The overall economic situation begins to return to the normal situation and is likely to continue expanding after the COVID-19 outbreak has improved. As a result, the public and private sectors increase their investments to innovate digital technology, which is one of the most important business strategies of the organization, resulting in the growth of the market for the public sector and large enterprises.

In 2022, the Company generated revenues from sales of goods and services amounting to 9,368 million Baht, increased by 30% from the increasing revenues from hardware product, software product, and services. Revenues from the Office Supplies product decreased, which reflected the ability to offer a full range of hardware and software solutions to expand the scope of sales that covers customers’ needs. The Company had a gross margin of 12.8% despite there was a decrease in the reversing entries of loss in impairment in accordance with TFRS 9 of 41 million Baht due to the reversing entries of loss in impairment of one of its major debtors in 2021. The Company’s net profit amounted to 245 million Baht, increased by 24%

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 2,873 million Baht, accounting for 31%, increase of 70% from in the previous year due to an increase in sales of servers, large storage devices, and small computers. Thus, was because the public and private sectors began to gradually increase their IT investments from the slowdown in the past year.
• Revenues from software products amounted to 3,394 million Baht, accounting for 36% increase of 29% from the previous year. The main revenues were still from Microsoft software products and the increase in revenues was relatively large this year.
• Revenues from Office Supplies products were 1,526 million Baht, accounting for 16%, decrease of 5% from the previous year. This was due to the digital business trend with reduced paper consumption, affecting the purchase of consumables, and the continuous policy of Work From Home in many organizations.
• Revenues from services were 1,576 million Baht, accounting for 17%, increase of 24% from in the previous year. Main revenues from services of the Company increased, including revenues from cloud solution services and cyber security surveillance and solution services.

Gross margin was 12.8%, decreased from 14.7% last year, due to high competition in revenues from large-scale projects. In addition, revenues from software products increased. They are products with lower gross margins than revenues from other types of products.

Expenses

The expenses include:

• Sales and administrative expenses increased by 27million Baht compared with the proportion of revenues from sales of goods and services in 2022 of 10.1%, which was a decrease compared with 12.8% 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 decreased by 3 million Baht from the previous year, compared with the proportion of revenues from sales of goods and services in 2022 of 0.10%, which was a slight increase from 0.09% in 2021.
• The reversing entries of loss in impairment in accordance with TFRS 9 decreased by 41 million Baht due to the reversing entries of loss in impairment of one of the major debtors in 2021.
• Income tax increased by 8 million Baht due to the increase in profit before income tax in 2022, compared with the proportion of revenues from sales of goods and services of 0.7% in 2022, equal to the year 2021.

The Company’s net profit attributable to the parent company amounted to 245 million Baht, increased by 48 million Baht or accounting for 24%, compared with 197 million Baht in 2021, Regarding the profitability ratio, the Company’s net profit margin was 2.6%, decreased from 2.7% last year, while the return on equity was 12.1%, increased from 10.2% last year.

Assets

At the end of 2022, the Company had total assets of 4,567 million Baht, increased by 1,263 million Baht compared with the end of 2021. The total assets consisted of current assets of 3,673 million Baht, accounting for 80% of the total assets and non-current assets of 895 million Baht, accounting for 20% of the total assets. The reasons for the increase in the total assets were as follows:

• Current assets of 3,673 million Baht increased by 1,298 million Baht due to an increase of 816 million Baht in trade receivable and other current receivables, an increase of 537 million Baht in inventories, an increase of 21 million Baht in financial assets measured at fair value through profit or loss and an increase of 1 million Baht in the current portion of lease receivables. Cash and cash equivalents decreased by 39 million Baht. Other current assets, contract assets, and other current financial assets decreased by 28 million Baht, 7 million Baht. and 5 million Baht, respectively.

Trade accounts receivable and other receivables

The Company’s total receivables less allowance for doubtful debts at the end of 2022 were 2,058 million Baht, increased by 751 million Baht. 59% of receivables were debtors with undue payment, while the remaining 41% were receivables that are under payment collection. There were 788 million Baht of debtors overdue for less than 3 months. 2 million Baht of debtors overdue for more than 1 year, and 63 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 13 million Baht, accounting for 0.6% of the total receivables. The Company had an average collection period of 66 days in 2022, which was according to its policy providing the term of approximately 30-60 days for most customers to pay for goods. The trade receivables that had not been collected at the end of 2022 were 330 million Baht, increased by 140 million Baht.

Other current accounts receivables at the end of 2022 were 197 million Baht, increased by 66 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 2022 was 910 million Baht, increased by 537 million Baht. The Company’s inventory can be divided into finished goods, work in progress, and goods in transit. The average inventory period was 25 days, which was in accordance with the Company’s risk control and prevention management policy.

