CHAYO GROUP PUBLIC COMPANY LIMITED INTERIM CONSOLIDATED AND SEPARATE FINANCIAL INFORMATION (UNAUDITED) 30 JUNE 2018

Transcription

1 CHAYO GROUP PUBLIC COMPANY LIMITED INTERIM CONSOLIDATED AND SEPARATE FINANCIAL INFORMATION (UNAUDITED) 30 JUNE 2018

2 AUDITOR S REPORT ON THE REVIEW OF THE INTERIM FINANCIAL INFORMATION To the Shareholders and the Board of Directors of Chayo Group Public Company Limited I have reviewed the interim consolidated of Chayo Group Public Company Limited and its subsidiaries, and the interim separate of Chayo Group Public Company Limited. These comprise the consolidated and separate statements of financial position as at 30 June 2018, and the related consolidated and separate statements of comprehensive income for the three-month and six-month periods then ended, and the related consolidated and separate statements of changes in equity and cash flows for the six-month period then ended, and the condensed notes to the interim. Management is responsible for the preparation and presentation of this interim consolidated and separate in accordance with Thai Accounting Standard 34, Interim Financial Reporting. My responsibility is to express a conclusion on this interim consolidated and separate based on my review. Scope of review I conducted my review in accordance with the Thai Standard on Review Engagements 2410, Review of interim performed by the independent auditor of the entity. A review of interim consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion. Conclusion Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim consolidated and separate is not prepared, in all material respects, in accordance with Thai Accounting Standard 34, Interim Financial Reporting. PricewaterhouseCoopers ABAS Ltd. Boonlert Kamolchanokkul Certified Public Accountant (Thailand) No Bangkok 10 August 2018

3 Statements of Financial Position As at 30 June 2018 Assets Unaudited Audited Unaudited Audited 30 June 31 December 30 June 31 December Notes Current assets Cash and cash equivalents 307,415,986 57,731, ,991,915 15,430,740 Restricted deposits at financial institutions - current 400,000 1,163, ,000 1,163,331 Short-term investments 6 1,572,279 1,234,097 1,361, ,333 Trade and other receivables 7 40,577,371 7,036,461 11,740,653 4,825,825 Short-term loans to related parties ,200,100 21,000,000 Deposit for purchasing loans to non-performing assets 8 30,982, Other current assets 3,282,718 2,197,180 5,360,523 3,018,984 Total current assets 384,230,377 69,362, ,054,203 45,952,213 Non-current assets Restricted deposits at financial institutions - non-current 1,407,879 1,745,300 1,097,647 1,435,068 Loans to non-performing assets, net 9 338,304, ,773, Investments in subsidiaries ,000, ,000,000 Investment properties, net 11 9,057,748 9,095,652 10,285,777 10,505,285 Property, plant and equipment, net 12 38,459,130 38,118,167 20,664,032 21,038,320 Intangible assets, net 12 1,944,743 1,736,993 1,429,122 1,334,661 Deferred tax assets 14,652,203 12,756, , ,939 Other non-current assets 686, , , ,195 Total non-current assets 404,512, ,118, ,613, ,615,468 Total assets 788,743, ,480, ,668, ,567,681 The accompanying notes are an integral part of this interim. 2

4 Statements of Financial Position (Cont'd) As at 30 June 2018 Liabilities and equity Unaudited Audited Unaudited Audited 30 June 31 December 30 June 31 December Notes Current liabilities Trade and other payables 13 15,059,860 12,437,922 4,754,467 7,142,924 Current portion of liabilities under hire purchase 617, , Current portion of long-term borrowings from a financial institution 14 25,400,000 20,400, Income tax payable 13,499,132 12,291, Other current liabilities 5,079,341 1,953,553 4,172, ,954 Total current liabilities 59,656,085 47,677,951 8,926,477 8,137,878 Non-current liabilities Liabilities under hire purchase, net 1,201,772 1,516, Long-term borrowings from a financial institution 14 23,939,213 30,480, Employee benefit obligations 2,816,916 2,585,321 2,725,857 2,534,024 Other non-current liabilities , ,000 Total non-current liabilities 27,957,901 34,582,876 2,929,857 2,738,024 Total liabilities 87,613,986 82,260,827 11,856,334 10,875,902 The accompanying notes are an integral part of this interim. 3

