Overview of Past Performance
During 2021 and 2023, the Company and its subsidiaries had a total revenue of 1,442 million Baht, 2,404 million Baht, and 2,003 million Baht, respectively. In 2023, total revenue decreased by 16.68% from 2022 which had a total revenue of 2,003 million Baht. The revenues were derived from real estate sales of 1,758 million Baht, rental income of 88 million Baht, service income of 114 million Baht, food, and bakery sales of 20 million Baht, and other income of 23 million Baht. As a result, the retained earnings for the year were 35 million Baht which is equivalent to earnings per share of 0.05 Baht. As of 31 December 2023, the Company and its subsidiaries had a total of 12 real estate development projects available for sale. At the end of 2023, the backlog stood at approximately 812 million Baht.
2023 Performance
Revenue
Revenues from real estate sales are recognized at a point in time as income when control of the asset is transferred to the customer. In other words, when ownership is transferred, revenue from real estate sales is presented in the amount received after deducting discounts and expenses paid on behalf of customers. During 2021 and 2023, the Company and its subsidiaries had the following revenue structure:
| revenue structure | 2023 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| Million Baht | % | Million Baht | % | Million Baht | % | |
| Revenue | ||||||
| Revenues from real estate sales | 1,758 | 87.77% | 2,166 | 90.10% | 1,241 | 86.06% |
| Rental income | 88 | 4.39% | 108 | 4.49% | 97 | 6.73% |
| Service income | 114 | 5.69% | 92 | 3.83% | 87 | 6.03% |
| Revenue from food and bakery | 20 | 1.00% | 22 | 0.91% | 2 | 0.14% |
| Other income | 23 | 1.15% | 16 | 0.67% | 15 | 1.04% |
| Total revenues | 2,003 | 100.00% | 2,404 | 100.00% | 1,442 | 100.00% |
From 2021 to 2023, the Company and its subsidiaries derived their primary revenue from the sales of housing and land development projects, amounting to 1,241 million Baht, 2,166 million Baht, and 1,758 million Baht, respectively. This accounts for 86.06%, 90.10%, and 87.77% respectively, of the total revenue. Compared to the previous year, revenue from the sale of houses and land decreased by 18.84% in 2022. In 2022, revenue from the sale of houses and land increased by 74.54% from 2021. The sales revenue comprises income from land development and construction of real estate for sale. Revenue from sales of houses and land are realized once the Company has transferred ownership to the buyers.
In addition, the Company generates revenue from leased spaces, which is another core business of Pure Sammakorn Development Company Limited, a subsidiary, that leases land and buildings and parts of the buildings in the Sammakorn Place Rangsit project, Sammakorn Place Ramkhamhaeng (West) project, and Sammakorn Place Ratchaphruek project for a period of 30 years. Additionally, the Company operates the weekend market business under the name " Sammakorn Weekend Market Muang Ake ". In 2022, the Company completed its expansion of the market and opened the area for leasing in early 2023. The food and beverage business, which is a new business of the Group, began operations in late 2021 under the brand NICO NICO offers food and bakery products and has a branch located in Thonglor on Thonglor Soi 19-21. It is a Japanese restaurant that offers a menu centered around healthy options. In terms of the bakery business, products have been distributed to leading department stores and at the end of 2023, 1 additional branch will be opened, namely Lang Suan branch (LAUGH By nico nico) and in 2024, 1 additional branch will be opened to increase sales in the future. In 2023, the business generated 20 million Baht in revenue, marking a 9.09% decrease compared to 2022.
For other income, from 2021 to 2023, the Company and its subsidiaries had other income totaling 15 million Baht, 16 million Baht, and 23 million Baht, respectively compared to previous year. In 2023, other income increased by 43.75% Compared to 2022. and In 2022 other income increased by 6.67% compare to 2021, resulting primarily from management fees and dividend income received.
