KCE Electronics Public Company Limited and its...

KCE Electronics Public Company Limited

and its subsidiaries

Condensed interim financial statements

for the three-month andnine-month periods ended

30 September 2020

and

Independent auditor’s review report

Independent auditor’s report on review of interim financial information

To the Board of Directors of KCE Electronics Public Company Limited

I have reviewed the accompanying consolidated and separate statements of financial position of KCE

Electronics Public Company Limited and its subsidiaries, and of KCE Electronics Public Company Limited,

respectively, as at 30 September2020, the consolidated and separate statements of comprehensive income for

the three-month and nine-month periods ended 30 September 2020, the consolidated and separate statement

of changes in equity and cash flows for the nine-month period ended 30 September2020; 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 informationis not prepared, in all material respects, in accordance with Thai Accounting

Standard 34, “Interim Financial Reporting”.

(Sumate Jangsamsee)

Certified Public Accountant

Registration No. 9362

KPMG Phoomchai Audit Ltd.

Bangkok

10November 2020

KCE Electronics Public Company Limited and its subsidiariesStatement of financial position

30 September 31 December 30 September 31 December

Assets Note 2020 2019 2020 2019

(Unaudited) (Unaudited)

Current assets

Cash and cash equivalents 2,144,922 957,395 153,235 70,959

Trade and other current receivables 15 2,698,343 2,972,613 2,084,377 2,194,728

Inventories 5 2,501,782 2,701,391 1,396,706 1,273,485

Other current assets 72,334 87,999 28,982 29,949

Total current assets 7,417,381 6,719,398 3,663,300 3,569,121

Non-current assetsInvestments in associate 6 25,994 37,516 1,584 1,540

Investments in subsidiaries 7 - - 2,845,633 2,842,720

Contract cost assets 11 367,685 232,045 335,514 198,890 Investment properties 159,625 161,259 186,229 188,135Property, plant and equipment 8 8,267,240 8,838,965 5,004,123 5,338,766Right-of-use assets 8 14,793 - 11,955 - Goodwill 153,517 153,517 - - Intangible assets 242,205 257,592 94,848 94,363Deferred tax assets 100,584 75,011 20,063 4,264Other non-current assets 16,082 25,700 12,924 14,304

Total non-current assets 9,347,725 9,781,605 8,512,873 8,682,982

Total assets 16,765,106 16,501,003 12,176,173 12,252,103

Consolidated financial Separate financial statements statements

(in thousand Baht)

The accompanying notes form an integral part of the interim financial statements.2


30 September 31 December 30 September 31 DecemberLiabilities and equity Note 2020 2019 2020 2019


Current liabilities

Short-term borrowings

from financial institutions 15 1,652,531 1,066,665 1,042,531 1,066,665

Trade and other current payables 1,885,992 2,293,046 1,571,611 1,686,966

Current portion of long-term borrowings 15 371,327 258,983 363,037 250,813

Current portion of lease liabilities

(2019: Current portion of liabilities under

hire-purchase and finance lease agreements) 4,591 3,919 3,842 2,716

Current income tax payable 44,038 28,691 3,086 7,556

Other current financial liabilities 15 342 - - -

Total current liabilities 3,958,821 3,651,304 2,984,107 3,014,716

Non-current liabilities

Long-term borrowings 15 775,403 724,116 753,060 696,166

Lease liabilities

(2019: Liabilities under hire-purchase and finance lease agreements) 4,811 7,027 3,656 5,307

Deferred tax liabilities 55,989 58,684 - -

Non-current provisions

for employee benefits 357,539 297,929 147,589 121,785

Total non-current liabilities 1,193,742 1,087,756 904,305 823,258

Total liabilities 5,152,563 4,739,060 3,888,412 3,837,974

statements statements

(in thousand Baht)

Consolidated financial Separate financial



30 September 31 December 30 September 31 DecemberLiabilities and equity Note 2020 2019 2020 2019


Equity

Share capital 9 Authorised share capital 591,397 591,397 591,397 591,397

Issued and paid-up share capital 587,710 586,397 587,710 586,397

Share premium 1,978,134 1,906,510 1,978,134 1,906,510

Share warrants 2,114 - 2,114 -

Retained earnings

Appropriated

Legal reserve 59,140 59,140 59,140 59,140

Unappropriated 8,994,452 9,230,557 5,659,662 5,861,081

Other components of equity (56,559) (70,273) 1,001 1,001

Equity attributable to owners of the parent 11,564,991 11,712,331 8,287,761 8,414,129Non-controlling interests 47,552 49,612 - -

Total equity 11,612,543 11,761,943 8,287,761 8,414,129

Total liabilities and equity 16,765,106 16,501,003 12,176,173 12,252,103

(in thousand Baht)

Consolidated financial Separate financial statements statements


KCE Electronics Public Company Limited and its subsidiariesStatement of comprehensive income (Unaudited)

Note 2020 2019 2020 2019

RevenuesRevenues from sale of goods and rendering of services 11 2,721,822 3,088,295 1,521,189 1,768,650Dividend income from subsidiaries - - 292,929 232,130 Other income 95,100 61,167 37,637 41,166Total revenues 2,816,922 3,149,462 1,851,755 2,041,946

ExpensesCost of sale of goods and rendering of services 2,204,295 2,450,326 1,329,561 1,507,863Distribution costs 101,090 132,897 86,953 94,734Administrative expenses 207,519 288,891 92,986 127,089Total expenses 2,512,904 2,872,114 1,509,500 1,729,686

Profit from operating activities 304,018 277,348 342,255 312,260Finance costs (16,741) (14,996) (11,086) (9,179) Share of profit of investments in associate 942 5,048 - - Profit before income tax expense 288,219 267,400 331,169 303,081Tax (expense) income 12 (34,353) (8,355) (1,732) 3,513Profit for the period 253,866 259,045 329,437 306,594

Other comprehensive incomeItems that will be reclassified subsequently to profit or lossExchange differences on translating financial statements 4,072 (1,539) - - Total items that will be reclassified subsequently to profit or loss 4,072 (1,539) - -

Items that will not be reclassified subsequently to profit or lossLosses on remeasurements of defined benefit plans (55,095) - (21,650) - Income tax relating to items that will not be reclassified 11,019 - 4,330 - Total items that will not be reclassified subsequently to profit or loss (44,076) - (17,320) - Other comprehensive expense for the period, net of tax (40,004) (1,539) (17,320) - Total comprehensive income for the period 213,862 257,506 312,117 306,594

(in thousand Baht)

Consolidated financial Separate financialstatements statements

Three-month period ended Three-month period ended 30 September 30 September



Note 2020 2019 2020 2019

Profit attributable to: Owners of the Company 250,038 255,109 329,437 306,594 Non-controlling interests 3,828 3,936 - - Profit for the period 253,866 259,045 329,437 306,594

Total comprehensive income attributable to: Owners of the Company 210,034 253,570 312,117 306,594 Non-controlling interests 3,828 3,936 - - Total comprehensive income for the period 213,862 257,506 312,117 306,594

Earnings per shareBasic earnings per share (Baht) 13 0.21 0.22 0.28 0.26Diluted earning per share (Baht) 13 0.21 0.22 0.28 0.26

(in thousand Baht)


Three-month period ended Three-month period ended 30 September 30 September




Note 2020 2019 2020 2019

RevenuesRevenues from sale of goods and rendering of services 11 8,109,022 9,194,967 4,355,063 5,193,215 Dividend income from subsidiaries 7 - - 628,787 619,549 Dividend income from an associate 6 - - 20,791 20,018Other income 214,293 125,911 109,694 96,916Total revenues 8,323,315 9,320,878 5,114,335 5,929,698

