Quality Homes: Discussion and Analysis of Management for the First Quarter of 2024

The financial results report of Quality Houses for the first quarter of 2024, presented on May 8, 2024, highlights key issues related to its operational activities in the first quarter, which ended on March 31, 2024.

In accordance with the data provided to the Securities and Exchange Commission of Thailand, Quality Houses Public Company Limited and its subsidiaries report on their performance, and below are the key details of this report:

I. Distribution of operating income by business segments

• Income from real estate sales
• Income from the hotel business
• Income from renting office spaces
• Other receipts

Total revenue (in millions of baht)

As a result, in the first quarter of 2024, the company earned 1.797 billion baht, which is 168 million baht less than in the same period of 2023, when the revenue was 1.965 billion.

In particular, revenues from real estate sales fell by 254 million baht.16%) compared to the first quarter of 2023. The main factor for the change was the loss of income from housing projects, which decreased by 194 million baht (13%), as well as a loss from the sale of apartments amounting to 60 million baht (45%In the first quarter of 2024, the company completed a fully sold-out project.

As for the hotel business, revenues increased by 88 million baht.31%) thanks to the increase in the number of both local and international tourists. In contrast, rental income from offices decreased by 2 million baht (6%) compared to the first quarter of 2023.

II. Analysis of costs for different types of activities

(in millions of baht)

The company's total expenses for the first quarter of 2024 amounted to 1.137 billion baht, which is 100 million baht less than8%) compared to the indicators of 2023, mainly due to a reduction in real estate sales expenses by 133 million baht (13%). At the same time, expenses in the hotel business have increased by 37 million baht.22%).

III. Share of profit from investments in associated companies

In the first quarter of 2024, the share of profits from investments amounted to 445 million baht, which is 7 million less than...2%) compared to the same period last year.

(in millions of baht)

IV. Expenses

(in millions of baht)

Selling expenses remained at the same level as the previous year, while administrative expenses increased by 45 million baht.12%), which is related to the increase in legal disputes. Financial expenses, including interest payments and bank fees, decreased by 6 million baht (10%), which is explained by the repayment of loans. Tax expenses decreased by 12 million baht (27%), which is comparable to operating profit (excluding the share of profit from investments in associated companies).

V. Net Profit

(in millions of baht)

The company's net profit for the first quarter of 2024 decreased by 102 million baht.17%) compared to the same period in 2023. A significant decrease in net income occurred due to a reduction in gross profit from real estate sales by 121 million baht, while gross profit from the hotel business increased by 51 million baht.

VI. Financial Position

(in millions of baht)

As of March 31, 2024, the company's total assets increased by 653 million baht.2%) compared to the end of 2023, which is related to the increase in investments in associated companies by 436 million baht.

The total liabilities increased by 131 million baht.1%) compared to the end of 2023 due to the issuance of unsecured bonds amounting to 2.5 billion baht and an increase in short-term loans by 1 billion baht.

As for shareholders' equity, it increased by 522 million baht.2%Thanks to a net profit of 490 million baht in the first quarter of 2024, as well as an increase in other components of equity by 32 million baht from the share of other comprehensive income of associated companies.

This report is provided for your information.

Sincerely,

Miss Apinya Jarutrakulchai
Senior Executive Vice President
Department of Accounting and Finance
Phone: 0-2677-7000
Fax: 0-2677-7011-2