Cost of sales
The Company and its subsidiaries have an accounting policy to recognize the cost of sales for houses with land by allocating the total expected development costs for each project (taking into account of actual costs incurred) to the houses with land sold based on the proportion of the saleable area of each project and recognize the cost of sales based on the proportion of the saleable area for each project. The cost of sales of the Company and its subsidiaries comprises land development costs, utility construction and development costs, borrowing costs, and the cost of other products delivered to the customer as stated in the contract, such as furniture and fixtures that are considered integral parts of houses or units in residential condominium delivered. Expenses related to sales, such as specific business taxes and ownership transfer fees, are recorded as expenses when sales occur.
From 2021 to 2023, the Company and its subsidiaries had costs of sales for real estate totaling 953 million Baht, 1,636 million Baht, and 1,290 million Baht, respectively compared to previous year. In 2022, the cost of sales for real estate increased by 71.67% compared to 2021 and 2023, the cost of sales for real estate decreased by 21.15 % compared to 2022. These changes align with the change in revenue. From 2021 to 2023, the Company and its subsidiaries had costs from the sale of houses, land, and residential condominiums, accounting for 76.58%, 75.29%, and 73.84% of the total revenue, respectively. The Company and its subsidiaries have plans to construct and control the costs of utility development and renovation for all projects.
Gross Profit
In 2021 and 2022, the Company and its subsidiaries had gross profit of 334 million Baht and 590 million Baht, respectively, or 23.42% and 24.71% respectively. For 2023, the Company and its subsidiaries had a gross profit of 518 million Baht or 26.16%.
Costs of sales and management
In terms of costs of sales in 2021 and 2022, the Company and its subsidiaries had costs of sales of 116 million Baht and 188 million Baht, respectively or 8.04% and 7.82% of the total revenue, respectively. In 2023, the cost of sales was 198 million Baht or 9.89% of the total revenue. Compared to the same period of the previous year, the cost of sales in 2023 increased by 10 million Baht or 5.32%, because there is advertising and create a corporate brand.
In terms of costs of management in 2021 and 2022, the Company and its subsidiaries had costs of management of 153 million Baht and 240 million Baht, respectively, or 10.61% and 9.98% of the total revenue, respectively. In 2023, the cost of management was 246 million Baht or 12.28% of the total revenue. Compared to the same period of the previous year, the cost of management in 2023 increased by 6 million Baht or 2.50%. Due to 2023, the subsidiary set up an impairment loss on investment real estate, which is Udomsuk Market land worth 17 million Baht, and administrative expenses decreased by 11 million Baht in 2023 due to expenses for maintenance and utilities in preparation for handing over the closing project with the village juristic person.
Finance costs
Finance costs consist of interest on loans used as working capital, interest from financial lease agreements, and interest paid on loans used for various project constructions. A portion of such costs is recorded as development costs for real estate projects and bank fees. In 2021 and 2022, the Company and its subsidiaries had finance costs of 30 million Baht and 35 million Baht, respectively, or 2.08% and 1.46% of the total revenue, respectively. In 2023, the Company and its subsidiaries had the finance cost of 20 million Baht or 1.00% of the total revenue.
Net profit
In terms of the net profit of the Company and its subsidiaries in 2021 and 2022, the Company had profits for the year (retained earnings) of 42 million Baht and 113 million Baht, respectively or 2.92% and 4.70% of total revenue, respectively. In 2023, the Company and its subsidiaries had net profit for the year (retained earnings) of 35 million Baht or 1.75% of total revenue.
Return on equity
In terms of return on equity over a 3-year period, the Company and its subsidiaries had return on equity between 2021 to 2023 at 1.77%, 4.57%, and 1.43%, respectively.
Financial analysis
Assets
As of 31 December 2021, the Company and its subsidiaries had total assets of 5,732 million Baht, an increase of 287 million Baht or 5.27% from 2020. The main assets of the Company consisted of development costs of real estate projects of 1,351 million Baht, land held for development of 2,372 million Baht, and investment properties of 933 million Baht or 23.57%, 41.38%, and 16.28% respectively, of total assets.
