The Company runs a retail trading for diamonds and diamond ornaments which is a business with high competition among a number of small enterprises, but such goods are return high profit per unit while the rate of preliminary profit of goods in same type might be different depending on values of raw materials at manufacturing process, and the Company shall dictate pricing with discount of such goods. The procurement services for products of the Company shall be classified into two main processes as the supplying for diamond as a readymade commodity and raw material, and then hiring a manufacturer to produce designated ornament. Such process of business is similar with an order of purchasing from manufacturer to distribute; therefore, the Company shall be able to avoid bearing of costs of investment in permanent assets. While it can spend more investment on current capital for purchasing and collection of products for sales, since they need to be variety in forms and designs responding to diverse buyers. One of the success factors for this business thus relies on management of inventory and liquidity management with efficiency.

The retail trading for diamonds and diamond ornaments shall set up initial selling price, in very high level, while volume of sales in each time shall not be high, comparing with manufacturing and exporting of ornaments and decorations, therefore the Company focuses on huge groups of clients with continual expansion of coverage for create more net profits, in additional the Company steadfastly set up branches in provinces countrywide with retain of adequate stocks in each branch responding to diversity of demanding. Several means for management of inventory with more efficiency are introduced and applied for cost-effectiveness with value-adding in stocking of products, while the security management with insurance has been activated upon risk management and preventive measures from robbery and corruption.

The Company holds two main types of products as: 1) ornaments and decorations; and 2) diamond in carat, and of course, ornaments and decorations might create more values with gain of higher profits rather than diamond in carat, while some pieces of ornaments and decorations shall earn more profits than other pieces.

In 2015, the company's total turnover decreased 12.27 percent as compared to the previous year or approximately Baht 207.96 million. The decrease of total turnover 17.91 percent came from the economic slowdown especially in the first 9 month of 2015 and improved in Q4, 2015 from the government's stimulus policies.

In 2016, the company's total turnover decreased 7.23 percent as compared to the previous year or approximately Baht 107.50 million due to the decreasing in same store sales of the company by 7.82 percent which affected by the delay of purchase from some segment of consumers in Bangkok and the suburbs in the first 2 quarters and in October and November 2016 as affected by the important event in the country.

In 2017, the company's total turnover increased 11.77 percent as compared to the previous year or approximately Baht 162.42 million due to the effective sales and marketing strategies including the launching of new products which were get positive feedback from the customers and the product segment management and the improvement of customer services were well implemented. Moreover, in 2017 the Company has continuously emphasized on strengthening the brand perception, its reliability and quality of the products of which led the Company in implementing the related sales and marketing activities; and the Company also create the brand identity by launching new product designs by use of the Company's emblem. This was also one of the reasons to increase the revenues from sales in 2017.

The Company's net profit decreased from Baht 204.55 million in 2014 to Baht 131.12 million or decreased by 35.90 percent due to the revenue from sales decreased of 12.27 percent or Baht 207.96 million which affected by the economic and the postpone of purchase by the consumers in the first 9 months of 2015.

The Company's net profit increased from Baht 131.12 million in 2015 to Baht 157.28 million in 2016 or increased by 19.95 percent. The major reasons of the increase were mainly due to the improvement of the inventory management, particularly for the main raw material cost, the management of sales mix in each product category efficiently. Gross Profit significantly improved from 40.05 percent in 2015 to 44.06 percent in 2016. While the revenues decreased from Baht 1,487.50 million in 2015 to Baht 1,380.00 million in 2016. Moreover, the company strictly controlled on the selling and administrative expenses for year 2016 of which resulted to a decrease in selling and administrative expenses of Baht 20.50 million.

In 2017, the Company had a net profit of Baht 184.72 million while the net profit in 2016 was Baht 157.28 million or increased by 17.45 percent. The major reasons of an increase in revenues from sales of 11.77 percent and an improvement of the inventory management, particularly for the main raw material cost, and the management of product mix efficiently, which reflected to an increase in the Company's gross profit from Baht 607.96 million in 2016 to Baht 672.30 million in 2017, increased by Baht 64.34 million or 10.58 percent; offset by an increase in selling and administrative expenses of Baht 34.61 million which were related to an increase of revenues from sales. However, the Company still strictly controlled on the selling and administrative expenses.

