CLARIFICATION OF OPERATING RESULTS FOR THE YEAR ENDED 1999

29 กุมภาพันธ์ 2543
February 29, 2000 The President Tel : (02) 229-2000/654-5656 The Stock Exchange of Thailand Fax : (02) 654-5649 62 Ratchadapisek Road Klong Toey, Bangkok 10110 Dear Sir, Clarification of Operating results for The Year Ended 1999. As per the requirements in the Rules and Regulations of SET, we are hereby sending you our financial statements of Accounts together with the external auditor's report for the year ending 31st December 1999 in comparison with that of the same period for the previous year. Given below are the reasons for a decrease in net profit of more than 20 per cent in year 1999 when compared to that of 1998 :- 1) Overall economy in the country, including the South, was still depressed despite some signs of initial recovery in certain sectors, such as motor cycles, automobiles. On the other hand, major agricultural products and fisheries that were the backbone of the South, i.e. rubber, palm oil, coffee beans, fruits, durian, rambutan generated less income for the growers and the fishermen for varied reasons. The lingering of sluggish economy spelt low disposable income of the general public which in turn denied them same frequency of purchases of non-essential goods, such as softdrinks. 2/.... - 2 - 2) The weather in the South was unusually wet, almost all year-round. On top of the foul weather there were several floods in more areas than previous years. As consumption of softdrinks is made outdoors, sales off outlets declined because people stayed indoors. 3) Costs of production went up. For examples, we were compelled to pay more to be in line with the rest of the country whose wholesale price went up since 1998 and we had to pay more taxes to the local municipality for our own artesian well water for the amount used, an expense hitherto negligible. The above mentioned reasons led to the profit decline of more than 20 per cent in year 1999. But better profit is forecast for year 2000 because tourism is expected to hold if not more and new higher wholesale price is planned. Yours faithfully, for Haad Thip Plc. Sec.Lt. (Phairoch Rattakul) Managing Director Office of the Managing Director Tel. 392-9984-5 Ext.108