dusit thani public company limited and its...
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Dusit Thani Public Company Limited
and its Subsidiaries
Condensed interim financial statements
for the three-month and nine-month periods ended
30 September 2020
and
Independent auditor’s review report
Independent Auditor’s Report on Review of Interim Financial Information
To the Board of Directors of Dusit Thani Public Company Limited
I have reviewed the accompanying consolidated and separate statements of financial position of Dusit Thani
Public Company Limited and its subsidiaries, and of Dusit Thani Public Company Limited, respectively, as at
30 September 2020; the consolidated and separate statements of income, comprehensive income for the
three-month and nine-month periods ended 30 September 2020; the consolidated and separate statements of
changes in equity and cash flows for the nine-month period ended 30 September 2020; and condensed notes
(“interim financial information”). Management is responsible for the preparation and fair presentation of this
interim financial information in accordance with Thai Accounting Standard 34, “Interim Financial Reporting”.
My responsibility is to express a conclusion on this interim financial information based on my review.
Scope of Review
I conducted my review in accordance with Thai Standard on Review Engagements 2410, “Review of Interim
Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial
information 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 financial information is not prepared, in all material respects, in accordance with Thai Accounting
Standard 34, “Interim Financial Reporting”.
2
Emphasis of Matters
I draw attention to notes 3 and 4 to the interim financial statements which describes the followings:
1) the impact to the Company and its subsidiaries’ adoption of new accounting policies from 1 January
2020.
2) the impact of Covid-19 pandemic which described the impact to the Group operation and management
plan to deal with these circumstances as well as adoption of the accounting guidance on temporary
accounting relief measure for additional accounting options in dealing with the impact of Covid-19
pandemic issued by the Federation of Accounting Professions in preparation of the interim financial
statements for the three-month and nine-month periods ended 30 September 2020.
My conclusion is not modified in respect of these matters.
(Vipavan Pattavanvivek)
Certified Public Accountant
Registration No. 4795
KPMG Phoomchai Audit Ltd.
Bangkok
16 November 2020
Dusit Thani Public Company Limited and its SubsidiariesStatement of financial position
Separate
30 September 31 December 30 September 31 December
Assets Note 2020 2019 2020 2019
(Unaudited) (Unaudited)
Current assets
Cash and cash equivalents 487,935 2,600,475 44,296 92,500
Other current financial assets 420,188 932,785 - -
Trade and other current receivables 6,13,19,24 1,168,101 1,387,341 308,439 238,419
Inventories 61,468 69,277 8,067 12,054
Short-term loans to related parties 13 - - 1,633,653 1,205,570
Short-term loans to other party 15,829 15,077 - -
Current portion of prepaid rental of land and buildings - 115,447 - 115,108
Other current assets 24 262,097 167,550 57,809 84,400
Non-current assets classified as held for sale 9,465 - 64,465 44,000
Total current assets 2,425,083 5,287,952 2,116,729 1,792,051
Non-current assets
Other non-current financial assets 19 399,291 36,414 - -
Finance lease receivable 13 - - 3,046,476 -
Investments in associates 7 1,615,587 1,814,425 1,623,454 1,649,881
Investments in subsidiaries 8 - - 2,509,695 2,308,330
Investments in joint ventures 9 172,306 180,482 119,882 119,882
Long-term loans to related parties 13 326,629 234,139 837,445 344,448
Investment properties 174,806 174,806 144,572 144,572
Property, plant and equipment 10 4,331,450 3,474,627 727,367 688,989
Advance payment for construction 10 559,661 - - -
Prepaid rental of land and buildings - 1,380,980 - 1,376,092
Right-of-use assets 11 8,914,434 - 1,091,468 -
Intangible assets other than goodwill 588,806 616,793 29,508 31,017
Goodwill 5 658,411 580,980 - -
Deferred tax assets 175,479 74,911 - 26,371
Deposits 12 593,000 290,970 545,450 290,970
Withholding tax 20 49,111 36,466 24,143 11,847
Other non-current assets 63,281 53,129 11,877 21,375
Total non-current assets 18,622,252 8,949,122 10,711,337 7,013,774
Total assets 21,047,335 14,237,074 12,828,066 8,805,825
Consolidatedfinancial statements financial statements
(in thousand Baht)
The accompanying notes form an integral part of the interim financial statements.
3
Dusit Thani Public Company Limited and its SubsidiariesStatement of financial position
30 September 31 December 30 September 31 December
Liabilities and equity Note 2020 2019 2020 2019
(Unaudited) (Unaudited)
Current liabilities
Short-term loans from financial institutions 2,308,000 1,762,000 2,308,000 1,762,000
Short-term loans from related party 13 - - 1,401,000 315,000
Trade and other current payables 13 1,325,620 1,379,927 132,846 184,485
Current portion of payable for acquisition of business 5 89,543 61,947 - -
Current portion of long-term loans from financial institutions 117,207 96,451 33,000 33,000
Current portion of lease liabilities 235,161 - 57,192 -
Current portion of debentures 19 999,021 - 999,021 -
Current portion of deferred rental revenue 13 25,433 25,433 - 76,879
Income tax payable 19,955 152,067 - -
Other current liabilities 258,562 271,395 19,952 16,753
Total current liabilities 5,378,502 3,749,220 4,951,011 2,388,117
Non-current liabilities
Payable for acquisition of business 5 33,604 - - -
Long-term loans from financial institutions 24 1,346,056 1,382,565 1,045,700 1,053,950
Long-term loans from related party 13,24 508,332 219,335 - -
Lease liabilities 7,480,348 - 3,401,682 -
Debentures - 998,249 - 998,249
Deferred rental revenue 13 489,086 508,109 - 1,092,574
Deferred tax liabilities 86,266 128,512 50,017 -
Provisions for employee benefits 186,074 195,740 77,754 82,032
Deposit for right to lease building 13 984,760 984,760 - -
Liabilities from investment in joint venture 9 110,920 103,403 - -
Other non-current liabilities 7 114,312 62,684 734 463
Total non-current liabilities 11,339,758 4,583,357 4,575,887 3,227,268
Total liabilities 16,718,260 8,332,577 9,526,898 5,615,385
Consolidated Separatefinancial statements financial statements
(in thousand Baht)
The accompanying notes form an integral part of the interim financial statements.
4
Dusit Thani Public Company Limited and its SubsidiariesStatement of financial position
Separate
30 September 31 December 30 September 31 December
Liabilities and equity (Continued) 2020 2019 2020 2019
(Unaudited) (Unaudited)
Equity
Share capital
Authorised share capital
(850,000,000 ordinary shares, par value at Baht 1 per share) 850,000 850,000 850,000 850,000
Issued and paid-up share capital
(850,000,000 ordinary shares, par value at Baht 1 per share) 850,000 850,000 850,000 850,000
Treasury shares (15,740) (15,740) - -
Additional paid in capital
Premium on ordinary shares 1,643,000 1,643,000 1,643,000 1,643,000
Surplus on treasury shares 18,365 18,365 16,950 16,950
Retained earnings
Appropriated
Legal reserve 85,000 85,000 85,000 85,000
Dusit Thani College funds 415,272 415,272 - -
Treasury shares reserve 15,740 15,740 - -
Unappropriated 773,976 1,896,212 706,218 595,490
Other components of equity (136,174) (182,335) - -
Equity attributable to owners of the parent 3,649,439 4,725,514 3,301,168 3,190,440 Non-controlling interests 679,636 1,178,983 - -
Total equity 4,329,075 5,904,497 3,301,168 3,190,440
Total liabilities and equity 21,047,335 14,237,074 12,828,066 8,805,825
(in thousand Baht)
Consolidatedfinancial statements financial statements
The accompanying notes form an integral part of the interim financial statements.
5
Dusit Thani Public Company Limited and its Subsidiaries
Consolidated Separate
Note 2020 2019 2020 2019
Revenue from sales and services 13 402,438 876,895 81,503 164,088Cost of sales and services
Cost of sales and services 13 (292,230) (568,631) (64,702) (106,462)
Cost of services - depreciation and amortisation (162,566) (98,634) (35,227) (17,251)
Total cost of sales and services (454,796) (667,265) (99,929) (123,713) Gross profit (loss) (52,358) 209,630 (18,426) 40,375
Management service income 13 3,996 73,525 7,408 12,369
Interest income 13 4,637 4,667 64,608 10,537
Dividend income 13 - 127 33,646 31,053
Realised income from deferred rental revenue 13 6,411 7,154 - 19,220
Gain on reclassification of investment 7 126,542 - - -
Gain on sale of property, plant and equipment 13 186 589,905 120 2,131
Other income 13 72,204 68,631 69,944 46,553
Total income 213,976 744,009 175,726 121,863
Profit before expenses 161,618 953,639 157,300 162,238
Expenses
Selling expenses 13 (52,382) (73,289) (21,663) (27,211)
Administrative expenses 13 (351,030) (449,080) (160,567) (234,939)
Depreciation and amortisation (56,224) (16,350) (32,801) (5,970)
Total expenses (459,636) (538,719) (215,031) (268,120)
Profit (loss) from operating activities (298,018) 414,920 (57,731) (105,882) Finance costs 13 (106,782) (28,109) (87,376) (20,535)
Share of profit of joint ventures and associates
accounted for using equity method 26,188 337 - -
Profit (loss) before income tax expense (378,612) 387,148 (145,107) (126,417) Tax (expense) income 16 22,921 (88,238) 1,357 862
Profit (loss) for the period (355,691) 298,910 (143,750) (125,555)
Profit (loss) attributable to:Owners of the parent (342,290) 72,939 (143,750) (125,555)
Non-controlling interests (13,401) 225,971 - -
Profit (loss) for the period (355,691) 298,910 (143,750) (125,555)
Earnings (loss) per share (in Baht) 17
Basic earnings (loss) per share (0.40) 0.09 (0.17) (0.15)
financial statements financial statements
(in thousand Baht)
Statement of income (Unaudited)
Three-month period ended Three-month period ended
30 September 30 September
The accompanying notes form an integral part of the interim financial statements.
