Ref. No.UMI2/2009 February 27, 2009
Subject: Clarification of Operating Results of the Company and
Subsidiaries for the year 2008
To: Secretary - General
The Office of Securities and Exchange Commission, Thailand
The Union Mosaic Industry Public Company Limited has submitted the
company's consolidated Financial Statements for the year ended as at December
31, 2008 which were audited by certified auditor. The results of operating of
2008 compared to those in 2007 are as followings:
(Unit : million baht) For the year Change Increase / (Decrease)
2008 2007 Million baht percent
Sales Revenues 2,314 2,243 71 3%
Net profit (Loss) (115) (139) 24 17%
The significant changes of operating result are as follows:
1. An increase in sales revenues was due to policy of product
development for high value added product and also and increase
of sales volume of prestige product as plan, which resulted in
higher selling price per unit.
2. Gross profit was 13% compared to 10% for 2007 due to higher
price as stated above in (1) and production cost control.
However, high production cost still remained due to affect
from natural gas price, which was 37% higher than that of 2007.
3. In 2008, extra expenses were due to expense of Baht 15 million
of shutting down production in December. The expense was included
in selling and administrative expense. The company has also
reviewed policy for impairment of inventory. The impairment is
considered when book value of inventory is higher than its net
realizable value and when the inventory has no movement for a
certain period, whichever is practical, which resulted in higher
impairment of baht 29.84 million in 2008.
4. Higher selling and administrative expenses was mainly due to
higher delivery cost which was affected from a rise in fuel price.
Please be informed accordingly.
Yours sincerely,
(Miss Paweena Laowiwatwong)
The Chairman of Executive Board of Directors
The Union Mosaic Industry Public Company Ltd