5 Statements of Financial Position (Cont'd) As at 30 June 2018 Liabilities and equity (Cont'd) Unaudited Audited Unaudited Audited 30 June 31 December 30 June 31 December Notes Equity Share capital 15 Authorised share capital 560,000,000 ordinary shares at a par value of Baht 0.50 each 280,000, ,000, ,000, ,000,000 Issued and paid-up share capital 560,000,000 ordinary shares, paid-up, Baht 0.50 each 280,000, ,000,000 (2017: Authorised share capital 420,000,000 ordinary shares at a par value of Baht 0.50 each) 210,000, ,000,000 Share premium, net 320,966, ,966,376 - Discount from business combinations under common control (9,678,120) (9,678,120) - - Retained earnings Appropriated Legal reserve 16 2,833, ,000 2,833, ,000 Unappropriated 107,006, ,622,696 19,011,382 29,388,679 Other components of equity - (24,743) - 3,100 Equity attributable to owners of the parent 701,129, ,219, ,811, ,691,779 Non-controlling interests Total equity 701,129, ,219, ,811, ,691,779 Total liabilities and equity 788,743, ,480, ,668, ,567,681 The accompanying notes are an integral part of this interim

6 Statements of Comprehensive Income (Unaudited) For the three-month period ended 30 June 2018 Notes Interest income from loans to non-performing assets 61,519,037 40,314, ,869 Services income from debts collection ,765,492 9,055,331 7,516,295 8,124,316 Services income from call center services - 2,248, Costs of rendering of services 20.2 (21,325,345) (17,712,446) (4,177,014) (5,116,818) Gross profit 48,959,184 33,906,046 3,340,216 3,009,367 Other income , ,241 14,375,466 6,577,029 Administrative expenses (17,472,234) (11,214,195) (8,952,262) (8,618,403) Finance costs (472,731) (47,707) - - Profit before income tax 31,629,039 22,851,385 8,763, ,993 Income tax (expense) 18 (7,577,512) (6,599,659) 19,184 (163,736) Net profit for the period 24,051,527 16,251,726 8,782, ,257 Other comprehensive income : Items that will be reclassified subsequently to profit or loss Change in value of available-for-sale investments - 2, Income tax relating to items that will be reclassified subsequently to profit or loss - (410) - (139) Total items that will be reclassified subsequently to profit or loss - 1, Other comprehensive income for the period, net of tax - 1, Total comprehensive income for the period 24,051,527 16,253,368 8,782, ,814 Profit attributable to: Owners of the parent 24,051,527 16,251,726 8,782, ,257 Non-controlling interests ,051,527 16,251,726 8,782, ,257 Total comprehensive income attributable to: Owners of the parent 24,051,527 16,253,368 8,782, ,814 Non-controlling interests ,051,527 16,253,368 8,782, ,814 Earnings per share Weighted-average ordinary shares (shares) 560,000, ,000, ,000, ,000,000 Basic earnings per share The accompanying notes are an integral part of this interim. 5

7 Statements of Comprehensive Income (Unaudited) Notes Interest income from loans to non-performing assets 100,667,319 83,767,693 2,804 3,738 Services income from debts collection ,431,358 17,032,465 15,573,478 16,773,541 Services income from call center services 1,330,718 4,455, Costs of rendering of services 20.2 (40,606,803) (34,149,798) (8,881,042) (9,374,085) Gross profit 79,822,592 71,105,817 6,695,240 7,403,194 Other income ,014, ,680 64,915,221 13,109,332 Administrative expenses (29,171,353) (23,092,349) (17,893,166) (17,814,637) Finance costs (1,293,863) (98,000) - - Profit before income tax 50,371,600 48,202,148 53,717,295 2,697,889 Income tax (expense) 18 (11,854,394) (15,117,961) 38,367 (478,498) Net profit for the period 38,517,206 33,084,187 53,755,662 2,219,391 Other comprehensive income : Items that will be reclassified subsequently to profit or loss Change in value of available-for-sale investments 30,929 4,127 (3,875) 1,400 Income tax relating to items that will be reclassified subsequently to profit or loss (6,186) (825) 775 (280) Total items that will be reclassified subsequently to profit or loss 24,743 3,302 (3,100) 1,120 Other comprehensive income for the period, net of tax 24,743 3,302 (3,100) 1,120 Total comprehensive income for the period 38,541,949 33,087,489 53,752,562 2,220,511 Profit attributable to: Owners of the parent 38,517,206 33,084,187 53,755,662 2,219,391 Non-controlling interests ,517,206 33,084,187 53,755,662 2,219,391 Total comprehensive income attributable to: Owners of the parent 38,541,949 33,087,489 53,752,562 2,220,511 Non-controlling interests ,541,949 33,087,489 53,752,562 2,220,511 Earnings per share Weighted-average ordinary shares (shares) 504,309, ,000, ,309, ,000,000 Basic earnings per share The accompanying notes are an integral part of this interim. 6

