The overall economic situation is expanding continuously. Technology is considered an important equipment in developing every organization’s strategy and plans to drive them efficiently. The organizations continue to focus on investing in technology to increase their strengths and competitive opportunities and the company is still committed to offering IT products and services to fully meet all customer needs in the digital age.

In 2023, the Company generated revenues from sales of goods and services amounting to 9,479 million Baht, increased by 1.2% from the increasing revenues from the software product and services. Revenues from the hardware product and the office supplies product decreased. The Company had a gross margin of 14.1%, an increase of 1.2 %. In 2022, the company had other loss of 25 million baht, most of which came from loss from foreign exchange forward contracts. In this year, there was other profit of 12 million baht, resulting in the company having a net profit of 285 million baht, an increase of 16 % from the previous year.

Revenues

The Company generates revenues from the sales of goods and services, which can be divided by the product category as follows:

• Revenues from hardware products were 2,412 million Baht, accounting for 25%, decrease of 16% from in the previous year due to a decrease in sales of servers, and notebook. This was because last year there was income from a large customer.
• Revenues from software products amounted to 3,739 million Baht, accounting for 39% increase of 10% from the previous year. The main revenues were still from Microsoft software products with revenue increasing quite significantly as many companies invest more in this year
• Revenues from office supplies products were 1,485 million Baht, accounting for 16%, decrease of 3% from the previous year. This is caused by the business trend of decreased paper use and increased price competition.
• Revenues from services were 1,843 million Baht, accounting for 20%, increase of 17% from in the previous year. Main revenues from services of the Company increased, including income from the SuperApp service, where the company owns the intellectual property, has started to increase.

Gross margin was 14.1%, increased from 12.8% last year, this was because both the revenue from the hardware product and the revenue from software products had an increase in gross margin, including income from services that have a higher gross profit margin than other types of income.

Expenses

The expenses include:

• Sales and administrative expenses increased by 98 million Baht compared with the proportion of revenues from sales of goods and services in 2023 of 11%, which was an increase compared with 10.1% in 2022. It increased in terms of selling and administrative expenses and selling expenses, which were in line with higher revenues. Administrative expenses were primarily attributable to increasing expenses for employees.
• Finance costs increased by 3 million Baht from the previous year, compared with the proportion of revenues from sales of goods and services in 2023 of 0.14%, which was an increase from 0.10% in 2022.
• Income tax increased by 8 million Baht due to the increase in profit before income tax in 2023, compared with the proportion of revenues from sales of goods and services of 0.7% in 2023, equal to the year 2022.

The Company’s net profit attributable to the parent company amounted to 285 million Baht, increased by 40 million Baht or accounting for 16%, compared with 245 million Baht in 2022.

Regarding the profitability ratio, the Company’s net profit margin was 3%, increased from 2.6% last year, while the return on equity was 13.3%, increased from 12.1% last year.

Assets

At the end of 2023, the Company had total assets of 3,778 million Baht, decreased by 789 million Baht compared with the end of 2022. The total assets consisted of current assets of 2,787 million Baht, accounting for 74% of the total assets and non-current assets of 991 million Baht, accounting for 26% of the total assets. The reasons for the decrease in the total assets were as follows:

• Current assets of 2,787 million Baht decreased by 885 million Baht due to a decrease of 489 million Baht in trade receivable and other current receivables, a decrease of 310 million Baht in inventories, a decrease of 82 million Baht in current contract assets, a decrease of 56 million Baht in financial assets measured at fair value through profit or loss and a decrease of 15 million Baht in the current portion of lease receivables. cash and cash equivalents increased by 63 million Baht. Other current assets, increased by 4 million Baht.

Trade accounts receivable and other receivables

The Company’s total receivables less allowance for doubtful debts at the end of 2023 were 1,184 million Baht, decreased by 545 million Baht. 73% of receivables were debtors with undue payment, while the remaining 27% were receivables that are under payment collection. There were 263 million Baht of debtors overdue for less than 3 months. 2 million Baht of debtors overdue for more than 1 year, and 62 million Baht of debtors under legal proceeding which were the debtor who was in the process of installment payment and debt collection. The Company set an allowance for expected credit losses of 19 million Baht, accounting for 1.6% of the total receivables. The Company had an average collection period of 57 days in 2023, which was according to its policy providing the term of approximately 30-60 days for most customers to pay for goods.

Other current accounts receivables at the end of 2023 were 253 million Baht, increased by 56 million Baht. Most of these include prepaid expenses.

Inventories

The Company’s inventory less the allowance for the reduction of the value of goods at the end of 2023 was 600 million Baht, decreased by 310 million Baht. The Company’s inventory can be divided into finished goods, work in progress, and goods in transit. The average inventory period was 28 days, which was in accordance with the Company’s risk control and prevention management policy.

Non-current assets were 991 million Baht, increased by 95 million Baht due to withholding tax, property, plant, and equipment increased by 22 million Baht, other intangible assets increased by 20 million Baht, lease receivables increased by 18 million Baht, investments in associates increased by 2 million Baht and non-current contract assets increased by 1 million Baht. On the other hand, deposits of financial institutions used as collateral, right-to-use assets, and deferred tax assets decreased by 7 million Baht, 5 million Baht, and 1 million Baht, respectively.

