Page 87 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

9.2 Related party transactions
9.2.1 During the year 2022 and 2021, the company has entered into connected transaction with persons/parties, which may create conflict of interest as
follows:
Person who may have conflict of interest Amount of connected
Relationship transaction (MB) Pricing policy / Necessity and Appropriateness / Remarks
Transaction 2022 2021
1.Tycoons Group Holding Revenue from sale 698 1,186 The audit committee reviewed and commented as follows:
Enterprise (TGE) 100% (1) Sales for wire rod and annealed wire : The market in Taiwan is substantially large
Shares of Total Purchase of 131 953 relative to Thai market, thus motivating TYCN selling to TGE in Taiwan. Some of wire rod
Parent raw material and annealed wire sold to TGE will be used internally whilst most of it will be on sold to
company and supplies Taiwanese customers. The logic behind selling through TGE is due to TGE’s long-term
Purchase of fixed 4 3
assets relationships and profile with Taiwanese customers. It can directly grasp the market
2.Tycoons Group Parent Total Purchase of - - information through it, and can avoid the sales expenses of the company to establish the marketing
International company raw material channel again or need to invest in marketing in Taiwan market.
(TGI) and supplies
3.TY Steel 5.94% Total Purchase of (2) Materials, supplies and fixed assets. : The transactions between the Company and the parent
Company owned of raw material 2,117 1,790 company TGI and the associated company TY STEEL's for raw materials and fixed assets are
Limited Parent based on the operation requirements and the transaction price is based on the market price. The
company Sales 150 231 raw materials purchased from TGE are mainly used to produce fasteners specifically, the
19.43% annealed wire chemical component, die and machinery parts cannot be acquired locally,
owned of Other income - 13 therefore will are sourced in Taiwan via TGE. The main consideration is still based on TGE
TYCN understanding of the market and bargaining power in purchasing, which can reduce the waste
Purchase of goods - 15 of the company’s manpower and time. The audit committee reviewed and commented that
purchase item from the parent company is considered to be normal trading.
4.Jing Hai 18.19% Sales 78 339
Hardware Co., owned of (3) Credit terms for the related party was set to be 30 - 60 days, because of the transportation,
Ltd. parent Total Purchase of 1 inventory and re-sale period of TGE to end-customers.
company raw material
(4) The pricing policy for intercompany purchase and sale transactions with its related parties
normal are at market price.
5. HuangHua Subsidiary Sales of equipments - -
Jujin Hardware of parent
Products Co., company
Ltd.

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