8 Statements of Changes in Equity (Unaudited) For the six-month period ended 30 June 2017 Attributable to owners of the parent Other component of equity Issued and Discount from Retained earnings Other comprehensive income Total paid-up Share business combinations Appropriated Available-for-sale owners of Non-controlling Total share capital premium, net under common control - legal reserve Unappropriated investments the parent interests equity Notes Baht Opening balance as at 1 January ,000,000 - (9,678,120) 300, ,622,696 (24,743) 333,219, ,219,833 Changes in equity for the period Issuance of ordinary shares 15 70,000, ,966, ,966, ,966,376 Legal reserve ,533,965 (2,533,965) Dividend (61,598,994) - (61,598,994) - (61,598,994) Total comprehensive income for the period ,517,206 24,743 38,541,949-38,541,949 Closing balance as at 30 June ,000, ,966,376 (9,678,120) 2,833, ,006, ,129, ,129,164 Opening balance as at 1 January ,000,000 - (9,678,120) 300,000 74,927,581 (30,818) 275,518, ,518,643 Changes in equity for the period Total comprehensive income for the period ,084,187 3,302 33,087,489-33,087,489 Closing balance as at 30 June ,000,000 - (9,678,120) 300, ,011,768 (27,516) 308,606, ,606,132 The accompanying notes are an integral part of this interim. 7

9 Statements of Changes in Equity (Unaudited) (Cont d) Other component of equity Issued and Retained earnings Other comprehensive income paid-up Share Appropriated Available-for-sale Total share capital premium, net - legal reserve Unappropriated investments equity Notes Baht Baht Opening balance as at 1 January ,000, ,000 29,388,679 3, ,691,779 Changes in equity for the period Issuance of ordinary shares 15 70,000, ,966, ,966,376 Legal reserve ,533,965 (2,533,965) - - Dividend (61,598,994) - (61,598,994) Total comprehensive income for the period ,755,662 (3,100) 53,752,562 Closing balance as at 30 June ,000, ,966,376 2,833,965 19,011, ,811,723 Opening balance as at 1 January ,000, ,000 24,229,421 1, ,530,460 Changes in equity for the period Total comprehensive income for the period ,219,391 1,120 2,220,511 Closing balance as at 30 June ,000, ,000 26,448,812 2, ,750,971 The accompanying notes are an integral part of this interim. 8

10 Statements of Cash Flows (Unaudited) Notes Cash flows from operating activities Profit before income tax 50,371,600 48,202,148 53,717,295 2,697,889 Adjustments: Depreciation and amortisation 11,12 2,557,400 2,225,346 1,219, ,765 Allowance for impairment of loans to non-performing assets 9 4,795, Interest incomes from loans to non-performing assets (100,667,319) (83,767,693) (2,804) (3,738) Loss on disposal of property, plant and equipment 103, Gain on disposal short-term investments (16,171) - (4,436) - Dividend income (50,223,994) - Other interest income (684,924) (147,973) (2,165,712) (565,260) Employee benefit expenses 231,595 83, ,833 71,591 Finance costs 1,293,863 98, Changes in working capital Trade and other receivables (33,540,910) (1,302,584) (636,831) 279,791 Deposit for purchasing loans to non-performing assets 8 (30,982,023) (9,110,000) - - Other current assets (232,274) (146,142) (21,974) (127,462) Loans to non-performing assets (61,326,187) 29,147, Other non-current assets 204,999 (152,500) 204,000 (172,500) Trade and other payables 2,727,075 (2,200,976) (2,388,457) (1,900,652) Other current liabilities 3,125, ,028 3,177,056 (270,235) Other non-current liabilities - 10,000-10,000 Cash (used in) generated from operations (162,038,854) (16,912,937) 3,065, ,189 Interest received 680, , ,441 29,698 Interest paid (1,254,264) Interest income from loans to non-performing assets 100,667,319 83,767,693 2,804 3,738 Income tax paid (13,356,607) (12,701,036) (810,194) (902,578) Net cash (used in) generated from operating activities (75,301,555) 54,299,346 2,912, ,047 The accompanying notes are an integral part of this interim. 9

11 Statements of Cash Flows (Unaudited) (Cont d) Notes Cash flows from investing activities Increase in restricted deposits at financial institutions (7,739) (501,359) (7,739) (501,359) Proceeds from disposals of short-term investments 776, ,273 - Dividends received ,945,997 - Payments on short-term borrowings to related party (200,200,100) - Purchases of property, plant and equipment 12 (3,293,095) (44,412) (393,231) (16,327) Purchase of investment property 11 (192,318) Purchases of intangible assets 12 (527,250) (150,000) (327,250) (150,000) Proceeds from disposals of property, plant and equipment 841, Net cash used in investing activities (2,403,244) (695,771) (156,719,050) (667,686) Cash flow from financing activities Proceeds on long-term borrowings from financial institution 14 39,789, Repayment of long-term borrowings from financial institution 14 (41,400,000) Payments on finance lease liability (368,069) (368,068) - - Proceeds from issuance of ordinary shares ,200, ,200,000 - Payments of share issuance costs 15 (12,233,624) - (12,233,624) - Dividends paid to shareholders 17 (61,598,994) - (61,598,994) - Net cash generated from (used in) financing activities 327,389,293 (368,068) 329,367,382 - Net increase (decrease) in cash and cash equivalents 249,684,494 53,235, ,561,175 (558,639) Cash and cash equivalents at the beginning of the period 57,731,492 79,718,785 15,430,740 16,760,955 Cash and cash equivalents at the end of the period 307,415, ,954, ,991,915 16,202,316 Non-cash transaction: During the six-month period ended 30 June 2018 and 2017, the following significant non-cash transaction occurred: Transferred from restricted deposits to short-term investments 1,108,491-1,108,491 - The accompanying notes are an integral part of this interim. 10