ExpensesCost of sale of goods and rendering of services 6,422,913 7,332,138 3,784,385 4,413,005Distribution costs 325,635 367,547 233,596 255,869Administrative expenses 734,923 872,776 319,531 369,579Total expenses 7,483,471 8,572,461 4,337,512 5,038,453

Profit from operating activities 839,844 748,417 776,823 891,245Finance costs (44,918) (47,427) (33,397) (28,650) Share of profit of investments in associate 6 7,258 15,398 - - Profit before income tax expense 802,184 716,388 743,426 862,595Tax (expense) income 12 (44,494) (22,683) 10,710 766Profit for the period 757,690 693,705 754,136 863,361

Other comprehensive incomeItems that will be reclassified subsequently to profit or lossExchange differences on translating financial statements 13,714 (19,863) - - Total items that will be reclassified subsequently to profit or loss 13,714 -19,863 - -

Items that will not be reclassified subsequently to profit or lossLosses on remeasurements of defined benefit plans (55,095) - (21,650) - Income tax relating to items that will not be reclassified 11,019 - 4,330 - Total items that will not be reclassified subsequently to profit or loss (44,076) - (17,320) - Other comprehensive expense for the period, net of tax (30,362) (19,863) (17,320) - Total comprehensive income for the period 727,328 673,842 736,816 863,361

(in thousand Baht)


Nine-month period ended Nine-month period ended 30 September 30 September



Note 2020 2019 2020 2019

Profit attributable to: Owners of the Company 746,206 682,702 754,136 863,361 Non-controlling interests 11,484 11,003 - - Profit for the period 757,690 693,705 754,136 863,361

Total comprehensive income attributable to: Owners of the Company 715,844 662,839 736,816 863,361 Non-controlling interests 11,484 11,003 - - Total comprehensive income for the period 727,328 673,842 736,816 863,361

Earnings per shareBasic earnings per share (Baht) 13 0.64 0.58 0.64 0.74Diluted earning per share (Baht) 13 0.64 0.58 0.64 0.74

(in thousand Baht)


Nine-month period ended Nine-month period ended 30 September 30 September



KCE Electronics Public Company Limited and its subsidiariesStatement of changes in equity (Unaudited)

Excess of investmentsarising from additional

purchases of investments in subsidiaries at a price higher

than the netbook value of Change in Equity

Issued and Translation the subsidiaries percentage of Total other attributable to paid-up Share Legal financial at the holding in components of owners of Non-controlling Total

Note share capital premium reserve Unappropriated statements acquisition date subsidiaries equity the Company interests equity

Nine-month period ended 30 September 2019Balance at 1 January 2019 586,397 1,906,510 58,743 9,448,010 (12,326) (38,558) 2,031 (48,853) 11,950,807 56,296 12,007,103

Transactions with owners, recorded directly in equity Distributions to owners of the Company Dividends 14 - - - (1,114,148) - - - - (1,114,148) (21,824) (1,135,972)

Total distributions to owners of the Company - - - (1,114,148) - - - - (1,114,148) (21,824) (1,135,972) Total transactions with owners, recorded directly in equity - - - (1,114,148) - - - - (1,114,148) (21,824) (1,135,972)

Comprehensive income for the period Profit or loss - - - 682,702 - - - - 682,702 11,003 693,705

Other comprehensive income - - - - (19,863) - - (19,863) (19,863) - (19,863)

Total comprehensive income for the period - - - 682,702 (19,863) - - (19,863) 662,839 11,003 673,842

Transfer to legal reserve - - 397 (397) - - - - - - - Balance at 30 September 2019 586,397 1,906,510 59,140 9,016,167 (32,189) (38,558) 2,031 (68,716) 11,499,498 45,475 11,544,973

Consolidated financial statements Other components of equity

Retained earnings

(in thousand Baht)

The accompanying notes form an integral part of the interim financial statements. 9


Excess of investmentsarising from additional

purchases of investments in subsidiaries at a price higher

than the netbook value of Change in Equity

Issued and Translation the subsidiaries percentage of Total other attributable to paid-up Share Share Legal financial at the holding in components of owners of Non-controlling Total

Note share capital premium warrants reserve Unappropriated statements acquisition date subsidiaries equity the Company interests equity

Nine-month period ended 30 September 2020Balance at 1 January 2020 586,397 1,906,510 - 59,140 9,230,557 (33,746) (38,558) 2,031 (70,273) 11,712,331 49,612 11,761,943

Transactions with owners, recorded directly in equity Contributions by and distributions to owners of the parent Issue of ordinary shares 9, 10 1,313 71,624 (3,413) - - - - - - 69,524 - 69,524 Share-based payment transactions 10 - - 5,527 - - - - - - 5,527 - 5,527 Dividends 14 - - - - (938,235) - - - - (938,235) (13,544) (951,779) Total contributions by and distributions to owners of the parent 1,313 71,624 2,114 - (938,235) - - - - (863,184) (13,544) (876,728) Total transactions with owners, recorded directly in equity 1,313 71,624 2,114 - (938,235) - - - - (863,184) (13,544) (876,728)

Comprehensive income for the period Profit or loss - - - - 746,206 - - - - 746,206 11,484 757,690

Other comprehensive income - - - - (44,076) 13,714 - - 13,714 (30,362) - (30,362) Total comprehensive income for the period - - - - 702,130 13,714 - - 13,714 715,844 11,484 727,328

Balance at 30 September 2020 587,710 1,978,134 2,114 59,140 8,994,452 (20,032) (38,558) 2,031 (56,559) 11,564,991 47,552 11,612,543

Consolidated financial statements Other components of equity

Retained earnings

(in thousand Baht)



Other components of equityChange in

Issued and percentage ofpaid-up Share holding in Total

Note share capital premium Legal reserve Unappropriated subsidiaries equity

Nine-month period ended 30 September 2019Balance at 1 January 2019 586,397 1,906,510 58,743 6,095,195 1,001 8,647,846

Transactions with owners, recorded directly in equity Distributions to owners of the Company

Dividends 14 - - - (1,114,148) - (1,114,148) Total distributions to owners of the Company - - - (1,114,148) - (1,114,148) Total transactions with owners, recorded directly in equity - - - (1,114,148) - (1,114,148)

Comprehensive income for the period Profit or loss - - - 863,361 - 863,361 Total comprehensive income for the period - - - 863,361 - 863,361

Transfer to legal reserve - - 397 (397) - - Balance at 30 September 2019 586,397 1,906,510 59,140 5,844,011 1,001 8,397,059

(in thousand Baht)

Separate financial statements

Retained earnings



Other components of equityChange in

Issued and percentage ofpaid-up Share Share holding in Total

Note share capital premium warrants Legal reserve Unappropriated subsidiaries equity

Nine-month period ended 30 September 2020Balance at 1 January 2020 586,397 1,906,510 - 59,140 5,861,081 1,001 8,414,129

Transactions with owners, recorded directly in equity Contributions by and distributions to owners of the parent

Issue of ordinary shares 9, 10 1,313 71,624 (3,413) - - - 69,524 Share-based payment transactions 10 - - 5,527 - - - 5,527 Dividends 14 - - - - (938,235) - (938,235)