6
Dusit Thani Public Company Limited and its Subsidiaries
Consolidated Separate
Note 2020 2019 2020 2019
Revenue from sales and services 13 1,588,199 3,053,189 260,228 493,437Cost of sales and servicesCost of sales and services 13 (1,009,652) (1,849,697) (194,968) (322,058)
Cost of services - depreciation and amortisation (482,389) (298,717) (103,637) (52,310)
Total cost of sales and services (1,492,041) (2,148,414) (298,605) (374,368) Gross profit (loss) 96,158 904,775 (38,377) 119,069
Management service income 13 75,769 215,107 27,047 50,912
Interest income 13 17,658 15,561 182,612 29,299
Dividend income 13 - 8,621 233,408 261,944
Realised income from deferred rental revenue 13 19,023 19,766 - 57,660
Arrangement fee income 13 231,364 - 296,620 -
Gain on capital reduction of subsidiary 8 23,220 - - -
Gain on sale of other long-term investment - 215,572 - 215,572
Gain on reclassification of investment 7 126,542 - - -
Gain on sale of property, plant and equipment 13 4,443 590,859 4,693 2,666
Other income 13 157,557 183,541 153,649 156,370
Total income 655,576 1,249,027 898,029 774,423
Profit before expenses 751,734 2,153,802 859,652 893,492
ExpensesSelling expenses 13 (166,495) (256,846) (60,948) (96,107)
Administrative expenses 13 (1,132,008) (1,307,945) (532,512) (681,895)
Depreciation and amortisation (140,851) (47,485) (71,608) (16,971)
Total expenses (1,439,354) (1,612,276) (665,068) (794,973)
Profit (loss) from operating activities (687,620) 541,526 194,584 98,519 Finance costs 13 (320,636) (84,237) (244,844) (52,785)
Share of profit of joint ventures and associates
accounted for using equity method 44,982 13,909 - -
Profit (loss) before income tax expense (963,274) 471,198 (50,260) 45,734Tax (expense) income 16 54,161 (131,617) 3,388 (4,955)
Profit (loss) for the period (909,113) 339,581 (46,872) 40,779
Profit (loss) attributable to:Owners of the parent (877,671) 51,401 (46,872) 40,779
Non-controlling interests (31,442) 288,180 - -
Profit (loss) for the period (909,113) 339,581 (46,872) 40,779
Earnings (loss) per share (in Baht) 17
Basic earnings (loss) per share (1.04) 0.06 (0.06) 0.05
(in thousand Baht)
Statement of income (Unaudited)
financial statements financial statementsNine-month period ended Nine-month period ended
30 September 30 September
The accompanying notes form an integral part of the interim financial statements.
7
Dusit Thani Public Company Limited and its Subsidiaries
Consolidated Separate
2020 2019 2020 2019
Profit (loss) for the period (355,691) 298,910 (143,750) -125,555Other comprehensive income Items that will be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations 3,670 1,541 - -
Share of other comprehensive income of associates
accounted for using equity method 16,285 - - -
Gains (loss) on remeasuring available-for-sale investments - 7,454 - (1,488)
Income tax relating to items that will be reclassified to profit or loss - (1,491) - 298
Total items that will be reclassified subsequently to profit or loss 19,955 7,504 - (1,190)
Items that will not be reclassified to profit or loss
Gains on remeasurements of defined benefit plans - 39,524 - 4,527
Income tax relating to items that will not be reclassified
to profit or loss - (7,022) - (905)
Total items that will not be reclassified to profit or loss - 32,502 - 3,622Other comprehensive income for the period, net of tax 19,955 40,006 - 2,432Total comprehensive income (loss) for the period (335,736) 338,916 (143,750) (123,123)
Total comprehensive income (loss) attributable to:Owners of the parent (323,498) 114,879 (143,750) (123,123)
Non-controlling interests (12,238) 224,037 - -
Total comprehensive income (loss) for the period (335,736) 338,916 (143,750) (123,123)
(in thousand Baht)
Statement of comprehensive income (Unaudited)
Three-month period ended Three-month period ended
30 September 30 September
financial statements financial statements
The accompanying notes form an integral part of the interim financial statements.
8
Dusit Thani Public Company Limited and its Subsidiaries
Consolidated Separate
2020 2019 2020 2019
Profit (loss) for the period (909,113) 339,581 (46,872) 40,779Other comprehensive income Items that will be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations (738) (110,352) - -
Share of other comprehensive income of associates
accounted for using equity method 16,397 - - -
Gains (loss) on remeasuring available-for-sale investments - 38,368 - (1,867)
Income tax relating to items that will be reclassified to profit or loss - (7,674) - 373
Total items that will be reclassified subsequently to profit or loss 15,659 (79,658) - (1,494)
Items that will not be reclassified to profit or loss
Gains on remeasurements of defined benefit plans - 39,524 - 4,527
Income tax relating to items that will not be reclassified
to profit or loss - (7,022) - (905)
Total items that will not be reclassified to profit or loss - 32,502 - 3,622 Other comprehensive income (loss) for the period, net of tax 15,659 (47,156) - 2,128Total comprehensive income (loss) for the period (893,454) 292,425 (46,872) 42,907
Total comprehensive income (loss) attributable to:Owners of the parent (831,510) 38,897 (46,872) 42,907
Non-controlling interests (61,944) 253,528 - -
Total comprehensive income (loss) for the period (893,454) 292,425 (46,872) 42,907
(in thousand Baht)
Statement of comprehensive income (Unaudited)
financial statements financial statementsNine-month period ended Nine-month period ended
30 September 30 September
The accompanying notes form an integral part of the interim financial statements.
9
Dusit Thani Public Company Limited and SubsidiariesStatement of changes in equity (Unaudited)
Exchange Differences Share of otherdifferences on comprehensive
on remeasuring income of Total EquityIssued and Premium on Surplus Dusit Treasury Translating available- associates other attributable Non-
paid-up Treasury ordinary on treasury Legal Thani College shares foreign for-sale using equity components to owners of controlling TotalNote share capital shares shares shares reserve funds reserve operations investments method of equity the parent interests equity
For the nine-month period ended 30 September 2019Balance at 1 January 2019 850,000 (15,740) 1,643,000 18,365 85,000 440,257 15,740 1,666,584 (112,728) 380,304 - 267,576 4,970,782 1,107,352 6,078,134 Transactions with owners, recorded directly in equity
Distributions to owners of the parentDividends 18 - - - - - - - (143,699) - - - - (143,699) (72,938) (216,637) Changes in ownership interests in subsidiariesAcquisition of non-controlling interests without a change in control - - - - - - - - - - - - - 54,366 54,366
Total transactions with owners, recorded directly in equity - - - - - - - (143,699) - - - - (143,699) (18,572) (162,271)
Comprehensive income for the periodProfit - - - - - - - 51,401 - - - - 51,401 288,180 339,581 Other comprehensive income (loss) - - - - - - - 31,343 (74,050) 30,203 - (43,847) (12,504) (34,652) (47,156)
Total comprehensive income (loss) for the period - - - - - - - 82,744 (74,050) 30,203 - (43,847) 38,897 253,528 292,425 Balance at 30 September 2019 850,000 (15,740) 1,643,000 18,365 85,000 440,257 15,740 1,605,629 (186,778) 410,507 - 223,729 4,865,980 1,342,308 6,208,288
For the nine-month period ended 30 September 2020Balance at 1 January 2020 850,000 (15,740) 1,643,000 18,365 85,000 415,272 15,740 1,896,212 (182,335) - - (182,335) 4,725,514 1,178,983 5,904,497 Transactions with owners, recorded directly in equity
Distributions to owners of the parentDividends 18 - - - - - - - (160,604) - - - - (160,604) (84,719) (245,323) Changes in ownership interests in subsidiariesAcquisition of non-controlling interests without a change in control 8 - - - - - - - (83,961) - - - - (83,961) (62,367) (146,328) Capital increase of subsidiary 8 - - - - - - - - - - - - - 79,483 79,483 Capital reduction of subsidiary 8 - - - - - - - - - - - - - (369,800) (369,800)
Total transactions with owners, recorded directly in equity - - - - - - - (244,565) - - - - (244,565) (437,403) (681,968)
Comprehensive income for the periodLoss - - - - - - - (877,671) - - - - (877,671) (31,442) (909,113) Other comprehensive income (loss) - - - - - - - - 29,764 - 16,397 46,161 46,161 (30,502) 15,659
Total comprehensive income (loss) for the period - - - - - - - (877,671) 29,764 - 16,397 46,161 (831,510) (61,944) (893,454) Balance at 30 September 2020 850,000 (15,740) 1,643,000 18,365 85,000 415,272 15,740 773,976 (152,571) - 16,397 (136,174) 3,649,439 679,636 4,329,075
(in thousand Baht)
Retained earnings Other components of equityConsolidated financial statements
Unappropriated
Premium on shares
The accompanying notes form an integral part of the interim financial statements.