12 1 General information Chayo Group Public Company Limited ( the Company ) is a public company incorporated and residing in Thailand. The address of the Company s registered office is as follows: 44/ Phahonyothin Road, Anusawaree, Bangkhen, Bangkok For reporting purpose, the Company and its subsidiaries are referred to as the Group. The Group has operated with its objective to provide services relating to debt collection, managing non-performing assets from purchases, transferring secured and non-secured non-performing assets from the financial institutions and credit facility companies, and providing call center services. On 22 March 2018, the Stock Exchange of Thailand endorsed the listing of the Company s ordinary shares in the Market for Alternative Investments (MAI). The Company s ticker symbol is CHAYO. This interim consolidated and separate was authorised by the Board of Directors on 10 August This interim consolidated and separate for the six-month period ended 30 June 2018 has been reviewed, not audited. 2 Accounting policies 2.1 Basis of preparation The interim consolidated and separate have been prepared in accordance with Thai Accounting Standard 34 Interim Financial Reporting. The primary i.e. statements of financial position, statements of comprehensive income, changes in shareholders equity and cash flows are presented in a format consistent with the annual financial statements complying with Thai Accounting Standard 1 Presentation of Financial Statements. The notes to the are prepared in a condensed format. Additional notes are presented as required by the Securities and Exchange Commission under the Securities and Exchange Act. The interim should be read in conjunction with the annual financial statements for the year ended 31 December An English version of the interim consolidated and separate have been prepared from the interim that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language statutory shall prevail. The accounting policies used in the preparation of the interim are consistent with those used in the annual financial statements for the year ended 31 December Costs that are incurred unevenly during the financial year are anticipated or deferred in the interim report only if it would also be appropriate to anticipate or defer such costs at the end of the financial year. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss. 11

13 2 Accounting policies (Cont d) 2.2 Revised accounting standards, revised financial reporting standards, and related interpretations Revised financial reporting standards effective for annual periods beginning on or after 1 January 2018 that have significant changes and are relevant to the Group are as follows: TAS 7 (revised 2017) TAS 12 (revised 2017) Statement of cash flows Income taxes TAS 7 (revised 2017): the amendments require additional disclosure of changes in liabilities arising from financing activities. This includes changes arising from cash and non-cash. TAS 12 (revised 2017): the amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is below the asset s tax base. Specifically, the amendments confirm that: - A temporary difference exists whenever the carrying amount of an asset is less than its tax base at the end of the reporting period. - An entity can assume that it will recover an amount higher than the carrying amount of an asset to estimate its future taxable profit. - Where the tax law restricts the source of taxable profits against which particular types of deferred tax assets can be recovered, the recoverability of the deferred tax assets can only be assessed in combination with other deferred tax assets of the same type. - Tax deductions resulting from the reversal of deferred tax assets are excluded from the estimated future taxable profits. Management has assessed and considered that the above revised standards do not have significant impact to the Group except for disclosure New financial reporting standard effective for annual periods beginning on or after 1 January 2019 that is relevant to the Group that the Group has not yet early adopted is: TFRS 15 Revenue from contracts with customers TFRS 15 provides the requirements for the recognition of revenue. This standard will supersede the following standards: TAS 11 (revised 2017) TAS 18 (revised 2017) TFRIC 13 (revised 2017) TFRIC 15 (revised 2017) TFRIC 18 (revised 2017) TSIC 31 (revised 2017) Construction contracts Revenue Customer loyalty programmes Agreements for the construction of real estate Transfers of assets from customers Revenue - barter transactions involving advertising services The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer - so the notion of control replaces the existing notion of risks and rewards an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 12

14 2 Accounting policies (Cont d) 2.2 Revised accounting standards, revised financial reporting standards, and related interpretations (Cont d) New financial reporting standard effective for annual periods beginning on or after 1 January 2019 that is relevant to the Group that the Group has not yet early adopted is: (Cont d) An entity recognises revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation Entities will have a choice to apply this standard retrospectively in accordance with TAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, subject to the expedients or retrospectively with the cumulative effect recognised as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application with additional disclosures. The Group will first apply this standard for annual reporting periods beginning on or after 1 January Management is currently assessing the impact from initial application of this standard. 3 Estimates The preparation of interim requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing this interim, the significant judgements made by management in applying the group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December Segment information The Group reports based on segments by presenting main businesses as main reported segments, considering the types of business in which the Group operates. The Group operates in 3 main segments: 1) Segment of service from debt collection 2) Segment of management of non-performing assets 3) Segment of call center services 13

