Somboon Advance Technology Public Company
Limited and its subsidiaries
Condensed interim financial statements
for the three-month period ended 31 March 2020
and
Independent auditor’s review report
1
Independent Auditor’s Report on Review of Interim Financial Information
To the Board of Directors of Somboon Advance Technology Public Company Limited
I have reviewed the accompanying consolidated and separate statements of financial position of Somboon
Advance Technology Public Company Limited and its subsidiaries, and of Somboon Advance Technology
Public Company Limited, respectively, as at 31 March 2020; the consolidated and separate statements of
income, comprehensive income, changes in equity and cash flows for the three-month period ended 31 March 2020; and condensed notes (“interim financial information”). Management is responsible for the
preparation and presentation of this interim financial information in accordance with Thai Accounting
Standard 34, “Interim Financial Information”. My responsibility is to express a conclusion on this interim
financial information based on my review.
Scope of Review
I conducted my review in accordance with Thai Standard on Review Engagements 2410, “Review of Interim
Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial
information consists of making inquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain
assurance that I would become aware of all significant matters that might be identified in an audit.
Accordingly, I do not express an audit opinion.
2
Conclusion
Based on my review, nothing has come to my attention that causes me to believe that the interim financial
information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34,
“Interim Financial Information”.
(Sakda Kaothanthong)
Certified Public Accountant
Registration No. 4628
KPMG Phoomchai Audit Ltd.
Bangkok
15 May 2020
Somboon Advance Technology Public Company Limited and its Subsidiaries
Statement of financial position
31 March 31 December 31 March 31 December
Assets Note 2020 2019 2020 2019
(Unaudited) (Unaudited)
Current assets
Cash and cash equivalents 1,602,718 1,702,734 450,205 415,090
Short-term deposits at financial institutions 510,051 660,244 256,897 256,041
Other current financial assets 9 500,448 - 90,996 -
Trade accounts receivable 3, 9 1,299,968 1,359,182 430,489 414,300
Other receivables 3 89,522 88,826 52,648 75,263
Short-term loans to related parties 3 200,000 200,000 420,000 420,000
Inventories 583,280 569,758 115,455 112,141
Total current assets 4,785,987 4,580,744 1,816,690 1,692,835
Non-current assets
Restricted deposits at financial institutions 24,955 24,955 - -
Investments in associates 4 524,033 515,340 - -
Investments in subsidiaries 5 - - 2,542,012 2,542,012
Investments in joint venture 4 349,539 347,071 350,500 350,500
Other non-current financial assets 26,651 26,651 - -
Investment properties 58,562 58,562 - -
Property, plant and equipment 6 3,507,593 3,596,205 980,108 1,011,827
Right-of-use assets 6 33,855 - 12,692 -
Goodwill 44,591 44,591 - -
Intangible assets 30,143 29,360 12,777 13,755
Deferred tax assets 58,354 57,779 20,073 19,806
Other non-current assets 35,215 30,232 3,943 3,799
Total non-current assets 4,693,491 4,730,746 3,922,105 3,941,699
Total assets 9,479,478 9,311,490 5,738,795 5,634,534
Consolidated Separate
financial statements financial statements
(in thousand Baht)
The accompanying notes are an integral part of these interim financial statements.
