Operation, financial condition and material changes
Operational overview
1) Overview of the Business of the Company and its Subsidiary
In 2025, the Company adjusted its marketing strategies by expanding and diversifying channels to reach target customer segments more effectively, while continuing to maintain and strengthen its existing core customer base. The Company places strong emphasis on delivering high-quality and reliable products and services by leveraging the expertise and experience of its team, innovation, maintaining cost control, and ensuring efficient project delivery. These efforts are intended to enhance the Company’s competitiveness amid market conditions that continue to affect both the real estate sector and the construction contracting industry.
For the solar rooftop power generation system products, new market entrants continued to enter the industry, as demands for system installations in both the residential and industrial sectors remained high, resulting in increasingly intense price competition. Nevertheless, the Company continues to focus primarily on providing services to industrial factory clients and residential customers.
Regarding the solar energy business operated by the subsidiary, the focus remained on continuously improving system performance and enhancing the management of solar power plants in order to increase operational stability and the efficiency of electricity generation.
2) Operating Performance Analysis
According to the Company and its subsidiary’s business operational results for the 12-month period ended December 31, 2025, the Company and its subsidiary had loss of THB 89.91 million. Such loss increased by THB 60.78 million from the previous year due to a decrease in revenue from sales and services of THB 360.11 million from the previous year because the Company adjusted its strategy to focus on the quality of products for customers. The gross profit margin was 2.0 percent higher than the previous year. During the period, cost of sales recognized an impairment loss on solar rooftop products of THB 4.24 million due to the product price impacts. Accordingly, estimated incremental cost of solar rooftop projects amounted to THB 17.34 million and recognized impairment loss in accordance with TFRS9 amounted to THB 5.36 million. In 2025, the Company and its subsidiary arranged an appraisal of the fair value of the land conducted by an independent valuer, using a market price comparison method. Such evaluation result demonstrated a gain from asset revaluation in other comprehensive income statement of THB 162.3 million, and a loss from asset revaluation in the profit and loss statement of THB 21.2 million. Key changing items are as follows:
(1) Revenue from sales and service of the Company amounted to THB 758.65 million, a decrease of THB 390.93 million or 34.0 percent from the previous year. Namely, sales of water management products amounted to THB 551.50 million, a decrease of THB 171.63 million from the previous year, and sales of materials and equipment for environmental preservation products amounted to THB 207.14 million, a decrease of THB 219.31 million from the previous year.
(2) Gross profit amounted to THB 154.38 million, a decrease of THB 73.44 million or 32.2 percent from the previous year. Even though revenue from sales and services decreased, gross profit margin of 20.3 percent increased from the previous year in which it was at 19.8 percent.
(3) Distribution cost amounted to THB 146.11 million, a decrease of THB 13.11 million or 8.2 percent from the previous year. Accordingly, the total distribution cost accounted for 19.3 percent of revenue from sales and services, due to a decrease in revenue from sales and services, which led the ratio to be higher than it was in the previous year.
(4) Administrative expenses amounted to THB 107.21 million, a decrease of THB 3.37 million from the previous year, mainly from personnel expenses and a reverse on an impairment loss on discontinued assets.
(5) Impairment losses determined in accordance with TFRS9 amounted to THB 5.36 million, while in the previous year, it was recognized at THB 6.15 million.
(6) Financial costs amounted to THB 7.85 million, an increase of THB 1.33 million from the previous year from the purchase of large quantities of goods for stock occurred in late 2024, resulting in an increase of disbursement of loan funds.
(7) Income tax expense amounted to THB 2.98 million, an increase of THB 1.64 million due to an adjustment made by writing off deferred income tax assets that are expected to be unusable in the future, totaling THB 6.91 million.
(8) The clean energy business of the Company’s subsidiary had net profit for the period of the 12-month period ended December 31, 2025 of THB 21.37 million, a decrease of THB 1.89 million from the previous year. The electricity sales revenue amounted to THB 88.61 million, a decrease of THB 2.82 million from the previous year due to the decreasing change in the Ft value, which was reduced by THB 0.13/unit, even though the electricity production volume was higher than the previous year by 55,394 units. Gross profit margin was 47.2 percent. Administrative expenses were THB 21.32 million, an increase of THB 1.39 million from accrued expenses of solar panel destruction of THB 0.76 million in which the implementation schedule will be next year.