15 4 Segment information (Cont d) The interim is reported by segments in consolidated. For the three-month period ended 30 June 2018 Management of non-performing Service from Call Center assets debt collection Services Total Revenues 61,519,037 10,884,784-72,403,821 Revenues from inter-segment - (2,119,292) - (2,119,292) Revenues from segment 61,519,037 8,765,492-70,284,529 Costs (18,075,335) (5,369,302) - (23,444,637) Costs from inter-segment 2,119, ,119,292 Costs from segment (15,956,043) (5,369,302) - (21,325,345) Segment results 45,562,994 3,396,190-48,959,184 Unallocated costs (17,472,234) Profit from operation 31,486,950 Other income 614,820 Finance costs (472,731) Profit before income tax 31,629,039 Income tax expense (7,577,512) Net profit 24,051,527 For the three-month period ended 30 June 2017 Management of non-performing Service from Call Center assets debt collection Services Total Revenues 40,314,769 10,634,657 2,248,392 53,197,818 Revenues from inter-segment - (1,579,326) - (1,579,326) Revenues from segment 40,314,769 9,055,331 2,248,392 51,618,492 Costs (12,641,048) (5,452,316) (1,198,408) (19,291,772) Costs from inter-segment 1,579, ,579,326 Costs from segment (11,061,722) (5,452,316) (1,198,408) (17,712,446) Segment results 29,253,047 3,603,015 1,049,984 33,906,046 Unallocated costs (11,214,195) Profit from operation 22,691,851 Other income 207,241 Finance costs (47,707) Profit before income tax 22,851,385 Income tax expense (6,599,659) Net profit 16,251,726 14

16 4 Segment information (Cont d) The interim is reported by segments in consolidated. (Cont d) Management of non-performing Service from Call Center assets debt collection Services Total Revenues 100,667,319 22,537,346 1,330, ,535,383 Revenues from inter-segment - (4,105,988) - (4,105,988) Revenues from segment 100,667,319 18,431,358 1,330, ,429,395 Costs (33,317,140) (11,350,354) (45,297) (44,712,791) Costs from inter-segment 4,105, ,105,988 Costs from segment (29,211,152) (11,350,354) (45,297) (40,606,803) Segment results 71,456,167 7,081,004 1,285,421 79,822,592 Unallocated costs (29,171,353) Profit from operation 50,651,239 Other income 1,014,224 Finance costs (1,293,863) Profit before income tax 50,371,600 Income tax expense (11,854,394) Net profit 38,517,206 For the six-month period ended 30 June 2017 Management of non-performing Service from Call Center assets debt collection Services Total Revenues 83,767,693 20,873,540 4,455, ,096,690 Revenues from inter-segment - (3,841,075) - (3,841,075) Revenues from segment 83,767,693 17,032,465 4,455, ,255,615 Costs (25,510,789) (9,969,374) (2,510,710) (37,990,873) Costs from inter-segment 3,841, ,841,075 Costs from segment (21,669,714) (9,969,374) (2,510,710) (34,149,798) Segment results 62,097,979 7,063,091 1,944,747 71,105,817 Unallocated costs (23,092,349) Profit from operation 48,013,468 Other income 286,680 Finance costs (98,000) Profit before income tax 48,202,148 Income tax expense (15,117,961) Net profit 33,084,187 15

17 5 Fair value Fair value estimation The table below analyses financial instruments carried at fair value, by valuation method. The different levels are defined as follows: - Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. - Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). - Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). As at 30 June 2018, the Group and the Company do not have financial assets and liabilities measured at fair value. The following table presents the fair value of the Group s financial assets and liabilities that are measured at fair value as at 31 December 2017: Financial assets 31 December 2017 Level 1 Level 2 Level 3 Total Short-term investments (Note 6) - 774, ,383 Total assets - 774, ,383 Financial assets 31 December 2017 Level 1 Level 2 Level 3 Total Short-term investments (Note 6) - 262, ,712 Total assets - 262, ,712 There were no transfers between levels 1 and 2 during the period. 16

18 6 Short-term investments As of 30 June 2018 and 31 December 2017, short-term investments are as follows: 30 June December 2017 Cost/ Amortised Cost/ Amortised cost Fair value cost Fair value Short-term investments Fixed deposits not over 12 months 1,572,279 1,572, , ,714 Available-for-sale securities , ,383 Add Revaluation adjustments ,518 - Available-for-sale securities, net , ,383 Total 1,572,279 1,572,279 1,234,097 1,234, June December 2017 Cost/ Amortised Cost/ Amortised cost Fair value cost Fair value Short-term investments Fixed deposits not over 12 months 1,361,012 1,361, , ,621 Available-for-sale securities , ,712 Add Revaluation adjustments - - 3,875 - Available-for-sale securities, net , ,712 Total 1,361,012 1,361, , ,333 During the six-month period ended 30 June 2018, the movements of available-for-sale securities are as follows: financial information Available-for-sale securities Baht financial information Available-for-sale securities Baht Book value - beginning balance, net 774, ,712 Disposal (776,036) (263,273) Change in fair value of available-for-sale securities 1, Book value - ending balance, net

