Quality Houses : Financial Statement Q1 2024

Quality Houses Public Company Limited and its subsidiaries

Review report and interim financial information For the three-month period ended 31 March 2024

Independent Auditor's Report on Review of Interim Financial Information

To the Shareholders of Quality Houses Public Company Limited

I have reviewed the accompanying consolidated statement of financial position of Quality Houses Public Company Limited and its subsidiaries as at 31 March 2024, the related consolidated statements of comprehensive income, changes in shareholders' equity and cash flows for the three-month period then ended, as well as the condensed notes to the interim consolidated financial statements. I have also reviewed the separate financial information of Quality Houses Public Company Limited for the same period (collectively "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 Reporting. 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.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34 Interim Financial Reporting.

Pimjai Manitkajohnkit

Certified Public Accountant (Thailand) No. 4521

EY Office Limited

Bangkok: 8 May 2024

Quality Houses Public Company Limited and its subsidiaries
Statement of financial position
As at 31 March 2024
									(Unit: Thousand Baht)
				Consolidated financial statements		Separate financial statements
				31 March		31 December		31 March		31 December
	Note	2024	2023	2024	2023
				(Unaudited		(Audited)		(Unaudited		(Audited)
				but reviewed)				but reviewed)
Assets
Current assets
Cash and cash equivalents	2			1,357,222	1,347,699	348,187	341,654
Trade and other receivables	2, 3			77,653	94,316	20,574	21,544
Land and construction in progress	4			20,259,931	20,312,126	11,203,369	11,161,000
Advance for construction work				2,531	2,531	1,531	1,531
Advance for construction material				41,288	41,737	32,935	33,322
Asset recognised in respect of cost to obtain
contracts with customers				10,089	10,089	10,089	10,089
Other current assets				137,432	64,834	50,003	5,853
Total current assets
			21,886,146	21,873,332	11,666,688	11,574,993
Non-current assets
Investments in subsidiaries	5			-	-	8,213,313	8,194,722
Investments in associates	6			12,130,254	11,694,620	12,130,254	11,694,620
Long-term loans to and interest receivables
- related parties	2			-	-	6,675,977	6,733,440
Investment properties				460,924	464,432	460,924	464,432
Property, plant and equipment				1,417,200	1,435,121	185,691	185,853
Right-of-use assets				594,193	633,523	152,123	158,768
Land and project development costs	7			6,603,921	6,386,151	2,334,387	2,164,588
Deposits for lease of land and building				10,800	10,800	10,800	10,800
Deposits for purchase of land				137,378	87,097	-	-
Deferred tax assets				827,648	830,335	213,918	216,667
Other non-current assets	2			26,355	26,685	18,514	18,566
Total non-current assets
			22,208,673	21,568,764	30,395,901	29,842,456
Total assets
			44,094,819	43,442,096	42,062,589	41,417,449

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

Quality Houses Public Company Limited and its subsidiaries
Statement of financial position (continued)
As at 31 March 2024
									(Unit: Thousand Baht)
				Consolidated financial statements		Separate financial statements
				31 March		31 December		31 March		31 December
	Note	2024	2023	2024	2023
				(Unaudited		(Audited)		(Unaudited		(Audited)
				but reviewed)				but reviewed)
Liabilities and shareholders' equity
Current liabilities
Short-term loans from financial institution				1,497,416	497,219	1,497,416	497,219
Trade and other payables	2			632,140	690,707	425,664	445,880
Current portion of long-term loans	8			374,219	561,612	374,219	561,612
Current portion of unsecured debentures	9			2,229,587	5,229,110	2,229,587	5,229,110
Current portion of lease liabilities	2			175,670	174,003	38,329	37,933
Income tax payable				92,680	79,891	54,152	51,345
Short-term provisions	10			689,642	688,508	368,967	368,067
Advance received from customers				89,690	96,637	59,602	64,759
Deposits for rental and service	2			32,608	32,261	26,617	26,961
Retention guarantees				280,214	271,943	127,306	122,428
Current portion of rental income received
in advance	2			27,224	27,224	27,224	27,224
Other current liabilities	2			492,047	451,953	198,237	163,067
Total current liabilities
			6,613,137	8,801,068	5,427,320	7,595,605
Non-current liabilities
Long-term loans, net of current portion	8			374,219	561,612	374,219	561,612
Unsecured debentures, net of current portion	9			6,651,911	4,135,729	6,651,911	4,135,729
Lease liabilities, net of current portion	2			519,036	571,747	143,963	161,818
Provision for long-term employee benefits				260,722	259,853	160,033	161,089
Long-term provisions	10			423,322	374,322	52,822	63,984
Rental income received in advance - net of
current portion	2			317,463	324,232	317,463	324,232
Deferred tax liabilities				151	153	-	-
Deferred compensatory damage income	15			40,850	40,850	40,850	40,850
Total non-current liabilities
			8,587,674	6,268,498	7,741,261	5,449,314
Total liabilities
			15,200,811	15,069,566	13,168,581	13,044,919

