Supalai : Financial Statement Q1/2024

Supalai Public Company Limited and its subsidiaries Review report and interim financial information For the three-month period ended 31 March 2024

Independent Auditor's Report on Review of Interim Financial Information

To the Shareholders of Supalai Public Company Limited

I have reviewed the accompanying consolidated statement of financial position of Supalai Public Company Limited and its subsidiaries as at 31 March 2024, the related consolidated statements of income, comprehensive income, changes in shareholder's equity and cash flows for the three-month period then ended, as well as the condensed notes to the interim consolidated financial statements. I have also reviewed the separate financial information of Supalai Public Company Limited for the same period (collectively "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.

Krongkaew Limkittikul

Certified Public Accountant (Thailand) No. 5874

EY Office Limited

Bangkok: 14 May 2024

Supalai Public Company Limited and its subsidiaries
Statement of financial position
As at 31 March 2024
							(Unit: Thousand Baht)
		Consolidated financial statements		Separate financial statements
	Note	31 March 2024		31 December 2023		31 March 2024		31 December 2023
		(Unaudited		(Audited)		(Unaudited		(Audited)
		but reviewed)				but reviewed)
Assets
Current assets
Cash and cash equivalents		6,408,453	4,710,919	950,908	527,676
Trade and other receivables		118,162	60,432	114,922	141,329
Dividend receivable from subsidiaries	2	-	-	63,836	113,359
Short-term loans to subsidiaries and interest receivables	2	-	-	698,105	281,124
Property development costs	3	74,730,677	71,125,305	65,886,982	62,044,812
Deposits for land purchase		819,001	698,825	501,676	386,115
Advance payment for construction materials		105,426	112,564	105,426	112,564
Current portion of cost to obtain contracts with customers		69,185	76,688	43,642	51,567
Other current financial assets	4	237,697	427,181	-	-
Other current assets		496,512	522,369	393,028	363,891
Total current assets		82,985,113	77,734,283	68,758,525	64,022,437
Non-current assets
Long-term loans to related parties and interest receivables	2	1,320,003	1,219,915	-	-
Other non-current financial assets	4	3,395,053	4,126,794	2,797,473	3,460,130
Advance payment for investment	5	-	-	379,058	1,129,109
Investments in subsidiaries	6	-	-	11,713,054	10,204,644
Investments in joint ventures and associates	7	1,272,556	1,255,507	-	-
Investment properties		1,081,828	1,071,733	743,831	728,933
Property, building and equipment		386,513	387,618	268,449	268,484
Goodwill		79,918	88,118	-	-
Intangible assets		80,582	77,279	70,609	67,509
Deferred tax assets	12	138,053	130,229	74,501	80,576
Cost to obtain contracts with customers, net of current portion		22,261	2,608	22,261	2,609
Other non-current assets		32,774		31,637		30,993		29,819
Total non-current assets		7,809,541		8,391,438		16,100,229		15,971,813
Total assets		90,794,654	86,125,721	84,858,754	79,994,250

The accompanying notes are an integral part of the interim financial statements.

Supalai Public Company Limited and its subsidiaries
Statement of financial position (continued)
As at 31 March 2024
							(Unit: Thousand Baht)
		Consolidated financial statements		Separate financial statements
	Note	31 March 2024		31 December 2023		31 March 2024		31 December 2023
		(Unaudited		(Audited)		(Unaudited		(Audited)
		but reviewed)				but reviewed)
Liabilities and shareholders' equity
Current liabilities
Bills of exchange payable	8	4,965,611	4,968,488	4,965,611	4,968,488
Trade and other payables	9	3,636,158	3,191,509	3,340,444	2,624,919
Current portion of borrowings:
- Long-term loans from banks	10	10,505,392	8,522,978	10,265,392	8,247,512
- Debentures	11	4,935,291	6,988,480	4,935,291	6,988,480
Income tax payable		867,790	721,217	804,074	654,461
Deposits and advances received from customers		1,626,382	1,446,032	1,567,544	1,372,896
Retention guarantees		886,532	852,560	831,911	800,853
Other current liabilities		493,079		466,205		387,404		378,049
Total current liabilities		27,916,235	27,157,469	27,097,671	26,035,658
Non-current liabilities
Current portion of borrowings:
- Long-term loans from banks	10	2,130	-	-	-
- Debentures	11	9,648,921	6,684,307	9,648,921	6,684,307
Provision for long-term employee benefits		255,780	249,633	229,248	223,378
Deferred tax liabilities	12	277,144	343,535	-	-
Other non-current liabilities		235,354		226,072		224,002		214,724
Total non-current liabilities		10,419,329		7,503,547		10,102,171		7,122,409
Total liabilities		38,335,564		34,661,016		37,199,842		33,158,067

The accompanying notes are an integral part of the interim financial statements.

