period ,109 28,109 Balance at 287,777 1,213,596, ,191 1,649,704 The accompanying notes are an integral part of these. 12

14 Statement of cash flows (Unaudited) Consolidated financial financial Nine-month period ended Nine-month period ended Cash flows from operating activities Profit for the period 0, ,440 28,109 48,284 Adjustments for Depreciation 190, ,5 86,266 84,618 Depreciation of investment properties 1,375 1, Amortisation of intangible assets 5,532 5, Allowance for decline in value of inventories (reversal) (525) 3, ,442 Reversal of allowance for impairment of assets (538) - (538) - Unrealised (gain) loss on exchange (2,625) 226 (380) 65 Interest income (2,681) (2,139) (14,765) (11,627) Employee benefits 7,974 7,910 4,719 4,616 Finance costs 11,499 4,099 13,734 7,194 Doubtful debts 1,996-1,996 - Gain on sales of assets classified as held for sale (5,224) (Gain) loss on disposal of property, plant and equipment 451 (479) (501) (151) Gain on sales of intangible assets (17) Share of loss of associates and jointly-controlled entity, net of income tax 14,090 14, Income tax expense 3,476 20, , , , , ,175 The accompanying notes are an integral part of these. 13

15 Statement of cash flows (Unaudited) Consolidated financial financial Nine-month period ended Nine-month period ended Changes in operating assets and liabilities Trade and other accounts receivable 132, ,192 86, ,294 Inventories 3,238 (37,295) (11,260) (7,327) Other current assets 12,988 2,846 9,603 (6,562) Other non-current assets 6,274 1,282 5,115 (4,075) Trade and other accounts payable (115,134) (510,170) (83,171) (703,864) Other current liabilities 352 (8,8) (1,679) (567) Cash generated from operating activities 565, , ,044 27,074 Income tax paid (17,574) (21,620) (1,346) (2,919) Net cash from operating activities 548, , ,698 24,155 Cash flows from investing activities Interest received 2,681 2,251 14,765 16,771 Sale of assets classified as held for sale 13, Purchase of investment properties (10,536) (58,147) - - Purchase of property, plant and equipment (426,512) (408,506) (132,072) (136,940) Sale of property, plant and equipment 7,268 1,387 3, Purchase of intangible assets (16,197) (32,6) (58) (1,569) Sale of intangible assets Proceeds from loans to related parties,000 5,000 4, ,647 Loans to related parties (49,000) (,000) (322,914) (396,500) Purchase of shares in subsidiaries - - (68,0) (1,500) Proceed from share capital reduction in subsidiary ,000 - Purchase of shares in associate - (22,050) - (22,050) Purchase of shares in jointly-controlled entity (,000) - (,000) - Net cash used in investing activities (478,706) (542,371) (88,520) (1,523) The accompanying notes are an integral part of these. 14

16 Statement of cash flows (Unaudited) Consolidated financial financial Nine-month period ended Nine-month period ended Cash flows from financing activities Interest paid (11,619) (4,099) (13,854) (11,209) Proceeds from loans from financial institutions 1,562,3 108,000 1,384, ,000 Repayment of loans from financial institutions (1,482,400) (8,641) (1,477,000) - Repayment of finance lease liabilities (6,829) (1,067) - - Proceeds from short-term loans from related parties , ,586 Repayment of short-term loans from related parties - - (289,586) (369,500) Dividends to owners of the Company (201,444) (345,332) (201,444) (345,332) Acquisition of non-controlling interests 26, Net cash used in financing activities (113,289) (251,139) (133,798) (117,455) Net decrease in cash and cash equivalents (43,584) (237,520) (97,620) (223,823) Cash and cash equivalents at 1 January 372, , ,676 9,605 Cash and cash equivalents at 328, ,935 87,056 85,782 Non-cash transactions Liabilities from construction of plant and purchase of equipment 45,3 44,726 6,092 3,850 Transfer property, plant and equipment to investment properties 6, Transfer investment properties to property, plant and equipment - 18, Acquisition of equipment under finance lease agreement 2, The accompanying notes are an integral part of these. 15