10
Dusit Thani Public Company Limited and Subsidiaries
Other components
of equity
Differences on
Issued and remeasuring
paid-up Premium on Surplus on available-for-sale Total
Note share capital ordinary shares treasury shares Legal reserve Unappropriated investments equity
For the nine-month period ended 30 September 2019Balance at 1 January 2019 850,000 1,643,000 16,950 85,000 785,986 6,280 3,387,216Transactions with owners, recorded directly in equity Distributions to owners of the Company
Dividends 18 - - - - (144,500) - (144,500)
Total distributions to owners of the Company - - - - (144,500) - (144,500) Comprehensive income for the period Profit - - - - 40,779 - 40,779
Other comprehensive income (loss) - - - - 3,622 (1,494) 2,128
Total comprehensive income (loss) for the period - - - - 44,401 (1,494) 42,907 Balance at 30 September 2019 850,000 1,643,000 16,950 85,000 685,887 4,786 3,285,623
For the nine-month period ended 30 September 2020Balance at 31 December 2019 - as reported 850,000 1,643,000 16,950 85,000 595,490 - 3,190,440Impact of changes in accounting policies 3 - - - - 319,100 - 319,100
Balance at 1 January 2020 850,000 1,643,000 16,950 85,000 914,590 - 3,509,540
Transactions with owners, recorded directly in equity Distributions to owners of the Company
Dividends 18 - - - - (161,500) - (161,500)
Total distributions to owners of the Company - - - - (161,500) - (161,500) Comprehensive income for the period Loss - - - - (46,872) - (46,872)
Other comprehensive income - - - - - - -
Total comprehensive income for the period - - - - (46,872) - (46,872) Balance at 30 September 2020 850,000 1,643,000 16,950 85,000 706,218 - 3,301,168
Statement of changes in equity (Unaudited)
Separate financial statements
(in thousand Baht)
Retained earningsPremium on shares
The accompanying notes form an integral part of the interim financial statements.
11
Dusit Thani Public Company Limited and its SubsidiariesStatement of cash flows (Unaudited)
Consolidated Separate
Note 2020 2019 2020 2019
Cash flows from operating activities
Profit (loss) for the period (909,113) 339,581 (46,872) 40,779
Adjustments to reconcile profit (loss) to cash receipts (payment)
Realised income from deferred rental revenue (19,023) (19,766) - (57,660)
Interest income (17,658) (15,561) (182,612) (29,299)
Dividend income - (8,621) (233,408) (261,944)
Gain on remeasuring of other financial assets (193) - (521) -
(Reversal of) bad and doubtful debts expenses 54,884 (4,362) 13,268 (1,066)
Depreciation of plant and equipment 10 278,245 316,029 83,100 63,320
Depreciation of right-of-use assets 11 342,106 - 86,160 -
Amortisation of other intangible assets 45,748 30,174 5,985 5,959
Loss on written-off withholding tax - 11,668 - -
Amortisation of prepaid rental of land and buildings - 94,008 - 69,507
Amortisation of deferred debenture fee 772 772 772 772
Provisions for employee benefits 29,848 53,612 11,942 19,814
Share of net profits from investments by the equity method (44,982) (13,909) - -
Gain on sale of property, plant and equipment (4,443) (590,859) (4,693) (2,666)
Reversal of impairment losses on investment - (56) - (56)
(Gain) loss on sale of investment in joint venture - 20 - (245)
Gain on sale of other financial assets (16) - - -
Gain on sale of other long-term investment - (215,572) - (215,572)
Gain on reclassification of investment (126,542) - - -
Loss on written-off of equipment 821 1,405 265 793
Gain on capital reduction of subsidiary (23,220) - - -
Finance costs 320,636 84,237 244,844 52,785
Tax expense (income) (54,161) 131,617 (3,388) 4,955
(126,291) 194,417 (25,158) (309,824)
Changes in operating assets and liabilities
Operating assets (increase) decrease
Trade and other current receivables 152,851 378,761 (55,335) 265,359
Inventories 7,275 11,074 3,987 1,684
Other current assets (95,306) (103,686) 26,591 (76,211)
Prepaid rental of land and buildings - 49,857 - -
Other non-current assets (10,152) (4,365) 9,498 14,708
(in thousand Baht)
financial statements financial statementsNine-month period ended Nine-month period ended
30 September 30 September
The accompanying notes form an integral part of the interim financial statements.
12
Dusit Thani Public Company Limited and its SubsidiariesStatement of cash flows (Unaudited)
Consolidated Separate
Note 2020 2019 2020 2019
Cash flows from operating activities (Continued)
Operating liabilities increase (decrease)
Trade and other current payables (18,780) (134,278) (43,287) (94,691)
Other current liabilities (12,833) 8,701 3,199 (6,484)
Other non-current liabilities 17,117 1,561 271 (2,075)
Payment for provisions for employee benefits (39,514) (89,266) (16,220) (88,783)
Cash generated from (used in) operating activities (125,633) 312,776 (96,454) (296,317)
Taxes paid (228,719) (80,536) (7,721) (22,872)
Net cash from (used in) operating activities (354,352) 232,240 (104,175) (319,189)
Cash flows from investing activities
Interest income 2,228 10,380 18,835 12,224
Proceeds from sale of other financial assets 478,768 - 5,389 -
Payment for other financial assets (16,154) (1,463) (4,868) -
Payment for short-term loans to related parties 13 - - (590,083) -656,900
Proceeds from short-term loans to related parties 13 - - 162,000 34,600
Payment for long-term loans to related parties 13 (92,490) (43,803) (492,997) (30,353)
Proceeds from long-term loans to related parties - 1,707 - -
Payment for short-term loans to other party - (15,300) - -
Dividend received - 8,621 - 127
Dividend received from subsidiaries 8 - - 193,482 209,823
Dividend received from associate 7 39,926 51,995 39,926 51,995
Proceeds from sales of investment in joint venture - 245 - 245
Payment of investment in associate - (565,969) - (525,927)
Net cash outflow for acquisition of subsidiaries 5 (11,258) (388,425) - -
Payment of shares subscription in subsidiaries - - (212,314) (8,999)
Payment of change in ownership interest in subsidiaries
without a change in control 8 (146,328) - - -
Proceeds from sale of other long-term investment - 215,628 - 215,628
Proceeds from capital reduction of associate 7 16,961 9,219 16,961 -
Payment from shares reduction of subsidiary (431,909) - - -
Proceeds from sale of property, plant and equipment 16,922 2,369,949 16,600 6,776
Payment of equipment (926,593) (718,070) (141,804) -201,382
Payment of other intangible assets (17,761) (35,830) (4,476) -3,392
Payment for advance for construction (581,864) - - -
Payment for right-of-use assets 11 (7,793) - (4,500) -
(in thousand Baht)
financial statements financial statementsNine-month period ended Nine-month period ended
30 September 30 September
The accompanying notes form an integral part of the interim financial statements.
13
Dusit Thani Public Company Limited and its SubsidiariesStatement of cash flows (Unaudited)
Consolidated Separate
Note 2020 2019 2020 2019
Cash flows from investing activities (Continued)
Payment of prepaid rental of land and buildings - (772,583) - (748,883)
Payment for deposits 12 (302,030) (190,860) (254,480) (190,860)
Proceeds from non-controlling interests
for the increase in capital of a subsidiary 79,483 - - -
Net cash used in investing activities (1,899,892) (64,559) (1,252,329) (1,835,278)
Cash flows from financing activities
Proceeds from short-term loans from financial institutions 3,083,000 5,657,000 3,083,000 5,657,000
Repayment of short-term loans from financial institutions (2,537,000) (3,222,000) (2,537,000) (3,222,000)
Proceeds from short-term loans from related parties - 37,705 - -
Repayment of short-term loans from related parties - (42,076) - (90,400)
Proceeds from long-term loans from related parties 13 288,997 - 1,086,000 -
Repayment of long-term loans from related parties - (289,642) - -
Repayment of long-term loans from financial institutions (53,668) (13,500) (8,250) (13,500)
Repayment of lease liabilities (395,375) (542) (53,367) -
Interest paid (90,277) (90,356) (100,583) (52,251)
Dividend paid (245,323) (216,637) (161,500) (144,500)
Net cash from financing activities 50,354 1,819,952 1,308,300 2,134,349
Net increase (decrease) in cash and cash equivalents,
before effect of exchange rates (2,203,890) 1,987,633 (48,204) (20,118)
Effect of exchange rate changes on cash
and cash equivalents 91,350 (50,950) - -
Net increase (decrease) in cash and cash equivalents (2,112,540) 1,936,683 (48,204) (20,118) Cash and cash equivalents at 1 January 2,600,475 1,112,332 92,500 105,481
Cash and cash equivalents at 30 September 487,935 3,049,015 44,296 85,363
Non-cash transactions
Payables from acquisition of assets 13,054 38,878 7,592 29,895
Interest income from finance lease receivables - - 131,205 -
(in thousand Baht)
financial statements financial statementsNine-month period ended Nine-month period ended
30 September 30 September
The accompanying notes form an integral part of the interim financial statements.
14
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
15
Note Contents
1 General information
2 Basis of preparation of the interim financial statements
3 Changes in accounting policies
4 Impact of Covid-19 outbreak
5 Acquisition of subsidiaries 6 Trade and other current receivables
7 Investments in associates
8 Investments in subsidiaries
9 Investments in joint ventures
10 Property, plant and equipment
11 Right-of-use assets
12 Deposits
13 Related parties
14 Segment information and disaggregation of revenue
15 Leases
16 Income tax
17 Earnings (loss) per share
18 Dividends
19 Financial instruments
20 Commitments
21 Contingent liabilities
22 Others
23 Events after the reporting period
24 Reclassification of accounts
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
16
These notes form an integral part of the interim financial statements.
The interim financial statements issued for Thai regulatory reporting purposes are prepared in the
Thai language. These English language financial statements have been prepared from the Thai
language financial statements, and were approved and authorised for issue by the Board of Directors
on 16 November 2020.
1 General information
The principal activities of the Company and the Group are to operate hotel business, hotel management
service, education and foods.
2 Basis of preparation of the interim financial statements
(a) Statement of compliance
The condensed interim financial statements are presented in the same format as the annual financial
statements and prepared its notes to the interim financial statements on a condensed basis (“interim
financial statements”) in accordance with Thai Accounting Standard (TAS) No. 34 Interim Financial
Reporting, guidelines promulgated by the Federation of Accounting Professions and applicable rules
and regulations of the Thai Securities and Exchange Commission.