The Company's total assets as at 31st December, 2015 was Baht 1,034.28 million mainly comprised: cash and cash equivalents of Baht 43.42 million, short term investment of Baht 147.64 million, trade and other receivables of Baht 99.90 million, and inventories of Baht 601.22 million. The major change was a decrease in inventories from Baht 694.79 million as at 31st December 2014 to Baht 601.22 as at 31st December 2015 due to the efficiency of inventory management.

The Company's total liabilities as at 31st December 2015 was Baht 329.79 million mainly comprised: trade and other payables of Baht 212.02 million and long-term loan from financial institution of Baht 46.91 million. The major change was a decrease in trade and other payables from Baht 332.58 million as at 31st December 2014 to Baht 212.02 million as at 31st December 2015 due to the normal debt payment of the company, offset with a net increase in long-term loan from financial institution of Baht 46.91 million.

The Company's shareholders' equity as at 31st December 2015 was Baht 704.49 million mainly comprised: paid-up capital of Baht 174.27 million, premium on share capital of Baht 92.27 million, the legal reserves of Baht 17.50 million and unappropriated retained earnings of Baht 420.45 million. The shareholders' equity as at 31st December 2015 decreased from previous year with Baht 4.60 million was due to the comprehensive income increased to Baht 129.59 million, offset with the dividend payment of Baht 134.19 million.

The Company's total assets as at 31st December, 2016 was Baht 1,044.60 million mainly comprised: cash and cash equivalents of Baht 29.58 million, short-term investments of Baht 173.84 million and trade and other receivables of Baht 146.78 million, and inventories of Baht 558.60 million. The major change was a decrease in inventories from Baht 601.22 million as at 31st December 2015 to Baht 558.60 million as at 31st December 2016 due to the efficiency of inventory management.

The Company's total liabilities as at 31st December 2016 was Baht 269.32 million mainly comprised: trade and other payables of Baht 163.24 million and long-term loan of Baht 34.95 million. The major change was a decrease in trade and other payables from Baht 212.02 million as at 31st December 2015 to Baht 163.24 million as at 31st December 2016 due to the normal debt payment of the company.

The Company's shareholders' equity as at 31st December 2016 was Baht 775.28 million mainly comprised: paid-up capital of Baht 174.27 million, premium on share capital of Baht 92.27 million and unappropriated retained earnings of Baht 491.24 million. The shareholders' equity as at 31st December 2016 increased from previous year with Baht 70.79 million due to an increase in a net profit of Baht 157.93 million offset with the dividend payment of Baht 87.13 million.

The Company's total assets as at 31st December 2017 was Baht 1,205.65 million mainly comprised: cash and cash equivalents of Baht 33.32 million, short-term investments of Baht 282.90 million and trade and other receivables of Baht 124.25 million and inventories of Baht 645.79 million. The major changes were an increase in inventories from Baht 558.60 million as at 31st December 2016 to Baht 645.79 as at 31st December 2017 due to the management of inventory level sufficient for the customers' needs and an increase in short-term investments from Baht 173.84 million as at 31st December 2016 to Baht 282.90 million as at 31st December 2017 due to the management of cash increased from the operations with maximum returns.

The Company's total liabilities as at 31st December 2017 was Baht 344.98 million mainly comprised: trade and other payables of Baht 244.27 million and long-term loan of Baht 22.98 million. The major change was an increase in trade and other payables from Baht 163.24 million to Baht 244.27 million due to an increase in the production of inventories of which was in line with the normal course of business.

The Company's shareholders' equity was Baht 860.67 million mainly comprised: paid-up capital of Baht 174.27 million, premium on share capital of Baht 92.27 million and unappropriated retained earnings of Baht 576.63 million. The shareholders' equity as at 31st December 2017 increased from previous year by Baht 85.39 million due to an increase in comprehensive income of Baht 184.72 million, offset with the dividend payment of Baht 99.33 million.

Revenue

In 2015 , 2016 and 2017, the Company's revenues were Baht 1,487.50, Baht 1,380.00 and Baht 1,542.42 million, respectively. The revenues shall be classified upon types of products as follows:

(Unit : Million Baht)
Type of Income from Sales/Services 2015 2016 2017
Million Baht Percent Million Baht Percent Million Baht Percent
1. Diamond Jewelry 1,309.24 88.02 1,233.20 89.36 1,279.27 82.94
2. Carat Diamond 171.10 11.50 140.96 10.21 257.22 16.68
3. Service Income 7.16 0.48 5.84 0.43 5.93 0.38
  Total 1,487.50 100.00 1,380.00 100.00 1,542.42 100.00

In 2015, the Company's revenues were Baht 1,487.50 million. Revenues from diamond jewelry compared to previous year was decreased by 12.49 percent and revenues from carat diamond compared to previous year was decreased by 10.36 percent due to the economic turndown and the delay of purchase from some segment of consumers especially for the first 9 months of the year.