17 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Note Contents 1 General information 2 Basis of preparation of the interim 3 Related parties 4 Trade and other accounts receivable 5 Investments in equity-accounted investees 6 Investments in subsidiaries 7 Investment properties 8 Property, plant and equipment 9 Trade and other accounts payable 10 Income tax 11 Segment information 12 Earnings (loss) per share 13 Dividends 14 Commitments with non-related parties 16

18 Notes to the interim For the three-month and nine-month periods ended (Unaudited) These notes form an integral part of the interim. The interim issued for Thai regulatory reporting purposes are prepared in the Thai language. These English language have been prepared from the Thai language statutory, and were approved and authorised for issue by the Board of Directors on 5 November. 1 General information SNC Former Public Company Limited, the Company, is incorporated in Thailand and has its registered office at 333/3 Moo 6, Bangphriang sub district, Bang bo district, Samutprakarn. The Company has 1 branch in Samutprakarn and 1 branch in Chonburi. The Company was listed on the Stock Exchange of Thailand in October The Company s major shareholder was SNC Holding Company Limited (% shareholding), incorporated in Thailand. The principal businesses of the Company and its subsidiaries are engaged in the production of component parts for cooling machines, component parts for air conditioners for automobile, contract manufacturing and assembly of air conditioners for household use and manufacturing tools and equipment that are made for metal, steel, tungsten and carbide. Details of the Company s subsidiaries, associates and jointly-controlled entity as at and December are given in notes 3, 5 and 6. 2 Basis of preparation of the interim (a) Statement of compliance The interim are prepared on a condensed basis in accordance with Thai Accounting Standard (TAS) No. 34 (revised 2012) Interim Financial Reporting; guidelines promulgated by the Federation of Accounting Professions (FAP); and applicable rules and regulations of the Thai Securities and Exchange Commission. The interim are prepared to provide an update on the for the year ended December. They do not include all of the financial information required for full annual but focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim should be read in conjunction with the of the Company and its subsidiaries for the year ended December. The accounting policies and methods of computation applied in these interim are consistent with those applied in the for the year ended December except that the Group has adopted all the new and revised TFRS that are effective for annual periods beginning on or after 1 January. The adoption of these new and revised TFRS did not have any material effect on the accounting policies, methods of computation, financial performance or position of the Group. 17

19 Notes to the interim For the three-month and nine-month periods ended (Unaudited) (b) Functional and presentation currency The interim are presented in Thai Baht, which is the Company s functional currency. All financial information presented in Thai Baht has been rounded to the nearest thousand unless otherwise stated. (c) Use of estimates and judgements The preparation of interim in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. In preparing these interim, the significant judgements made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the for the year ended December. 3 Related parties For the purposes of these, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control or joint control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Relationships with subsidiaries, associates and jointly-controlled entity are described in notes 5 and 6. Relationship with key management and other related parties were as follows: Name of entities Country of incorporation/ nationality Nature of relationships Directors and management Thai, Japanese and Korean Persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of the Group. SAS Innovation Co., Ltd. Thailand Common directors 18

20 Notes to the interim For the three-month and nine-month periods ended (Unaudited) The pricing policies for transactions with related parties are explained further below: Transactions Sales of goods Purchases of goods Rendering of services Receiving of services Rental income Sales of property, plant and equipment Purchases of property, plant and equipment Interest income Interest expense Pricing policies Cost and cost plus margin Cost and cost plus margin Actual incurred cost Actual incurred cost Cost plus margin Net book value Net book value Agreed rate based on market price Agreed rate based on market price Significant transactions for the three-month and nine-month periods ended and with related parties were as follows: Consolidated Three-month period ended Subsidiaries Sales of goods - - 1,394 1,161 Rendering of services - - 2,0 2,103 Purchases of goods ,165 58,856 Services fee - - 1, Purchases of machinery and equipment Interest income - - 3,664 3,385 Interest expense - - 3,390 2,917 Associates Sales of goods 2,076-1,6 - Rendering of services Purchases of goods Rental income Interest income Jointly-controlled entity Sales of goods Rendering of services Rental income 1,395 1, Purchases of goods 8,992 1,895 8,992 1,890 Interest income Directors and management Directors and management benefit expenses Short-term employee benefits 15,510 24,716 1,270 3,540 Post-employment benefits Total directors and management benefit ---- expenses 16,026 25,258 1,326 3,627 19