3
Somboon Advance Technology Public Company Limited and its Subsidiaries
Statement of financial position
31 March 31 December 31 March 31 December
Liabilities and equity Note 2020 2019 2020 2019
(Unaudited) (Unaudited)
Current liabilities
Bank overdrafts and short-term loans
from financial institutions 7 12,022 108,899 - -
Trade accounts payable 3 895,405 885,396 299,694 286,788
Other payables 3 476,589 454,200 108,680 121,030
Accounts payable - purchase of assets 57,139 49,437 6,411 7,693
Current portion of long-term loans
from financial institutions 7 81,149 90,402 43,428 43,428
Current portion of lease liabilities -
(2019: Current portion of finance lease liabilities) 15,159 1,059 5,492 -
Income tax payable 71,462 46,117 33,109 19,753
Total current liabilities 1,608,925 1,635,510 496,814 478,692
Non-current liabilities
Long-term loans from financial institutions 7 100,543 117,559 80,786 91,643
Lease liabilities (2019: Finance lease liabilities) 17,555 4,325 7,233 -
Non-current provisions for employee benefits 357,720 349,991 133,371 130,989
Other non-current liabilities 816 817 832 834
Total non-current liabilities 476,634 472,692 222,222 223,466
Total liabilities 2,085,559 2,108,202 719,036 702,158
financial statements financial statements
(in thousand Baht)
Consolidated Separate
The accompanying notes are an integral part of these interim financial statements.
4
Somboon Advance Technology Public Company Limited and its Subsidiaries
Statement of financial position
31 March 31 December 31 March 31 December
Liabilities and equity 2020 2019 2020 2019
(Unaudited) (Unaudited)
Equity
Share capital
Authorised share capital
(425,194 ordinary shares, par value at Baht 1 per share) 425,194 425,194 425,194 425,194
Issued and paid-up share capital
(425,194 ordinary shares, par value at Baht 1 per share) 425,194 425,194 425,194 425,194
Premium on ordinary shares 716,444 716,444 716,444 716,444
Retained earnings
Appropriated
Legal reserve 55,671 55,671 42,671 42,671
Unappropriated 6,153,359 5,960,657 3,835,450 3,748,067
Total equity 7,350,668 7,157,966 5,019,759 4,932,376
Non-controlling interests 43,251 45,322 - -
Total equity 7,393,919 7,203,288 5,019,759 4,932,376
Total liabilities and equity 9,479,478 9,311,490 5,738,795 5,634,534
Consolidated Separate
financial statements financial statements
(in thousand Baht)
The accompanying notes are an integral part of these interim financial statements.
5
Somboon Advance Technology Public Company Limited and its Subsidiaries
Statement of comprehensive income (Unaudited)
Note 2020 2019 2020 2019
Revenue
Revenue from sale of goods
and rendering of services 3, 8 1,831,323 2,201,955 576,220 722,428
Net foreign exchange gain - 158 3,958 -
Other income 3 32,663 33,105 42,224 50,596
Total revenue 1,863,986 2,235,218 622,402 773,024
Expenses
Cost of sale of goods and
rendering of services 3 1,495,872 1,769,001 431,897 522,221
Distribution costs 3 26,945 43,816 9,852 28,522
Administrative expenses 3 133,571 139,705 77,832 86,011
Net foreign exchange loss 619 - - 516
Finance costs 2,739 2,803 976 1,345
Total expenses 1,659,746 1,955,325 520,557 638,615
Share of profit of joint venture and associates
accounted for using equity method 4 11,161 34,536 - -
Profit before income tax expense 215,401 314,429 101,845 134,409
Income tax expense (24,770) (27,395) (14,461) (16,633)
Profit for the period 190,631 287,034 87,384 117,776
Other comprehensive income - - - -
Profit and total comprehensive income for the period 190,631 287,034 87,384 117,776
Basic earnings per share (Baht) 0.45 0.68 0.21 0.28
Profit and total comprehensive income attributable to
Owners of the parent 192,702 287,034 87,384 117,776
Non-controlling interests (2,071) - - -
Profit and total comprehensive income for the period 190,631 287,034 87,384 117,776
(in thousand Baht)
Consolidated Separate
financial statements financial statements
Three-month period Three-month period
ended 31 March ended 31 March
The accompanying notes are an integral part of these interim financial statements.
