1.1 Composition of Assets

The total assets at the year end 2022 was Baht 2,123 million which increased from the previous year by Baht 408 million or 23.79%.

1.1.1 Current Assets amounted to Baht 955 million, increased by Baht 97 million or 11.31% from the previous year. The details are as follows;

• Cash and cash equivalents of Baht 28 million which decreased from the previous year by Baht 124 million because Net cash from operating activities Baht 208 million, net cash used in investing activities Baht 210 million and net cash used in financing activities Baht 122 million.
• Trade accounts receivable and other account receivable at Baht 412 million, increased from the previous year by Baht 92 million or 28.75% as the Company had increased the sales due to the improvement of Coronavirus situation worldwide.
• Current portion of finance lease receivables and finance lease receivables – net of current protion Baht 11 million increased from the previous year Baht 5 million 83.33% because of the company make and additional rental contract.
• Inventory of Baht 460 million which comprises on consumer products and raw material  which increased from the previous year by Baht 126 million or 37.72%
• Other Current Assets of Baht 51 million, increased from the previous year Baht 7 million of 15.91%.

1.1.2 Non-Current Asset amounted to Baht 1,168 million which increased by Baht 311 million or 36.29% from the previous year as follows;

• Investment in the associate of Baht 179 million, decreased from the previous year Baht 2 million or 1.10% because the Company share of loss from investments in associate.
• Investment Properties was at Baht 454 million, increased from the previous year by Baht 332 million or 272.13% because the investment properties of the Company represent land and building used for providing warehouse service. Their fair value has been determined based on the valuations performed by an accredited independent valuer, using the income approach, and the subsidiary transfers in investment properties by Baht 297.20 million.
• Property, Plant and Equipment – net amounted to Baht 480 million with an increase from the previous year by Baht 13 million or 2.78% because the Company bought Land, Building and Building improvements and equipment by Baht 310 million, revaluations land increase by Baht 39 million, transfer to investment properties by Baht 297.20 million and depreciation for the year by Baht 38 million.
• Land awaiting for future development Baht 8.28 million. The Company had land awaiting for future development amounting to Baht 8.28 million. The Company has placed land with net book value by Baht 3.2 million as collateral for short-term and long-term credit facilities granted by commercial banks.
• Right – of – use assets Baht 25.15 million include land Baht 0.34 million building Baht 7.03 million motor vehicles Baht 17.78 million decreased from the previous year by Baht 3.40 million because of entering into building and vehicles lease agreement of Baht 12.69 million and depreciation for the year 2022 of Baht 15.73 million.
• Intangible Assets – net at Baht 0.55 million decreased from the previous year by Baht 0.88 million amortization during the year.
• Other Non-Current Assets was Baht 11 million equal to last year.

1.2 Quality of Assets

In 2022 trade and other receivables Baht 412 million or 19.41% of total assets. Account receivable average collection period was 75 days, decrease from the previous year 21 days. (96 days in 2021) due to the fact that the cash sales for consumer goods had decreased, and instead increased on traditional trade channels credit sales with 30 – 90 days term of payment.

An adequate reserve was set according to the prediction of non-collectable debt. The reserve for the year 2022 non-collectible debt was budgeted at 3.79% of the outstanding account receivable at the year-end.

Inventories Baht 460 million or 21.67% of total assets. Average inventory turnover of 92 days decreased from the previous year 23 days (115 days in 2021).

Investment properties Baht 454 million or 21.38% of total assets by an accredited independent valuer, using the income approach. Key assumptions used in the valuation include discount rate, yield rate and long-term growth in rental rate.

2.1 Cash flows

In 2022, the Company’s net cash flows cash and cash equivalents was Baht 28 million, compared to 2021 which was Baht 152 million, decreased by Baht 124 million net cash from operating activities Baht 208 million, net cash used in investing activities Baht 210 million as the Company purchase of land equipment and intangible assets and acquisition of investment is in subsidiary, net cash used in financing activities Baht 122 million as the Company dividend paid short – term loans from related party and long – term loans from financial institution paid.