Total contributions by and distributions to owners of the parent 1,313 71,624 2,114 - (938,235) - (863,184) Total transactions with owners, recorded directly in equity 1,313 71,624 2,114 - (938,235) - (863,184)

Comprehensive income for the period Profit or loss - - - - 754,136 - 754,136

Other comprehensive income - - - - (17,320) - (17,320) Total comprehensive income for the period - - - - 736,816 - 736,816

Balance at 30 September 2020 587,710 1,978,134 2,114 59,140 5,659,662 1,001 8,287,761


Retained earnings

(in thousand Baht)


KCE Electronics Public Company Limited and its subsidiariesStatement of cash flows (Unaudited)

2020 2019 2020 2019

Cash flows from operating activities

Profit for the period 757,690 693,705 754,136 863,361

Adjustments to reconcile profit

to cash receipts (payments)

Share of profit of associate accounted for

using equity method, net of tax (7,258) (15,398) - -

Depreciation and amortisation 783,087 765,392 412,419 387,323

Amortisation on contract costs assets 8,223 7,852 7,239 6,485

Loss on inventories devaluation 5,635 32,341 10,679 12,740

Loss (gain) on disposal of machinery and equipment 1,408 (2,628) 2,867 (1,539)

Loss from write-off of equipment 50 95 50 95

Provision (reversal of allowance) for impairment losses on assets 56,515 (80) 43,719 -

Provision for employee benefit 18,441 73,753 7,355 30,848

Unrealised loss (gain) on exchange rate

and hedging activities 12,747 (9,226) 17,643 (13,555)

Share-based payment transactions 5,483 - 2,570 -

Dividends received from subsidiaries - - (628,787) (619,549)

Dividends received from an associate - - (20,791) (20,018)

Interest expense 39,035 42,206 31,511 26,612

Tax expense (income) 44,494 22,683 (10,710) (766)

1,725,550 1,610,695 629,900 672,037

Changes in operating assets and liabilities

Trade and other current receivables 295,087 227,152 125,355 341,767 Inventories 193,974 570,987 (133,900) 67,994 Other current assets 19,502 (2,297) 2,498 (6,320) Contract costs assets (143,863) (101,467) (143,863) (96,760) Other non-current assets 7,385 3,280 274 (1,159) Trade and other current payables (470,331) (449,103) (148,009) (51,755) Other current financial liabilities 342 - - - Employee benefit paid (13,926) (11,847) (3,202) (3,111) Net cash generated from operating 1,613,720 1,847,400 329,053 922,693Taxes paid (37,352) (30,726) (5,133) (4,234) Net cash from operating activities 1,576,368 1,816,674 323,920 918,459

(in thousand Baht)

30 September 30 September


Nine-month period ended Nine-month period ended


KCE Electronics Public Company Limited and its subsidiariesStatement of cash flows (Unaudited)

2020 2019 2020 2019

Cash flows from investing activities Proceeds from disposals of machinery and equipment 6,685 26,699 4,691 5,692 Acquisition of property, plant and equipment (204,154) (524,354) (92,561) (370,453) Acquisition of intangible assets (13,448) (5,599) (12,210) (2,808) Dividend received from subsidiaries - - 628,787 619,549 Dividend received from an associate 20,791 20,018 20,791 20,018 Net cash from (used in) investing activities (190,126) (483,236) 549,498 271,998

Cash flows from financing activities Interest paid (39,744) (44,842) (33,218) (28,437) Increase (decrease) in bank overdrafts and short-term borrowings from financial institutions 571,378 (569,855) (38,622) (302,289) Payment of lease liabilities (2019: Repayment of liabilities under hire-purchase and finance lease agreements) (16,337) (2,143) (12,480) (2,518) Proceeds from long-term borrowings 350,000 300,000 350,000 300,000 Repayment of long-term borrowings (194,277) (133,752) (188,110) (20,562) Proceeds from capital increase and warrants exercised 69,523 - 69,523 - Dividend paid (951,779) (1,135,972) (938,235) (1,114,148) Net cash used in financing activities (211,236) (1,586,564) (791,142) (1,167,954)

Net increase (decrease) in cash and cash equivalents before effect of exchange rate 1,175,006 (253,126) 82,276 22,503Effect of exchange rate changes on balances held in foreign currencies 12,521 (17,587) - - Net increase (decrease) in cash and cash equivalents 1,187,527 (270,713) 82,276 22,503Cash and cash equivalents at 1 January 957,395 1,382,872 70,959 189,078 Cash and cash equivalents at 30 September 2,144,922 1,112,159 153,235 211,581

Supplemental disclosure of cash flows information1) Net (increase) decrease in other current receivables from disposal of machinery and equipment (26) - 94 8,709 2) Net increase in trust receipts from purchases of machinery and equipment - 8,761 - 8,760 3) Net increase (decrease) in other current payables from purchases of machinery and equipment 40,611 (87,994) 22,429 (75,123) 4) Net increase in right-of-use assets 1,548 3,325 11,955 3,325

30 September 30 September

(in thousand Baht)


Nine-month period ended Nine-month period ended


KCE Electronics Public Company Limitedand its subsidiaries Notes to the condensed interim financial statements

For the three-month and nine-month periods ended 30 September 2020 (Unaudited)

15

Note Contents

1 General information

2 Basis of preparation of the interim financial statements

3 Impact of COVID-19 outbreak

4 Related parties

5 Inventories

6 Investments in associate

7 Investments in subsidiaries

8 Property, plant and equipment

9 Share capital

10 Share warrants

11 Segment information and disaggregation of revenue

12 Income tax expense

13 Earnings per share 14 Dividends

15 Financial instruments

16 Commitments with non-related parties

17 Reclassification of accounts



16

These notes form an integral part of the interim financial statements.

The interim financial statements issued for Thai regulatory reporting purposes are prepared in the Thai

language. These English language financial statements have been prepared from the Thai language

financial statementsand were approved and authorised for issue by the Board of Directors on

10November 2020.

1 General information

The principal activities of the Company are the manufacture and distribution of electric printed circuit

board products.

2 Basis of preparation of the interim financial statements

(a) Statement of compliance

The condensed interim financial statements are presented in the same format as the annual financial

statements and prepared its notes to the interim financial statements on a condensed basis (“interim

financial statements”) in accordance with Thai Accounting Standard (TAS) No. 34 Interim Financial

Reporting, guidelines promulgated by the Federation of Accounting Professions and applicable rules

and regulations of the Thai Securities and Exchange Commission.

The interim financial statements do not include all of the financial information required for full annual

financial statements but focus on new activities, events and circumstances to avoid repetition of

information previously reported. Accordingly, these interim financial statements should be read in

conjunction with the financial statements of the Company and its subsidiaries for the year ended

31 December 2019.

The Group has initially applied TFRS - Financial instruments standards and TFRS 16 Leases which

have no material impact on the financial statements.

In addition, the Group has not early adopted a number of new and revised TFRS, which are not yet

effective for the current period in preparing these financial statements. The Group has assessed the

potential initial impact on the financial statements of these new and revised TFRS and expects that

there will be no material impact on the financial statements in the period of initial application.

(b) Use of judgments and estimates

In preparing these interim financial statements, judgements and estimates are made by management in

applying the Group’s accounting policies. Actual results may differ from these estimates. The

accounting policies, methods of computation and the key sources of estimation uncertainty were the

same as those that described in the financial statements for the year ended 31 December 2019.

