METRO NO.16/2008
May 13, 2008 Subject: Explanation of the Operating Results for the first quarter ended 31 March 2008 President The Stock Exchange of Thailand
Dear:
Metrostar Property Public Company Limited would like to inform that the net loss of million baht 25.02 in the first quarter of 2008 as the net loss of million baht 38.74 in the first quarter 2007 that representing the increase million baht 13.71 or 35.40% due to the following reasons; Operating results of The Company for three months ended 31 March 2008 and 2007 Unit : million baht Quarter 1/2008 Quarter 1/2007 Increase (Decrease) % Total Revenue 31.13 136.66 (77.22) Sales 30.53 135.51 (77.47) Cost of Sales 20.69 84.13 (75.08) Gross Margin 9.84 51.38 (80.84) Selling and Administrative 17.55 51.54 (65.94) Expenses Interest Expenses 17.91 16.64 7.65 Earning before Tax (25.02) (15.65) 59.92 Corporate Income Tax 23.09 N/A Net Profit (Loss) (25.02) (38.74) (35.40) 1. In the quarter 1/2008 and 1/2007 represented selling and administration expenses of million baht 17.55 and 51.54 respectively, decreased from the quarter 1/2007 of million baht 33.99 or 65.94% less which decreased from advertising and public relation expenses. 2. No corporate income tax for the quarter 1/2008. as the quarter 1/2007 the company paid corporate income tax of million baht 23.09 because of difference between the tax calculation method prescribed in the Revenue Code, where by revenues are to be recognized under the installment method, but accounting method, whereby revenues are to be recognized under the percentage of completion method. Reasons of Revenue Decreasing 1. From External Factors are oil price increasing trends which effect to commodity and construction materials price, uncertainty of Politics situation and high competitions which effect to purchase decision of customer.
2. According to the accounting standard, the company realized income from Sales the quarter 1/2008 less than the quarter 1/2007 due to the less sale contract moreover the customer who made sale contract and ready to transfer, slow down to transfer due to waiting for a section of a code of property tax which the government will issue to support property business in order to economic stimulation. The quarter 1/2008 reported income from sales of million baht 30.53, meanwhile, the quarter 1/2007 reported million baht 135.51 which decrease from the quarter 1/2007 of million baht 104.98 or 77.47% less.
Please be informed accordingly
Yours faithfully,
Signature ___________________________ ( Mr.Phisith Tangkhawanich ) Position Director Authorized to sign on behalf of the company