Clarification of change operation results in excess of 20%

25th January, 2008

Subject: Clarification of change in the operating results in excess of 20% in financial statement

To: Managing Director The Stock Exchange of Thailand

The company made a net profit of Baht 215.11 million for the quarter ended 31 December 2007, which is 87.71% higher than the profit of Baht 114.6 millions for the corresponding quarter of the previous year at the consolidated level

The company will accordingly like to clarify the reasons for this change as follows:

The company recorded total consolidated revenues of Baht 1,709.15 million, being an increase over the corresponding quarter of previous year by Baht 460.39 million or 36.87% mainly due to increase in revenue and sales volumes from its subsidiaries in Turkey and USA.

The company recorded total consolidated expenses (cost of sales and selling and administrative expenses) of Baht 1,447.2 million being an increase over the quarter under comparison by Baht 333.70 million or 29.97% brought about by increase in production/sales volumes in the company as well as its subsidiary in Turkey.

The total expenses as a % of total revenues has decreased from about 89.17% to 84.67%.The subsidiary in Turkey has started producing PET resin from its own plant since Dec'06 and has been able to reduce its production costs to a great extent.

The expenses for the company stand alone have increased from Baht 720.40 Mn to Baht 759.16 Mn mainly due to increase in raw material prices and also due to increase in production volumes.

The share of profits from subsidiaries has increased from Baht 45.73 Mn to Baht 100.96 Mn.The combined result of increase in production and sales volumes and better sales realization have led to the increase in consolidated Net profits by Baht 100.51 Mn

Please be informed accordingly.

 

Yours sincerely,

Mr. Manish Gupta
Director

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