Supalai Public Company Limited and its subsidiaries
Statement of financial position (continued)
As at 31 March 2024
						(Unit: Thousand Baht)
	Consolidated financial statements		Separate financial statements
	31 March 2024		31 December 2023		31 March 2024		31 December 2023
	(Unaudited		(Audited)		(Unaudited		(Audited)
	but reviewed)				but reviewed)
Shareholders' equity
Share capital
Registered
1,955,666,261 ordinary shares of Baht 1 each	1,955,666	1,955,666	1,955,666	1,955,666
Issued and fully paid-up
1,953,054,030 ordinary shares of Baht 1 each	1,953,054	1,953,054	1,953,054	1,953,054
Share premium	1,498,995	1,498,995	1,498,995	1,498,995
Surplus on change in ownership interests of subsidiaries	29,252	28,705	-	-
Treasury share premium	61,466	61,466	-	-
Retained earnings
Appropriated - Statutory reserve	214,569	214,569	214,569	214,569
Unappropriated	48,142,828	47,400,216	43,730,919	43,063,393
Other components of shareholders' equity	(427,133)		(681,879)		261,375		106,172
Equity attributable to owners of the Company	51,473,031	50,475,126	47,658,912	46,836,183
Non-controlling interests of the subsidiaries	986,059		989,579		-		-
Total shareholders' equity	52,459,090		51,464,705		47,658,912		46,836,183
Total liabilities and shareholders' equity	90,794,654		86,125,721		84,858,754		79,994,250
	-	-	-	-

The accompanying notes are an integral part of the interim financial statements.

Directors

(Unaudited but reviewed)

Supalai Public Company Limited and its subsidiaries
Income statement
For the three-month period ended 31 March 2024
			(Unit: Thousand Baht, except earnings per share expressed in Baht)
		Consolidated financial statements		Separate financial statements
	Note	2024	2023	2024	2023
Revenues
Revenue from sales of real estate		4,472,309	5,641,418	3,502,321	5,101,940
Revenue from rental and services		107,737	92,629	52,500	51,180
Other income		94,284			167,658		127,152		166,702
Total revenues		4,674,330	5,901,705	3,681,973	5,319,822
Expenses
Cost of real estate sales		2,864,260	3,585,629	2,173,628	3,232,470
Cost of rental and services		54,731	52,319	19,934	21,807
Selling expenses		332,006	385,664	298,677	362,227
Administrative expenses		449,086			429,599		380,335		379,642
Total expenses		3,700,083			4,453,211		2,872,574		3,996,146
Profit from operating activities		974,247	1,448,494	809,399	1,323,676
Share of profit from investments in joint ventures
and associates	7	261	66,047	-	-
Finance cost		(144,996)			(95,813)		(144,281)		(91,915)
Profit before income tax expenses		829,512	1,418,728	665,118	1,231,761
Income tax expenses	12	(199,019)			(317,560)		(124,783)		(251,440)
Profit for the period		630,493	1,101,168	540,335	980,321
Profit attributable to:
Equity holders of the Company		613,642	1,080,414	540,335	980,321
Non-controlling interests of the subsidiaries		16,851			20,754
		630,493	1,101,168
Earnings per share	13
Basic earnings per share
Profit attributable to equity holders of the Company		0.31	0.55	0.28	0.50

The accompanying notes are an integral part of the interim financial statements.

					(Unaudited but reviewed)
Supalai Public Company Limited and its subsidiaries
Statement of comprehensive income
For the three-month period ended 31 March 2024
						(Unit: Thousand Baht)
	Consolidated financial statements		Separate financial statements
	2024	2023	2024	2023
Profit for the period	630,493	1,101,168	540,335	980,321
Other comprehensive income:
Other comprehensive income to be reclassified
to profit or loss in subsequent periods:
Exchange differences on translation of financial statements
in foreign currency	171,359	(167,645)	-	-
Other comprehensive income to be reclassified
to profit or loss in subsequent periods	171,359	(167,645)	-	-
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods
Gain on changes in value of equity instruments
designated at fair value through other comprehensive income
- net of income tax	211,993	70,775	282,394	140,733
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods - net of income tax	211,993		70,775		282,394		140,733
Other comprehensive income for the period	383,352		(96,870)		282,394		140,733
Total comprehensive income for the period	1,013,845	1,004,298	822,729	1,121,054
Total comprehensive income attributable to:
Equity holders of the Company	997,358	985,135	822,729	1,121,054
Non-controlling interests of the subsidiaries	16,487		19,163
	1,013,845	1,004,298

The accompanying notes are an integral part of the interim financial statements.