21 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Consolidated Nine-month period ended Subsidiaries Sales of goods - - 1,428 2,033 Rendering of services - - 6,154 6,476 Purchases of goods , ,073 Services fee - - 3,596 3,888 Sales of machinery and equipment Purchases of machinery and equipment ,741 Interest income ,561 10,072 Interest expense - - 6,722 6,109 Associates Sales of goods 21,547-2,442 - Rendering of services Purchases of goods Sales of machinery and equipment 13, Rental income 1, Interest income Jointly-controlled entity Sales of goods Rendering of services 1,825 2, Rental income 4,185 4, Purchases of goods 56,080 18,577 56,080 18,572 Services fee Interest income 1, , Directors and management Directors and management benefit expenses Short-term employee benefits 61,272 74,219 5,640 10,685 Post-employment benefits 1,550 1, Total directors and management benefit - expenses 62,822 75,821 5,808 10,936 Balances as at and December with related parties were as follows: Trade accounts receivable - related parties 20 Consolidated December December Subsidiaries Paradise Plastic Co., Ltd ,485 - Infinity Parts Co., Ltd Associate Fuso Industries (Thailand) Co., Ltd

22 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Trade accounts receivable - related parties Consolidated December December Jointly-controlled entity SSM Automation Co., Ltd Less allowance for doubtful accounts Net 910-1, Other receivables - related parties Consolidated December December Subsidiaries SNC Pyongsan Evolution Co., Ltd SNC Cooling Supply Co., Ltd ,001 2,214 Immortal Parts Co., Ltd ,7 1,446 Paradise Plastic Co., Ltd ,334 1,467 Ultimate Parts Co., Ltd Infinity Parts Co., Ltd Toptech Diamond Tools Co., Ltd International Techno Pipe Co., Ltd SNC Atlantic Heat Pump Co., Ltd Associate SNC Atlantic Water Heater Asia Co., Ltd Jointly-controlled entity SSM Automation Co., Ltd. 1,188 1,181 1,181 1,181 1,287 1,181 14,785 7,914 Less allowance for doubtful accounts Net 1,287 1,181 14,785 7,914 21

23 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Short-term loans to related parties Interest rate Consolidated December December (% per annum) Subsidiaries SNC Pyongsan Evolution...Co., Ltd , ,000 SNC Santec Co., Ltd ,605 19,605 SNC Cooling Supply...Co., Ltd , ,377 SNC Creativity Anthology Co., Ltd ,500 Paradise Plastic Co. Ltd ,500 - Associate SNC Atlantic Water Heater Asia Co., Ltd ,000-11,000 - Jointly-controlled entity SSM Automation Co., Ltd ,000 64,000 72,000 64,000 83,000 64,000 3, ,482 Less allowance for doubtful accounts - - (19,605) (19,605) Short-term loans to related parties, net 83,000 64,000 0, ,877 Movements during the nine-month periods ended and of short-term loans to related parties were as follows: Short-term loans to related parties Consolidated Nine-month period ended Subsidiaries At 1 January , ,024 Increase , ,500 Decrease - - (401,914) (534,647) At , ,877 Associate At 1 January Increase 11,000-11,000 - At 11,000-11,000-22