3 Impactof COVID-19 outbreak

Due to the COVID-19 outbreak at the beginning of 2020, Thailand and many other countries have

enacted several protective measures against the outbreak, e.g. the order to temporarily shut down

operating facilities or reduce operating hours, social distancing, etc. This has significantly affected

world economy, production, supply chain of goods and business operation of many entities in wide

areas. The management is closely monitoring the situation to ensure the safety of the Group’s staff and

to manage the negative impact on the business as much as possible. The management has decided to

adapt its operations in order to higher efficiency level of the production and not limited to reduction of

operating cost and expenses. Consequently, on 5 May 2020, the management have decided to

temporarily close and transfer the production activities of a subsidiary, KCE International Co., Ltd., to



17

the Company, starting from 7 May 2020.

The significant financial information of such subsidiary for the 3rd quarter ended 30 September 2020

is presented as below;

(in thousand Baht)

Inventory 43,393

Property, plant and equipment 147,392

Revenue from sales and rendering of services to non-related parties

- for the three-month period ended 30 September 2020 -

- for the nine-month period ended 30 September 2020 238,492

At 30 September 2020, the situation of COVID-19 outbreak is still ongoing, resulting in estimation

uncertainty on the potential impact, therefore, the Group elected to apply accounting guidance on

temporary accounting relief measures for additional accounting options in response to impact from the

situation of COVID-19 outbreak on impairment of assets. The Group elected to exclude the COVID-

19 situation as impairment indicator for property, plant and equipmentand intangible assets.

4 Related parties

Relationships with subsidiaries and associate are described in notes 6 and 7.

Significant transactions for the three-month andnine-month periods ended 30Septemberwith related

parties were asfollows:

For the three-month period ended

Consolidated

financial statements

Separate


30September 2020 2019 2020 2019

(in thousand Baht)

Subsidiaries

Sales of goods - - 349,293 453,427

Rendering of service - - 10,030 26,511

Rental income - - 1,231 1,109

Other income - - 393 3,068

Purchases of goods - - 511,058 606,348

Sales of property, plant and equipment - - - 248

Purchases of property, plant and equipment - - 9,676 -

Dividend income - - 292,929 232,130

Commission expense - - 36,940 29,440

Other expenses - - 29,048 2,156

Associate

Sales of goods 701 1,092 - -

Purchases of raw materials 23,831 23,627 19,404 16,180

Purchases of property, plant and equipment 2,035 204 1,990 203

Other expenses 95 629 96 379

Key management personnel



18


Consolidated


Separate


30September 2020 2019 2020 2019

(in thousand Baht)

Key management personnel compensation

Short-term employee benefit 35,244 32,464 12,347 12,850

Retirement benefits obligations 810 763 360 332

Total key management personnel

compensation 36,054 33,227 12,707 13,182

For the nine-month period ended

Consolidated


Separate


30September 2020 2019 2020 2019

(in thousand Baht)

Subsidiaries

Sales of goods - - 996,269 1,317,765

Rendering of service - - 35,733 71,295

Rental income - - 3,693 3,327

Other income - - 11,513 10,345

Purchases of goods - - 1,546,466 1,774,579

Sales of property, plant and equipment - - 60 2,256

Purchases of property, plant and equipment - - 17,070 19,773

Dividend income - - 628,787 619,549

Commission expense - - 85,970 84,744

Other expenses - - 44,523 4,949

Associate

Sales of goods 3,552 2,231 - -

Purchases of raw materials 85,725 75,888 66,951 51,724

Purchases of property, plant and equipment 2,035 2,392 1,990 211

Dividend income 20,791 20,018 20,791 20,018

Other expenses 733 1,376 390 590

Other income 25 - - -

Key management personnel

Key management personnel compensation

Short-term employee benefit 99,415 98,513 35,159 38,547

Retirement benefits obligations 2,906 2,198 1,078 996

Total key management personnel

compensation 102,321 100,711 36,237 39,543



19

Balances as at 30September2020 and 31 December 2019with related parties were as follows:

Trade receivables

Consolidated


Separate


30

September

2020

31

December

2019

30

September

2020

31

December

2019

(in thousand Baht)

Subsidiaries - - 601,833 632,411

Total - - 601,833 632,411

Less allowance for impairment

(2019: allowance for doubtful accounts) - - - -

Net - - 601,833 632,411

Impairment losses

(2019: bad and doubtful debt expense)


30 September

-

-

-

-


30 September

-

-

-

-

Other current receivables

Consolidated


Separate


30

September

2020

31

December

2019

30

September

2020

31

December

2019

(in thousand Baht)

Subsidiaries - - 9,566 11,418

Associate 1,566 - 860 -

Total 1,566 - 10,426 11,418

Trade payables

Consolidated


Separate


30

September

2020

31

December

2019

30

September

2020

31

December

2019

(in thousand Baht)

Subsidiaries - - 774,470 822,762

Associate 22,615 20,057 18,652 15,145

Total 22,615 20,057 793,122 837,907

Other payables for purchase of

machineries and equipment

Consolidated


Separate


30

September

2020

31

December

2019

30

September

2020

31

December

2019

(in thousand Baht)

Subsidiaries - - 15,119 11,779

Associate 626 - 626 -

Total 626 - 15,745 11,779



20

Other current payables

Consolidated


Separate


30

September

2020

31

December

2019

30

September

2020

31

December

2019

(in thousand Baht)

Subsidiaries - - 32 32

Total - - 32 32

5 Inventories

Inventories as at 30September2020 included finished goods (made to order) of Baht 532million

(31 December 2019:Baht 643 million) in the consolidated financial statements and Baht 384 million

(31 December 2019: Baht 371 million) in the separate financial statements, which had been delivered

to the customers’ warehouses but the title of the inventory shall remain with the Group until the

customers’ requisition to their production process. The Group will receive the payment for these

inventories after the customers’ requisition to their production process, and following conditions

within the periods specified in the agreements.

As at 30September2020, the allowance for decline in value of inventory of the Group and the

Company amounting to Baht 109.7million and Baht 42.2million, respectively (31 December 2019:

Baht 104.1 million and Baht 31.5 million, respectively).

6 Investments in associate

Consolidated


Separate


Equity Method Cost Method


30 September

2020

2019

2020

2019

(in thousand Baht)

Associate

At 1 January 37,516 41,081 1,540 1,540

Share of profit from investments in

associate using equity method

7,258

15,398

-

-

Dividend income (20,791) (20,018) - -

Warrant granted to associate’s

directors and employees

44

-

44

-

Foreign currency translation

differencesfor foreign operations 1,967 (3,308) - -

At 30 September 25,994 33,153 1,584 1,540



21

Investments in associate as at 30September2020 and 31 December 2019and dividend income from investments for the nine-month period ended

30Septemberwere as follows:

Consolidated financial statements

Type of

business

Country of

incorporation

Ownership

interest

Paid-up capital

Cost

Equity

30 31 30 31 30 31 30 31

September December September December September December September December

2020 2019 2020 2019 2020 2019 2020 2019

(%) (in thousand Baht)

Associate

KCE Taiwan Co., Ltd. (1) Taiwan 49.00 49.00 NTD 3,000,000 NTD 3,000,000 1,584 1,540 25,994 37,516

Total 1,584 1,540 25,994 37,516

(1) Foreign raw materials and machinery sourcing representative of the Group

Share of profit from investments in associate for the nine-month period ended 30September2020 was calculated by using the unreviewed financial statements

of the associate as the management of the Company considered that the share of profit from investmentsin associate has no material impact to the

consolidated financial statements of the Company and its subsidiaries and the associate is located overseas and the Company has no power to direct the

financial and operating policies of the associate, including the review of the financial statements.