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

Quality Houses Public Company Limited and its subsidiaries
Statement of financial position (continued)
As at 31 March 2024
							(Unit: Thousand Baht)
		Consolidated financial statements		Separate financial statements
		31 March		31 December		31 March		31 December
		2024	2023	2024	2023
		(Unaudited		(Audited)		(Unaudited		(Audited)
		but reviewed)				but reviewed)
Shareholders' equity
Share capital
Registered
10,714,426,091 ordinary shares of Baht 1 each	10,714,426	10,714,426	10,714,426	10,714,426
Issued and fully paid-up
10,714,381,645 ordinary shares of Baht 1 each	10,714,382	10,714,382	10,714,382	10,714,382
Share premium	379,246	379,246	379,246	379,246
Retained earnings
Appropriated - statutory reserve	1,071,443	1,071,443	1,071,443	1,071,443
Unappropriated	17,758,665	17,335,441	17,758,665	17,335,441
Other components of shareholders' equity	(1,029,728)	(1,127,982)	(1,029,728)	(1,127,982)
Total shareholders' equity	28,894,008	28,372,530	28,894,008	28,372,530
Total liabilities and shareholders' equity	44,094,819	43,442,096	42,062,589	41,417,449
		-	-	-	-

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

Directors

(Unaudited but reviewed)

Quality Houses Public Company Limited and its subsidiaries
Statement of comprehensive income
For the three-month period ended 31 March 2024
			(Unit: Thousand Baht, except earnings per share expressed in Baht)
		Consolidated financial statements		Separate financial statements
	Note	2024	2023	2024	2023
Profit or loss:
Revenues
Revenue from sales of real estate		1,335,813	1,590,377	715,579	957,648
Revenue from hotel operations		367,727	279,513	72,661	63,822
Revenue from office rental operations	2	31,383	33,542	31,383	33,542
Other income
Income from forfeiture of booking and down payments		195	226	51	151
Others	2	61,703	61,815	27,768	29,139
Total revenues
	1,796,821	1,965,473	847,442	1,084,302
Expenses
Cost of real estate sold	2	922,985	1,056,245	481,171	629,316
Cost of hotel operations	2	203,186	165,939	34,199	28,431
Cost of office rental operations		11,026	15,178	11,026	15,178
Selling expenses		122,052	121,741	51,317	61,231
Administrative expenses	2	405,645	360,566	202,901	224,362
Total expenses
	1,664,894	1,719,669	780,614	958,518
Profit from operating activities
	131,927	245,804	66,828	125,784
Share of profit from investments in subsidiaries	5	-	-	18,591	69,772
Share of profit from investments in associates	6	444,688	452,362	444,688	452,362
Interest income	2	1,017	71	44,624	43,417
Finance cost		(54,531)	(60,633)	(66,512)	(67,798)
Profit before income tax expenses
	523,101	637,604	508,219	623,537
Income tax expenses	11	(33,008)	(45,193)	(18,126)	(31,126)
Profit for the period
	490,093	592,411	490,093	592,411
Other comprehensive income:
Other comprehensive income to be reclassified to profit or loss
in subsequent periods:
Share of other comprehensive income of associates - net of income tax	6, 11	29,962	22,160	29,962	22,160
Other comprehensive income to be reclassified
to profit or loss in subsequent periods - net of income tax		29,962	22,160	29,962	22,160
Other comprehensive income not to be reclassified to profit or loss
in subsequent periods:
Share of other comprehensive income of associates - net of income tax	6, 11	1,423	(134,715)	1,423	(134,715)
Other comprehensive income not to be reclassified to profit or loss
in subsequent periods - net of income tax		1,423	(134,715)	1,423	(134,715)
Other comprehensive income for the period
	31,385	(112,555)	31,385	(112,555)
Total comprehensive income for the period
	521,478	479,856	521,478	479,856
Earnings per share:
Basic earnings per share
Profit attributable to equity holders of the Company		0.05	0.06	0.05	0.06

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

(Unaudited but reviewed)