In 2016, the Company's revenues were Baht 1,380.00 million. Revenues from diamond jewelry compared to previous year was decreased by 5.81 percent and revenues from carat diamond was decreased by 17.62 percent, due to an effect by the delay of purchase from some segment of consumers in Bangkok and the suburbs in the first 2 quarters and in October and November 2016 as affected by the important event in the country.

In 2017, the Company's revenues were Baht 1,542.42 million. Revenues from diamond jewelry compared to previous year increased by 3.74 percent and revenues from carat diamond was increased by 82.48 percent due to the effective sales and marketing strategies from the productive usage of database. The launching of new products was very successful and gets positive feedback from the customers. Besides, the product segment management and the improvement of customer services were well implemented. Moreover, in year 2017 the Company has continuously emphasized on strengthening the brand perception, its reliability and quality of the products of which led the Company in implementing the related sales and marketing activities; and the Company also create the brand identity by launching new product designs by use of the Company's emblem. This was also one of the reasons to increase the revenues from sales in 2017.

The revenues shall be classified upon channel of distribution as follows:

(Unit : Million Baht)
Channel for Distribution 2015 2016 2017
Amount Percent Growth Amount Percent Growth Amount Percent Growth
1. Department Store 464.13 31.20 (13.36) 552.78 40.06 (19.10) 594.11 38.52 7.48
2. Plaza and others 1,023.37 68.80 (11.75) 827.22 59.94 (14.77) 948.31 61.48 8.72
  Total 1,487.50 100.00 (12.27) 1,380.00 100.00 (7.23) 1,542.42 100.00 11.77
Note: excluded service income

The revenues proportion from sales of the Company in Bangkok and upcountry was drastically changed due to business expansion in upcountry. The amount and proportion of revenues from sales of the Company during 2015 to 2017 shall be presented in detail as follows:

(Unit : Million Baht)
Channel for Distribution 2015 2016 2017
Amount Percent Amount Percent Amount Percent
Bangkok 851.64 57.25 693.84 50.28 594.11 38.52
Upcountry 635.86 42.75 686.16 49.72 948.31 61.48
Total 1,487.50 100.00 1,380.00 100.00 1,542.42 100.00
Note: excluded service income

The other income from 2015 to 2017 shall be presented as follows:

(Unit : Million Baht)
Other Income 2015 2016 2017
Interest income 0.35 0.26 0.29
Short-term investments 1.62 1.69 3.63
Others 2.00 1.52 3.13
Total 3.97 3.47 7.05

Cost of Sales and Gross Profit Margin

The Company's cost of goods sold from 2015 to 2017 were Baht 891.77 million, Baht 772.03 million and Baht 870.12 million, respectively. In 2015, cost of goods sold decreased by Baht 101.25 million or 10.20 percent from the previous year due to revenue from sales and service decreased by Baht 207.96 million or 12.27 percent. In 2016, cost of goods sold decreased by Baht 119.73 million or 13.43 percent from the previous year due to revenue from sales and service decreased by Baht 107.50 million or 7.23 percent and in 2017, cost of goods sold increased by Baht 98.09 million or 12.70 percent from the previous year due to revenue from sales and service increased by Baht 162.42 million or 11.77 percent.

The Company's two main products are 1) Diamond Jewelry; and 2) Carat Diamond. Normally diamond jewelry has higher profit margin than loose diamond or carat diamond. Moreover, each product line has different rate of profit margin. The Company's gross profit margins from 2015 to 2017 were 40.05 percent, 44.06 percent and 43.59 percent, respectively. The gross profit margin of 2016 was increased from 2015 due to an improvement of the inventory management, particularly for the main raw material cost, and the management of product mix efficiently. The gross profit margin of 2017 was indifferent from 2016 due to the continual improvement of the inventory management, particularly for the main raw material cost, and the management of product mix efficiently.

Selling and Administrative Expenses

Selling and Administrative Expenses hereby comprise two main components as: ones with direct variation to commission fees, costs for advertisement and public relations and credit card fees; and ones with indirect variation which are transportation expenses.

