MK announced : Y2011 annual operating result

With flood impact, Q4/2011 revenue was down by 41.77%, making a decline of 35.45% annually.  Still, sales backlog on hand was over Bt 1.2 billion, to be recognized in 2012.

Mr.Chuan Tangmatitham, President of M.K. Real Estate Development Public Company Limited (M.K.), "Chuan Chuen" and "Serene House" project developer, revealed that as a result of unusually severe flooding at the end of last year, the company's revenue from sales and services in Q4/2011was merely Bt 231.22 million, 41.77% decreased QOQ.  Annual sales & service revenue stood at Bt. 1,673.39 million, 35.45% decreased YOY.  Main projects contributing to sales revenue were Chuan Chuen Petkasem, Chuan Chuen Modus Centro and Chuan Chuen Modus Charan-Pinklao.  The company has over Bt 1,200 million sales backlog on hand, half of which is housing while the rest is condominium.  These sales backlog are expected to be recognized as revenue within this year.

In Q4/2011, MK has earned Bt 97.46 million in gross profit, yielding 42.15% gross profit margin, higher than 38.10% of the previous quarter.  Gross profit for the year 2011 was Bt 669.14 million with 39.99% Gross Profit Margin, comparable to last year's which was 39.98%.

Although the company recorded flood-related expenses at the amount of Bt 6.44 million in Q4/2011, the SG&A expenses still decreased from Bt 387.75 million of last year to Bt 365.74 million.  This was a result of decreasing sales promotion and variable expenses according to title deeds transfer in Q4/2011.  However, decreased revenue drove SG&A to sales ratio from 14.96% to 21.86%.  After interest and income tax, MK's net income of 2011 stood at Bt 234.02 million, decreased from Bt 536.60 million of last year.  Net Profit Margin was 13.63%, dropped from 19.98% of 2010.

MK's assets increased by Bt 330.81 million YOY, from Bt 6,442.36 million to Bt 6,773.18 million, due to new land plots purchasing for new project development.  Accordingly, liabilities increased by Bt 371.54 million, from Bt 1,500.39 million to Bt 1,841.93 million, primarily from loans for new projects and for the expansion of business.  Liabilities were also enhanced by the obligation in respect of post-employment benefits at the amount Bt 69.45 million.  The shareholders' equity was also affected by the same factor, resulting in a decline of Bt 40.73 million from last year.  Therefore, Debt to Equity ratio increased from 0.30 times at the end of 2010 to 0.38 times.