24 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Short-term loans to related parties Consolidated Nine-month period ended Jointly-controlled entity At 1 January 64,000 5,000 64,000 5,000 Increase 38,000,000 38,000,000 Decrease (,000) (5,000) (,000) (5,000) At 72,000,000 72,000,000 Total short-term loans to related parties At 1 January 64,000 5, , ,024 Increase 49,000, , ,500 Decrease (,000) (5,000) (4,914) (539,647) At 83,000,000 0,877 2,877 Trade accounts payable - related parties Consolidated December December Subsidiaries SNC Pyongsan Evolution Co., Ltd Immortal Parts Co., Ltd ,843 3,482 Ultimate Parts Co., Ltd ,777 3,887 Infinity Parts Co., Ltd ,647 7,116 Paradise Plastic Co., Ltd ,919 12,595 Toptech Diamond Tools Co., Ltd Associate Fuso Industries (Thailand) Co., Ltd Jointly-controlled entity SSM Automation Co., Ltd. 2,638 3,616 2,638 3,616 Total 2,647 3,616 26,835,784 Other payables - related parties Consolidated December December Subsidiaries SNC Pyongsan Evolution Co., Ltd SNC Cooling Supply Co., Ltd Infinity Parts Co., Ltd

25 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Other payables - related parties Consolidated December December Associate SNC Atlantic Water Heater Asia Co., Ltd Jointly-controlled entity SSM Automation Co., Ltd Total ,000 Short-term loans from related parties Interest rate December (% per annum) Subsidiaries Immortal Parts Co., Ltd ,086 58,086 Paradise Plastic Co., Ltd ,000 International Techno Pipe Co., Ltd ,500 24,000 SNC Creativity Anthology Co., Ltd ,000 - Total short-term loans from related...parties 275, ,086 Movements during the nine-month periods ended and of short-term loans from related parties were as follows: Short-term loans from related parties Nine-month period ended Subsidiaries At 1 January 101, ,000 Increase 464, ,586 Decrease (289,586) (369,500) At 275, ,086 During the year, Toptech Diamond Tools Co., Ltd. and SNC Creativity Anthology Co., Ltd. which are the Company s subsidiaries entered into the loan agreements with a local bank of Baht 28.3 million and Baht 150 million, respectively. The loans bear interest rate at MLR-1.5% to MLR-1.75% per annum and MLR-1.5% per annum, respectively and are secured by the Company. 24

26 Notes to the interim For the three-month and nine-month periods ended (Unaudited) 4 Trade and other accounts receivable Consolidated Note December 25 December Trade accounts receivable Related parties , Other parties 813, , , ,366 Total 814, , , ,378 Less allowance for doubtful accounts (2,624) (628) (2,624) (628) Net 811, , , ,750 Other receivables Related parties 3 1,287 1,181 14,785 7,914 Other parties 11,958 13,666 10,709 11,352 Total 13,245 14,847 25,494 19,266 Less allowance for doubtful accounts Net 13,245 14,847 25,494 19,266 Total trade and other accounts receivable 825, , , ,016 Bad and doubtful debts expense for the nine-month period ended 1,996-1,996 - Aging analyses for trade accounts receivable were as follows: Consolidated December December Related parties Within credit terms* 910-1, , Less allowance for doubtful accounts , Other parties Within credit terms* 796,716 9, , ,128 Overdue: ** Less than 3 months 14,324 11,605 14,078 11, months - 2,654-2,654 Over 6 months 2,624-2, , , , ,366 Less allowance for doubtful accounts (2,624) (628) (2,624) (628) 811, , , ,738 Total 811, , , ,750

27 Notes to the interim For the three-month and nine-month periods ended (Unaudited) The normal credit terms granted by the Group range from days to 120 days. * Within credit terms means that it was not over the date that the Company and the customer agreed to receive payment. ** Overdue means that the payment receipt date agreed between the Company and the customer has already passed. 5 Investments in equity-accounted investees Consolidated Nine-month period ended Associates At 1 January 41,083-42,050 - Acquisition - 22,050-22,050 Share of net losses of equityaccounted associates (3,0) At 38,052 22,050 42,050 22,050 Jointly-controlled entity At 1 January 15,466 34,494 49,000 49,000 Acquisition,000 -,000 - Share of net losses of equityaccounted jointly-controlled entity (11,059) (14,152) - - At 34,407 20,342 79,000 49,000 Total At 1 January 56,549 34,494 91,050 49,000 Acquisition,000 22,050,000 22,050 Share of net losses of equityaccounted investees (14,090) (14,152) - - At 72,459 42, ,050 71,050 During the nine-month period ended, there was the following acquisition of investment in equity-accounted investees: Acquisition On 15 January, the Company made an additional investment in SSM Automation Co., Ltd., a jointly-controlled entity of the Company, of 0,000 ordinary shares, with a par value of Baht 100 per share, totalling Baht million. Total invested shares represented 49% ownership. 26

