Report to The Stock Exchange of Thailand (SET)
August 14, 2001
Clarifications on company’s performances in the second quarter and first-half of 2001
I. For Half-Year Performance 2001
From the statement of profit & loss, the Company’s net profit for the period of six months ended June 30, 2001 was Bt251.8m compared to the net profit of Bt108.0m in the same period of last year or 133.1% increase. This was due to the production cost reduction policy, the reduction of financial burden, the change in product mix to produce more Value Added Products, the foreign currency management, the effect of Baht depreciation, and was despite of the decrease in LME zinc price from US$1,132/ton in the first half year of 2000 to US$977/ton in the same period of 2001 or 13.7% decrease.
Total revenue for half-year period was Bt2,715.1m, a 14.3% increase from Bt2,374.9m of the same period last year. This was due to the increase in sale volume. Zinc Ingot sales was 37,170 tons or a 4.7% increase from the same period of year 2000. Zinc Alloy sale was 12,841 tons or a 13.8% increase. The company also introduced 1,747 tons of new products to increase market share. With the change in product mix and the Baht depreciation of Baht, it increased the profit margin, even though the LME zinc price was US$155/ton decrease.
For the consolidated statement, the company’s net profit leaped to Bt402.7m, an increase from the same period of last year by Bt94.8m or 324.8% increase. The main reason was the profit in the first quarter Bt150.9m which was the result of deconsolidation of a subsidiary company. The company also has a good operating profit that resulted in better consolidated statement. Currently, the company has the policy to concentrate on its core business related to Zinc only. The company also scaled down the operation of subsidiaries company which helped to reduce impact tremendously.
II. For the second quarter performance
For the statement of profit & loss, the net profit for the quarter was Bt133.7m compared to the net profit of Bt37.3m in the same quarter of 2000, a 258.4% increase. The increase in the net profit was due to the production cost reduction policy, the reduction of financial burden, the change in product mix and also the depreciation of Baht from 38 Baht/USD in second quarter of year 2000 to 45 Baht/USD in the same quarter of this year.
The total sales volume was Bt1,334.5m, a 14.2% increase from Bt1,169.9m in the same quarter of year 2000. The total Zinc Ingot sale was 17,720 tons or a 3.6% increase from the same period of year 2000. The Zinc Alloy sale was 6,499 tons, a 9.4% increase. The company has also introduced the new products to the market.
For the consolidated statement, the company’s net profit for the second quarter of year 2001 was Bt134.5m, a 433.7% increase from Bt25.2m or a 433.7% increase from the same period of last year. This was the result of concentrating on the zinc-related business only which reduced the impact from the subsidiaries company that had occurred in the same quarter of year 2000.