2.2 Liquidity Ratios

Current ratio (current asset/current liabilities) in 2022 was 1.41:1 the Company’s current assets can be easily cashed in a short period of time such as short-term cash or cash equivalents 1.32%, account receivables 19.41%, inventories 21.67% of total assets.

The company average debt collection period was between 75 days. Average inventory turnover of 92 days as same as the previous year due to the fact that Karmart products had a higher turnover.

2.3 Collection and Payment Periods

Average debt collection period was 75 days while average account payment period was 141 days. This is because the Company at present has selected the payment option by issuing the letter of credit through the commercial banking and prolonging the credit term around 120 – 180 days through the bank’s granted Trust Receipt.

During the year, the Company had in capital expenditures was mainly from the assets under installation land and construction in progress, building machine and equipment at Baht 310.05 million for supporting the business growth.

4.1 Capital Structure

In 2022, debt/equity ratio was 0.58:1. The company had total liabilities Baht 758 million increased from the previous year Baht 204 million or 36.82% equity attributable to owners of the company Baht 1,303 million increased from the previous Baht 149 million or 12.91%.

4.2 Shareholders’ Equity

In 2022, shareholders’ equity increased by Baht 149 million to Baht 1,303 million from the operating profit during the year of Baht 327 million while the dividend payment was Baht 211 million and other comprehensive income for the year Baht 33 million.

4.3 Liabilities

The Company’s total liabilities was Baht 758 million, increased by Baht 204 million or 36.82% from the previous year.

Current Liabilities was Baht 679 million, increased by Baht 182 million or 36.62% from the previous year. The Details are as follows:

• Short-term loan from financial institutions was Baht 348 million, increased by Baht 185 million from the Company’s promissory notes increased from the previous year Baht 57 million interest rate 5.25 – 5.58 short – term loans from financial institutions increased from the previous year Baht 128 million interest rate 2.55 – 5.85.
• Trade and other payables of Baht 206 million, increased by Baht 59 million.
• Short-term loan from related party amounted Baht 22 million decreased from the previous year by Baht 34 million or 60.71% because of the company repayment continuously.
• Current portion of Liabilities under financial lease agreements due within 1 year and Liabilities under financial lease agreements – net of current portion was Baht 28 million which increased by Baht 3 million or 12% due to entering into building and vehicle lease agreement in 2022.
• Income Tax Payable at Baht 47 million, decreased from the previous year of Baht 9 million due to the Company’s increase in net profit and tax payment in the middle of 2022 more than the previous year.
• Other Current Liabilities was Baht 44 million decreased from the previous year of Baht 1 million or 2.22%.

Non-current liabilities was Baht 79 million, decreased by Baht 22 million or 38.60% from the previous year, The Details are as follows:

• Provision had been made for long-term employee benefits of Baht 20 million, which increased from the previous year of Baht 3 million due to employee benefit according to TAS19 assessed by the actuary.
• Deferred Tax Liabilities at Baht 42 million, increased by Baht 16 million or 61.54% from surplus in fair value of investment properties by Baht 7 million and surplus on revaluation of land by Baht 8 million.

The Executive Committee set up annual business plan and strategic actions to achieve its annual goals. These ensure that the Company is able to adjust its management style in a flexible manner to cope with significant factors which may affect the Company as listed below.

Main Factors

1. Sufficient procurement of products and changes in product trend and fashion
2. Human Resources Development
3. The Price of products and Wages
4. Financial Assistant to Associated or Subsidiary companies and Contingent Liabilities in the future.

Action Plan

1. The Company is capable of product adjustment to cope with the changing trend of product popularity and its procurement system can manage inventory level to service the changing demand and changing trend and fashion.
2. The Company supports Human Resources Development by providing adequate both internal and external training to increase employee skills and proficiency.
3. The Company has a special unit and system of procurement of raw material finished products from quality sources with competitive prices.
4. In case of rendering financial assistant to the Associated or Subsidiary company, the Company completely and transparently follows the rules and regulations of SET and able to be audited. The independent directors are to review and monitor the Company’s operations closely, for the most benefit of investors and stakeholders.