6
Somboon Advance Technology Public Company Limited and its Subsidiaries Statement of changes in equity (Unaudited)
Equity
Issued and attributable to Non-
paid-up Share owners of controlling Total
share capital premium Legal reserve Unappropriated the parent interests equity
Three-month period ended 31 March 2019
Balance at 1 January 2019 425,194 716,444 55,671 5,689,331 6,886,640 - 6,886,640
Comprehensive income for the period
Profit - - - 287,034 287,034 - 287,034
Balance at 31 March 2019 425,194 716,444 55,671 5,976,365 7,173,674 - 7,173,674
Three-month period ended 31 March 2020
Balance at 1 January 2020 425,194 716,444 55,671 5,960,657 7,157,966 45,322 7,203,288
Comprehensive income for the period
Profit - - - 192,702 192,702 (2,071) 190,631
Balance at 31 March 2020 425,194 716,444 55,671 6,153,359 7,350,668 43,251 7,393,919
Consolidated financial statements
Retained earnings
(in thousand Baht)
The accompanying notes are an integral part of these interim financial statements.
7
Somboon Advance Technology Public Company Limited and its Subsidiaries
Statement of changes in equity (Unaudited)
Issued and
paid-up Share Total
share capital premium Legal reserve Unappropriated equity
Three-month period ended 31 March 2019
Balance at 1 January 2019 425,194 716,444 42,671 3,844,022 5,028,331
Comprehensive income for the period
Profit - - - 117,776 117,776
Balance at 31 March 2019 425,194 716,444 42,671 3,961,798 5,146,107
Three-month period ended 31 March 2020
Balance at 1 January 2020 425,194 716,444 42,671 3,748,066 4,932,375
Comprehensive income for the period
Profit - - - 87,384 87,384
Balance at 31 March 2020 425,194 716,444 42,671 3,835,450 5,019,759
Separate financial statements
Retained earnings
(in thousand Baht)
The accompanying notes are an integral part of these interim financial statements.
8
Somboon Advance Technology Public Company Limited and its Subsidiaries Statement of cash flows (Unaudited)
2020 2019 2020 2019
Cash flows from operating activities
Profit for the period 190,631 287,034 87,384 117,776
Adjustments to reconcile profit to cash receipts (payments)
Tax expense 24,770 27,395 14,461 16,633
Finance costs 2,739 2,803 976 1,345
Depreciation and amortisation 156,316 160,970 48,716 53,292
Write-off of property, plant and equipment 3,337 1,143 - -
Interest income (5,668) (6,535) (4,356) (4,809)
Bad and doubtful debts expenses 2,589 - - -
Reversal of losses on inventories devaluation (3,675) (2,137) (539) (744)
Unrealised gain on exchange (3,109) (574) (2,869) (432)
Gain on disposal of property, plant and equipment (1,054) (239) (591) -
Share of profit of joint venture and associates accounted for
using equity method (11,161) (34,536) - -
Provisions for employee benefits 9,079 7,184 3,512 2,722
364,794 442,508 146,694 185,783
Changes in operating assets and liabilities
Trade accounts receivable 59,534 (123,011) (13,281) (71,629)
Other receivables 1,685 (8,427) 22,422 14,223
Inventories (9,847) (1,574) (2,775) 2,654
Other non-current assets (4,983) 1,288 (144) 2,261
Trade accounts payable 10,182 (13,243) 12,866 (5,362)
Other payables 22,266 63,846 (12,350) 6,116
Other non-current liabilities (1) (1) (2) (1)
Net cash generated from operating 443,630 361,386 153,430 134,045
Employee benefit paid (1,350) - (1,130) -
Income tax paid (3,733) (2,278) (1,372) (1,342)
Net cash from operating activities 438,547 359,108 150,928 132,703
(in thousand Baht)
31 March 31 March
Consolidated Separate
financial statements financial statements
Three-month period ended Three-month period ended
The accompanying notes are an integral part of these interim financial statements.