					(Unaudited but reviewed)
Supalai Public Company Limited and its subsidiaries
Cash flow statement
For the three-month period ended 31 March 2024
						(Unit: Thousand Baht)
	Consolidated financial statements		Separate financial statements
	2024	2023	2024	2023
Cash flows from operating activities
Profit before tax	829,512	1,418,728	665,118	1,231,761
Adjustments to reconcile profit before tax to net cash provided by
(paid from) operating activities:
Decrease in property development costs from transferring to
cost of real estate sales	2,838,919	3,547,839	2,154,741	3,210,809
Amortisation of cost to obtain contracts with customers	32,064	43,761	32,064	43,761
Depreciation and amortisation	36,341	31,508	26,324	21,986
Share of profit from investments in joint ventures and associates	(261)	(66,047)	-	-
Loss (gain) on sales of equipment	(100)	(493)	(63)	9
Provision for contributions for housing estate juristic persons	10,003	10,019	10,000	10,000
Provision for long-term employee benefits	6,709	6,986	5,973	6,247
Unrealised loss (gain) on exchange	(11,699)	5,953	(11,699)	5,953
Gain on measured at fair value of derivatives	-	(5,362)	-	(5,362)
Dividend income	-	(9,598)	(81,440)	(44,574)
Finance income	(40,342)	(38,790)	(2,540)	(2,137)
Finance cost	144,996	95,813	144,281	91,915
Profit from operating activities before changes in operating
assets and liabilities	3,846,142	5,040,317	2,942,759	4,570,368
Operating assets decrease (increase)
Trade and other receivables	3,644	4,009	87,781	(2,392)
Property development costs	(6,793,300)	(5,715,707)	(6,185,407)	(5,111,431)
Other current assets	(154,577)	(182,767)	(181,601)	(186,399)
Cost to obtain contracts with customers	(43,945)	(19,920)	(43,791)	(19,715)
Other non-current assets	(1,137)	(675)	(1,174)	(724)
Operating liabilities increase (decrease)
Trade and other payables	906,914	(353,603)	959,815	(353,066)
Deposits and advances received from customers	180,350	(154,313)	194,648	(162,762)
Other current liabilities	52,392	83,808	51,322	77,748
Provision for long-term employee benefits	(562)	(8,999)	(103)	(8,678)
Other non-current liabilities	(722)		609		(722)		609
Cash flows used in operating activities	(2,004,801)	(1,307,241)	(2,176,473)	(1,196,442)
Cash paid for interest expenses	(132,650)	(95,594)	(128,454)	(88,887)
Cash paid for corporate income tax	(151,211)		(118,600)		(39,694)		(54,672)
Net cash flows from used in operating activities	(2,288,662)		(1,521,435)		(2,344,621)		(1,340,001)

The accompanying notes are an integral part of the interim financial statements.

