CLARIFICATION ON COMPANY'S PERFORMANCES FOR THE 3 QUARTER..
[Translation]
Ref. PDI.B.02.92/99
15 November, 1999
To : President
The Stock Exchange of Thailand
Re. : Clarification on the companys performances for the quarter
and the nine-month period ended30 September 1999
Attached please find a copy each of Thai and English version of the unaudited interim
financial statements (both on the company only and consolidated) for the quarter and the nine-
month period ended 30 September 1999 together with clarifications on the companys
performances in respect of the said periods for the SETs information as follows :
(1) From the statements of income on the company only, the profit from operation in the
third quarter of 1999 totalled Bt96.46m. After included a loss on exchange (Bt203.41m) and
depreciation on residue pond (Bt21.02), there was a net loss of Bt127.97m, being comparatively
better than that of the same period of 1998 in which Bt472.18m net loss was recorded. This was
attributed to 4.72% decline in the total revenues but 24.69% decrease of the total expenses, partly
due to 1999s higher sales revenue by Bt71.37m or 7.08% from the greater sales volume and the
averaged LME price for zinc which evenly increased by 10.7%. On the other hand, the cost of sales
rose at a comparatively lower rate (5.03%) than that of the sales revenue. In addition, the selling
and administrative expenses in the same period of 1998 equal to Bt597.44m included an allowance
for loans and accounts receivable accrued in respect of a subsidiary (Bt526.44m).
(2) In the first nine-month period of 1999, the profit from operation amounted to
ponds (Bt38.54m), a net loss was Bt16.55m, being slightly higher than the same period of 1998, in
which a net loss was Bt6.88m despite a significant reduction in the sales revenue (by Bt662.27m or
17%). This was mainly due to early-1998s extra export sales brought forward from late-1997 of
some Bt500m, coupled with lowered sales value derived from export sales due to the stronger Baht
(at Bt43.5 = US$1.0 compared to Bt37.2 = US$1.0 in 1999 period). However, the total revenues
and total expenses in the first nine months of 1999 was evenly down by 23.49% and 23.22%
respectively due to the 1998s allowance for a subsidiarys bad debts as referred in paragraph (1).
. . . / 2
2
(3) From the consolidated financial statement, in the first 9-month period, the company has
a net profit from operation equal to Bt224.96m. After included a loss on exchange (Bt197.69m),
and extraordinary items on residue ponds and subsidiary, there was a net loss of Bt57.88m, being
significantly less than the same period of 1998 in which a net profit of Bt543.17m was recorded
due to a decrease of the total revenues (by 23.14%) at a greater rate than an increase in the total
expenses (by 11.86%). This was attributed to a decline in the sales revenue by Bt666.56m (as
detailed in paragraph (2) above) and a significant drop of other income, while the cost of sales
was down by Bt422.22m.
Yours truly,
- Signature -
(Pinit Vongmasa)
President & CEO
Board Secretary Division
Tel. 661 9900 Ext. 230, 232