28 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Investments in equity-accounted investees as at and December, and dividend income from those investments for the nine-month periods ended and were as follows: Associates SNC Atlantic Water Heater Asia Co., Ltd. Fuso Industries (Thailand) Co., Ltd. Consolidated Type of business Ownership interest Paid-up capital Cost Equity Impairment Equity - net of impairment Dividend income for the nine-month period ended December December December December December December (%) Production and selling of air-towater heat pump ,000 45,000 22,050 22,050 18,096 21, ,096 21, Production of copper parts, metal parts and brass parts , ,000 20,000 20,000 19,956 20, ,956 20, Jointly-controlled entity SSM Automation Co., Ltd. Production of metal fabrication parts for electric appliance and automobile , ,000 79,000 49,000 34,407 15, ,407 15, Total 121,050 91,050 72,459 56, ,459 56,

29 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Ownership interest Paid-up capital Cost Impairment December December December December At cost - net of impairment December Dividend income for the nine-month period ended (%) Associates SNC Atlantic Water Heater Asia Co.,Ltd ,000 45,000 22,050 22, ,050 22, Fuso Industries (Thailand) Co., Ltd , ,000 20,000 20, ,000 20, Jointly-controlled entity SSM Automation Co., Ltd , ,000 79,000 49, ,000 49, Total 121,050 91, ,050 91, The associates and jointly-controlled entity were incorporated in Thailand. 28

30 S SNC Former Public Company Limited and its Subsidiaries Notes to the interim For the three-month and nine-month periods ended (Unaudited) 6 Investments in subsidiaries Nine-month period ended At 1 January 643, ,009 Acquisitions 68,0 1,500 Capital reduction (15,000) - At 696,9 593,509 During the nine-month period ended, there were the following acquisitions and capital reduction of investments in subsidiaries: Acquisitions The Company made an investment in SNC Atlantic Heat Pump Co., Ltd. of 3,000 ordinary shares, with a par value of Baht 100 per share, totalling Baht 33.3 million. Total invested shares represent 74% ownership. The subsidiary was incorporated on 25 March. The Company made an investment in SNC Fukui Holy Insulation Co., Ltd. of 349,996 ordinary shares, with a par value of Baht 100 per share, totalling Baht 35 million. Total invested shares represent 70% ownership. The subsidiary was incorporated on May. Capital reduction On 25, International Techno Pipe Co., Ltd. registered with the Ministry of Commerce to decrease authorised share capital of 150,000 shares, with a par value of Baht 100 per share, totalling Baht 15 million. 29

31 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Direct subsidiaries SNC Pyongsan Evolution Co., Ltd. SNC Santec Co., Ltd. SNC Cooling Supply Co., Ltd. Immortal Parts Co., Ltd. Paradise Plastic Co., Ltd. Toptech Diamond Tools Co., Ltd. Investments in subsidiaries as at and December, and dividend income from those investments for the nine-month periods ended and were as follows: Dividend Type of business Ownership Interest Paid-up capital Cost Impairment At cost - net of impairment income for the ninemonth period ended December December December December (%) December Production of cooling parts and OEM for cooling machines , , , , , , Under liquidation process ,000 20,000 16,000 16,000 (16,000) (16,000) Manufacturing automotive air conditioner parts ,000,000,000, ,000, Production of cooling parts ,000 70,000 70,000 70, ,000 70, Manufacturing plastic parts for electric appliance and automobile ,000,000 29,999 29, ,999 29, Production of metal, steel, tungsten and carbide tools and equipment ,000 80,000 81,000 81, ,000 81,