The interim financial statements do not include all of the financial information required for full annual
financial statements but focus on new activities, events and circumstances to avoid repetition of
information previously reported. Accordingly, these interim financial statements should be read in
conjunction with the financial statements of the Company and its subsidiaries for the year ended 31
December 2019.
The Group has initially applied TFRS - Financial instruments standards and TFRS 16 Leases and
disclosed impact from changes to significant accounting policies in note 3.
In addition, the Group has not early adopted a number of new and revised TFRS, which are not yet
effective for the current period in preparing these financial statements. The Group has assessed the
potential initial impact on the financial statements of these new and revised TFRS and expects that
there will be no material impact on the financial statements in the period of initial application.
(b) Use of judgements and estimates
In preparing these interim financial statements, judgements and estimates are made by management in
applying the Group’s accounting policies. Actual results may differ from these estimates. The
accounting policies, methods of computation and the key sources of estimation uncertainty were the
same as those that described in the financial statements for the year ended 31 December 2019, except
for the new significant judgements and key sources of estimation uncertainty related to the application
of new TFRS and Covid-19 outbreak as described in notes 3 and 4, respectively.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
17
3 Changes in accounting policies
From 1 January 2020, the Group has initially applied TFRS - Financial instruments standards and TFRS
16. Impact of changes in accounting policies on shareholders’ equity are as follows:
Consolidated
financial
statements
Separate
financial
statements
Retained
earnings
Retained
earnings
Note (in thousand Baht)
At 31 December 2019 - as reported 1,896,212 595,490
Increase (decrease) due to:
Adoption of TFRS 16 - net of tax B - 319,100
At 1 January 2020 - restated 1,896,212 914,590
A. TFRS - Financial instruments standards
These TFRS - Financial instruments standards establish requirements related to definition,
recognition, measurement, impairment and derecognition of financial assets and financial
liabilities, including accounting for derivatives and hedge accounting. The impact from adoption
of TFRS - Financial instruments standards are as follows:
(1) Classification and measurement of financial assets and financial liabilities
TFRS 9 contains three principal classification categories for financial assets: measured at
amortised cost, fair value through other comprehensive income (FVOCI) and fair value to profit
or loss (FVTPL). The classification under TFRS 9 is based on the cash flow characteristics of
the financial asset and the business model in which they are managed. TFRS 9 eliminates the
previous classification of held-to-maturity debt securities, available-for-sale securities, trading
securities and general investment as specified by TAS 105.
The following table shows measurement categories under previous standards and TFRS 9 of the Group’s
other investments as at 1 January 2020. Other financial assets and financial liabilities are measured at
amortised cost.
Consolidated financial statements
Classification under previous standards
at 31 December 2019
Classification under TFRS 9 at 1 January 2020
Carrying
amounts
Fair value
- applied
hedge
accounting
Fair value
through
profit or
loss
Fair value
through other
comprehensive
income
Amortised
cost - net
(in thousand Baht)
Other financial assets
- Deposits at financial institutions 458,901 - - - 458,901
- Equity instruments held for
trading 473,884
-
473,884
-
-
- Other non-marketable equity
instruments 33,804
-
33,804
-
-
Total other financial assets 966,589 - 507,688 - 458,901
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
18
3 Changes in accounting policies (Continued)
The Group intends to hold non-marketable equity securities amounted of Baht 34 million for the long-
term strategic purposes. The Group has designated them as measured at fair value through profit or
loss.
(2) Impairment - Financial assets
TFRS 9 introduces forward-looking ‘expected credit loss’ (ECL) model whereas previously
the Group estimates allowance for doubtful account by analysing payment histories and future
expectation of customer payment. TFRS 9 requires considerable judgement about how
changes in economic factors affect ECLs, which will be determined on a probability-weighted
basis. The new impairment model applies to financial assets measured at amortised cost.
The Group has determined that the application of TFRS 9’s impairment requirements at
1 January 2020 have no material impact on allowance for impairment losses.
B. TFRS 16 Leases
From 1 January 2020, the Group has initially adopted TFRS 16 on contracts previously identified
as leases according to TAS 17 Leases and TFRIC 4 Determining whether an arrangement contains
a lease using the modified retrospective approach.
(1) As a lessee
Previously, the Group, as a lessee, recognised payments made under operating leases in profit or
loss on a straight-line basis over the term of the lease. Under TFRS 16, the Group assesses whether
a contract is, or contains, a lease. If a contract contains lease and non-lease components, the Group
allocates the consideration in the contract based on stand-alone selling price (transaction price). As
at 1 January 2020, the Group recognised right-of-use assets and lease liabilities, as a result, the
nature of expenses related to those leases was changed because the Group recognised depreciation
of right-of-use assets and interest expense on lease liabilities.
On transition, the Group also elected to use the following practical expedients:
- do not recognise right-of-use assets and lease liabilities for leases with less than 12 months of
lease term;
- do not recognise right-of-use assets where the underlying asset has a low value.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
19
3 Changes in accounting policies (Continued)
(2) As a lessor
The accounting policies under TFRS 16 that the Group applied as a lessor are not different from
those under TAS 17, except for a sub-lease. Under TFRS 16, the sub-leases are classified with
reference to the right-of-use asset rather than the underlying asset. However, the consideration received are allocated to each lease and non-lease component based on its stand-alone selling
prices.
The Company entered into a land lease agreement to develop a Mixed Use Property Development
Project with The Crown Property Bureau for a period of 30 years (excluding the project’s
construction period of 7 years) from 1 July 2024 with the right to renew the lease for another 30
years until 30 June 2084. Subsequently, the Company entered into a land sub-lease agreement with
Vimarn Suriya Co., Ltd., a subsidiary (“the sub-lessee”). The sub-lessee has the right to construct
building and structure on the land. The sub-lease term is for 30 years from 1 July 2024 with the
right to renew the lease for another 30 years until 30 June 2084. The Company reassessed the
classification of sub-leases contracts, resulting in recognition of finance lease receivables and
recognition in retained earnings, net of tax at 1 January 2020 totalling Baht 319.10 million.
Impact from the adoption of TFRS 16
Consolidated
financial
statements
Separate
financial
statements
(in thousand Baht)
At 1 January 2020
Increase in finance lease receivables - 2,915,270
Increase in right-of-use assets 9,146,529 1,173,128
Decrease in prepaid rental of land and buildings (1,496,427) (1,491,200)
Increase in lease liabilities (7,650,102) (3,367,776)
Decrease in deferred rental revenue - 1,169,453
Increase in deferred tax liabilities - (79,775)
Increase in retained earnings - (319,100)
Measurement of lease liabilities
Consolidated
financial
statements
Separate
financial
statements
(in thousand Baht)
Operating lease commitment at 31 December 2019 22,028,348 14,561,456
Recognition exemption for short-term leases (2,274) (1,316)
Recognition exemption for leases of low-value assets (1,828) (120)
Extension and termination options reasonably certain to be exercised 38,302 38,302
22,062,548 14,598,322
Present value of remaining lease payments, discounted using the
incremental borrowing rate at 1 January 2020
7,650,102
3,367,776
Lease liabilities recognised at 1 January 2020 7,650,102 3,367,776
Weighted-average incremental borrowing rate (% per annum) 6.23 5.76
Right-of-use assets and lease liabilities shown above were presented as part of hotel and hotel
management segment, foods segment and others segment.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
20
4 Impact of Covid-19 outbreak
Due to the Covid-19 outbreak at the beginning of 2020, Thailand and many other countries have
enacted several protective measures against the outbreak. The management is closely monitoring the
situation to ensure the safety of the Group’s staff and customers and to manage the negative impact
on the business as much as possible.
The management has decided to temporarily close hotel operations in the Philippines from 16 March
2020. Other overseas owned hotels by the Company and its subsidiaries may also be temporarily
closed, depending on the local situation and respective government policy. In addition, the Company
temporarily close all its seven owned hotels in Thailand from 7 April 2020. This conformed with the
orders of several provincial governments to temporarily cease operation or reduce operating hours.
The management is continuously taking corrective actions to address this situation in order to lessen
the impact on the Group’s assets and operations.
Since Covid-19 outbreak situation in Thailand has seen positive signs, the government and
government agencies has eased restrictions to control the epidemic widespread of Covid-19 and
issued measures to promote local travelling to accelerating tourism, starting from June 2020, the
Company and the group has opened three of its owned hotels including Dusit Thani Hua Hin, Dusit
Thani Pattaya, and Dusit Suites Hotel Ratchadamri Bangkok. Properties managed by Dusit has
gradually begun opening from early July 2020 onwards.
Other owned 4 hotels by the Group including Dusit Princess Srinakarin Bangkok, Dusit Thani
Laguna Phuket and dusitD2 Chiang Mai has gradually begun opening from early August 2020. Dusit
Princess Chiang Mai, which cater primarily to international visitors and business travellers, are
slated to reopen when travel restrictions are further eased.
Baan Dusit Thani has been fully operational since early May 2020.
Overseas owned hotels by the Company and the Group may also be considered reopened depending
on the local situation and respective government policy.
Besides aforementioned business operational adjustment, the Company also prudently managed its
financial management particularly implementing the cost cutting measures including lowering salary
of executives, professional fees and other administration expenses as well as negotiating with
counterparties to delay or postpone payments. In addition, the organisational transformation has
been put in place to respond the future business model, to enhance operational efficiency, to reduce
redundancy, and to save cost and expense in the long term. The Company has also adjusted
investment plan and delayed the new investments.