9
Somboon Advance Technology Public Company Limited and its Subsidiaries Statement of cash flows (Unaudited)
2020 2019 2020 2019
Cash flows from investing activities
Interest received 7,018 5,991 4,549 3,808
(Increase) decrease in short-term deposits at financial institutions 150,193 147,775 (856) 149,985
Increase in other current financial assets (500,448) - (90,996) -
Short-term loans to related parties - - (220,000) (170,000)
Proceeds from repayment of short-term loans
to related parties - - 220,000 140,000
Acquisition of property, plant and equipment (64,244) (59,047) (17,175) (11,888)
Proceeds from sale of property, plant and equipment 2,222 411 1,759 -
Acquisition of intangible assets (3,960) (4,360) (60) (4,340)
Net cash from (used in) investing activities (409,219) 90,770 (102,779) 107,565
Cash flows from financing activities
Interest paid (2,370) (2,817) (840) (1,359)
Payment of lease liabilities (2019: Payment by a lessee for
reduction of the outstanding liability relating to a finance lease) (3,828) - (1,337) -
Repayment of borrowings (123,146) (28,657) (10,857) (10,857)
Net cash used in financing activities (129,344) (31,474) (13,034) (12,216)
Net increase (decrease) in cash and cash equivalents (100,016) 418,404 35,115 228,052
Cash and cash equivalents at 1 January 1,702,734 1,362,776 415,090 475,759
Cash and cash equivalents at 31 March 1,602,718 1,781,180 450,205 703,811
Non-cash transactions
Increase (decrease) in payable for purchase of assets 7,702 (5,894) (1,282) 745
(in thousand Baht)
Separate
financial statements financial statements
Three-month period ended Three-month period ended
31 March 31 March
Consolidated
The accompanying notes are an integral part of these interim financial statements.
10
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
11
Note Contents
1 General information
2 Basis of preparation of the interim financial statements
3 Related parties
4 Investments in associates and joint venture
5 Investments in subsidiaries
6 Property, plant and equipment
7 Interest-bearing liabilities
8 Segment information
9 Financial instruments
10 Commitments with non-related parties
11 Events after the reporting period
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
12
These notes form an integral part of the interim financial statements.
The interim financial statements issued for Thai regulatory reporting purposes are prepared in the Thai
language. These English language financial statements have been prepared from the Thai language
statutory financial statements, and were approved and authorised for issue by the Board of Directors on
15 May 2020.
1 General information
The principal businesses of the Company are manufacture of pick-up axles and truck trunnion shafts.
Details of the Company’s subsidiaries, associates and joint venture as at 31 March 2020 and 31
December 2019 are described in note 4 and 5.
2 Basis of preparation of the interim financial statements
(a) Statement of compliance
The condensed interim financial statements are presented in the same format as the annual financial
statements and prepared its notes to the interim financial statements on a condensed basis (“interim
financial statements”) in accordance with Thai Accounting Standard (TAS) No. 34 Interim Financial
Reporting, guidelines promulgated by the Federation of Accounting Professions and applicable rules
and regulations of the Thai Securities and Exchange Commission.
The interim financial statements do not include all of the financial information required for full annual
financial statements but focus on new activities, events and circumstances to avoid repetition of
information previously reported. Accordingly, these interim financial statements should be read in
conjunction with the financial statements of the Company and its subsidiaries for the year ended 31
December 2019.
The Group has initially applied TFRS - Financial instruments standards and TFRS 16 Leases which
have no material impact on the financial statements.
(b) Use of judgements, estimates and accounting policies
In preparing these interim financial statements, judgements and estimates are made by management in
applying the Group’s accounting policies. Actual results may differ from these estimates. The
accounting policies, methods of computation and the key sources of estimation uncertainty were the
same as those that described in the financial statements for the year ended 31 December 2019, except
for the new significant judgements and key sources of estimation uncertainty related to the application
of new TFRS and COVID-19 outbreak.