Ownership

Interest

Paid-up capital

Cost

Warrant granted to

associate’s directors and

employees

Cost - net

Dividend income

30 31 30 31 30 31 30 31 30 31 30 30

September December September December September December September December September December September September

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019


Associate

KCE Taiwan Co., Ltd. 49.00 49.00 NTD 3,000,000 NTD 3,000,000 1,540 1,540 44 - 1,584 1,540 20,791 20,018

Total 1,540 1,540 44 - 1,584 1,540 20,791 20,018



22

7 Investments in subsidiaries

Investments in subsidiaries as at 30September2020 and 31 December 2019,and dividend income from investmentsfor the nine-month period ended

30Septemberwere as follows:


Type of

business

Effective

ownership

Interest

Paid-up capital

Cost

Warrant granted to

subsidiaries’ directors and

employees

Total

Dividend income

30 31 30 31 30 31 30 31 30 31 30 30

September December September December September December September December September December September September

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019


Direct subsidiaries

KCE Technology Co., Ltd. (1) 100.00 100.00 1,600,000 1,600,000 1,600,000 1,600,000 24,296 23,536 1,624,296 1,623,536 296,000 328,000

K.C.E. International Co., Ltd. (1) 99.99 99.99 100,000 100,000 185,395 185,395 13,754 13,193 199,149 198,588 51,997 58,997

Chemtronic Technology

(Thailand) Co., Ltd. (2) 94.75 94.75 48,000 48,000 227,810 227,810 2,090 1,885 229,900 229,695 113,700 68,220

Chemtronic Product Co., Ltd. (2) 94.96 94.96 80,000 80,000 75,968 75,968 - - 75,968 75,968 - -

Thai Laminate Manufacturer

Co., Ltd. (3) 74.80 74.80 250,000 250,000 368,460 368,460 14,667 13,971 383,127 382,431 107,525 51,425

KCE (Thailand) Co., Ltd. (4) 60.00 60.00 3,600 3,600 2,160 2,160 1,196 1,066 3,356 3,226 10,800 27,000

KCE Singapore Pte., Ltd. (5) 75.00 75.00 SGD 500,000 SGD 500,000 168,267 168,267 293 - 168,560 168,267 48,765 36,064

KCE America, Inc. (5) 70.00 70.00 USD 50,000 USD 50,000 161,009 161,009 268 - 161,277 161,009 - 49,843

Total 2,789,069 2,789,069 56,564 53,651 2,845,633 2,842,720 628,787 619,549

Indirect subsidiaries

Chemtronic Chemical Co., Ltd. (2) 93.57 93.57 4,800 4,800 - - - - - - - -

CTC Chemical Co., Ltd. (2) 94.35 94.35 4,800 4,800 - - - - - - - -

KCE America Partner Co., Ltd. (6) 70.00 70.00 USD 302,257 USD 302,257 - - - - - - - -

(1) The manufacture and distribution of electric printed circuit board products (2) The manufacture and distribution of chemicals products

(3) The manufacture and distribution of prepreg and laminate products (4) The domestic sale representative

(5) The foreign sale representative (6) Rental building



23

All subsidiaries were incorporated in Thailandexcept KCE Singapore Pte., Ltd. which was incorporated in Singapore, KCE America, Inc.and KCE America Partner Co., Ltd.,

which both were incorporated in America.



24

8 Property, plant and equipment

Acquisitions, disposals and transfers of property, plant and equipment exclude right-of-use assets

during the nine-month period ended 30September2020 and 2019 were as follows:


Consolidated financial

statements Separate


30 September 2020 2019 2020 2019 (in thousand Baht)

Net book value at 1 January 8,822,241 9,363,934 5,325,415 5,513,072

Acquisitions during the period -cost 287,694 448,087 125,882 323,479

Disposals during the period -

net book valueat the disposal date

(46,450)

(19,682)

(7,610)

(4,448)

Depreciation for the period (749,630) (735,939) (396,336) (374,048)

Transfer 6,801 14,958 491 8,421

Difference from changes in foreign

currency exchange rate

3,099

(3,528)

-

- Reversal of (impairment) losses (56,515) 80 (43,719) -

Net book value at30 September 8,267,240 9,067,910 5,004,123 5,466,476

Carrying amounts of the Group’s and the Company’s right-of-use assets at 30 September 2020 are

Baht 14.8 million and Baht 12.0million, respectivelyand the Group and the Company recognised

depreciation of right-of-use assets for the three-month period ended 30 September 2020, amounting to

Baht 1.0 million and Baht 0.9million, respectively and for the nine-month period ended30

September2020, amounting to Baht 3.0million and Baht 2.5million, respectively.

For the nine-month period ended 30 September 2020, the Group and the Company recognised the

impairment losses for machineries under expired promotional privileges certificate which not use in

manufacturing amounting to Baht 56.5 million and Baht 43.7million, respectively.

Mortgage and pledge

8.1 The Company and its two subsidiaries, K.C.E. International Co., Ltd. and Thai Laminate

Manufacturer Co., Ltd., entered into negative pledge memorandums which are part of bank overdrafts

and loans agreements. Under these memorandums, the Company and its subsidiaries are not allowed

to dispose of, transfer, mortgage or provide any lien on their assets, as stipulated in such

memorandums.

8.2 The subsidiaries have mortgaged and pledged the following property, plant and equipment.

8.2.1 Chemtronic Technology (Thailand) Co., Ltd. has mortgaged its land with a total net book

value as at 30 September2020 of Baht 69million (31 December 2019: Baht 69 million), as

collateral for loans from banks.

8.2.2 KCE Singapore Pte., Ltd. has mortgaged its office building with a total net book value as at

30 September2020 of Baht 146million (31 December 2019: Baht 148 million), as collateral

for loans from banks.

8.2.3 ChemtronicProducts Co., Ltd. has mortgaged its construction thereon and pledged its

machinery and equipment with a total net book value as at 30 September2020 of Baht

101million (31 December 2019: Baht 108 million), as collateral for loans from banks.



25

8.2.4 KCE America Partner Co., Ltd has mortgaged its land and construction with a total net book

value as at 30 September2020 of Baht 150million (31 December 2018: Baht 155 million), as

collateral for loans from banks.

9 Share capital

For the nine-month period Par value 2020 2019

ended 30 September per share Number Amount Number Amount

(in Baht) (thousand shares / in thousand Baht)

Authorised

At 1 January

- ordinary shares 0.5 1,182,794 591,397 1,172,794 586,397

Increase of authorised share

capital

0.5

-

-

10,000

5,000

At 30 September

- ordinary shares 0.5 1,182,794 591,397 1,182,794 591,397

Issued and paid-up

At 1 January

- ordinary shares 0.5 1,172,794 586,397 1,172,794 586,397

Issue of new shares 0.5 2,626 1,313 - - At 30 September

- ordinary shares 0.5 1,175,420 587,710 1,172,794 586,397

Issue of ordinary shares

On 25 April 2019, the Company’s shareholders at the Annual General Meeting approved the increase

of the Company’s authorised share capital in the amount of Baht 5,000,000 from the authorised share

capital of Baht 586,396,798 to Baht 591,396,798 by issuing 10,000,000 new ordinary shares atBaht

0.50 par value per share. The Company registered the said increase of authorised share capital with the

Ministry of Commerce on 8 May 2019.