The Company priority also to preserve financial liquidity. As at 30 September 2020, the Group and
the Company had cash and short-term investments around Baht 908 million and Baht 44 million with
undrawn credit facilities approximately Baht 1,201 million and Baht 992 million, respectively. The
Company has got the approval from a financial institution for the project finance loan approximately
worth Baht 1,400 million that is currently in process of drafting agreement.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
21
4 Impact of Covid-19 outbreak (Continued)
As at 30 September 2020, the situation of Covid-19 outbreak is still ongoing, resulting in estimation
uncertainty on the potential impact, therefore, the Group elected to apply accounting guidance on
temporary accounting relief measures for additional accounting options in response to impact from the
situation of Covid-19 outbreak issued by the Federation of Accounting Professions on the following:
(a) Impairment of assets
The Group considered impairment of trade receivables under simplified approach using historical
loss rate and did not take forward-looking information into account.
The Group elected to exclude the Covid-19 situation as impairment indicator for property, plant
and equipment, investment properties, intangible assets, and elected to exclude the Covid-19
situation, which may affect future financial forecasts, from the impairment testing factors of
goodwill, other intangible assets with an indefinite useful life.
(b) Fair value measurement
The Group elected to measure investment in non-marketable equity securities at 30 September
2020 using fair values at 1 January 2020.
(c) Deferred tax assets
The Group elected to exclude the factor of Covid-19 situation in considering sufficiency of future
taxable profits to review the amount of deferred tax assets at 30 September 2020.
5 Acquisition of subsidiaries
On 13 August 2020, the Group obtained control of The Caterers Co., Ltd. group (formerly named The
Caterers Joint Stock Company) which engages in the food and beverage catering business in Vietnam,
by acquiring 100% of shares and voting interests in the company through Epicure Catering Co., Ltd, an
indirect subsidiary of the Company (70% shareholding), representing a total investment value of USD
2.91 million (approximately Baht 91.1 million). The Group paid for the share purchase prices of USD
0.91 million (approximately Baht 28.6 million) and the remaining amount of USD 2.00 million
(approximately Baht 62.5 million) will be paid by 2022 according to installments indicated in the share
purchase agreement. The Group recognised the remaining unpaid amount of share price as at 30
September 2020 at present value.
During the period from the acquisition date to 30 September 2020, The Caterers Co., Ltd. group
contributed revenue of Baht 20.1 million and profit of Baht 1.2 million including in the Group’s
results. Management expected that if the Group has acquired the business from 1 January 2020, there
will be a further increase in total revenue of Baht 72.1 million and total loss for the three-month and
nine-month periods ended 30 September 2020 will be increase in amount of Baht 2.7 million and Baht
15.7 million, respectively. For finalisation of the fair values of business acquisition, management uses
the assumptions to adjust fair value. It is considered that the business combination that occurred during
that period has occurred since 1 January 2020.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
22
5 Acquisition of subsidiaries (Continued)
The following summarises the major classes of consideration transferred, and the recognised amounts
of assets acquired and liabilities assumed at the acquisition date:
Assets acquired and liabilities assumed
Fair values
(in million Baht)
Cash and cash equivalents 17
Trade and other receivables 29
Inventories 1
Goodwill 9
Other current assets 1
Property, plant and equipment 8
Trade and other payables (45)
Total identifiable assets acquired and liabilities assumed 20
Less non-controlling interests -
Fair value of identifiable assets acquired and liabilities assumed 20
Goodwill 68
Purchase consideration transferred 88
- Purchase consideration transferred - paid 28
- Purchase consideration transferred - not paid (recorded as payable for
acquisition of business)
60
Net cash acquired with the subsidiary 17
Cash paid (28)
Net cash outflows (11)
The Group engaged independent appraisers to determine the fair values of assets acquired and
liabilities assumed from acquisition of business. However, the valuation has not been completed. The
fair values of net assets acquired and the allocation of purchase price have been provisionally
determined and are subject to potential amendment.
In accordance with TFRS 3, management is required to make a preliminary assessment of the fair
values of net assets acquired as at the acquisition date. During the measurement period, which must not
exceed one year from the acquisition date, the acquirer shall retrospectively adjust the provisional
amounts recognised at the acquisition date to reflect new information obtained about facts and
circumstances that existed as of the acquisition date. Finalisation of the fair values of business
acquisition is dependent on completion of the purchase price allocation exercise.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
23
6 Trade and other current receivables
Consolidated financial statements
Separate financial statements
30 September 31 December 30 September 31 December
Note 2020 2019 2020 2019 (in thousand Baht)
Trade receivables - net 19 202,035 195,480 15,686 21,408 Trade receivables -
management fee and
other services - net 19 27,258 59,782 90,960 90,331 Other receivables - others 84,090 214,310 100,657 77,630 Less allowance for impairment (2019: allowance for doubtful accounts) (29,431) (8,740) (14,496) (8,740) 283,952 460,832 192,807 180,629
Other receivable - World Intertrade Corporation Limited 40,879 40,879 40,879 40,879 Less allowance for impairment (2019: allowance for doubtful accounts) (40,879) (40,879) ) (40,879) (40,879) - - - - Receivable from sale of investment 675,379 775,379 - - Receivable from framework
development income 13 30,000 - 30,000 -
Accrued interest income 42,877 22,991 67,499 34,973
Accrued income 492 2,851 4 99
Prepaid income tax 47,891 42,562 18,129 22,703
Prepayment for room rental 83,336 78,124 - -
Deposits 4,168 3,970 - -
Insurance claim 6 632 - 15
Total 1,168,101 1,387,341 308,439 238,419
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
24
7 Investments in associates
Investments in associates as at 30 September 2020 and 31 December 2019, and dividend income from those investments for the nine-month periods ended 30
September 2020 and 2019 were as follows:
Consolidated
financial statements
Separate
financial statements
Type of
business
Ownership
interest
Paid-up capital
Equity
Cost
Dividend income
for the nine-month
period ended
30 September 31 December 30 September 31 December 30 September 31 December 30 September 31 December 30 September
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Direct associates
Dusit Thani Freehold and Leasehold
Real Estate Investment Trust (1)
Lease the
investment
properties 30.02 30.02 5,351,243 5,407,736 1,439,184 1,415,011 1,594,980 1,611,942 39,926 51,995
Suanlum Property Co., Ltd. (2) Department
store, plaza
and cinema 22.00 22.00 172,000 172,000 - 32,881 28,374 37,839 - -
Phraram 4 Development Co., Ltd. Office
construction 10.00 10.00 1,000 1,000 - - 100 100 - -
Indirect associates
NR Instant Produce Public Co., Ltd. (3) Manufacturing - 6.38 - 1,066 - 182,683 - - - -
Dusit Hospitality Education
Philippines, Inc. Education 35.54 35.54 PHP 900,000 PHP 900,000 176,403 183,850 - - - -
Total 1,615,587 1,814,425 1,623,454 1,649,881 39,926 51,995
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
25
7 Investments in associates (Continued)
(1) Dusit Thani Freehold and Leasehold Real Estate Investment Trust (“the Trust”) is listed on Stock
Exchange of Thailand. As at 30 September 2020, the fair value of the Company’s investment in
the Trust was Baht 816.04 million (31 December 2019: Baht 1,367.19 million), which is
determined to be level 2 of the fair value measurement.
On 25 March 2020, the Company received of Baht 16.96 million from the capital reduction of the
Trust.
(2) According to the share purchase agreement, the Company shall partially sell investment in ordinary
shares of Suanlum Property Co., Ltd. of 94,655 shares at a par value of Baht 100 per share (represented
5.5% shareholding) to a company in 2021. As such, the investment is presented as non-current assets
classified as held for sale in the statement of financial position as at 30 September 2020.
The Group has eliminated deferred income based on shareholding proportion of Baht 65.26
million (note 13), resulting in the investments in associate amounting to Baht 41.97 million
presented as other non-current liabilities in the statement of financial position as of 30 September
2020.
(3) On 28 September 2020, the Group has reclassified investment in NR Instant Produce Public Company
Limited, an indirect associate, to other non-current financial assets due to the Group has lost
significant influence from no representative on the board of directors of the associate. The Group
recognised difference between the carrying amount of the investment at the date the equity method
was discontinued and the fair value as gain on reclassification of investment in the amount of Baht
126.54 million in consolidated financial statements for the three-month and nine-month periods end
30 September 2020. In addition, the share certificates of such company of 10,997,300 shares which
pledged as collateral for loan from financial institution of such company have been released.
All associates were incorporated in Thailand, except Dusit Hospitality Education Philippines, Inc.
which was incorporated in the Philippines.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
26
8 Investments in subsidiaries
Investments in subsidiaries as at 30 September 2020 and 31 December 2019, and dividend income for the nine-month periods ended 30 September 2020 and
2019 were as follows:
Separate financial statements
Ownership interest
Paid-up capital
Cost
Dividend income
for the nine-month
period ended
Country of 30 September 31 December 30 September 31 December 30 September 31 December 30 September
Type of business incorporation 2020 2019 2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Direct subsidiaries
Dusit Thani Properties Co., Ltd. Holding Thailand 99.99 99.99 800,000 800,000 799,999 799,999 168,800 204,800
Landmark Hotel Co., Ltd. Hotel Thailand 99.88 99.88 10,000 10,000 9,988 9,988 - -
Devarana Spa Co., Ltd. Spa Thailand 99.99 99.99 8,000 8,000 8,000 8,000 - -
Dusit Thai Properties Public Company Limited Hotel and hotel
management Thailand 2.75 2.75 825,000 825,000 40,110 40,110 17,682 -
Dusit Worldwide Co., Ltd. Management Thailand 99.99 99.99 50,000 50,000 50,000 50,000 - 1,023
Dusit Management Co., Ltd.(1) Hotel Thailand 99.99 99.99 22,000 9,000 22,000 9,000 - 4,000
Dusit USA Management Inc. Hotel management
United States
of America 100.00
100.00
USD 40
USD
40 1,243
1,243 -
-
Dusit China Capital Co., Ltd. Holding Thailand 99.99 99.99 68,000 68,000 68,000 68,000 - -
Dusit Excellence Co., Ltd. Leasing and
sub-leasing Thailand 99.99
99.99 120,000 120,000 120,000 120,000 -
-
Vimarn Suriya Co., Ltd.(2) Hotel, resorts and
residence Thailand 65.00
65.00 1,100,000
880,020 660,000
528,012 -
-
Dusit Thani Properties REIT Co., Ltd. REIT manager for
real estate
investment trust Thailand 99.99
99.99 10,000 10,000 10,000 10,000 7,000
-
Asai Holdings Co., Ltd.(3) Holding Thailand 99.99 99.99 75,000 18,825 75,000 18,825 - -
Dusit Foods Co., Ltd. Holding Thailand 99.99 99.99 713,000 713,000 713,000 713,000 - -
Dusit Hospitality Services Co., Ltd. Services Thailand 99.97 99.97 1,000 1,000 1,000 1,000 - -
Grace Me Co., Ltd. Hospitality and
other lifestyle
services Thailand 99.99
99.99
3,000
3,000 3,000
3,000 -
-
D&J Co., Ltd.