Quality Houses Public Company Limited and its subsidiaries

Statement of changes in shareholders' equity

For the three-month period ended 31 March 2024

														(Unit: Thousand Baht)
							Consolidated financial statements
									Other components of shareholders' equity
									Other comprehensive income
											Share of other		Total other
	Issued and				Retained earnings		Surplus on		comprehensive		components of
	paid-up				Appropriated				changes in value		income		shareholders'
	share capital		Share premium		- statutory reserve		Unappropriated		of financial assets		of associates		equity			Total
Balance as at 1 January 2023
10,714,382	379,246	1,071,443	16,629,668	1	(961,974)	(961,973)	27,832,766
Investment in equity instruments derecognised
of associate during the period	-	-	-	(617)	-	617	617	-
Profit for the period	-	-	-	592,411	-	-	-	592,411
Other comprehensive income for the period	-	-	-	-	-	(112,555)	(112,555)	(112,555)
Total comprehensive income for the period	-	-	-	592,411	-	(112,555)	(112,555)	479,856
Balance as at 31 March 2023
10,714,382		379,246		1,071,443		17,221,462		1		(1,073,912)		(1,073,911)			28,312,622
Balance as at 1 January 2024
10,714,382	379,246	1,071,443	17,335,441	1	(1,127,983)	(1,127,982)	28,372,530
Investment in equity instruments derecognised
of associate during the period	-	-	-	(66,869)	-	66,869	66,869	-
Profit for the period	-	-	-	490,093	-	-	-	490,093
Other comprehensive income for the period	-	-	-	-	-	31,385	31,385	31,385
Total comprehensive income for the period	-	-	-	490,093	-	31,385	31,385	521,478
Balance as at 31 March 2024
10,714,382	379,246	1,071,443	17,758,665	1	(1,029,729)	(1,029,728)	28,894,008

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

(Unaudited but reviewed)

Quality Houses Public Company Limited and its subsidiaries

Statement of changes in shareholders' equity (continued)

For the three-month period ended 31 March 2024

														(Unit: Thousand Baht)
							Separate financial statements
									Other components of shareholders' equity
									Other comprehensive income
											Share of other		Total other
	Issued and				Retained earnings		Surplus on		comprehensive		components of
	paid-up				Appropriated				changes in value		income		shareholders'
	share capital		Share premium		- statutory reserve		Unappropriated		of financial assets		of associates		equity		Total
Balance as at 1 January 2023
10,714,382	379,246	1,071,443	16,629,668	1	(961,974)	(961,973)	27,832,766
Investment in equity instruments derecognised
of associate during the period	-	-	-	(617)	-	617	617	-
Profit for the period	-	-	-	592,411	-	-	-	592,411
Other comprehensive income for the period	-	-	-	-	-	(112,555)	(112,555)	(112,555)
Total comprehensive income for the period	-	-	-	592,411	-	(112,555)	(112,555)	479,856
Balance as at 31 March 2023
10,714,382		379,246		1,071,443		17,221,462		1		(1,073,912)		(1,073,911)		28,312,622
Balance as at 1 January 2024
10,714,382	379,246	1,071,443	17,335,441	1	(1,127,983)	(1,127,982)	28,372,530
Investment in equity instruments derecognised
of associate during the period	-	-	-	(66,869)	-	66,869	66,869	-
Profit for the period	-	-	-	490,093	-	-	-	490,093
Other comprehensive income for the period	-	-	-	-	-	31,385	31,385	31,385
Total comprehensive income for the period	-	-	-	490,093	-	31,385	31,385	521,478
Balance as at 31 March 2024
10,714,382	379,246	1,071,443	17,758,665	1	(1,029,729)	(1,029,728)	28,894,008