Issue of new shares

During the nine-month period ended 30 September 2020, the Company had issued new shares from

the exercise of warrants as follows:

2020

Number Amount

(thousand shares /

in thousand Baht)

The exercise of warrants ESOP-W6 2,626 1,313

Total 2,626 1,313



26

10 Share warrants

Share warrants ESOP-W6

On 25 April 2019, the Company’s shareholders at the Annual General Meeting approved the issued

and allotted 10,000,000 registered and nontransferable (except for transferring as stipulated in the

prospectus) warrants free of charge to the directors,management andemployees of the Company and

its subsidiaries. These warrants are exercisable at a price of Baht 26.48 per share at a ratio of 1

warrant to 1 new ordinary share, every quarter from 1 to 5 of March, June, September and December,

for a period of 3 years from the issue date. The Company granted the said warrants to the directors and

employees of the Company and/or it subsidiaries on 13 March 2020, which is the date of notification

of conditions and arrangements in excersing the warrants to the directors and employees. The first

exercise period is 1 to 5 June 2020 and with a final exercise period is 1 to 5March 2023.

Measurement of fair value

The fair value of the warrants granted “ESOP-W6” was measured based on Binomial option pricing

model. Expected volatility is estimated by considering historic average share price volatility during the

period 14 March 2017 to 13 March 2020.

The inputs used in the measurement of the fair values at grant date of warrants “ESOP-W6” were as

follows:

Fair value at grant date Baht 1.30 Share price at grant date Baht 15.80 Exercise price Baht 26.48 Expected volatility (%) 38.28 Expected dividends (%) 3.28 Risk-free interest rate (%) 0.98

The expense recognised from share-based payment transaction for the nine-month period ended

30 September 2020 was Baht 5.5 million for the consolidated financial statements(2019: Nil) and Baht

2.6 million for the separate financial statements (2019: Nil).

Movements of the number of issued and allotted share warrants ESOP-W6 during the nine-month

period ended 30 September 2020 are summarised below:

Number

(in thousand unit)

Warrants issued at 1 January 2020 -

Add: Warrants issued during the period 10,000

Less: Warrants exercised during the period (2,626)

Warrants issued at 30 September2020 7,374

During the nine-month period ended 30 September 2020, the Company received share subscription

from ESOP-W6 as bellow:

Number

(in thousand

shares)

Price

(Baht)

Total

(in million

Baht)

Date registered

with Ministry of

Commerce

September 2,626 26.48 69.5 21 September 2020

Total 2,626 69.5



27

Movements of the fair valueof share warrants ESOP-W6 during the nine-month period ended

30 September 2020 are summarized below:

Fair value

(in thousand Baht)

At 1 January -

Increase 5,527

Exercised during the period (3,413)

At 30 September 2,114



28

11 Segment information and disaggregation of revenue

The Company and its subsidiaries’ operations mainly involve business segments in manufacture and sale of prepreg and laminate products, printed circuit

board, and chemical products with production facilities in Thailand and operate in both local and overseas markets. Financial information of the Company and

its subsidiaries by business for the three-month and nine-month periods ended 30 September2020 and 2019 is as follows:


Segments

Prepreg and Laminate Printed Circuit Board business

For the three-month period ended Business America Europe Asia Total Chemical business Eliminating entries Total

30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in thousand Baht)

Information about reportable segments

Revenues from external customers 157,976 32,613 488,430 545,137 1,033,753 1,439,786 949,371 992,849 2,471,554 2,977,772 92,292 77,910 - - 2,721,822 3,088,295

Inter-segment revenues 439,149 541,904 309,444 353,853 - - 529,650 735,305 839,094 1,089,158 17,538 27,468 (1,295,781) (1,658,530) - -

Total revenues 597,125 574,517 797,874 898,990 1,033,753 1,439,786 1,479,021 1,728,154 3,310,648 4,066,930 109,830 105,378 (1,295,781) (1,658,530) 2,721,822 3,088,295

Disaggregation of revenue

Revenues from sales 596,547 574,517 797,874 898,990 1,033,753 1,439,786 1,438,506 1,694,176 3,270,133 4,032,952 109,830 105,378 (1,254,688) (1,624,552) 2,721,822 3,088,295

Revenues from rendering of services 578 - - - - - 40,515 33,978 40,515 33,978 - - (41,093) (33,978) - -

Total 597,125 574,517 797,874 898,990 1,033,753 1,439,786 1,479,021 1,728,154 3,310,648 4,066,930 109,830 105,378 (1,295,781) (1,658,530) 2,721,822 3,088,295

Timing of revenue recognition

At a point in time 597,125 574,517 797,874 898,990 1,033,753 1,439,786 1,479,021 1,728,154 3,310,648 4,066,930 109,830 105,378 (1,295,781) (1,658,530) 2,721,822 3,088,295

Total 597,125 574,517 797,874 898,990 1,033,753 1,439,786 1,479,021 1,728,154 3,310,648 4,066,930 109,830 105,378 (1,295,781) (1,658,530) 2,721,822 3,088,295



29


For the three-month period ended 30 September 2020 and 2019

Prepreg and Printed Circuit Board business

Laminate business America Europe Asia Total Chemical business Eliminating entries Total

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in thousand Baht)

Segment operating profit 110,575 80,430 447,670 587,261 45,245 41,190 (85,963) (70,912) 517,527 637,969

Unallocated profit and expenses:

Other income 95,100 61,167

Distribution costs (101,090) (132,897)

Administrative expenses (207,519) (288,891)

Finance costs (16,741) (14,996)


associate

942 5,048

Income tax expense (34,353) (8,355)

Profit for the period 253,866 259,045

For the three-month period ended 30 September2020, the Group had total revenues which were converted to US dollar amounted to US dollar 88 million (2019: US dollar 101

million).



30


Segments

Prepreg and Laminate Printed Circuit Board business

For the nine-month period ended Business America Europe Asia Total Chemical business Eliminating entries Total

30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in thousand Baht)

Information about reportable segments

Revenues from external customers

553,124 84,135 1,211,773

1,470,26

3

3,141,52

8

4,330,64

6 2,919,960

3,074,15

0 7,273,261 8,875,059 282,637 235,773 - - 8,109,022 9,194,967

Inter-segment revenues 1,323,409 1,635,178 771,838 957,644 - - 1,772,478 2,190,254 2,544,316 3,147,898 59,768 79,441 (3,927,493) (4,862,517) - -

Total revenues 1,876,533 1,719,313 1,983,611 2,427,907 3,141,528 4,330,646 4,692,438 5,264,404 9,817,577 12,022,957 342,405 315,214 (3,927,493) (4,862,517) 8,109,022 9,194,967

Disaggregation of revenue

Revenues from sales

1,870,779

1,719,31

3 1,983,611

2,427,90

7

3,141,52

8

4,330,64

6 4,581,940

5,170,54

6 9,707,079 11,929,099 342,405 315,214 (3,811,241) (4,768,659) 8,109,022 9,194,967

Revenues from rendering of services 5,754 - - - - - 110,498 93,858 110,498 93,858 - - (116,252) (93,858) - -

Total 1,876,533 1,719,313 1,983,611 2,427,907 3,141,528 4,330,646 4,692,438 5,264,404 9,817,577 12,022,957 342,405 315,214 (3,927,493) (4,862,517) 8,109,022 9,194,967


At a point in time

1,876,533 1,719,313 1,983,611 2,427,907

3,141,52

8 4,330,646 4,692,438 5,264,404 9,817,577 12,022,957 342,405 315,214 (3,927,493) (4,862,517) 8,109,022 9,194,967