The Company's selling and administrative expenses in 2015 was Baht 433.42 million which increased by 3.68 percent from the previous year. The ratio of costs on sales and administration with compensation for executive staff members, comparing with turnovers and service coverage was 29.14 percent which was higher than one with the same period of previous year of 26.54 percent. Due to revenue from sales and services in 2014 were increased, while some expenses on sales and administration with compensations for administrators were not directly variable with, particularly salaries and bonuses for employees and rental. Therefore, the proportion of costs of sales and administration with compensation for executive staff members were highly increased. However, the Company has to control all expenses; sales and administration with compensation for executive staff members by the annual budgeting plan with assignment for controlling and auditing on a monthly basis.

The Company's selling and administrative expenses in 2016 was Baht 412.92 million which decreased by 4.73 percent from the previous year. The Company's selling and administrative expenses represented 29.92 percent of total revenues which was indifferent with the same period of previous year of 29.14 percent. The Company's selling and administrative expenses are staff incentives, advertising and PR, credit card fee of which were controlled by internal audit and budgeting department.

The Company's selling and administrative expenses in 2017 was Baht 447.55 million which increased by 8.39 percent from the previous year. The Company's selling and administrative expenses represented 29.02 percent of total revenues which was decreased from the previous year at 29.92 percent due to the strictly controlled on the selling and administrative expenses by annual budgeting plan with assignment for controlling and auditing on a monthly basis.

Operating profit and Comprehensive income

In 2015, operating profit was Baht 166.29 million which decreased by 35.27 percent from the same period of previous year. This was caused from a decrease in revenues from sales and services.

The comprehensive income in 2015 was Baht 129.59 million which decreased by 36.82 percent from the same period in previous year due to a decrease in revenues from sales and services of which resulted to a decrease in comprehensive income of Baht 75.53 million. The Company's comprehensive income margin was 12.10 percent and 8.71 percent in 2014 and 2015, respectively.

In 2016, operating profit in amount of Baht 198.50 million which increased by 19.37 percent from the same period of previous year. This was caused from an increase in gross profit and a decrease in sales and administrative expenses.

The comprehensive income in 2016 was Baht 157.93 million which increased by 21.87 percent comparing with the same period in previous year due to an increase in gross profit and a decrease in sales and administrative expenses of which resulted to a decrease in comprehensive income of Baht 28.34 million. The Company's comprehensive income margin was 8.71 percent and 11.44 percent in 2015 and 2016, respectively.

In 2017, operating profit was Baht 231.79 million which increased by 16.77 percent from the same period of previous year. This was caused from increase of gross profit.

The comprehensive income in 2017 was Baht 184.72 million which increased by 16.96 percent comparing with the same period in previous year due to an increase in gross profit. The Company's comprehensive income margin was 11.98 percent and 11.44 percent in 2017 and 2016, respectively.

Assets

As at 31st December 2015, the current assets mainly comprised cash and cash equivalents of Baht 43.42 million represented 4.20 percent of total assets, short-term investments of Baht 147.64 million represented 14.27 percent of total assets, trade and other receivables of Baht 99.90 million represented 9.66 percent of total assets, and inventories of Baht 601.22 million represented 58.13 percent of total assets. Current assets were significantly changed; inventory decreased Baht 93.57 million due to the efficiency of inventory management, cash or cash equivalence increased Baht 13.68 million.

As at 31st December 2015, the non-current assets mainly comprised building and equipment of Baht 105.02 million represented 10.16 percent and cash deposit & leasehold rights of Baht 22.75 million represented 2.20 percent of total assets.

As at 31st December 2016, the current assets mainly comprised cash and cash equivalents of Baht 29.58 million represented 2.83 percent of total assets, short-term investments of Baht 173.84 million represented 16.64 percent of total assets, trade and other receivables of Baht 146.78 million represented 14.05 percent of total assets, and inventories of Baht 558.60 million represented 53.48 percent of total assets. There were significantly changed in currents assets by an increase in trade and other receivables by Baht 46.88 million, and an increase in cash and cash equivalents included short-term investments by Baht 12.36 million, offset with a decrease in inventories of Baht 42.62 million due to the efficiency of inventory management.

As at 31st December 2016, the non-current assets mainly comprised building and equipment of Baht 90.24 million represented 8.64 percent of total assets and cash deposit & leasehold rights of Baht 21.73 million represented 2.08 percent of total assets.

