INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd

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SAHA-UNION
shares deducted by the number of the Company’s shares held by its subsidiaries); and the average rates of returns to
the shareholders’ equities were equal to 4.94%, higher than the rates of returns when compared to the interest rates of
the fixed savings accounts of financial institutions.
In 2011, the Company had its net profit under the cost method amounted to Baht 760.33 million, or the earnings per share
was Baht 2.53, which were less than those in 2010 with net profit amounted to Baht 1,307.81 million and earnings per share
at Baht 4.36. The main reason why the net profit under the cost method in 2011 was less than that in 2010 by Baht 547.48
million was that in 2011 the Company received less dividend by Baht 173 million (due to the lower investments capital in
Ratchaburi Power Co., Ltd. and the investments in China.) In 2011 there was no reverse transfer of allowance for impairment
of real estate for investment, when compared to the existing amount of Baht 152.69 million in 2010 (because at the end of
2010 the indications of impairment of real estate for investment disappeared.) Also in 2011 there was no reverse transfer of
impairment of investment, when compared to the existing amount of Baht 106.72 million in 2010. On the other hand, there was
recording loss on impairment of investments at Baht 68.55 million, making the allowance for loss on impairment of investments
significantly decrease the income by Baht 175.26 million (since in 2010 there was the reverse transaction of impairment of
investments because the company with the recorded impairment had sold its investments and in 2011 there was a record of
allowance for impairment in additional investments in Yunnan Energy Qujing-Union Power Co., Ltd.,) which the related details
were shown under the topic of operating result in the first paragraph.
Also, the Company had its policy of dividend payment at the rate of at least one-third of the net profit under the cost method
after deduction of cumulative losses (if any) when taking account of the liquidity and the spending needs of the Company.
However, the proper rates of dividend payment to shareholders were regularly considered. This year, the Board of Directors
has proposed on 22 March 2012 to the shareholders meeting that the dividends would be paid to shareholders at the rate
of Baht 1.50 per share or equivalent to 59.18% of the net profit under the cost method.
Records of dividend payments of the Company compared to the earning per share, under the cost method, are as follows:
Year
Rates of Dividend Payment
per Share (Baht)
Earnings per Share Rate
(Under the Cost Method) (Baht)
Dividends per Net Profit
(%)
2010 1.75 4.36 40.14
2009 1.50 2.58 58.14
2008 1.00 0.93 107.53
2007 1.25 0.92 135.87
2006 1.25 1.62 77.16
4. FINANCIAL POSITION
Changes in the financial status of the Company and its subsidiaries as per the consolidated financial statements are summarized
as follows:
4.1 Assets As of 31 December 2011, the Company and its subsidiaries had the total assets of Baht 22,007.19 million,
increasing by Baht 2,955.93 million, or 15.52% when compared to Baht 19,051.25 million in 2010. Significant changes
can be summarized as follows:
4.1.1 Components of Assets
Components of asset when making comparison in proportion with the total assets of each year by the end of 2011
composed of the following components: current assets at 36.93%; investments at 41.69%; real estate for investment
at 4.70%; net property, plant and equipment at 15.33%; and other assets at 1.36%. When compared to the proportion
of changes of assets components in 2010, significant changes were the current assets increasing by Baht 2,512.52
million, or at 7.46%, due to the increase of cash and cash-equivalent by Baht 2,780.43 million, or at 11.51% since the
Company had surplus liquidity from selling investments in China and deposit to the bank and bought the treasury bill
to be prepared as the investments in potential projects in the future. Moreover, inventories increased by Baht 385.03
million to be prepared as raw material for production in the following quarter or as finished goods to be delivered
in the following month as normal sale of the business, meanwhile the temporary investments decreased by Baht