32 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Type of business Ownership Interest Paid-up capital Cost Impairment December December December December At cost - net of impairment December Dividend income for the nine-month period ended (%) Direct subsidiaries International Techno Pipe Co., Ltd. Production of cooling parts ,000 20,000 5,000 20, ,000 20, SNC Creativity Anthology Co., Ltd. Manufacturing household and automotive air conditioner parts , , , , , , SNC Atlantic Heat Pump Co., Ltd. Not commenced operations ,000-33, , SNC Fukui Holy Insulation Co., Ltd. Production of insulation copper pipe kit used for the installation of cooling machine and foam pipe insulation ,000-35, , Total 712,9 659,009 (16,000) (16,000) 696,9 643, Indirect subsidiaries Ultimate Parts Co., Ltd. Production of cooling parts ,000 40, Infinity Parts Co., Ltd. Production of cooling parts ,000 20, Total All subsidiaries were incorporated in Thailand.

33 Notes to the interim For the three-month and nine-month periods ended (Unaudited) 7 Investment properties Consolidated Nine-month period ended Cost At 1 January 135,798 93,865 Addition 10,536 58,147 Transfer from (transfer to) property, plant and equipment 8,802 (18,213) At 155, ,799 Depreciation and impairment losses At 1 January 20,371 18,770 Depreciation charge for the period 1,375 1,197 Transfer from property, plant and equipment 2,626 - At 24,372 19,967 Net book value At 1 January 115,427 75,095 At 1, ,832 8 Property, plant and equipment Acquisitions, disposals and transfers of property, plant and equipment during the nine-month periods ended and were as follows: Consolidated Nine-month period ended Increase (Acquisitions and transfers in - at cost) Decrease (Disposals and transfers out - net book value) Increase (Acquisitions and transfers in - at cost) Decrease (Disposals and transfers out - net book value) Land and land improvement 13,426 (288) 35,214 - Buildings and other constructions 167,158 (5,887) 85,273 - Machinery and equipment 214,122 (2,335) 119,998 (908) Furniture, fixtures and office equipment 6,740 (14) 6,879 (1,774) Vehicles 5,081 (164) 11,437 - Assets under construction and installation 114,047 (2,942) 107,124 (82,136) Total 520,574 (239,6) 365,925 (84,818) 32

34 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Nine-month period ended Increase (Acquisitions and transfers in - at cost) Decrease (Disposals and transfers out - net book value) Increase (Acquisitions and transfers in - at cost) As at, land and buildings with a total net book value of Baht 16.9 million ( December : Baht 16.9 million) in the consolidated have been mortgaged with banks to secure credit facilities. In April, the Company entered into a loan agreement with a local bank of Baht 100 million. The loan bears interest rate at MLR-1.5% to MLR-1.75% per annum. The Company committed to the bank that there will be no commitment made by the Company with third parties related to the Company s machineries. 9 Trade and other accounts payable Note Consolidated December Decrease (Disposals and transfers out - net book value) Land and land improvement 1,082-17,000 - Buildings and other constructions 6,469-53,0 - Machinery and equipment 35,069 (990) 24,822 (466) Furniture, fixtures and office equipment 1,065-3,974 - Vehicles 3,156 (127) 3,450 - Assets under construction and installation 10,569 (3,6) 15,490 (36,493) Total 57,410 (4,748) 117,766 (36,959) December Trade accounts payable Related parties 3 2,647 3,616 26,835,784 Other parties 936,532 1,066, , ,644 Total 939,179 1,070, , ,428 Other accounts payable Related parties ,000 Other parties 95,437 81,451 39,823 28,501 Total 95,437 82,389 39,854 29,501 Total trade and other accounts payable 1,034,616 1,152, , ,929 33

35 Notes to the interim For the three-month and nine-month periods ended (Unaudited) 10 Income tax Income tax expense is recognised based on management s best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period. The Group s consolidated effective tax rate in respect of continuing operations for the ninemonth period ended was 1% ( : 5%). This effective tax rate is less than the corporate income tax rate principally because the Group has significant profit for the nine-month periods ended and from promotional privileges and this profit is exempted from corporate income tax. 34