At 31 March 2020, the situation of COVID-19 outbreak is still ongoing, resulting in estimation
uncertainty on the potential impact, therefore, the Group elected to apply accounting guidance on
temporary accounting relief measures for additional accounting options in response to impact from the
situation of COVID-19 outbreak on the following:
(1) Impairment of assets
The Group considered impairment of trade accounts receivables under simplified approach using
historical loss rate and did not take forward-looking information into account.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
13
The Group elected to exclude the COVID-19 situation as impairment indicator for the impairment
testing factors of goodwill.
(2) Fair value measurement
The Group elected to measure investment in non-marketable equity securities at 31 March 2020
using fair values at 1 January 2020.
(3) Deferred tax assets
The Group elected to exclude the factor of COVID-19 situation in considering sufficiency of future
taxable profits to review the amount of deferred tax assets at 31 March 2020.
3 Related parties
Relationships with associates, joint venture and subsidiaries are described in notes 4 and 5.
Significant transactions for the three-month period ended 31 March with related parties were as
follows:
Three-month period Pricing policies Consolidated Separate ended 31 March financial statements financial statements 2020 2019 2020 2019
(in million Baht) Subsidiaries
Sales of goods Approximates market price - - 25 46
Interest income Contractually agreed rate - - 1 1
Management fee
income Contractually agreed price - - 23 26
Facilities income Approximates cost - - 2 2
Rental income Contractually agreed price - - 1 1
Sales of scraps Approximates market price - - 2 2
Rental expense Contractually agreed price - - 1 -
Purchases of goods Approximates market price - - 2 -
Facilities expense Approximates cost - - 1 1 Joint venture
Rental income Contractually agreed price 4 5 - -
Management fee
income Contractually agreed price 3 3 3 3
Interest income Contractually agreed rate 2 2 2 2
Other income Contractually agreed price 1 1 - - Associate
Purchases of goods Approximates market price 8 12 - - Key management personnel
Key management personnel compensation
Short-term benefits 20 18 17 17
Other long-term benefits 3 1 2 1
Total key management personnel
compensation 23 19 19 18
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
14
Three-month period Pricing policies Consolidated Separate ended 31 March financial statements financial statements 2020 2019 2020 2019
(in million Baht) Other related parties
Sales of goods Approximates market price 3 3 3 3
Management fee Contractually agreed price 5 5 5 5
Balances as at 31 March 2020 and 31 December 2019 with related parties were as follows:
Consolidated
financial statements
Separate
financial statements
31 March 31 December 31 March 31 December
2020 2019 2020 2019
(in thousand Baht)
Trade accounts receivable
Subsidiaries - - 18,085 27,391
Joint venture 36 226 - -
Other related parties 4,022 4,408 4,022 4,408
Total 4,058 4,634 22,107 31,799
Other receivables
Subsidiaries - - 26,817 49,177
Joint venture 8,244 6,977 3,481 3,210
Other related parties 340 313 7 7
Total 8,584 7,290 30,305 52,394
Consolidated financial statements
As at 31
December
As at 31
March
Loan to 2019 Increase Decrease 2020
(in thousand Baht)
Joint venture 200,000 - - 200,000
Total 200,000 - - 200,000
Separate financial statements
As at 31
December
As at 31
March
Loans to 2019 Increase Decrease 2020
(in thousand Baht)
Subsidiaries 220,000 220,000 (220,000) 220,000
Joint venture 200,000 - - 200,000
Total 420,000 220,000 (220,000) 420,000
Short-term loans to related parties carry interest at MMR (Money Market Rate) per annum.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
15
Consolidated
financial statements
Separate
financial statements
31 March 31 December 31 March 31 December
2020 2019 2020 2019
(in thousand Baht)
Trade accounts payable
Subsidiaries - - 1,924 8,060
Associates 9,122 10,258 - -
Total 9,122 10,258 1,924 8,060
Other payables
Subsidiaries - - 5,758 5,671
Joint venture 49 7,539 10 -
Associates 65 73 - -
Other related parties 1,739 1,739 1,739 1,739
Total 1,853 9,351 7,507 7,410
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
16
4 Investments in associates and joint venture
Consolidated financial statements
Dividend income for the
Type of business Ownership Interest Paid-up capital Cost method Equity method
three-month periods
ended
31
March
31
December
31
March
31
December
31
March
31
December
31
March
31
December
31
March
31
March
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Associates
Tsuchiyoshi
Somboon Coated
Sand Co., Ltd
Manufacture
and
sale of plastic-
coated sand
and
dry sand 21.25 21.25 72,000 72,000 15,300 15,300 52,992 52,125 - -
Yamada Somboon
Company Limited
Manufacture and
sale of auto parts 20.00 20.00 150,000 150,000 30,807 30,807 471,041 463,215 - -
46,107 46,107 524,033 515,340 - -
Joint venture
Mubea Somboon
Automotive Co.,
Ltd.
