Page 54 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

Effects from the maturity of current liabilities on the liquidity
In 2022, short-term loans from financial institutions and trade and other payables as well
as current portion of long-term loans have accounted for a large proportion of current
liabilities. These first two items are payable within one year. As mentioned before, however,
these loans were used to purchase raw materials for normal business operations. As a result,
the company believes that the short-term maturity of such current liabilities should not
adversely affect the company’s liquidity.

Accounts payable turnover has been increased from 23.49 times of year 2021 to 31.06 times
of year 2022. It’s because accounts payable period of purchase of raw materials got shorten
therefore, the payment period decrease 26.16 days from 15.12 days of year 2021 to 11.59
days of year 2022.

(3) Capital expenditure
Capital expenditures amounted to 64MB and 75MB for the year 2022 and 2021
respectively.

(4) Sources of funds
Funds structure
The debt to equity ratio was 0.38 and 0.59 between the years 2022 and 2021. The debt to
assets ratio was 0.28 and 0.37 between 2022 and 2021. This indicated that TYCN had only
a small amount of risk and a healthy financial structure.

Shareholders’ equity

As of December 31, 2022, shareholders’ equity was 4,519MB, an increase of 1.14% or
51MB from year 2021. This was due to net profit in 2022.

Liabilities

At the end of 2022, TYCN’s liabilities amounted to 1,735MB, which is equivalent to 27.74%
of liabilities and shareholder’s equity, and Company’s long-term Liabilities and equity was
4,519MB, or 165.77% of net fixed assets. This indicates that TYCN had a healthy financial
structure.

(5) Factors potentially affecting company’s performance in the future

The company's products are mainly wire rod, annealed wire, screws, bolts
andreinforcing bars (including deformed bars and round bars) plus the raw material billet
produced by the associated company itself. Even if the market competition is more intense
in the future. The company believes that with its superior quality and diversity of products,
consistent production from top to bottom will bring competitive advantages to the
company.

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