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

						(Unaudited but reviewed)
Quality Houses Public Company Limited and its subsidiaries
Statement of cash flows
For the three-month period ended 31 March 2024
						(Unit: Thousand Baht)
	Consolidated financial statements	Separate financial statements
	2024	2023		2024	2023
Cash flows from operating activities
Profit before tax	523,101	637,604		508,219	623,537
Adjustments to reconcile profit before tax to net cash provided by (paid from)
operating activities:
Decrease in land and construction in progress as a result
of transferring to cost of sales	898,467	1,031,629		456,145	604,077
Depreciation	24,865	39,897		5,293	15,358
Depreciation of right-of-use assets	39,330	44,122		6,645	11,568
Allowance for expected credit losses (reversal)	(1,643)	(550)		(394)	9
Unrealised exchange (gain) loss	(7,750)	1,472		-	-
Share of profit from investments in subsidiaries	-	-		(18,591)	(69,772)
Share of profit from investments in associates	(444,688)	(452,362)		(444,688)	(452,362)
Income from forfeiture of booking and down payments	(195)	(226)		(51)	(151)
Interest income	(1,017)	(71)		(44,624)	(43,417)
Gain on sales of equipment	(30)	(4,062)		(8)	(1,154)
Provision for loss arising from litigations	64,205	25,940		4,043	23,967
Provision for loss on diminution in value of projects	(310)	-		(310)	-
Reversal of provision for loss on diminution in value of projects	(8,463)	(10,145)		-	(681)
Provision for housing repairment	11,189	13,260		6,123	8,152
Provision for long-term employee benefits	6,147	6,057		3,706	3,857
Transfer deferred financial fees to finance cost	1,219	1,042		1,219	1,042
Interest expenses	43,488	47,927		60,974	61,841
Interest expenses from lease liabilities	6,669	8,147		1,841	2,196
Profit from operating activities before changes in
operating assets and liabilities	1,154,584	1,389,681		545,542	788,067
Decrease (increase) in operating assets
Trade and other receivables	26,056	(29,041)		1,364	(31,363)
Land and construction in progress	(808,486)	(693,962)		(483,901)	(464,978)
Advance for construction work	-	589		-	-
Advance for construction material	449	2,006		387	2,006
Other current assets	(68,154)	(74,801)		(44,151)	(47,321)
Land and project development costs	(210,822)	(233,605)		(165,216)	(4,252)
Deposits for purchase of land	(50,281)	-		-	-
Other non-current assets	330	(4,312)		52	(4,987)
Increase (decrease) in operating liabilities
Trade and other payables	(65,497)	(74,458)		(27,146)	(50,214)
Advance received from customers	(13,521)	93,860		(11,875)	83,981
Deposits for rental and service	347	(2,450)		(344)	(2,043)
Retention guarantees	8,271	5,898		4,878	1,528
Other current liabilities	30,039	37,168		29,948	37,025
Cash paid for litigation compensation	(14,895)	(38,514)		(14,895)	-
Cash paid for long-term employee benefits	(5,278)	(10,080)		(4,762)	(7,180)
Cash flows from (used in) operating activities
(16,858)	367,979		(170,119)	300,269
Cash paid for income tax	(21,979)	(23,973)		(12,570)	(15,587)
Net cash flows from (used in) operating activities
(38,837)	344,006		(182,689)	284,682

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.

					(Unaudited but reviewed)
Quality Houses Public Company Limited and its subsidiaries
Statement of cash flows (continued)
For the three-month period ended 31 March 2024
					(Unit: Thousand Baht)
	Consolidated financial statements	Separate financial statements
	2024	2023		2024	2023
Cash flows from investing activities
Dividends received from associates	40,439	46,469		40,439	46,469
Decrease (increase) in long-term loans to related party	-	-		57,000	(33,000)
Interest income	1,017	71		45,087	43,878
Increase in property, plant and equipment - net of disposals	(3,406)	51		(1,616)	(1)
Net cash flows from investing activities
38,050	46,591		140,910	57,346
Cash flows from financing activities
Increase (decrease) in short-term loans from financial institution	1,000,000	(800,000)		1,000,000	(800,000)
Repayment of long-term loans	(375,000)	(400,000)		(375,000)	(400,000)
Cash received from issuance of debentures	2,500,000	912,461		2,500,000	912,461
Cash paid for redemption of debentures	(3,000,000)	-		(3,000,000)	-
Cash paid for financial fees	(3,076)	(1,263)		(3,076)	(1,263)
Cash paid for interest expenses	(53,902)	(69,173)		(54,312)	(69,359)
Cash paid for lease liabilities	(57,712)	(46,949)		(19,300)	(8,537)
Net cash flows from (used in) financing activities
10,310	(404,924)		48,312	(366,698)
Net increase (decrease) in cash and cash equivalents
9,523	(14,327)		6,533	(24,670)
Cash and cash equivalents at beginning of period	1,347,699	1,530,298		341,654	520,900
Cash and cash equivalents at end of period
1,357,222	1,515,971		348,187	496,230
	-				-
Supplemental cash flows information
Non-cash transactions
Transfer of land and project development costs to land and construction in progress	-	612,109		-	295,927
Transfer of deposits for purchase of land to land and project development costs	-	13,871		-	-
Interest expenses recorded as cost of projects and property, plant and equipment	36,271	32,963		19,195	19,234
Increase (decrease) in share of other comprehensive income of associates - net of income tax	31,385	(112,555)		31,385	(112,555)
Increase in right-of-use assets due to new lease agreements	-	3,412		-	3,412

The accompanying notes to interim consolidated financial statements are an integral part of the financial statements.