As at 31st December 2017, the current assets mainly comprised cash and cash equivalents of Baht 33.32 million represented 2.76 percent of total assets, short-term investments of Baht 282.90 million represented 23.46 percent of total assets, trade and other receivables of Baht 124.25 million represented 10.31 percent of total assets, and inventories of Baht 645.79 million represented 53.56 percent of total assets. There were significantly changed in currents assets by an increase in inventories by Baht 87.19 million, and cash and cash equivalents included short-term investments by Baht 112.80 million offset with a decrease in trade and other receivables of Baht 22.54 million.

As at 31st December 2017, the non-current assets mainly comprised building and equipment of Baht 77.74 million represented 6.45 percent and cash deposit & leasehold rights of Baht 23.72 million represented 1.97 percent of total assets.

Quality of Assets

(a) Trade receivables and allowance for doubtful accounts:

The trade receivables shall be classified upon due of debt payment as follows:

(Unit : Million Baht)
Remaining Period of Time 31st Dec 2015 % 31st Dec 2016 % 31st Dec 2017 %
Current 96.24 96.48 144.46 98.28 122.32 98.17
Less than 3 months 2.38 2.39 1.43 0.97 1.24 1.00
Over 3 months up-to 6 months - - - - - -
Over 6 months up-to 9 months - - - - - -
Over 9 months up-to 12 mont 0.4 0.4 - - - -
Over 12 months 1.09 1.09 1.10 0.75 1.04 0.83
Total 99.75 100.00 146.99 100.00 124.6 100.00
Allowance for doubtful debts (1.11) (1.11) (1.13) (0.77) (1.04) (0.83)
Total-Net 98.64 98.89 145.86 99.23 123.56 99.17

The accounts receivable of the Company comprises debtors as department stores holding debts from sales of products through department stores within credit term of 45 to 60 days. Most of accounts receivable in this type shall be able to pay on due and some of them would be clients making contracts likewise franchise of the Company with orders of products for the Company for distribution. The Company undertakes policies for providing credit to these accounts receivable within 45 to 60 days, while the Company allows them to pay for such goods and products with delay. This causes pending number of accounts receivable, anyhow the Company shall be able to collect money from clients on due. And for the direct sales to end users or consumers, there is none of credit scheme or payment by monthly installments.

In additional, the Company has issued policies for doubtful debt, the reserved fund would be installed when any account receivable has overdue debt, longer than 180 days, or under the prediction with reference to record of debt payment in the past or any information given to executive entity. The allocation of reserved fund would respond to number of debtors with uncollectible accounts. As at 31st December 2015, 31st December 2016 and 31st December 2017, the Company had a debt of Baht 1.11 million, Baht 1.13 million and Baht 1.04 million, respectively. The installment of remedial for uncollectible accounts was commissioned in accordance with policies remedial for uncollectible accounts in all periods and the Company had retained this reserved fund covering to all risks and problems.

(b) Inventory:

(Unit : Million Baht)
Items 31st Dec 2015 % 31st Dec 2016 % 31st Dec 2017 %
Diamond Jewelry 472.14 78.53 469.49 84.05 541.88 83.91
Carat Diamond 49.51 8.23 39.36 7.05 40.29 6.24
Work in Process 22.25 3.70 7.48 1.34 2.96 0.46
Setting 12.19 2.03 6.79 1.22 6.92 1.07
Gold; 1.72 0.24 2.86 0.51 0.38 0.06
Diamond-raw material; 37.08 6.17 26.51 4.75 45.30 7.01
Consumable material; 6.63 1.10 6.11 1.09 8.07 1.25
Total-Net 601.22 100.00 558.6 100.00 645.80 100.00

The Company's inventories were decreased from Baht 694.79 million as at 31st December 2014 to Baht 694.79 million as at 31st December 2015 or decreased by Baht 93.57 million or 13.47 percent due mainly to a decrease in diamond jewelry of Baht 71.73 million as a result from the efficiency of inventory management.

The Company's inventories were decreased from Baht 601.22 million as at 31st December 2015 to Baht 558.60 million as at 31st December 2016 or decreased by Baht 42.62 million or 7.09 percent due mainly to a decrease in diamondraw material of Baht 14.53 million and a decrease in diamond jewelry of Baht 10.15 million due to the efficiency of inventory management.