(formerly named Dusit Colours Co., Ltd.) Hotel management Japan 100.00 100.00 JPY 10,000 JPY 10,000 2,976 2,926 - -
Dusit Japan Godo Gaisha.Co., Ltd.(4) Hotel management Japan 100.00 - JPY 500 - 152 - - -
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
27
8 Investments in subsidiaries (Continued)
Separate financial statements
Ownership interest
Paid-up capital
Cost
Dividend income
for the nine-month
period ended
Country of 30 September 31 December 30 September 31 December 30 September 31 December 30 September
Type of business incorporation 2020 2019 2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Indirect subsidiaries
Dusit Thai Properties Public Company Limited Hotel and hotel
management
Thailand 84.04
84.04 825,000 825,000
-
-
-
-
Dusit Thani Philippines, Inc. Hotel Philippines 88.00 88.00 PHP 455,000 PHP 455,000 - - - -
DMS Property Investment Pvt. Ltd.(5)
Hotel
Republic of
Maldives 56.41
56.41
USD 200
USD
38,500
-
-
-
-
Dusit Thani College Education Thailand 86.79 86.79 217,716 217,716 - - - -
LVM Holdings Pte. Ltd Holding Singapore 100.00 100.00 SGD 11 SGD 11 - - - -
Private Homes and Villas Pte. Ltd.
Business of marketing,
booking, and villa
management
Singapore
100.00
100.00
SGD
100
SGD
100
-
-
-
-
PT. Elite Havens
Management
consultancy Indonesia
100.00
100.00
IDR
2,536,500
IDR
2,536,500
-
-
-
-
Shanghai Yi-Nong Travel Consultation Co., Ltd. Marketing People’s
Republic
of China 100.00 100.00 CNY 69 CNY 69 - - - -
PT Bali Home Manajemen
Management
consultancy Indonesia
100.00
100.00
IDR
2,500,000
IDR
2,500,000
-
-
-
-
Bali Luxe Ltd. Servicing Hong Kong 100.00 100.00 HKD 10 HKD 10 - - - -
Marketing Villas Ltd. Marketing Hong Kong 100.00 100.00 USD 832 USD 832 - - - -
Elite Havens Ltd. Servicing Hong Kong 100.00 100.00 HKD 10 HKD 10 - - - -
Niseko Gourmet Co., Ltd. Property management
and marketing Japan 100.00
100.00
JPY 5,000
JPY
5,000
-
-
-
-
Dusit Overseas Co., Ltd. Management Hong Kong 99.99 99.99 HKD 33 HKD 33 - - - -
Dusit Maldives Management Pvt. Ltd. Hotel Republic of
Maldives 99.99
99.99
USD 10
USD
10
-
-
-
-
Dusit Worldwide Maldives Pvt. Ltd.(6) Management Republic of
Maldives 99.98
99.98
USD 5
USD
5
-
-
-
-
Dusit Gourmet Co., Ltd.
Sales and marketing
for food related
products Thailand 92.52 92.52 30,000 30,000
-
-
-
-
Dusit Real Foods Co., Ltd.(7) Healthy food
restaurant Thailand 51.00 51.00 15,000 10,000
-
- -
-
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
28
8 Investments in subsidiaries (Continued)
Separate financial statements
Ownership interest
Paid-up capital
Cost
Dividend income
for the nine-month
period ended
Country of 30 September 31 December 30 September 31 December 30 September 31 December 30 September
Type of business incorporation 2020 2019 2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Epicure Catering Co., Ltd.(8) Food and beverage Thailand 70.00 51.00 14,000 14,000 - - - -
Epicure Catering Indochina Co., Ltd.(8) Food and beverage Vietnam 70.00 51.00 VND 2,250,200 VND 2,250,200 - - - -
Epicure Catering (Cambodia) Co., Ltd.(8) Food and beverage Cambodia 70.00 51.00 KHR 20,000 KHR 20,000 - - - -
The Caterers Co., Ltd.
(formerly named The Caterers Joint Stock
Company) (9) Food and beverage Vietnam 70.00
-
VND 1,119,730 - - - - -
School Foods Co., Ltd.(9) Production and
distribution of food
and beverage Vietnam 70.00
-
VND 16,568,000 - - - - -
Quang Lap Production and Trading Co., Ltd.(9) Production and
distribution of food
and beverage Vietnam 70.00
-
VND 1,500,000 - - - - -
S & D Sai Gon Food Distribution and
Processing Trading Co., Ltd.(9)
Production and
distribution of food
and beverage Vietnam 70.00
-
VND 350,000 - - - - -
Total 2,584,468 2,383,103 193,482 209,823
Less allowance for impairment (74,773) (74,773)
Net 2,509,695 2,308,330
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
29
8 Investments in subsidiaries (Continued)
(1) On 9 April 2020, the extraordinary meeting of the shareholders of Dusit Management Co., Ltd.
passed a resolution to additional increase its registered capital of 1.30 million shares at a par
value of Baht 10 per share, totalling Baht 13 million. The Company has invested in whole
amount. (2) On 29 May 2020, Vimarn Suriya Co., Ltd. has called for the remaining 20% share subscription,
totalling Baht 219.98 million. The Company has already paid in proportion of its invested
amount. According to the share purchase agreement, the Company shall partially sell investment
in ordinary shares of Vimarn Suriya Co., Ltd. of 550,000 shares (accounted for 5% shareholding)
to another company in 2020. Therefore, the investment is presented as non-current assets
classified as held for sale in the statement of financial position as at 30 September 2020. (3) On 13 February 2020, Asai Holdings Company Limited has called for the remaining 75% share
subscription, totalling Baht 56.18 million. The Company has fully paid for the share subscription. (4) On 30 June 2020, the Company has 100% invested in Dusit Japan Godo Gaisha Co., Ltd.,
totalling JPY 500,000. (5) On 12 March 2020, DMS Property Investment Pvt. Ltd. has register a reduction of registered
share capital from USD 38.50 million to USD 0.20 million with the Government agencies of the
Republic of Maldives. Therefore, the Group recognised gain on capital reduction of subsidiary
totalling Baht 23.22 million in the consolidated statement of income for the nine-month period
ended 30 September 2020. (6) On 15 September 2019, Dusit Worldwide Co., Ltd., the subsidiary, has established Dusit
Worldwide Maldives Pvt. Ltd. in Republic of Maldives to manage Dusit Thani Maldives hotel.
This subsidiary has fully paid for the share subscription. (7) On 22 June 2020, Dusit Real Foods Co., Ltd., an indirect subsidiary, has increase its registered
capital amount of Baht 5.00 million and Dusit Foods Co., Ltd., a subsidiary has paid for this
capital increase in proportion of its investment in this indirect subsidiary. (8) On 31 January 2020, Dusit Foods Co., Ltd., the subsidiary, has additionally invested 19%,
totalling Baht 146.33 million in Epicure Catering Co., Ltd. (9) On 13 August 2020, Epicure Catering Co., Ltd., an indirect subsidiary, invested 100% in The
Caterers Co., Ltd. group (formerly named The Caterers Joint Stock Company) (see note 5).
None of the subsidiaries are publicly listed and consequently do not have published price quotation.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
30
9 Investments in joint ventures
Investments in joint ventures as at 30 September 2020 and 31 December 2019, and dividend income from those investments for the nine-month periods ended
30 September 2020 and 2019 were as follows:
Consolidated
financial statements
Separate
financial statements
Ownership
interest
Paid-up capital
Equity
Cost
Dividend income
for the nine-month
period ended
Type of Country of 30 September 31 December 30 September 31 December 30 September 31 December 30 September 31 December 30 September
business incorporation 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(%) (in thousand Baht)
Joint ventures
Le Cordon Bleu Dusit Co., Ltd. Cooking school Thailand 49.99 49.99 40,000 40,000 57,825 62,469 - - - -
Dusit Fudu Hotel Management
(Shanghai) Co., Ltd. (1) Hotel
management
People’s
Republic
of China 44.99 44.99 CNY 30,000 CNY 30,000 - - - - - -
The Origin Dusit Co., Ltd. (2) Construction
and
development
condominium Thailand 44.79 49.00 189,529 173,260 114,481 118,013 119,882 119,882 - -
Total 172,306 180,482 119,882 119,882 - -
(1) Dusit Fudu Hotel Management (Shanghai) Co., Ltd. was held by Dusit China Capital Co., Ltd., a subsidiary at 44.99% shareholding. Liabilities from
investment in joint venture derived from such subsidiary provided financial support to this joint venture. Therefore, the Group recognised cumulative loss
over cost of the joint venture to liabilities from investment in joint venture totalling Baht 110.92 million in the consolidated statement of financial position as
at 30 September 2020. (2) In August 2020, The Origin Dusit Co., Ltd. has called for the additional 10% ordinary shares subscription of 31,900,000 shares. However, the Company’s
management is considering for further investment in this joint venture. Resulting in decrease in proportion of its invested from 49% to 44.79%.
