Analysis of Financial Position and Operation Results
The Company and subsidiaries had revenue from selling property of single detached house for middle market of Baht 1,312.46 million in 2005, Baht 1,526.09 million in 2006, and Baht 1,321.88 million respectively. It increased 16.28 percent and decreased 13.38 percent respectively. The increase of revenue from selling of single detached house/semi detached house for middle market in 2006 was a result of expansion in real estate industry, especially in housing sector. Products of single house/semi detached house for middle market grew in 2006. For the year of 2007, dramatic changes in politics, economic recession, and increase of petrol price and loan interest influence most of consumers to buy cheaper products. Therefore, townhouse/home office offering lower price than single house/semi detached house in the middle market, got more attention. Revenue from selling property of townhouse/home office in 2005, 2006 and 2007 were Baht 419.80 million, Baht 890.65 million and Baht 1,080.74 million respectively. It increased 112.16 percent and 21.34 percent respectively. The revenue of selling townhouse/home office increased because the products were interesting for most of customers. The demand of these products has gradually increased. The Company received the first revenue from selling property of condominium in 2006. Since the number of customers demanding housing in form of condominium has gradually increased, the Company has developed condominium projects to meet such demand. The first and only one condominium project in 2006 named the Pulse Condominium Ladprao 44, 8 stories of 202 units, located in 1-2-0 rai area in Ladprao 44. The project values Baht 325.25 million. This project was to finish construction before selling. Therefore in 2006 the Company sold the units and could transfer ownership as well as recognized revenue in the same year. In 2007, the Company did not have revenue from selling condominium because most of the Pulse Condominium Ladprao 44’s units were transferred and the revenue was recognized in 2006. In addition the new opened condominium projects have been under construction. Those four projects are the Complete Naratiwasrajchanakarin, the Complete Rajchaprarop, the Pulse Phaholyothin 37, and Smart Condo Rama II. The Company had revenue from selling construction materials through Growed Yotha Group Company Limited, the Company’s subsidiary. Most of goods were sold to the Company and its contractors. It was 3.00 percent of total revenue. In 2005, 2006, and 2007 the Company and subsidiaries had revenue from selling materials of Baht 71.39 million, Baht 86.07 million, and Baht 61.62 million respectively. It increased 20.56 percent and decreased 28.41 respectively. It increased in 2006 because the Company developed new projects and more value products. Therefore, the subsidiary could sell more construction materials to the Company’s contractors. It decreased in 2007 because of consolidated financial statements. In 2007, Growed Yotha Group Company Limited sold most of its goods to the Company and subsidiaries. In addition to revenue from selling property and revenue from selling goods, the Company and subsidiaries have revenue from waived deposit, which incurred when the customers did not make buying contract at due time, left down payment, which some customers paid down installments and then stopped without notice or contacting, and penalty of late construction paid by the Company’s contractors. However, this revenue was not major revenue of the Company and subsidiaries.
111 Annual Report 2007