Page 64 - PSTC - One Report 2023 (EN)

Annual Report 2023 (Form 56-1 ONE REPORT)
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Gross profit margin from construction increased by 1 percent from 1.5 percent in 2022 to 2.5 percent in 2023 due to the revised estimate of projects construction costs to be higher during 2022. Consequently, the Group recognized almost the entire amount of such additional costs during 2022, as the construction project was near 100 percent completion. However, despite the adjustments, the overall gross profit of the entire project that has been realized since the beginning of the project until now still shows a positive gross profit.
Other Revenues
The Group’s other revenue sources consist of revenue from penalties for purchasing products lower than the quantity specified in the contract, management income from joint ventures, and profit from selling assets. There are no significant changes in other revenues from 2022 to 2023.
Sales and Distribution Expenses and Administrative Expenses
In terms of sales and distribution expenses, the Group’s main expenses include commission fees, after-sales service fees and hospitality expenses. The majority of the Group’s administrative expenses consist of salary and employee expenses, depreciation, utilities costs, professional fees, and office expenses.
In 2023, the Group had sales and distribution expenses and administrative expenses of 172.8 million baht, a decrease of 13.9 million baht or 8.0 percent from the previous year attributed by the Group’s cost control policy.
Share of Losses from Investments in Joint Ventures
The share of losses from investments in joint ventures refers to the share of lossesincurred from investments in Thai Pipeline Network Company Limited. In 2023, the share of losses from investments in joint ventures amounted to 29.7 million baht, a decrease of 29.6 million baht from the previous year. This was due toin 2022, Thai Pipeline Network Company Limited has set an estimate for VAT on additional components required to be submitted to the Revenue Department.
Financial Costs
The Group’s financial costs consist of interest payments on debentures - loans both short-term and long-term from financial institutions and liabilities under hire purchase agreements and financial lease agreements. In 2023, the Group’s financial costs increased from the previous year in the amount of 30.4 million baht due to interest from debentures - loans from financial institutions, both short-term and long-term, and liabilities under hire purchase agreements and financial lease agreements.
Loss After Income Tax for the Year from Discontinued Operations
Loss after income tax for the year from discontinued operations refers to loss from operations of the bio- and biomass power plant businesses that the Group has temporarily ceased operations and has classified as available- for-sale assets. In 2022, the Group had an after-tax loss from discontinued operations in the amount of 94.9 million baht, increased from 2022 in the amount of 88.5 million baht. This was due to in 2023 the main losses were losses from the allowance for impairment of assets and impairment recognized by measuring them to fair value less cost of sales related to biopower plants and biomass, (classified as assets awaiting sale in the consolidated financial statements) while there was no allowance for impairment of such assets in 2022.