Manufacture and
sale of auto parts 50.00
50.00
701,000
701,000
350,500
350,500
349,539
347,071
-
-
Total 396,607 396,607 873,572 862,411 - -
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
17
Separate financial statements
Ownership Interest Paid-up capital Cost method
31
March
31
December
31
March
31
December
31
March
31
December
2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Joint venture
Mubea Somboon
Automotive Co., Ltd. 50.00
50.00 701,000
701,000
350,500
350,500
Total 701,000 701,000 350,500 350,500
All associates and joint venture were incorporated and operate in Thailand.
None of the Group’s associates and joint venture are publicly listed and consequently do not have
published price quotations.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
18
5 Investments in subsidiaries Separate financial statements Dividend income for the Type of business Ownership interest Paid-up capital Cost method three-month periods ended 31
March
31
December
31
March
31
December
31
March
31
December
31
March
31
December 2020 2019 2020 2019 2020 2019 2020 2019 (%) (in thousand Baht)
Direct Subsidiaries
Somboon Malleable
Iron Industrial
Company Limited
Manufacture and
sale of auto parts
100
100
500,000
500,000
875,989
875,989
-
-
Bangkok Spring
Industrial Company
Limited
Rent of real estate,
investment
company, service
100
100
130,000
130,000
519,989
519,989
-
-
International Casting
Products Co., Ltd
Manufacture and
sale of auto parts
100
100
785,000
785,000
796,034
796,034
- -
Somboon Forging
Technology Company
Manufacture and
Limited sale of auto parts 100 100 350,000 350,000 350,000 350,000 - -
Total
2,542,012 2,542,012 -
-
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
19
Details of the Company’s indirect subsidiary as at 31 March 2020 and 31 December 2019 were as follows:
Name of party Type of business Ownership Interest
31 March 31 December
2020 2019
(%)
Indirect Subsidiary
Nippon Kikai Engineering Co., Ltd.
Manufacture and assembly
of machinery, automatic
equipment and parts
51
51
All subsidiaries were incorporated and operate in Thailand.