Cash Flow

As at December 31, 2023, the Company had cash and cash equivalents of 152 million Baht, increased by 63 million Baht, due to:

• Net cash provide by in the Company’s operating activities was 778 million Baht. The Company’s profit for the year prior to the change in operating assets and liabilities amounted to 431 million Baht, increased from the change in decreasing assets, including trade receivables and other current receivables of 481 million Baht, an increase in inventory of 280 million Baht, and contract assets, of 81 million Baht due to increasing assets, including other current assets of 4 million Baht, financial lease receivables of 3 million Baht, from the change in decreasing liabilities, including trade payables and other current payables of 384 million Baht and from the change in increasing liabilities, including contract liabilities of 14 million Baht, non-current assets of 4 million Baht. As a result, the Company had cash used in operating activities of 899 million Baht. The Company paid employee benefits of 8 million Baht and net income tax of 114 million Baht.
• Net cash provided by the Company’s investing activities was 5 million Baht due to the company has a cash received from purchase of equities or debt securities of other businesses, interest received, cash received from guaranteed deposits, and dividends received of 59 million Baht, 9 million Baht, 7 million Baht, and 1 million Baht, respectively. On the other hand, the Company’s expenses on the purchase of fixed assets and intangible assets of 71 million Baht.
• Net cash used in the Company’s financing activities was 720 million Baht due to the company has net repayments of short-term loans, dividend payment, repayment of lease liabilities, expenses on finance costs of 572 million Baht, 144 million Baht, 19 million Baht, and 13 million Baht, respectively. On the other hand, the company has a cash received from sales and leaseback of 28 million Baht.

Key Financial Ratios

As at December 31, 2023, the Company had a debt-to-equity ratio of 0.7 times, decreased from 0.7 times in 2022. The decrease in debt was mainly due to short-term loans from financial institutions and decreased in trade payables and other payables. At the same time, shareholders’ equity increased due to the net profit for the year. However, the total liabilities were derived from the Company’s normal course of business.

The Company’s debt service coverage ratio in 2023 was 9.8 times, increased from 0.6 times in 2022. The Company’s profit before tax, depreciation, and amortization increased by 51 million Baht from the previous year. However, interest bearing short-term debts decreased by 568 million Baht due to the decrease in short-term loans from financial institution of 572 million Baht. The current portion of lease liabilities increased by 9 million Baht.

The Company’s liquidity ratio at the end of 2023 was 2.2 times, increased from 1.6 times in 2022, due to the decrease in the short-term loans from financial institutions with the debt repayment period increasing from 42 days to 49 days. Trade receivables and other current receivables and inventories decreased from the previous year. the average collection period decreased from 60 days to 57 days and the average inventory period increased from 25 days to 28 days, while the liquidity ratio at the end of 2023 was 1 time, increased from 0.8 times in 2022.

Liabilities

Total liabilities at the end of 2023 were 1,562 million Baht, decreased by 931 million Baht compared with the previous year. Total liabilities consisted of current liabilities of 1,277 million Baht, accounting for 82% of the total liabilities, and non-current liabilities of 284 million Baht, accounting for 18% of the total liabilities The reasons for the decrease in total liabilities were as follows:

• Current liabilities were 1,277 million Baht, decreased by 996 million Baht, due to a decrease in short-term loans from financial institutions of 572 million Baht, a decrease in trade payables and other current payables of 395 million Baht. The trade payables amounted to 889 million Baht, decreased by 399 million Baht. Other current payables amounted to 195 million Baht, decreased by 4 million Baht, consisting of accrued expenses, deposits, and contract current liabilities decreased by 34 million Baht. Current financial liabilities decreased by 12 million Baht. The accrued corporate income tax decreased by 3 million Baht. The current portion of lease liabilities increased by 9 million Baht. Other current provisions for employee benefits increased by 8 million Baht, and Short-term loans from other companies increased by 4 million Baht.
• Non-current liabilities amounted to 284 million Baht, increased by 65 million Baht, due to an increased in non-current contract liabilities of 48 million Baht, an increased in lease liabilities of 8 million Baht, an increased in deferred tax liabilities of 4 million Baht, an increased in other non-current liabilities of 4 million Baht, and an increase in non-current provisions for employee benefits of 2 million Baht.

Shareholder’s Equity

Total shareholders’ equity at the end of 2023 was 2,216 million Baht, increased by 141 million Baht, due to the net profit of 285 million Baht in 2023 and dividend payment at the rate of 0.40 Baht per share in 2023, totaling 144 million Baht.

The Company has entered into an operating lease agreement as follows:

Lease agreements and related service charges were for a period of 1 – 5 years, which will expire in 2026. For the years ended December 31, 2023, and 2022, the group recorded expenses under operating lease agreements and non-cancellable service contracts in the statement of comprehensive income in the amount of 5.70 million baht. In addition, the company also recorded expenses under operating lease contracts and non-cancellable service contracts in the separate comprehensive income statement of 5.70 million Baht.

The Company disclosed information in the Article 35 of Notes to the Financial Statements of the 2023 Financial Statements.