Non-current assets were 895 million Baht, decreased by 35 million Baht due to a decrease in property, plant and equipment (net) of 25 million Baht, a decrease in lease receivables of 20 million Baht, a decrease in deposits of financial institutions used as collateral of 18 million Baht, and a decrease in deferred tax assets of 4 million Baht.

Withholding tax, other intangible assets, and right-to-use assets increased by 17 million Baht, 8 million Baht, and 6 million Baht, respectively.

Cash Flow

As at December 31, 2022, the Company had cash and cash equivalents of 89 million Baht, decreased by 39 million Baht, due to:

• Net cash used in the Company’s operating activities was 315 million Baht. The Company’s profit for the year prior to the change in operating assets and liabilities amounted to 414 million Baht, decreased from the change in increasing assets, including trade receivables and other current receivables, of 817 million Baht, an increase in inventory of 535 million Baht due to the change in decreasing assets, including other current assets of 28 million Baht, financial lease receivables of 17 million Baht, contract assets of 7 million Baht, and an increase in other non-current assets of 1 million Baht from the change in increasing liabilities, including trade payables and other current payables of 700 million Baht. As a result, the Company had cash used in operating activities of 186 million Baht. The Company paid employee benefits of 62 million Baht and net income tax of 67 million Baht.
• Net cash used in the Company’s investing activities was 37 million Baht due to the Company’s expenses on the purchase of equities or debt securities of other businesses, expenses on the purchase of fixed assets and intangible assets, cash received from guaranteed deposits, and interest received of 20 million Baht, 48 million Baht, 18 million Baht, and 12 million Baht, respectively.
• Net cash from the Company’s financing activities was 313 million Baht due to the Company’s cash received from short-term loans, dividend payment, repayment of lease liabilities, expenses on finance costs, and repayment of long-term loans from other companies of 482 million Baht, 137 million Baht, 19 million Baht, 10 million Baht, and 4 million Baht, respectively.

Key Financial Ratios

As at December 31, 2022, the Company had a debt-to-equity ratio of 1.2 times, increased from 0.7 times in 2021. The increase in debt was mainly due to trade payables and other payables and short-term loans from financial institutions. 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 2022 was 0.6 times, decreased from 2.7 times in 2021. The Company’s profit before tax, depreciation, and amortization increased by 38 million Baht from the previous year. However, interest bearing short-term debts increased by 482 million Baht due to the short-term loans from financial institution. The current portion of lease liabilities decreased by 6 million Baht. The current portion of long-term loans from other companies decreased by 4 million Baht.

The Company’s liquidity ratio at the end of 2022 was 1.6 times, decreased from 2.2 times in 2021, due to the increase in trade accounts and other current payables. The repayment period was increased from 35 days to 42 days and short-term loans also increased. Trade receivables and other current receivables and inventories increased from the previous year. The average collection period increased from 63 days to 66 days and the average inventory period increased from 19 days to 25 days, while the liquidity ratio at the end of 2022 was 0.9 times, decreased from 1.3 times in 2021.

Liabilities

Total liabilities at the end of 2022 were 2,492 million Baht, increased by 1,165 million Baht compared with the previous year. Total liabilities consisted of current liabilities of 2,277 million Baht, accounting for 91% of the total liabilities, and non-current liabilities of 215 million Baht, accounting for 9% of the total liabilities The reasons for the increase in total liabilities were as follows:

• Current liabilities were 2,277 million Baht, increased by 1,185 million Baht, due to an increase in trade payables and other current payables of 690 million Baht. The trade payables amounted to 1,288 million Baht, increased by 688 million Baht. Other current payables amounted to 343 million Baht, increased by 3 million Baht, consisting of accrued expenses, deposits, and advance payments. The short-term loans from financial institutions increased by 492 million Baht. Current financial liabilities increased by 19 million Baht. The accrued corporate income tax increased by 6 million Baht. Short-term loans from other companies decreased by 10 million Baht. The current portion of lease liabilities decreased by 6 million Baht. The current portion of long-term loans from other companies decreased by 4 million Baht. Other current provisions for employee benefits decreased by 1 million Baht.
• Non-current liabilities amounted to 215 million Baht, decreased by 21 million Baht, due to a decrease in non-current provisions for employee benefits of 29 million Baht. Lease liabilities increased by 9 million Baht.

Shareholder’s Equity

Total shareholders’ equity at the end of 2022 was 2,075 million Baht, increased by 98 million Baht, due to the net profit of 245 million Baht in 2022 and dividend payment at the rate of 0.38 Baht per share in 2022, totaling 137 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 and they were non-cancellable. As at December 31, 2022, the minimum amount to be paid in the future within 1 year was 5 million Baht. The minimum amount to be paid after 1 year but not exceeding 5 years was 1 million Baht.

The Company disclosed information in the Article 35 of Notes to the Financial Statements of the 2022 Financial Statements.