6 Property, plant and equipment
Acquisitions, disposals and transfers of property, plant and equipment excluding right-of-use assets
during the three-month period ended 31 March 2020 were as follows:
Consolidated financial statements
Net book
value as at
1 January
2020
Acquisitions
and
transfers in
- at cost
Disposals
and
transfers out
- net book
value
Depreciation
charge for the
period
Net book
value as at
31 March
2020
(in thousand Baht)
Land 597,772 - - - 597,772
Buildings and other construction 746,797 5,293 (1,245) (21,785) 729,060
Machinery and factory equipment 1,968,699 77,500 (3,481) (124,237) 1,918,481
Furniture, fixtures and office
equipment
29,852
3,209
-
(2,815)
30,246
Vehicles 5,963 - - (495) 5,468
Assets under construction and
installation
139,087
43,392
(57,995)
-
124,484
Spare parts for machinery 101,216 9,562 (8,696) - 102,082
Total 3,589,386 138,956 (71,417) (149,332) 3,507,593
As at 1 January 2020, assets under finance leases are reclassified to right-of-use assets in amounting to
Baht 6.82 million.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
20
Separate financial statements
Net book
value as at
1 January
2020
Acquisitions
and
transfers in
- at cost
Disposals
and
transfers out
- net book
value
Depreciation
charge for the
period
Net book
value as at
31 March
2020
(in thousand Baht)
Land 91,781 - - - 91,781
Buildings and other construction 247,575 1,944 (1,168) (6,570) 241,781
Machinery and factory equipment 600,692 14,411 - (38,239) 576,864
Furniture, fixtures and office
equipment
16,749
1,036 -
(1,454)
16,331
Vehicles 581 - - (181) 400
Assets under construction and
installation
41,074
12,559
(15,825)
-
37,808
Spare parts for machinery 13,375 1,942 (174) - 15,143
Total 1,011,827 31,892 (17,167) (46,444) 980,108
Movement of right-of-use assets is as follows:
Consolidated financial statements Separate financial statements
Right-of-use assets Machinery Vehicle Total Machinery Vehicle Total (in thousand Baht) At 1 January 2020 1,264 30,792 32,056 - 8,319 8,319 Additions - 5,606 5,606 - 5,606 5,606 Less depreciation (292) (3,515) (3,807) - (1,233) (1,233) At 31 March 2020 972 32,883 33,855 - 12,692 12,692
7 Interest-bearing liabilities
Consolidated
financial statements
Separate
financial statements
31
March
31
December
31
March
31
December
2020 2019 2020 2019
(in thousand Baht)
Bank overdrafts - secured - 34,024 - -
Short-term loans from financial institutions - secured
12,022
74,875
-
-
Long-term loans from financial institutions - secured
181,692
207,961
124,214
135,071
Total interest-bearing liabilities 193,714 316,860 124,214 135,071
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
21
The periods to maturity of interest-bearing liabilities were as follows:
Consolidated
financial statements
Separate
financial statements
31
March
31
December
31
March
31
December
2020 2019 2020 2019
(in thousand Baht)
Maturity period − − −
Within 1 year 93,171 − 199,300 − 43,428 − 43,428
1 - 5 years 100,543 − 115,965 − 80,786 − 91,643
After 5 years - − 1,595 − - − -
Total 193,714 − 316,860 − 124,214 − 135,071
Long-term credit facilities of the Group contain certain covenants such as dividend payment, pertaining
to matters such as there shall be no effect on the total debt to equity ratio, loan repayment ability, and
other conditions stipulated by the financial institutions.
The bank overdrafts and short-term credit facilities of a subsidiary are mortgaged by fixed deposit and guaranteed by certain directors of the subsidiary.
The long-term credit facilities are mortgaged by a majority of the land with premises and machinery of the Group.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
22
8 Segment information Consolidated financial statements
Pick-up axles and truck
trunnion shafts
Other
auto parts
Total
Elimination
Net
Three-month period ended 31 March 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(in million Baht)
External revenue from sale of goods
and rendering of services 551 675 1,280 1,527 1,831 2,202
- - 1,831 2,202
Inter-segment revenue from sale of goods
and rendering of services 25 47 462 572 487 619
(487)
(619) - -
Total revenue 576 722 1,742 2,099 2,318 2,821 (487) (619) 1,831 2,202
Profit before income tax 102 141 114 180 216 321 (1) (7) 215 314
Segment assets as at 31 March / 31 December 5,739 5,635 7,058 7,005 12,797 12,640 (3,318) (3,329) 9,479 9,311
Segment liabilities as at 31 March / 31 December 719 702 2,136 2,184 2,855 2,886 (769) (778) 2,086 2,108
The Group is managed and operates principally in Thailand. There are no material revenues derived from, or assets located in foreign countries. The Group’s revenue is recognised at a point in time.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
23
9 Financial instruments
Other current financial assets
Carrying amounts and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities,
including their levels in the fair value hierarchy for financial instruments measured at fair value. It does
not include fair value information for financial assets and financial liabilities not measured at fair value
if the carrying amount is a reasonable approximation of fair value.