The Company's inventories were increased from Baht 558.60 million as at 31st December 2016 to Baht 645.79 million as at 31st December 2017 or increased by Baht 87.19 million or 15.61 percent due mainly to an increase in diamond jewelry of Baht 72.39 million of which resulted from the inventory management to be sufficient for the customers' needs. However, the Company still improved the inventory management by which the average sales period decreased from 274.17 days in 2016 to 252.61 in 2017.

On inventory management, in category of diamond jewelry, the company would collect information and quantity of products on basis of forms and formats for classification and tracking of products with slow pace. If any is identified with slow pace, the Company shall move such products to other branches for increase of possibility with choice of sales. And at the end, if any form of product does not match with demands and is left in stock without value-adding, the company shall set up an event with promotion for sales, likewise the increase of discount portion with reduce of profit and finally if such product shall not be sold, the company shall dictate a policy with exploitation of such product, e.g. to reformat the form of them with new style of product. And for those readymade products in form of diamond in carat or raw materials, they would not be managed on basis of time and out of date, but on basis of principal with global market price with estimation of depreciation of product.

(Unit : Million Baht)
Items 31st Dec 2015 31st Dec 2016 31st Dec 2017
Net profit 131.12 157.28 184.72
Adjustment of items with impact to net profit 55.92 68.17 71.43
Operating profit before change in assets and debts from operation; 187.04 225.45 256.15
Change in assets 84.90 (7.70) 82.39
Change in debts (112.57) (53.86) 82.39
Income tax paid (40.06) (35.45) (40.72)
Net cash provided by operating activities 119.31 128.44 235.
Net cash used in investing activities (14.74) (39.63) (118.38)
Net cash used in financing activities (90.89) (102.65) (113.44)
Net increase (decrease) in cash and cash equivalents 13.68 (13.84) 3.74
Cash and cash equivalents at beginning of the year 29.74 43.42 29.58
Cash and cash equivalents at end of the year 43.42 29.58 29.58

In reference to above figures, the company gains profits in continuity in every year, but the cash flow gained from operation of the company is sporadically reduced. The turnovers with service coverage are increased in every year and of course shall be cause of increase of current capital for procuring and purchasing of raw material and retain of inventory for allowing clients to be able to freely choose. The company acquires such working capital from accounts payable that receiving credit allowance within 90-180 days and shall be a part of benefits from operation of the company. And from the operation of business of the company with extension of service coverage, it caused reduce of cash flow with deficiency and spending of cash for procuring and purchasing of products. The company had taken a loan from commercial banks in short-term loan whenever it really needed cash with liquidity. Currently, the Company has a bank loan from commercial bank with adequacy for running of business, so there is none of problem with liquidity. Its liquidity proportions with substances shall be presented as follows:

In 2015, current ratio was 3.18 with increase from 2.49 in 2014. The average collection period was 23.97 days which was increased from 19.33 days in 2013. The average sales period was 265.23 days, while the average payment period was 111.45 days increased from 110.60 days from 2014.

In 2016, current ratio was 3.91 with increase from 3.18 in 2015. The average collection period was 32.62 days which was increased from 23.97 days. The average sales period was 274.17 days, while the average payment period was 88.71 days decreased from 111.45 days from 2015.

In 2017, current ratio was 3.39 with indifferent from previous year at 3.91. The average collection period was 32.07 days which was indifferent from previous year with 32.62 days. The average sales period was 252.61 days, while the average payment period was 85.47 days decreased from 88.71 days from 2016.

Operation Efficiency

The company does not have a manufacturing factory for its products, while also rents areas for distribution of products rather than purchasing plots of lands, therefore it holds very limit of permanent assets. For this matter, the ratio of returns from permanent assets shall not be used to evaluate effectiveness on usage of assets of the Company, in contradiction it shall be used as reflection of efficiency.

The Company's return on asset ratio was decreased from 24.85 percent in 2014 to 15.49 percent in 2015 due to the Company expanded more stores in 2015 and a decrease in comprehensive income from Baht 205.12 million 2014 to Baht 129.59 million in 2015.

The Company's return on asset ratio was increased from 15.49 percent in 2015 to 19.10 percent in 2016 due to an increase in comprehensive income from Baht 129.59 million in 2015 to Baht 157.93 million in 2016.