Total 1,876,533 1,719,313 1,983,611 2,427,907 3,141,528 4,330,646 4,692,438 5,264,404 9,817,577 12,022,957 342,405 315,214 (3,927,493) (4,862,517) 8,109,022 9,194,967



31


For the nine-month period ended 30 September 2020 and 2019

Prepreg and Printed Circuit Board business

Laminate business America Europe Asia Total Chemical business Eliminating entries Total

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in thousand Baht)

Segment operating profit 350,383 207,386 1,393,791 1,738,895 142,683 126,866 (200,748) (210,318) 1,686,109 1,862,829

Unallocated profit and expenses:

Other income 214,293 125,911

Distribution costs (325,635) (367,547)

Administrative expenses (734,923) (872,776)

Finance costs (44,918) (47,427)


associate

7,258

15,398

Income tax expense (44,494) (22,683)

Profit for the period 757,690 693,705

Segment assets

as at 30 September 2020/

31 December 2019 1,928,123 1,890,130 21,973,507 21,796,322 536,965 571,520 (7,673,489) (7,756,969) 16,765,106 16,501,003

Segment liabilities

as at 30 September 2020/

31 December 2019 443,382 535,037 6,452,275 6,076,886 89,553 96,823 (1,832,647) (1,969,686) 5,152,563 4,739,060

For the nine-month period ended 30September 2020, the Group had total revenues which were converted to US dollar amounted to US dollar 260 million (2019: US

dollar 296 million).



32


Reportable segment

Printed Circuit Board business

America Europe Asia Total

2020 2019 2020 2019 2020 2019 2020 2019

(in thousand Baht)

For the three-month period ended 30 September

Disaggregation of revenue 367,910 282,114 772,359 1,035,613 380,920 450,923 1,521,189 1,768,650

Revenues from sales 367,910 282,114 772,359 1,035,613 370,890 424,412 1,511,159 1,742,139

Revenues from rendering of services - - - - 10,030 26,511 10,030 26,511

Total 367,910 282,114 772,359 1,035,613 380,920 450,923 1,521,189 1,768,650


At a point in time 367,910 282,114 772,359 1,035,613 380,920 450,923 1,521,189 1,768,650

Total 367,910 282,114 772,359 1,035,613 380,920 450,923 1,521,189 1,768,650

Separated financial statements

Reportable segment

Printed Circuit Board business

America Europe Asia Total

2020 2019 2020 2019 2020 2019 2020 2019

(in thousand Baht)

For the nine-month period ended 30 September

Disaggregation of revenue 782,289 752,924 2,249,382 3,008,946 1,323,392 1,431,345 4,355,063 5,193,215

Revenue from sales 782,289 752,924 2,249,382 3,008,946 1,287,659 1,360,050 4,319,330 5,121,920

Revenue from rendering of services - - - - 35,733 71,295 35,733 71,295

Total 782,289 752,924 2,249,382 3,008,946 1,323,392 1,431,345 4,355,063 5,193,215



33


At a point in time 782,289 752,924 2,249,382 3,008,946 1,323,392 1,431,345 4,355,063 5,193,215

Total 782,289 752,924 2,249,382 3,008,946 1,323,392 1,431,345 4,355,063 5,193,215



34

Contract Balances

The following table provides information about receivable, contract assets and contract liabilities from

contracts with customer.

Consolidated


Separate


30

September

2020

31

December

2019

30

September

2020

31

December

2019

(in thousand Baht)

Trade accounts receivable - net 2,666,354 2,946,519 2,057,971 2,176,634

Contract costs assets 367,685 232,045 335,514 198,890

The amortisation of contract cost assets which is included in the consolidated statement of

comprehensive income for the three-month and nine-month periods ended 30 September2020 were

Baht 4.3 million (2019: Baht 1.5 million) andBaht 8.2 million (2019: Baht 7.9 million), respectively

and the separate statement of comprehensive income the three-month and nine-monthperiod then

ended were Baht 4.4 million (2019: Baht 1.3 million)andBaht 7.2 million (2019: Baht 6.5 million),

respectively. There was no impairment loss recognised from the contract cost assets.

12 Income tax expense

Income tax 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 three-month

period ended 30 September 2020 was -11.9% (30 September 2019: -3.1%) and -5.5% for the nine-

month period ended 30 September 2020 (30 September 2019: -3.2%). The change in the Group’s

effective tax rate, for the three-month period ended 30 September 2020, was mainly because the

Groupand the Companyrecognised the impairment losses which is not deductible for tax purpose for

machineries under expired promotional privileges certificate which not use in manufacturing.

13 Earnings per share

Basic earnings per share

The calculations of basic earnings per share for the three-month and nine-month periods ended

30 September 2020 and 2019were based on the profit for the periods attributable to ordinary

shareholders of the Company and the weighted average number of ordinary shares outstanding during

the periods as follows:


statements

Separate financial

statements

Three-month period ended 30 September 2020 2019 2020 2019

(in thousand Baht/ thousand shares)

Profit attributable to ordinary

shareholders of the Company (basic)

250,038

255,109

329,437

306,594

Number of ordinary shares outstanding at

1 July

1,172,794

1,172,794

1,172,794

1,172,794

Effect from ordinary shares issued

during the period

285

-

285

-

Weighted average number of ordinary

shares outstanding (basic) 1,173,079

1,172,794

1,173,079

1,172,794

Earnings per share (basic)(in Baht) 0.21 0.22 0.28 0.26



35


statements

Separate financial

statements

Nine-month period ended 30 September 2020 2019 2020 2019



shareholders of the Company (basic)

746,206

682,702

754,136

863,361

Number of ordinary shares outstanding at

1 January

1,172,794

1,172,794

1,172,794

1,172,794

Effect from ordinary shares issued

during the period

96

-

96

-


shares outstanding (basic) 1,172,890

1,172,794

1,172,890

1,172,794

Earnings per share (basic)(in Baht) 0.64 0.58 0.64 0.74

Diluted earnings per share

The calculations of diluted earnings per share for the three-month and nine-month periods ended 30

September 2020 and 2019 were based on the profit for the periods attributable to ordinary shareholders

of the Company and the weighted average number of ordinary shares outstanding during the periods

after adjusting for the effects of all diluted potential ordinary shares as follows:


statements

Separate financial

statements

Three-month period ended 30 September 2020 2019 2020 2019



shareholders of the Company

250,038

255,109

329,437

306,594


shares outstanding (basic)

1,173,079

1,172,794

1,173,079

1,172,794

Effect of share warrants 515 - 515 -


shares outstanding (diluted)

1,173,594

1,172,794

1,173,594

1,172,794

Earnings per share (diluted)(in Baht) 0.21 0.22 0.28 0.26


statements

Separate financial

statements

Nine-month period ended 30 September 2020 2019 2020 2019



shareholders of the Company

746,206

682,702

754,136

863,261


shares outstanding (basic)

1,172,794

1,172,794

1,172,794

1,172,794

Effect of share warrants - - - -


shares outstanding (diluted)

1,172,794

1,172,794

1,172,794

1,172,794

Earnings per share (diluted)(in Baht) 0.64 0.58 0.64 0.74

Due to an average market price of an ordinary shares of the Company for the nine-month period ended

30 September 2020 below than exercise price of warrants, resulting in, anti-dilutive effect. Therefore

the Company excluded these warrants which may be converted to ordinary shares in the calculation of

diluted earnings per share.