19 7 Trade and other receivables As of 30 June 2018 and 31 December 2017, trade and other receivables are as follows: 30 June 31 December 30 June 31 December Trade receivables 7,204,310 6,670,821 4,822,177 4,237,788 Less Allowance for doubtful accounts Trade receivables, net 7,204,310 6,670,821 4,822,177 4,237,788 Amounts due from related parties (Note 20.4) - - 6,823, ,203 Prepaid expenses 105, ,021 39,525 54,834 Advances 376, ,869 55,000 - Accrued income (1) 32,890, Others - 18, Total 40,577,371 7,036,461 11,740,653 4,825,825 (1) The Group has accured income from selling collateral of loans to non-performing assets by auction from Legal Execution Department amounting to Baht million. Outstanding trade accounts receivable as at 30 June 2018 and 31 December 2017 can be analysed by aging as follows: 30 June 31 December 30 June 31 December Less than 3 months 7,204,310 6,670,821 4,822,177 4,237, months months Over 12 months Total trade receivables 7,204,310 6,670,821 4,822,177 4,237,788 Less Allowance for doubtful accounts Total trade receivables, net 7,204,310 6,670,821 4,822,177 4,237,788 Outstanding amounts due from related parties can be analysed by aging as follows: 30 June 31 December 30 June 31 December Less than 3 months - - 6,823, , months months Over 12 months Total amounts due from related parties - - 6,823, ,203 Less Allowance for doubtful accounts Total amounts due from related parties, net - - 6,823, ,203 18

20 8 Deposit for purchasing loans to non-performing assets As at 30 June 2018, the Group bid for purchasing non-performing assets during the auctions. The deposit will be returned when the auctions ended, or will be net off with the purchase price if the Group wins the bidding. 9 Loans to non-performing assets, net As of 30 June 2018 and 31 December 2017, loans to non-performing assets are as follows: 30 June 31 December 30 June 31 December Loans to non-performing assets 343,249, ,923, Less Allowance for impairment (4,944,926) (149,624) - - Loans to non-performing assets, net 338,304, ,773, During the six-month period ended 30 June 2018, the movements of loans to non-performing assets are as follows: financial information Baht financial information Baht At 1 January 281,773,990 - Additions 94,972,529 - Less Proceeds from loans to non-performing assets (33,646,342) - Less Allowance for impairment (4,795,302) - At 30 June 338,304,875 - Loans to non-performing assets as at 30 June 2018 and 31 December 2017 can be analysed by aging from the date of acquisition of loans to non-performing assets as follows: 30 June 31 December 30 June 31 December Less than 1 year 231,432, ,500, years 31,000, years 64,529,413 76,861, years - 23,562, years 16,287, Over 5 years Total amounts loans to non-performing assets 343,249, ,923,

21 10 Investments in subsidiaries Subsidiary undertakings are included in consolidation financial statements. The proportion of the voting rights in the subsidiary undertakings held directly by the parent company do not differ from the proportion of ordinary shares held as at 30 June 2018 as below: Registered capital Paid-up capital Cost Ownership 30 June 31 December 30 June 31 December holding 30 June 31 December Company Country of interest percentage name incorporation Business % Baht 000 Baht 000 Baht 000 Baht 000 % Baht 000 Baht 000 Chayo Asset Management Company Limited Chayo Call Center Company Limited Thailand Thailand Management of non-performing assets , , , , , ,000 Debt collection service and call center service ,000 1,000 1,000 1, ,000 2,000 Less Impairment of investments (2,000) (2,000) 169, ,000 20

22 11 Investment properties, net During the six-month period ended 30 June 2018, movements of investment properties are as follows: financial information Baht financial information Baht Opening net book amount 9,095,652 10,505,285 Additions 192,318 - Depreciation charges (230,222) (219,508) Closing net book amount as at interim date 9,057,748 10,285,777 As at 30 June 2018, investment properties of the Company with the carrying amount of Baht 0.31 million (31 December 2017: Baht 0.36 million) are used as collateral for securing the Group s credit facilities of Baht 60 million from a financial institution (31 December 2017: Baht 60 million) (Note 14). 12 Property, plant, equipment and intangible assets, net During the six-month period ended 30 June 2018, the movements of property, plant, equipment and intangible assets are as follows: Property, Property, plant, and equipment Intangible assets plant, and equipment Intangible assets Opening net book amount 38,118,167 1,736,993 21,038,320 1,334,661 Additions 3,293, , , ,250 Disposal (944,454) Depreciation and amortisation (2,007,678) (319,500) (767,519) (232,789) Closing net book amount as at interim date 38,459,130 1,944,743 20,664,032 1,429,122 As at 30 June 2018, property and plant of the Company with the carrying amount of Baht million (31 December 2017: Baht million) are used as collateral for securing the Group s credit facilities of Baht 60 million from a financial institution (31 December 2017: Baht 60 million). (Note 14) 21

