Management Discussion and Analysis (MD&A)
Analysis of Operations and Financial Position
1) Overview of the Business of the Company and its Subsidiary
In 2024, the real estate market had yet to recover, while the construction contracting sector was shifting towards investments in government projects. In response, the Company expanded its marketing channels to reach a broader range of target groups while maintained its core customer base by prioritizing quality production and efficient delivery. For rooftop solar power generation, the market continued to see an influx of new operators and strong demand, intensifying price competition. Despite this, the Company remained committed to serving industrial factories and residential customers, leveraging its experienced team to maintain a competitive edge. Meanwhile, the subsidiary’s solar power business remained focused on enhancing electricity production efficiency, leading to increased capacity in 2024.
2) Operating Performance Analysis
The performance for the 12 months ended December 31, 2024, of the Company and its subsidiary had a net loss of 29.13 million baht. This is an improvement compared to the same period of the previous year, with a decrease in the loss of 62.65 million baht. In 2023, the Subsidiary made an upgrade to its solar panel system to improve electricity production efficiency in the second power plant; therefore, incurred a loss from impairment of the solar panels that were removed, amounting to 91.46 million baht. However, if excluding the loss from the impairment of solar panels, there would be a loss of 0.31 million baht in 2023. The loss of 2024 increased by 28.81 million baht from the Subsidiary’s additional income of the electricity tariff incentive (Adder) of 38.4 million baht due to the contract expiring in April 2023. As a result, there was no income from this part in 2024. The changes for this period are summarized as follows:
Revenue from sales and services of the Company and its subsidiary was 1,191.78 million baht, an increase of 91.69 million baht. Details are as follows :
The Company’s revenue from the water management product group increased by 75.67 million baht, while construction material products decreased due to the GRC project, which the Company ceased production in 2024, and the rooftop solar power generation products increased by 138.79 million baht. Gross profit amounted to 227.82 million baht, which was similar to the previous year due to the competitive situation, especially the rooftop solar power generation products, resulting in a gross profit margin of 19.8 percent which decreased by 3.6 percent from the previous year.
As for the clean energy electricity business, which is a subsidiary of the Company, the revenue from electricity sales amounted to 91.43 million baht. The results are similar to the previous year because even though the electricity price in 2024 decreased by 0.40 baht per unit from the previous year due to the improvement of the power plant efficiency in 2023, resulting in a higher electricity production volume was 2.43 million units, this led to the electricity sales price not changing from the previous year as a result of the expiration of the additional electricity purchase price contract in April 2023, which has no income from this portion in 2024. The gross profit margin from electricity sales was 47.80 percent.
The distribution costs amounted to 159.21 million baht, an increase of 7.73 million baht or 5.11 percent compared to the same period of the previous year. The total cost of distribution was 13.85 percent of sales and service revenue, a decrease of 1.75 percent from the previous year.
The administrative expenses amounted to 125.79 million baht, a decrease of 15.19 million baht compared to the previous year. This reduction was mainly due to the Company and its subsidiary’s lower personnel expenses. In the part of the Company, it is mainly from the restructuring of the construction material product business.
Loss from impairment amounted to 2.71 million baht from unused machinery assets classified as assets held for sale, which were sold in January 2025 in the amount of 1.37 million baht and impairment provision for solar panels from normal maintenance in the amount of 1.34 million baht.
Other income amounted to 7.74 million baht, a decrease of 0.39 million baht compared to the previous year.
The financial costs amounted to 7.87 million baht, an increase of 2.74 million baht compared to the previous year, due to loans to mainly improve the Subsidiary’s power plant efficiency.
The income tax expense was 1.33 million baht, a decrease of 2.53 million baht, which was incurred from the calculation of deferred income tax.
Summary of the Company’s operating results had a loss for the year of 46.81 million baht, an increase of 90.50 million baht from the previous year due to the previous year’s dividend income from a subsidiary of 90.72 million baht, which, if excluding dividend income, there would be a loss of 47.03 million baht in 2023. Therefore, the loss for the year was similar to the previous year due to such decrease in sales and services profit margin. The subsidiary’s operating results had a profit of 23.26 million baht for the year, which, if excluding the impairment of solar panels in 2023 of 91.46 million baht and the income from the electricity tariff incentive (Adder) in 2023, there would have a profit of 7.33 million baht, an increase of 15.93 million baht from the previous year.