Investor Bulletin
Overall pictures of previous operations:

The fast changing trend of telecommunication technological development has led to the continued growth of the upstream and downstream industries and pushed the government and private agencies to adjust themselves by making investments to improve and better related infrastructures to serve the uses of the customers and general public.

The continual investment of the telecommunicating servicing offices has been a significant factor of the Company’s operating expansion. The Company on the other hand has changed its main earning businesses from the subcontracting works of the labor intensive tower and OSP cable system installing to designing, supplying, subcontracting, testing and providing consultancy of the total solution of the telecommunicating system which needs specialized skills since 2008. Initially, the Company made joint investment with JRW Network Solutions Co. Ltd. (“Networks”) by holding the 20 per cent share of the paid-up capital. Network has had telecommunicating system designing skills. It was in February 2009 that the Company sold portion of that investment to divert itself fully to the total solution under the telecommunicating solution designing skilled teams. In April 2009, the Company sold the rest investment in Network, changed its business structure and accordingly has increased its operating results since 2008.

The consolidated operating result of the Company during 2003 – 2008 comprised of that of the Company and the subsidiary Jaya Soft Vision Co. Ltd. (“Jaya”) as per the shareholding proportion. The operating result of the Company in 2009 however consisted of that for the entire 2009 of the Company and that of Jaya Vision for the shareholding period up to 25 June 2009 because of the Company’s sale of the entire ordinary shares in Jaya Vision.

The analyses of the consolidated Financial Statements hence differed. The analysis of the operating results showed those of the years 2007 – 2009 whereas the analysis of the consolidated status showed that of the year 2008 ending 31 December 2008 as per the Financial Statements audited by the certified public auditor.

The consolidated Financial Statements for 2007 – 2009 manifested the continued increased sale and services to Bt113 million, Bt459.72 million and Bt878.91 million respectively, up by 127.28 per cent and  91.18 per cent from 2007 and 2008 respectively. The surge in income from sale and services in 2008 resulted from the change of the businesses from subcontracting works, mostly short term for low work value, to telecommunication system designing, supply and installing businesses, which edged up the income from the sale of telecommunication system equipment by Bt192.46 million and the income from service and installing sub-contracting to Bt205.56 million, a part of which came from sale of the telecommunicating system turnkey project and equipment. Most of the increase in the sale and service income for 2009 was from the sale of the telecommunication system turnkey and equipment, up from Bt205.26 million in 2008 to Bt771.72 million in 2008, of which large customer was TOT Plc. The Company installed various equipment to TOT Plc. Such as the installing of Trunk Gateway in the Broadband IP Network Expanding and SPC Phone Exchange System Equipment Installation Project, etc. Even though the equipment sale income dipped from Bt192.46 million in 2008 to Bt66.00 million in 2009 owing to the corporate emphasis on the turnkey works that could lead to the repair and maintenance businesses in the future.

The Company recorded Bt (Bt25.29 million), Bt18.25 million and Bt70.64 million in net profit (loss) during 2007 – 2009 respectively, which were (22.38 per cent), 3.97 per cent and 7.98 per cent of the total income, respectively. The main cause of the net loss in  2007 was the higher costs of the materials and equipments following the huge rise in the oil prices in the world markets and the Company could not adjust the work amounts to compensate those increases. The increase in the operating results for 2008 and 2009 was attributable to more work volume and value that included the total solution turnkey works on the back of the expansion of the telecommunication businesses. In those two years the Company could control the costs.

The Company’s assets edged up continually. As at 31 December 2007 and 2008, the Company had the assets worth Bt101.26 million and Bt169.09 million respectively. In 2008, the Company purchased 10 rais of land in the amount of Bt30 million to build a warehouse that shall serve its business expansion in the future and spent Bt15.60 million to adjust that land. As at 31 December 2009, the Company’s assets excluding those of its subsidiary totaled Bt483.02 million, most of which, 66.79 per cent, were account receivables.

As at the end of 2009, the Company showed its ratio of liabilities to shareholders’ equity at 1.32 times or up by 230 per cent and 780 per cent from 0.40 times and 0.15 times in 2007 and 2008 respectively. The increase came from the Company’s subcontracting and equipment and system installing work volume made for significant customers like TOT Plc. The increased works of the normal businesses plus the subcontracting work volume pushed up the accounts payable and hence the current liabilities in the same direction as the increase in the account receivables and thus the current assets. During 2007 – 2008, the corporate policies aimed to make more liabilities conservatively and reached the target of increasing the shareholders’ equity, therefore reducing the ratio of the liabilities to the shareholders’ equity to low level.

The operating results and the financial status in the first three months of 2010 showed only the Financial Statements of the Company only because of the sale of the entire investment in the subsidiary, Jaya Network, in June 2009. Those results exhibited Bt16.20 million in net profit or 8.28 per cent of the entire income thanks to the telecommunication turnkey plus the repair and maintenance services for TOT Plc. And the royal air force, which were the continued works from those of 2009 such as the sale and purchase o the Network Planning Tools together with the peripherals, the installation of the Trunk Gateway of the Broadband IP Network Expansion Project, the installation of the Sim Management system, the installation of the communication system of the electrical transport system that is linked with Suvarnabhumi Airport and the airplane passenger transport station  in the city and the installation of the exchange system equipment in the LPN area and the sub-contracting of the repair and maintenance of SDH and Microwave parts.

As at 31 March 2010, the Company had the total assets at Bt463.44 million, most of which comprised of the account receivables and the land, buildings and equipment, 60.16 per cent and 19.53 per cent of the total assets singly.  As at 31 March 2010, the Company recorded the ratio of liabilities to the shareholders’ equity at 1.06 times, an increase when compared to that of the same period of the earlier year at 0.41 times, but that ratio was acceptable and did not affect the corporate liquidity significantly.