23 13 Trade and other payables As of 30 June 2018 and 31 December 2017, trade and other payables comprise the following: 30 June 31 December 30 June 31 December Trade payables 972, , , ,082 Amounts due to related parties (Note 20.4) ,974 24,867 Accrued expenses 12,869,878 10,975,069 3,500,356 6,358,027 Accrued interest 26, , Others 1,191, , , ,948 Total 15,059,860 12,437,922 4,754,467 7,142, Long-term borrowings from financial institution As of 30 June 2018 and 31 December 2017, long-term borrowings from a financial institution are as follows: 30 June 31 December 30 June 31 December Current Borrowings from financial institution 25,400,000 20,400, Non-current Borrowings from financial institution 23,939,213 30,480, Total 49,339,213 50,880, The movements of long-term borrowings from a financial institution during the six-month period ended 30 June 2018 are as follows: financial information Baht financial information Baht Opening book amount 50,880,992 - Addition 39,789,980 - Repayment of borrowings (41,400,000) - Amortisation of relevant cost to obtain borrowings 68,241 - Closing book amount as at interim date 49,339,213 - During the six-month period ended 30 June 2018, long-term borrowings from a financial institution incurred related interest expense amounting to Baht 1.22 million (30 June 2017: nil). The long-term borrowings from a financial institution bear an interest rate of MLR per annum (31 December 2017: MLR per annum). Principal and interest are to be repaid every month, within 3 years. 22

24 15 Share capital Discount from Number of shares - issued and paid-up Ordinary shares - issued and paid-up Share Premium, net business combinations under common control Total Shares As at 1 January ,000, ,000,000 - (9,678,120) 200,321,880 Issuance of ordinary shares 140,000,000 70,000, ,200, ,200,000 Share issuing costs - - (12,233,624) - (12,233,624) As at 30 June ,000, ,000, ,966,376 (9,678,120) 591,288,256 As at 1 January ,000, ,000,000 - (9,678,120) 200,321,880 Issuance of ordinary shares As at 31 December ,000, ,000,000 - (9,678,120) 200,321,880 Number of shares - issued and paid-up Ordinary shares - issued and paid-up Share Premium, net Total Shares Baht Baht Baht As at 1 January ,000, ,000, ,000,000 Issuance of ordinary shares 140,000,000 70,000, ,200, ,200,000 Share issuing costs - - (12,233,624) (12,233,624) As at 30 June ,000, ,000, ,966, ,966,376 As at 1 January ,000, ,000, ,321,880 Issuance of ordinary shares As at 31 December ,000, ,000, ,321,880 On 9 February 2018, the Extraordinary Shareholders Meeting No. 1/2561 approved the issurance of 140 million ordinary shares at a par value of Baht 0.50 per share totaling Baht 70 million. The authorised share capital remains unchanged. In March 2018, the Company offered its 140 million ordinary shares in an initial public offering (IPO). The new shares were sold to subscribers at an IPO price of Baht 2.88 per share (par value of Baht 0.50, plus share premium of Baht 2.38), totaling Baht million (share premium of Baht million). The Company s ordinary shares were approved to be listed in the Market for Alternative Investments (MAI) on 22 March Expenses directly attributable to the newly issued shares in the IPO of Baht million were deducted from the IPO s share premium. This resulted in the net share premium of Baht million. Section 51 of the Public Companies Act. B.E requires companies to set aside share subscription money received in excess of the issued shares par value to a reserve account (share premium). The share premium is not available for dividend distribution. 23

25 16 Legal reserve 30 June 31 December 30 June 31 December At 1 January 300, , , ,000 Appropriation during the period 2,533,965-2,533,965 - At 31 December 2,833, ,000 2,833, ,000 Under the Public Limited Company Act., B.E. 2535, the Company is required to set aside a legal reserve at least 5% of its net income for the year after accumulated deficits brought forward (if any) until the reserve is not less than 10% of the registered share capital. The legal reserve is not available for dividend distribution. 17 Dividend On 30 April 2018, the Annual General Meeting of Shareholders of 2018 approved the dividends of 2017 at the rate of Baht 0.05 per share, totalling Baht 28 million. The Company paid these dividends to the shareholders on 10 May On 10 May 2018, the Board of Directors Meeting No. 5/2561 approved the interim dividends from the financial performance of the three-month period ended 31 March 2018 and retained earnings at the rate of Baht 0.06 per share, totalling Baht 33.6 million. The Company paid these interim dividends to the shareholders on 8 June Income tax The interim income tax expense is accrued based on management s estimate using the tax rate that would be applicable to expected total annual earnings. The estimated average annual tax rate used is 20% (The estimated tax rate for the six-month period ended 30 June 2017 was 20%). 19 Commitments As of 30 June 2018 and 31 December 2017, the Group has commitments as follows: 30 June 31 December 30 June 31 December Commitments under rental and service contracts Not later than 1 year 3,280, ,549 2,270, ,511 Later than 1 year but not later than 3 years Total 3,280, ,549 2,270, ,511 24