The Company's return on asset ratio was increased from 19.10 percent in 2016 to 20.60 percent in 2017 due to an increase in comprehensive income from Baht 157.93 million in 2016 to Baht 184.72 million in 2017.

Liabilities

As at 31st December 2015, the Company's short-term loan facilities from financial institutions was Baht 520 million comprised a 5-year loan, trust receipt and promissory notes from commercial banks with a tenor of 1-6 months, bear the interest at market rate, and without collateral.

As at 31st December 2016, the Company's short-term loan facilities from financial institutions was Baht 680 million comprised a 5-year loan, trust receipt and promissory notes from commercial banks with a tenor of 1-6 months, bear the interest at market rate, and without collateral.

As at 31st December 2017, the Company's short-term loan facilities from financial institutions was Baht 680 million comprised a 5-year loan, trust receipt and promissory notes from commercial banks with a tenor of 1-6 months, bear the interest at market rate, and without collateral.

Shareholders' Equity

As at 31st December 2015, the Company's shareholders' equity was Baht 704.49 million, while the unappropriated retained earnings were Baht 420.45 million. And in the Annual General Meeting of Shareholders in 2015, the meeting adopted a resolution with approval for payment of dividend from profit from operations in 2014 in Baht 0.71 per share and in Board of Director Meeting no.3/2015, the meeting adopted a resolution with approval for payment of interim dividend from profit from operations during January-June 2015 in Baht 0.21 per share.

As at 31st December 2016, the Company's shareholders' equity was Baht 775.28 million, while the unappropriated retained earnings were Baht 491.24 million. And in the Annual General Meeting of Shareholders in 2016, the meeting adopted a resolution with approval for payment of dividend from profit from operations in 2015 in Baht 0.46 per share and in Board of Director Meeting no.3/2016, the meeting adopted a resolution with approval for payment of interim dividend from profit from operations during January-June 2016 in Baht 0.25 per share

As at 31st December 2017, the Company's shareholders' equity was Baht 860.67 million, while the unappropriated retained earnings were Baht 576.63 million. And in the Annual General Meeting of Shareholders in 2017, the meeting adopted a resolution with approval for payment of dividend from profit from operations in 2016 in Baht 0.55 per share and in Board of Director Meeting no.3/2017, the meeting adopted a resolution with approval for payment of interim dividend from profit from operations during January-June 2017 in Baht 0.27 per share.

Factors and incluences towards operation or financial status in the future

The factors and influences that might create impact to operation or financial status in the future, apart from those mentioned in risk factors, shall be enlisted as follows:

Change of financial proportion due to increasing capital from increase of stock capital

On 31st December 2015, the Company held paid-up registered capital in amount of Baht 174,273,125 with given value, as Baht 1 per share, in 175,000,000 ordinary shares and had a net profit in 2015 at the amount of Baht 131.12 million, with Earnings per share of Baht 0.75 per share, and value in account in Baht 4.04 per share, calculation from quantity of ordinary shares of the Company, on 31st December 2015.

On 31st December 2016, the Company held paid-up registered capital in amount of Baht 174,273,125 with given value, as Baht 1 per share, in 175,000,000 ordinary shares and had a net profit in 2016 at the amount of Baht 157.28 million, with Earnings per share of Baht 0.90 per share, and value in account in Baht 4.45 per share, calculation from quantity of ordinary shares of the Company, on 31st December 2016.

On 31st December 2017, the Company held paid-up registered capital in amount of Baht 174,273,125 with given value, as Baht 1 per share, in 175,000,000 ordinary shares and had a net profit in 2017 at the amount of Baht 184.72 million, with Earnings per share of Baht 1.06 per share, and value in account in Baht 4.94 per share, calculation from quantity of ordinary shares of the Company, on 31st December 2017.

According to the Resolution adopted in the Annual General Meeting of Shareholders in 2017, the audit fee, to

Mr. Prawit Wiwanthananut Certified Public Accountant Registration number 4917 or
Mr Thoetthong Thepmangkon Certified Public Accountant Registration number 3787 or
Mr. Udom Thanuratpong Certified Public Accountant Registration number 8501 or
Ms. Chutima Wongsaraphanchai Certified Public Accountant Registration number 9622

or the other auditors in the same firm or other auditors which the Board of Directors approved, of which was independent and no conflict of interests with the company by consideration of their quality of works and recommended to the shareholders for the approval of the audit fee at the amount of Baht 1,350,000 increased from Baht 1,110,000 in 2016.