Page 48 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

or 67.82% compared to (998) MB of 2019. The main reason was due to increasing of gross
profit in the year 2020, and disposal of assets which cannot be used and impairment loss
of assets amounting to Baht 535 million in 2019.

4.2 Performance by product group

(1) Revenue from sales
Sales revenue of 2021 was 9,060MB increased by 51.32% compared to 5,987MB of 2020.
That was because mainly due to the recovery of industrial demand increased. As a result,
the sales volume of steel products has increased. However, due to the control measure of
carbon emissions in mainland China, it is mandatory to reduce the production volume of
steel products, resulting in an imbalance of market supply and demand, which makes the
price of steel highly increased.

Further details of sales revenue structure can be summarized as follows:

Sales from wire rods in 2021 was 5,073MB, increased by 32.98% compared to 2020, and
in 2020 was 3,815MB, decreased by 12.16% compared to 2019.

Sales from annealed wire in 2021 was 1,580MB, increased by 174.31% compared to 2020,
and in 2020 was 576MB, decreased by 35.93% compared to 2019.

Sales from fasteners in 2021 was 1,525 MB, decreased by 51.89% compared to 2020, and
in 2020 was 1,004 MB, decreased by 37.68% compared to 2019.

(2) Expenses

Cost of sales
Cost of sales is primarily composed of conversion cost and raw materials, of which billet
is the main component. In year 2021, costs of sales were 7,961MB, increased by 38.22%
compared to year 2020. This was mainly due to the raw material price increased.

Selling and administrative expenses (SG&A)
In year 2021, selling and administrative expenses were 380MB, an 47.85%
increase from year 2020, The ratio of SG&A/Sales was 4.19% in 2021 and 4.29%
in 2020. The major components of SG&A are depreciation, salary and wages as
well as transportation costs, which vary directly with sales volume. The increase in
SG&A in 2021 is mainly caused by the sales volume increased which causes
transportation and related export expenses increased.

(3) Profit

Gross profit

In 2021, gross margin was 1,099MB. The rate increased from 3.80% of 2020 to 12.13%
of 2021, mainly due to the year 2021, mainly due to the increase was the unit price of sales
increased in 2021.

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