As of 31 December 2022 the Company and its subsidiaries had total assets of 5,748 million Baht, an increase of 16 million Baht or 0.28% from 2021. The main assets of the Company consisted of development costs of real estate projects of 2,360 million Bahtt, land held for development of 1,550 million Baht, and investment properties of 933 million Baht or 41.06%, 26.97%, and 16.23% respectively, of total assets.
As of 31 December 2023, the Company and its subsidiaries had total assets of 6,358 million Baht, an increase of 610 million Baht or 10.61% from 2022. The main assets of the Company consisted of development costs of real estate projects of 4,651 million Baht, land held for development of 198 million Baht, and investment properties of 898 million Baht or 73.15%, 3.11%, and 14.12% respectively, of total assets.
Liabilities
As of 31 December 2021, the Company and its subsidiaries had total liabilities of 3,192 million Baht, an increase of 257 million Baht or 8.76% from 2020. The increase primarily resulted from long-term loans of 602 million Baht and short-term loans from related parties of 121 million Baht. However, during the year, there was a repayment of short-term loans from financial institutions of 451 million Baht. The main liabilities of the Company comprised rental income received in advance net of portion to be recognized as revenue within one year of 923 million Baht and long-term loans net of portion due for repayment within one year of 1,497 million Baht, which accounts for 16.10% and 26.12%, respectively, of total liabilities and equity.
As of 31 December 2022, the Company and its subsidiaries had total liabilities of 3,089 million Baht, a decrease of 103 million Baht or 3.23% from 2021. This decrease mainly resulted from repayments of bank overdrafts and short-term loans from financial institutions of 58 million Baht and repayments of short-term loans from related parties of 90 million Baht. The main liabilities of the Company and its subsidiaries comprised portion of long-term loans due within one year of 1,173 million Baht calculated from the ownership transfer target that the Company and its subsidiaries estimated for revenue from real estate business in 2023 of 1,970 million Baht, and rental income received in advance net of portion to be recognized within one year of 889 million Baht, which accounts for 20.41% and 15.47%, respectively, of total liabilities and equity.
As of 31 December 2023, the Company and its subsidiaries had total liabilities of 3,720 million Baht, an increase of 631 million Baht or 20.43% from 2022. The increase mainly resulted from short-term loans from related parties of 310 million Baht Bank overdrafts and short-term loans from financial institutions of 131 million Baht Deposits and advances received from customers of 81 million Baht and Long-term loans of 170 million Baht. The main liabilities of the Company and its subsidiaries comprised portion of long-term loans due within one year of 1,229 million Baht calculated from the ownership transfer target that the Company and its subsidiaries estimated for revenue from real estate business in 2024 of 2,606 million Baht, and rental income received in advance net of portion to be recognized within one year of 855 million Baht, which accounts for 19.33% and 13.45%, respectively, of total liabilities and equity.
At the end of 2021-2023, the Company and its subsidiaries had bank overdrafts and short-term loans from financial institutions combined with long-term loans totaling 1,726 million Baht, 1,577 million Baht, and 1,878 million Baht respectively, or 54.07%, 51.08%, and 50.48% respectively, of total liabilities. The bank overdrafts and short-term loans from financial institutions combined with the Company’s main long-term loans consisted of portion of long-term loans due for repayment within one year of 136 million Baht, 1,173 million Baht, and 1,229 million Baht, respectively, or 4.26%, 37.97%, and 33.04% of total liabilities, respectively. The Company and its subsidiaries borrowed with the purpose to use the loans as working capital or for real estate development in the project development plan. The Company mortgaged land and building investment in the Company’s projects as collateral for its long-term loans. The Company has repaid loans according to the terms and conditions specified in the loan agreements.
Equity
On 31 December 2021-2023, the Company and its subsidiaries had equity of 2,541 million Baht, 2,658 million Baht, and 2,637 million Baht, respectively.