None of the Company’s joint ventures are publicly listed and consequently do not have published price quotations.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
31
10 Property, plant and equipment
Acquisitions, disposals and transfers of property, plant and equipment during the nine-month period ended
30 September 2020 were as follows:
Note
Consolidated
financial
statements
Separate
financial
statements
(in thousand Baht)
Net book value
At 1 January 2020 3,474,627 688,989
Additions 1,080,168 123,067
Assets acquired from business acquisition 5 7,855 -
Disposals, net (12,479) (11,907)
Written-off, net (821) (265)
Transfer 13,220 10,583
The effect of changes in foreign exchange rates 47,125 -
Depreciation (278,245) (83,100)
At 30 September 2020 4,331,450 727,367
On 16 April 2020, Vimarn Suriya Co., Ltd., a subsidiary, entered into sub-structure basement
construction contract for Dusit Central Park project with total project cost of Baht 2,105.17 million.
The subsidiary made advance payment before its construction in the amount not exceeding 30% of
project cost totalling of Baht 631.55 million, as specified in the agreement. The subsidiary will deduct
this advance payment at the rate of 30% of the amount of work progress in each period until reach the
full amount of the advance paid. The construction is expected to be completed in May 2023.
11 Right-of-use assets
Movements in right-of-use assets during the nine-month period ended 30 September 2020 were as
follows:
Note
Consolidated
financial
statements
Separate
financial
statements
(in thousand Baht)
Net book value
At 1 January 2020 3 9,146,529 1,173,128
Additions 7,793 4,500
Depreciation of right-of-use assets (342,106) (86,160)
The effect of changes in foreign exchange rates 102,218 -
At 30 September 2020 8,914,434 1,091,468
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
32
12 Deposits
Consolidated financial statements
31 December 30 September
2019 Increase Decrease 2020
(in thousand Baht)
Deposit 290,970 302,030 - 593,000
Total 290,970 302,030 - 593,000
Separate financial statements
31 December 30 September
2019 Increase Decrease 2020
(in thousand Baht)
Deposit 290,970 254,480 - 545,450
Total 290,970 254,480 - 545,450
On 4 February 2020, Asai Holdings Co., Ltd., a subsidiary, has paid a deposit of JPY 166.67 million
or equivalent to Baht 47.55 million for the reservation right of the building lease agreement for
development project of ASAI Kyoto with total project cost of JPY 5,000 million. The agreement is for
the period of 25 years starting from the handover date of the property or the hotel opening date. The
Company is the guarantor of the said agreement.
On 23 April 2019, the Company has entered into space rental agreement and service contract for a
period of 32 years and sale and purchase agreement of the decoration and equipment to develop
project named “ASAI China Town” totalling Baht 954.30 million. During 2020, the Company has paid
additional deposit of Baht 254.48 million, totalling deposits of Baht 445.34 million and the remaining
balance will be paid in 2020. The agreement will be effective from the date of completion of the
contractual conditions or any other period agreed by both parties. As of 30 September 2020, the
agreement is not yet effective.
13 Related parties
Relationships with associates, subsidiaries and joint ventures are described in notes 7, 8 and 9,
respectively. Other related parties which have material changes in relationships and that the Group had
significant transactions during the period with were as follows:
Country of incorporation/ Type of
Name of entity nationality business Nature of relationships Saladaeng Property Management
Co., Ltd. Thailand Renting and operating
of self-owned or leased of non-residential buildings
Common shareholder
Pricing policies for new significant transactions during the nine-month period ended 30 September
2020 were as follows:
Transactions Pricing policy
Arrangement fee income Based on the contractually agreed prices.
Framework development income Based on the contractually agreed prices.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
33
13 Related parties (Continued)
Significant transactions for the three-month and nine-month periods ended 30 September 2020 and 2019 with related parties were as follows:
Consolidated financial statements
Revenue Management Arrangement Cost of Fixed and
from sales service Other Rental fee Interest sales and variable rent Selling Administrative Finance
and services income income revenue income income services expense expenses expenses costs
(in thousand Baht)
For the three-month period
ended 30 September 2020
Joint ventures 825 - 2,233 - - 1,002 - - 2,242 1,352 -
Associates - - 4,680 6,411 - 1,138 - 51,250 - - -
Other related parties 1 119 30,213 - - - 15 - - 402 248
For the nine-month period
ended 30 September 2020
Joint ventures 1,808 - 9,766 - - 2,928 - - 5,847 1,352 -
Associates - - 11,433 19,023 231,364 2,848 - 153,750 - - -
Other related parties 391 3,201 32,427 - - - 28 - 237 659 737
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
34
13 Related parties (Continued)
Consolidated financial statements
Revenue Management Gain on sales Cost of Fixed and
from sales service Dividend Other of property, plant Rental Interest sales and variable rent Selling Administrative Finance
and services income income income and equipment revenue income services expense expenses expenses costs
(in thousand Baht)
For the three-month period ended 30 September 2019
Joint ventures 1,159 - - 187 - - 882 - - 2,012 - -
Associates - - - 19,719 587,759 4,320 985 - 27,332 - - -
Other related parties 1,216 1,897 - 628 - - - 8 - 317 276 54
For the nine-month
period ended
30 September 2019
Joint ventures 1,510 - - 5,795 - - 2,541 - - 7,018 1,445 -
Associates - - - 23,132 587,759 16,932 2,800 - 142,399 - - -
Other related parties 1,399 6,661 8,494 1,900 - - - 1,511 - 913 604 136
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
35
13 Related parties (Continued)
Separate financial statements
Revenue Management Arrangement Cost of
from sales service Dividend Other Rental fee Interest sales and Selling Administrative Finance
and services income income income revenue income income services expenses expenses costs
(in thousand Baht)
For the three-month period
ended 30 September 2020
Subsidiaries 3,187 1,865 - 22,263 19,220 - 61,164 1,102 2,701 11,431 10,086
Joint ventures - - - 2,211 - - 1,002 - - 1,352 -
Associates - - 33,646 - - - 1,138 - - - -
Other related parties - 119 - 30,176 - - - - - 330 -
For the nine-month period
ended 30 September 2020
Subsidiaries 9,982 16,273 193,482 74,930 57,660 - 175,417 4,083 14,985 31,892 20,655
Joint ventures - - - 6,401 - - 2,928 - - 1,352 -
Associates - - 39,926 - - 296,620 2,848 - - - -
Other related parties 15 2,601 - 30,601 - - - - 238 473 -
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
36
13 Related parties (Continued)
Separate financial statements
Revenue Management Cost of
from sales service Dividend Other Rental Interest sales and Selling Administrative Finance
and services income income income revenue income services expenses expenses costs
(in thousand Baht)
For the three-month period
ended 30 September 2019
Subsidiaries 1,693 10,434 - 28,113 19,220 8,670 12,465 11,684 21,491 -
Joint ventures - - - 164 - 882 - 544 - -
Associates - - 30,927 - - 985 - - - -
Other related parties 83 1,697 - 985 - - - 317 219 -
For the nine-month period
ended 30 September 2019
Subsidiaries 6,482 45,425 209,823 91,347 57,660 23,651 17,885 38,132 60,725 697
Joint ventures - - - 1,180 - 2,541 - 973 - -
Associates - - 51,995 - - 2,800 - - - -
Other related parties 143 5,860 - 1,507 - - - 914 460 -
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
37
13 Related parties (Continued)
Consolidated
financial statements
Separate
financial statements
For the three-month period ended 30 September 2020 2019 2020 2019
(in thousand Baht)
Key management personnel compensation
Salaries and other short-term
employee benefits 26,540 37,585 25,090 29,382
Post-employment benefits 1,696 1,993 1,276 1,534
Total key management personnel
compensation 28,236 39,578 26,366 30,916
Consolidated
financial statements
Separate
financial statements
For the nine-month period ended 30 September 2020 2019 2020 2019
(in thousand Baht)
Key management personnel compensation
Salaries and other short-term
employee benefits 85,173 109,427 68,892 83,547
Post-employment benefits 5,088 5,979 3,827 4,602
Total key management personnel
compensation 90,261 115,406 72,719 88,149
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
38
13 Related parties (Continued)
Balances as at 30 September 2020 and 31 December 2019 with related parties were as follows:
Consolidated financial statements
Deferred Deposit for
Trade Other Trade Other rental right to lease
receivables receivables payables payables revenue building
(in thousand Baht)
At 30 September 2020
Joint ventures - 48,904 - - - -
Associates - 15,260 - - 514,519 984,760
Other related parties - 34,093 199 1,432 - -
Total - 98,257 199 1,432 514,519 984,760
At 31 December 2019
Joint ventures - 32,252 - - - -
Associates - 16,017 - - 533,543 984,760
Other related parties 358 2,764 369 1,676 - -
Total 358 51,033 369 1,676 533,543 984,760
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
39
13 Related parties (Continued)
Separate financial statements
Deferred Finance
Trade Other Trade Other rental lease
receivables receivables payables payables revenue receivable
(in thousand Baht)
At 30 September 2020
Subsidiaries 196 198,387 914 16,899 - 3,046,476
Joint ventures - 5,367 - - - -
Associates - 3,010 - - - -
Other related parties - 31,143 - - - -
Total 196 237,907 914 16,899 - 3,046,476
At 31 December 2019
Subsidiaries 413 144,603 - 18,737 1,169,454 -
Joint ventures - 4,597 - - - -
Other related parties 15 2,188 - 291 - -