					(Unaudited but reviewed)
Supalai Public Company Limited and its subsidiaries
Cash flow statement (continued)
For the three-month period ended 31 March 2024
						(Unit: Thousand Baht)
	Consolidated financial statements		Separate financial statements
	2024	2023	2024	2023
Cash flows from investing activities
Increase in short-term loans to subsidiaries	-	-	(416,900)	(127,200)
Increase in long-term loans to joint ventures	(108,911)	-	-	-
Decrease in long-term loans to associates	26,365	123,351	-	-
Purchase of other financial assets	(343)	(175,103)	-	(69,944)
Proceeds from sales of other financial assets	1,168,905	651,948	965,974	575,021
Increase in advance payment for investment	-	-	(379,058)	-
Increase in investments in subsidiaries	-	-	(379,301)	-
Acquisitions of investment properties	(24,404)	(4,715)	(24,404)	(4,715)
Acquisitions of property, building and equipment	(15,746)	(8,393)	(12,376)	(5,882)
Acquisitions of intangible assets	(8,035)	(1,106)	(7,508)	(1,106)
Proceeds from sales of equipment	103	2,046	66	196
Interest received	36,821	488	2,459	2,148
Dividend received	60,163		123,897		164,094		158,873
Net cash flows from (used in) investing activities	1,134,918	712,413	(86,954)	527,391
Cash flows from financing activities
Cash receipt from bills of exchange payable	2,325,000	3,000,000	2,325,000	3,000,000
Cash paid for repayment of bills of exchange payable	(2,325,000)	(3,000,000)	(2,325,000)	(3,000,000)
Cash receipt from long-term loans from banks	8,914,129	18,163,471	8,806,000	17,067,500
Cash paid for repayment of long-term loans from banks	(6,929,585)	(14,004,319)	(6,788,120)	(12,836,539)
Proceeds from issuance of debentures	2,836,927	-	2,836,927	-
Cash paid for settlement of debentures	(2,000,000)	(2,500,000)	(2,000,000)	(2,500,000)
Acquisition of non-controlling interests of the subsidiary	(3,000)	-	-	-
Subsidiaries paid dividend for non-controlling interests
of the subsidiaries	(16,414)		(28,891)		-		-
Net cash flows from financing activities	2,802,057		1,630,261		2,854,807		1,730,961
Translation adjustments	49,221		6,638		-		-
Net increase in cash and cash equivalents	1,697,534	827,877	423,232	918,351
Cash and cash equivalents at beginning of period	4,710,919		1,314,835		527,676		450,535
Cash and cash equivalents at end of period	6,408,453		2,142,712		950,908		1,368,886
	-			-

The accompanying notes are an integral part of the interim financial statements.

(Unaudited but reviewed)

Supalai Public Company Limited and its subsidiaries
Statement of changes in shareholders' equity
For the three-month period ended 31 March 2024
																		(Unit: Thousand Baht)
									Consolidated financial statements
					Equity attributable to shareholders of the Company
					Surplus
					on change				Retained earnings	Total other		Total equity		Equity attributable
	Issued and				in ownership				Appropriated					components of		attributable to		to non-controlling		Total
	fully paid-up		Share		interests of		Treasury		Statutory					shareholders'		owners of		interests of		shareholders'
	share capital		premium		subsidiaries		share premium		reserve			Unappropriated	equity		the Company		the subsidiaries		equity
Balance as at 1 January 2023	1,953,054	1,498,995	28,287	61,466	214,569	43,886,553		(1,128,622)	46,514,302	948,583	47,462,885
Profit for the period	-	-	-	-	-	1,080,414		-	1,080,414	20,754	1,101,168
Other comprehensive income for the period	-		-		-		-		-		-		(95,279)		(95,279)		(1,591)		(96,870)
Total comprehensive income for the period	-	-	-	-	-	1,080,414		(95,279)	985,135	19,163	1,004,298
Subsidiaries paid dividend to
non-controlling interests of subsidiaries	-	-	-	-	-	-		-	-	(28,974)	(28,974)
Transfer of fair value reserve to retained earnings	-		-		-		-		-		2,253		(2,253)		-		-		-
Balance as at 31 March 2023	1,953,054		1,498,995		28,287		61,466		214,569		44,969,220		(1,226,154)		47,499,437		938,772		48,438,209
Balance as at 1 January 2024	1,953,054	1,498,995	28,705	61,466	214,569	47,400,216		(681,879)	50,475,126	989,579	51,464,705
Profit for the period	-	-	-	-	-	613,642		-	613,642	16,851	630,493
Other comprehensive income for the period	-		-		-		-		-		-		383,716		383,716		(364)		383,352
Total comprehensive income for the period	-	-	-	-	-	613,642		383,716	997,358	16,487	1,013,845
Surplus on investments in subsidiaries arising
as a result of purchase the investment in
subsidiary on price less than the net book value
at the purchase date	-	-	547	-	-	-		-	547	(3,547)	(3,000)
Subsidiaries paid dividend to
non-controlling interests of subsidiaries	-	-	-	-	-	-		-	-	(16,460)	(16,460)
Transfer of fair value reserve to retained earnings	-		-		-		-		-		128,970		(128,970)		-		-		-
Balance as at 31 March 2024	1,953,054	1,498,995	29,252	61,466	214,569	48,142,828		(427,133)	51,473,031	986,059	52,459,090
																			-

The accompanying notes are an integral part of the interim financial statements.