36

14 Dividends

The shareholders and/or the Board of Directors of the Company have approved dividends as follows:

Approval date Payment schedule

Dividend

rate

per share

Amount

(Baht) (in million Baht)

Paid in 2020

Interim dividend 27March2020 24April2020 0.40 469

Interim dividend 11August2020 9September2020 0.40 469

Paid in 2019

Annual dividend 25 April2019 9 May2019 0.55 645

Interim dividend 13 August2019 9 September2019 0.40 469

15 Financial instruments

Carrying amounts and fair values

The following table shows the carrying amounts and fair values of financial assets and financial

liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair

value. It does not include fair value information for financial assets and financial liabilities not

measured at fair value if the carrying amount is a reasonable approximation of fair value.



37


Carrying amount Fair value

At 30 September 2020 Note

Fair value

through profit

or loss

Amortised

cost - net Total

Level 1

Level 2

Level 3

Total

(in thousand Baht)

Financial liabilities

Short-termborrowings from

financial institutions

-

(1,652,531)

(1,652,531)

-

(1,652,531)

-

(1,652,531)

Long-term borrowings - (1,146,730) (1,146,730) - (1,146,730) - (1,146,730)

Other financial liabilities

Foreign currency forward contracts 16 (728) - (728) - (728) - (728)

Commodities hedge agreements 386 - 386 - 386 - 386

Total other financial liabilities (342) - (342)


Carrying amount Fair value

At 30 September 2020

Fair value

through profit

or loss

Amortised

cost - net Total

Level 1

Level 2

Level 3

Total

(in thousand Baht) Financial liabilities

Short-termborrowings from

financial institutions

-

(1,042,531)

(1,042,531)

-

(1,042,531)

-

(1,042,531)

Long-term borrowings - (1,116,097) (1,116,097) - (1,116,097) - (1,116,097)



38


Carrying

amount

Fair value

Level 1 Level 2 Level 3 Total

(in thousand Baht)

Financial assets(liabilities) not

measured at fair value

31 December 2019

Foreign currency forward contracts 79 - 920 - 920

Financial assets(liabilities)

measured at fair value

31 December 2019

Commodities hedge agreements 836 - 836 - 836

As at 31 December 2019 the Company had no financial assets and liabilitiesmeasured at fair value.

Financial instruments measured at fair value

Type Valuation technique

Forward exchange

contracts,foreign currency

option contracts and

commodities hedge

agreements

The fair value of foreign currency forward contracts, foreign

currency option contracts andcommodities hedge agreements

determined the price from an agreement with financial institutions.

Credit risk

Allowance for impairment loss for trade receivables and contract assets are measured at an amount

equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on

the historical credit loss experience, adjusted for factors that are specific to the debtors and assessment

of both the current and forecast general economic conditions.


statements


At 30 September 2020

Trade accounts

receivables

Allowance for

impairment

losses

Trade accounts

receivables

Allowance for

impairment

losses

(in thousand Baht)

Within credit terms 2,270,977 - 1,541,239 -

Overdue:

Less than 3 months 350,283 - 335,926 -

3 - 6 months 45,255 (161) 180,405 -

6 - 12 months 566 (566) 401 -

Over 12 months 1,802 (1,802) - -

Total 2,668,883 (2,529) 2,057,971 -

Less allowance forimpairment (2,529) -

Net 2,666,354 2,057,971



39

Trade accounts receivables

Consolidated


Separate


(in thousand Baht)

At 31 December 2019

Within credit terms 2,142,985 1,598,755

Overdue:

Less than 3 months 791,637 566,065

3 - 6 months 13,711 11,477

6 - 12 months 17 337

Over 12 months 606 -

Total 2,948,956 2,176,634 Less allowance fordoubtful accounts (2,437) -

Net 2,946,519 2,176,634

The normal credit terms granted by the Group range from 60 days to 160 days.

16 Commitments with non-related parties

Consolidated


Separate


30 31 30 31

September December September December

2020 2019 2020 2019

(in thousand Baht)

Capital commitments

Buildings and other constructions 933 4,509 - -

Machinery and equipment 116,835 38,411 114,925 29,127

Total 117,768 42,920 114,925 29,127

Future minimum payments under

non-cancellable service contracts

Within one year 28,479 35,254 10,676 1,553

After one year but within five years 9,301 26,823 431 -

Total 37,780 62,077 11,107 1,553

Other commitments

Unrecognised purchase orders for raw

materials 519,410 640,627 110,586 101,881

Bank guarantees 49,141 47,654 46,487 46,301

Total 568,551 688,281 157,073 148,182

Forward exchange contracts

As at 30 September 2020 the Group had outstanding forward exchange contracts as follows:


Currency Amount Maturity date Contract exchange rate

(Thousand) (Per unit of

foreign currency)

Selling contract

US dollar 4,686 22February2021 – 29March 2021 Baht 31.4500 – 31.7020

Euro 149 31March2021 Baht 36.9300



40

As at 31 December 2019 the Group had outstanding forward exchange contracts as follows:


Currency Amount Maturity date Contract exchange rate

(Thousand) (Per unit of

foreign currency)

Selling contract

US dollar 4,950 27 March2020 – 24 June 2020 Baht 30.0580 – 30.4820

As at 30 September 2020 and 31 December 2019, the Company had no outstanding forward exchange

contracts.

Commodity hedge agreements

As at 30 September 2020, the Group had outstanding copper swap agreements, of which details are

presented below:

Commodity’s market price

Type of good Quantity Contract price As at 30 September 2020 Maturity date

(Ton) (US dollars per ton)

Buying contract

Copper 150 6,500 6,610 30 November 2020 – 31 January 2021

As at 31 December 2019, the Group had outstanding copper swap agreements, of which details are

presented below:

Commodity’s market price

Type of good Quantity Contract price As at 31 December 2019 Maturity date

(Ton) (US dollars per ton)

Buying contract

Copper 30 5,670 6,205 31 January 2020

As at 30 September 2020 and 31 December 2019, the Company had no outstanding copper swap

agreements.

Foreign currency option agreements

As at 30September 2020 the Group had outstanding foreign currency option agreements as follows:


Currency Sell amount Strike rate Settlement date

(Thousand) (Baht per unit of

foreign currency)

Call/Put option US dollar 1,000 31.5000 27 October 2020

Call/Put option US dollar 1,000 31.5000 27 November 2020

Call/Put option US dollar 1,000 31.8000 2 December 2020

Call/Put option US dollar 1,000 31.8000 4 January 2021

Call/Put option US dollar 1,000 31.9000 4 January 2021

As at 30 September 2020 the Company had no outstanding foreign currency option agreements.



41

As at 31December 2019the Group and the Company had no outstanding foreign currency option

agreements.

17Reclassification of accounts

Certain accounts in the statement of financial position as at 31 December 2019 which are included in

the 2020 interim financial statements for comparative purposes, have been reclassified to conform to

the presentation in the 2020 interim financial statements as follows:

2019

Consolidated


Separate


Before

reclass.

Reclass.

After

reclass.

Before

reclass.

Reclass.

After

reclass.

(in thousand Baht)

Statement of financial

position as at

31 December 2019

Inventories 2,621,982 79,409 2,701,391 1,218,445 55,040 1,273,485

Property, plant and

equipment

8,918,374

(79,409)

8,838,965

5,393,806

(55,040)

5,338,766

- -

The reclassifications have been made because, in the opinion of management, the new classification is

more appropriate to the Group’s business.

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