36 Notes to the interim For the three-month and nine-month periods ended (Unaudited) 11 Segment information Production of component parts of Cooling machines Other segments Eliminations Total air conditioners automobile use Contract assembly Production of component parts Three-month period ended Revenue from external customers 224, , , , , ,777 93, , ,382,497 1,9,884 Inter-segment revenue ,159 1,338 42,603 18, ,195 (44,474) (20,707) - - Total revenues 224, , , , , ,912 94, ,154 (44,474) (20,707) 1,382,497 1,9,884 Segment results 25,774,724 (3,779) (17,425) 65,514 56,4 (12,276) 4, ,233 74,421 Unallocated expenses Finance costs (4,999) (1,215) Share of loss of associates and jointly-controlled entity (6,060) (5,029) Income tax benefit (expense) 3,157 (3,868) Profit for the period 67,3 64,9 35

37 Notes to the interim For the three-month and nine-month periods ended (Unaudited) 12 Production of component parts of air conditioners automobile use Contract assembly Cooling machines Other segments Eliminations Total Production of component parts Nine-month period ended Revenue from external customers 708, ,327 2,3,774 1,867,096 2,4,8 2,657, ,851 8, ,645,082 5,622,395 Inter-segment revenue ,784 2, , ,818 2,022 2,516 (206,684) (156,270) - - Total revenues 708, ,366 2,332,558 1,869,993 2,517,653 2,808, ,873 1,222 (206,684) (156,270) 5,645,082 5,622,395 Segment results 74,7 97,165 28,744 21, , ,861 (40,591) (8,257) , ,615 Unallocated expenses Finance costs (11,499) (4,099) Share of loss of associates and jointly-controlled entity (14,090) (14,152) Income tax expense (3,476) (20,924) Profit for the period 0, ,440 Segment assets as at / December 553, , ,9 717,677 1,563,949 1,677, , , ,774,398 3,821,002 36

38 Notes to the interim For the three-month and nine-month periods ended (Unaudited) 12 Earnings (loss) per share The calculations of basic earnings (loss) per share for the three-month and nine-month periods ended and were based on the profit (loss) for the period attributable to ordinary shareholders of the Company and the number of ordinary shares outstanding during the period as follows: For the three-month period Consolidated ended (in thousand Baht / in thousand shares ) Profit (loss) for the period attributable to ordinary shareholders of the Company (basic) 67,093 61,221 (135) (2,386) Number of ordinary shares outstanding 287, , , ,777 Earnings (loss) per share (basic) (in Baht) (0.0005) (0.0083) For the nine-month period Consolidated ended (in thousand Baht / in thousand shares ) Profit for the period attributable to ordinary shareholders of the Company (basic) 299, ,060 28,109 48,284 Number of ordinary shares outstanding 287, , , ,777 Earnings per share (basic) (in Baht) Dividends Dividend Dividend Dividend payment Dividend Approved by paid per share date (in thousand (in Baht) Baht) Dividend paid from Board of Directors the profit of first Meeting on six months of 1 August 86, August Dividend paid from Annual General Meeting the profit of last of shareholders six months of on 3 April 115, April Total dividend paid during 201,

39 Notes to the interim For the three-month and nine-month periods ended (Unaudited) Dividend Dividend Dividend payment Dividend Approved by paid per share date (in thousand (in Baht) Baht) Dividend paid from Board of Directors the profit of first Meeting on six months of 2 August 172, August Dividend paid from Annual General Meeting the profit of last of shareholders six months of 2012 on 3 April 172, April Total dividend paid during 345, Commitments with non-related parties Capital commitments Consolidated December December Contracted but not provided for: Buildings and other constructions 1 7,6 1 2,888 Machinery and equipment 35,920 43,559 5,250 3,192 Total 36,2 50,875 5,561 6,080 Non-cancellable operating lease commitments Within one year 51,952 60,004 25,576 26,512 After one year but within five years 22,513 55,101 19,218 37,373 Total 74, ,105 44,794 63,885 Other commitments Unused letters of credit to guarantee payments due to creditors 32, ,297 1,2 73,074 Bank guarantees for land rental, electricity used.and others 50,635 35,233 42,519 27,187 Total 82, ,5 43,8 100,261 38