26 20 Related party transactions Enterprises and individuals that, directly or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiaries and fellow subsidiaries are related parties of the Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the enterprise, key management personnel, including directors and officers of the company and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering each possible related-party relationship, attention is directed to the substance of the relationship, and not merely the legal form. The Company s shares are held by Mr. Suksan Yasasin in proportion of 56.06% (31 December 2017: 74.74%) of total shares. The related party transactions are made on trading norms and based on agreements. Relationship Chayo Asset Management Co., Ltd. Chayo Call Center Co., Ltd. Chayo Fast Cash Co., Ltd. Chaya Law Firm Co., Ltd. CC Alliance Co., Ltd. Mr. Suksan Yasasin Subsidiary Subsidiary Having the common director Having the common director Having the common director Major shareholder and key management The following transactions were carried out with related parties: 20.1 Service income from debts collection For the three-month period ended 30 June 30 June 30 June 30 June Service income from: Subsidiaries - - 1,617,939 1,261, ,617,939 1,261,001 For the six-month period ended 30 June 30 June 30 June 30 June Service income from: Subsidiaries - - 3,052,150 3,035, ,052,150 3,035,635 25

27 20 Related party transactions (Cont d) The following transactions were carried out with related parties: (Cont d) 20.2 Costs of rendering services For the three-month period ended 30 June 30 June 30 June 30 June Rental expenses Key management 80,000 36,000 40,000 40,000 Total 80,000 36,000 40,000 40,000 For the six-month period ended 30 June 30 June 30 June 30 June Rental expenses Key management 120, ,000 60,000 60,000 Total 120, ,000 60,000 60, Other income For the three-month period ended 30 June 30 June 30 June 30 June Rental income Subsidiaries , , , ,000 Management fee Subsidiaries - - 5,700,000 5,700, ,700,000 5,700,000 Dividend income Subsidiary - - 6,277, ,277,997 - Interest income Subsidiaries - - 1,243, , ,243, ,261 26

28 20 Related party transactions (Cont d) The following transactions were carried out with related parties: (Cont d) 20.3 Other income (Cont d) For the six-month period ended 30 June 30 June 30 June 30 June Rental income Subsidiaries - - 1,122,000 1,122, ,122,000 1,122,000 Management fee Subsidiaries ,400,000 11,400, ,400,000 11,400,000 Dividend income Subsidiary ,223, ,223,994 - Interest income Subsidiaries - - 1,553, , ,553, , Outstanding balances arising from provision /purchases of services 30 June 31 December 30 June 31 December Receivables from related parties Trade and other receivables Subsidiaries , ,203 Dividends receivable Subsidiary - - 6,277,997 - Total amounts due from related parties (Note 7) - - 6,823, ,203 Payables to related parties Subsidiaries ,974 24,867 Total amounts due to related parties (Note 13) ,974 24,867 27

29 20 Related party transactions (Cont d) The following transactions were carried out with related parties: (Cont d) 20.5 Short-term loans to related parties 30 June 31 December 30 June 31 December Beginning balance ,000,000 18,000,000 Loan payments during the period Subsidiary ,200,100 3,000,000 Ending balance ,200,100 21,000,000 During the six-month period ended 30 June 2018, short-term loans to related parties is due for repayments at call. The short-term loans to related parties bears an interest rate of 6% per annum (30 June 2017: 6% per annum) Key management remunerations During the three-month and six-month periods ended 30 June 2018 and 2017, benefits to key management personnel are as follows: and For the three-month periods ended 30 June 30 June Baht Baht Salaries and other short-term employee benefits 4,594,822 4,488,034 Post-employment benefits 72,122 23,214 Total 4,666,944 4,511,248 and For the six-month periods ended 30 June 30 June Baht Baht Salaries and other short-term employee benefits 7,123,411 6,989,155 Post-employment benefits 144,245 46,428 Total 7,267,656 7,035, Events occurring after the reporting date On 30 July 2018, at the Extraordinary Shareholders' Meeting No. 1/2561 of Chayo Call Center Co., Ltd. approved to change its name from Chayo Call Center Co., Ltd to Chayo Property and Service Co., Ltd. In addition, the Meeting also approved an increase in capital by issuing new ordinary shares of 400,000 at Baht 10 per share, totalling Baht 4,000,000 to Chayo Group Public Company Limited, its parent company. On 9 August 2018, Chayo Property and Service Co., Ltd. registered its new name and the increase in capital with the Department of Business Development. 28