Consolidated financial statements
Carrying amount Fair value
At 31 March 2020
Fair value
through profit
or loss Total
Level 1
Level 2
Level 3
Total
(in thousand Baht)
Financial assets
Investment in mutual funds 500,448 500,448 - 500,448 - 500,448
Total financial assets 500,448 500,448 - 500,448 - 500,448
Separate financial statements
Carrying amount Fair value
At 31 March 2020
Fair value
through profit
or loss Total
Level 1
Level 2
Level 3
Total
(in thousand Baht)
Financial assets
Investment in mutual funds 90,996 90,996 - 90,996 - 90,996
Total financial assets 90,996 90,996 - 90,996 - 90,996
Type Valuation technique
Investments in marketable unit trusts classified as financial
assets measured at FVTPL
The net asset value as of the reporting date.
Since the majority of financial assets and liabilities of the Group were short-term, interest rates of loans
and borrowings are approximate to market rate. The fair value of financial assets and liabilities is taken
to approximate the carrying value as determined in the statement of financial position.
Trade accounts receivable
Impairment loss
Allowance for impairment loss for trade receivables and contract assets are measured at an amount equal
to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the
historical credit loss experience, adjusted for factors that are specific to the debtors and assessment of
both the current and forecast general economic conditions.
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
24
Consolidated
financial statements
Separate
financial statements
31
March
31
December
31
March
31
December
Note 2020 2019 2020 2019
(in thousand Baht)
Related parties
Within credit terms 4,058 4,593 22,107 31,799
Overdue:
Less than 3 months - 41 - -
3 4,058 4,634 22,107 31,799
Other parties
Within credit terms 1,241,044 1,250,217 408,382 382,501
Overdue:
Less than 3 months 43,753 58,123 - -
3 - 6 months 12,394 45,401 - -
6 -12 months 2,395 1,894 - -
Over 12 months 1,489 1,489 - -
1,301,075 1,357,124 408,382 382,501
Less allowance for impairment
(2019: allowance for doubtful accounts)
(5,165)
(2,576)
- -
1,295,910 1,354,548 408,382 382,501
Net 1,299,968 1,359,182 430,489 414,300
The normal credit term granted by the Group ranges from 30 days to 90 days.
10 Commitments with non-related parties
At 31 March 2020
Consolidated
financial
statements
Separate
financial
statements
(in million Baht)
Capital commitments
Machinery and equipment 20 -
Other commitments
Unused letters of credit for goods 19 2
Bank guarantees 70 16
Total 89 18
Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month period ended 31 March 2020 (Unaudited)
25
11 Events after the reporting period
a) On 3 April 2020, the Company enterred into a joint venture agreement with Shenyang Siasun Robot
& Automation Co., Ltd. The main objective of this joint venture is providing full system integration
services in automotive and automotive parts, agriculture machinery and machinery industries in
Thailand.
b) At the Board of Directors’ meeting of the Company held on 6 April 2020, the Board of Directors
approved the appropriation of interim dividend from the operation for the year 2019 at the rate of
Baht 1.00 per share, totaling of Baht 425 million which is derived from the operation for the year
2019 at the rate of Baht 0.40 per share, totaling of Baht 170 million and the retained earnings at the
rate of Baht 0.60 per share, totaling of Baht 255 million. The dividend was paid to the shareholders
on 28 April 2020.
c) Subsequent to the financial reporting date, many countries have enacted several protection measures
against COVID-19, with a significant impact on the daily life, production and supply chain of goods
in these countries and beyond. The evolution of COVID-19 as well as its impact on the economy
and on the Group’s operation, is hard to predict at this stage. The management is monitoring the
situation to ensure the safety of its staff as well as to adapt its services and operations in response to
the situation.