Total 428 151,388 - 19,028 1,169,454 -
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
40
13 Related parties (Continued)
Movements during the nine-month period ended 30 September 2020 of loans to related parties were as follows:
Long-term loans to Interest rate Consolidated financial statements
31
December
2019
30
September
2020
31
December
2019
The effect
of changes
in foreign
exchange rates
30
September
2020 Increase Decrease
(% per annum) (in thousand Baht)
Dusit Fudu Hotel Management (Shanghai) Co., Ltd. 5.70 - 5.88 5.70 - 5.88 108,691 - - 5,490 114,181
Suanlum Property Co., Ltd. 3.06 - 3.25 2.36 125,448 87,000 - - 212,448
Total 234,139 87,000 - 5,490 326,629
Long-term loans to Interest rate Separate financial statements
31
December
2019
30
September
2020
31
December
2019
The effect
of changes
in foreign
exchange rates
30
September
2020 Increase Decrease
(% per annum) (in thousand Baht)
Suanlum Property Co., Ltd. 3.06 - 3.25 2.36 125,448 87,000 - - 212,448
Vimarn Suriya Co., Ltd. 5.01 - 5.20 4.31 219,000 405,997 - - 624,997
Total 344,448 492,997 - - 837,445
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
41
13 Related parties (Continued)
Short-term loans to Interest rate Separate financial statements
The effect of
changes in
foreign
exchange rates
31
December
30
September
31
December
30
September
2019 2020 2019 Increase Decrease 2020
(% per annum) (in thousand Baht)
Dusit China Capital Co., Ltd. 2.48 - 3.14 2.43 - 3.14 127,500 15,700 - - 143,200
Dusit Foods Co., Ltd. 2.42 - 3.55 2.27 - 3.55 469,500 219,300 (105,000) - 583,800
Dusit Excellence Co., Ltd. 2.45 - 4.00 2.45 - 4.00 170,772 3,300 (3,000) - 171,072
Dusit Overseas Co., Ltd. 4.00 4.00 313,798 - - 15,871 329,669
Dusit Hospitality Services Co., Ltd. 2.40 - 3.58 2.40 - 5.50 40,000 46,000 - - 86,000
Asai Holdings Co., Ltd. 2.40 - 2.70 2.32 - 5.50 16,000 59,700 (52,000) - 23,700
Dusit Worldwide Co., Ltd. 3.58 2.19 - 5.50 68,000 89,700 (2,000) - 155,700
Dusit Management Co., Ltd - 2.50 - 5.50 - 117,700 - - 117,700
Grace Me Co., Ltd. - 3.55 - 2,000 - - 2,000
D&J Co., Ltd. - 3.55 - 17,919 - - 17,919
Dusit Japan Godo Gaisha Co., Ltd. - 3.55 - 2,893 - - 2,893
Total 1,205,570 574,212 (162,000) 15,871 1,633,653
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
42
13 Related parties (Continued)
Long-term loans from Interest rate Consolidated financial statements
31
December
2019 Increase Decrease
30
September
2020
31
December
2019
30
September
2020
(% per annum) (in thousand Baht)
Central Pattana Public Company Limited 5.01 - 5.20 4.31 219,335 288,997 - 508,332
Total 219,335 288,997 - 508,332
Short-term loans from Interest rate Separate financial statements
31
December
2019 Increase Decrease
30
September
2020
31
December
2019
30
September
2020
(% per annum) (in thousand Baht)
Dusit Thani Properties Company Limited 3.08 2.19 - 3.25 315,000 1,086,000 - 1,401,000
Total 315,000 1,086,000 - 1,401,000
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
43
13 Related parties (Continued)
Loan agreements
On 28 May 2020, Vimarn Suriya Co., Ltd., a subsidiary, has entered into addendum of loan
agreements for additional loan limit from both major shareholders by proportionally to its
investment for the development of Dusit Central Park project, consisted of loan limit not exceeding
Baht 746 million provided by the Company and Baht 510 million provided by another shareholder
with reference market interest rates.
Building lease arrangement agreement
In the second quarter of 2020, the Company has completed performing its duties under the terms and
conditions specified in the retail building lease arrangement agreement with Suanlum Property Co., Ltd.,
an associate. As a result, the Company recognised arrangement fee income amounting to Baht 296.62
million in the separate statement of income and Baht 231.36 million in the consolidated statement of
income (net of deferred income based on shareholding proportion of Baht 65.26 million (note 7)).
Building lease agreement
On 30 June 2020, Vimarn Suriya Co., Ltd., a subsidiary, has entered into a building lease agreement to
operate retail and shopping center with Suanlum Property Co., Ltd., an associate for a period of 30 years
from 1 July 2024. The total rental fee is Baht 3,880 million, with the rental payment and the conditions
as stipulated in the agreement. In addition, the lease agreement has the right to renew the lease for
another 30 years until 30 June 2084. The lessee has to pay a deposit to secure the renewal of Baht
433.90 million on the date of delivery of the leased property. Both parties agree that the deposit is the
total rental fee during the lease renewal period.
Framework development agreement
In the third quarter of 2020, the Company has completed performing its duties under the terms and
conditions specified in Framework Development Agreement with Saladaeng Property Management Co.,
Ltd. As a result, the Company recognised framework development income amounting to Baht 30
million as other income in the separate and consolidated statement of income. The Group and the
Company recorded receivable from framework development income of Baht 30 million (note 6) which
is part of trade and other current receivables as at 30 September 2020. The Company received the full
amount in October 2020.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
44
14 Segment information and disaggregation of revenue
Management determined that the Group has four reportable segments which are the Group’s
strategic divisions for different products and services, and are managed separately because they
require different marketing strategies. The following summary describes the operations in each of
the Group’s reportable segments.
• Segment 1 Hotel and hotel management
• Segment 2 Education
• Segment 3 Foods
• Segment 4 Others
Other operations include Investment holding and Other services, none of these segments meets the
quantitative thresholds for determining reportable segments in 2020 or 2019.
Information regarding the results which is profit before tax of each reportable segment is included
below as included in the internal management reports that are reviewed by the Group’s CODM.
Management believes that such information is the most relevant in evaluating the results of certain
segments relative to other entities that operate within these industries.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
45
14 Segment information and disaggregation of revenue (Continued)
Consolidated financial statements
Hotel and hotel
management
Education Foods Others Non allocation Elimination Total
Three-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(in million Baht) Information about reportable segments
External revenue 204 795 93 95 110 93 30 47 53 1 - - 490 1,031
Inter-segment revenue 6 3 - - - - 2 3 17 18 (25) (24) - -
Total revenues 210 798 93 95 110 93 32 50 70 19 (25) (24) 490 1,031
Gain on sale of property, plant and
equipment
- 590
Gain on reclassification of investment 127 -
Total revenues and other income 617 1,621
Share of profit (loss) from investments (1) (6) 10 (4) - 5 17 5 - - - - 26 -
Depreciation and amortisation 164 86 12 10 16 4 13 6 14 9 - - 219 115
Segment profit (loss) before income tax (371) (47) 1 (17) (15) 6 (5) 557 23 (97) (12) (15) (379) 387
Tax (expense) income 23 (88)
Profit (loss) for the period (356) 299
Disaggregation of revenue
Primary geographical markets
Thailand 119 389 93 95 80 93 30 47 53 1 - - 375 625
Overseas 85 406 - - 30 - - - - - - - 115 406
Total revenues 204 795 93 95 110 93 30 47 53 1 - - 490 1,031
Timing of revenue recognition
At a point in time 200 702 6 4 - - 20 39 53 1 - - 279 746
Over time 4 93 87 91 110 93 10 8 - - - - 211 285
Total revenues 204 795 93 95 110 93 30 47 53 1 - - 490 1,031
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
46
14 Segment information and disaggregation of revenue (Continued)
Consolidated financial statements
Hotel and hotel
management
Education Foods Others Non allocation Elimination Total
Nine-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(in million Baht) Information about reportable segments
External revenue 1,176 2,776 280 304 239 301 66 91 121 24 - - 1,882 3,496
Inter-segment revenue 13 11 - - - - 7 9 52 53 (72) (73) - -
Total revenues 1,189 2,787 280 304 239 301 73 100 173 77 (72) (73) 1,882 3,496
Gain on sale of other long-term investment - 216
Gain on sale of property, plant and
equipment
4 591
Arrangement fee income 231 -
Gain on reclassification of investment 127 -
Total revenues and other income 2,244 4,303
Share of profit (loss) from investments (8) (11) (12) (18) 4 9 61 34 - - - - 45 14
Depreciation and amortisation 462 269 34 29 47 10 38 12 42 26 - - 623 346
Segment profit (loss) before income tax (892) 39 (22) (25) (50) 41 (36) 581 74 (123) (37) (42) (963) 471
Tax (expense) income 54 (131)
Profit (loss) for the period (909) 340
Disaggregation of revenue
Primary geographical markets
Thailand 598 1,455 280 304 209 301 66 91 121 24 - - 1,274 2,175
Overseas 578 1,321 - - 30 - - - - - - - 608 1,321
Total revenues 1,176 2,776 280 304 239 301 66 91 121 24 - - 1,882 3,496
Timing of revenue recognition
At a point in time 1,081 2,515 6 4 - - 48 71 121 24 - - 1,256 2,614
Over time 95 261 274 300 239 301 18 20 - - - - 626 882
Total revenues 1,176 2,776 280 304 239 301 66 91 121 24 - - 1,882 3,496
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
47
14 Segment information and disaggregation of revenue (Continued)
Separate financial statements
Hotel and hotel
management
Education Foods Others Non allocation Elimination Total
Three-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(in million Baht) Disaggregation of revenue
Primary geographical markets
Thailand 76 195 1 1 - - 19 11 128 48 - - 224 255
Overseas - - - - - - - - - - - - - -
Total revenues 76 195 1 1 - - 19 11 128 48 - - 224 255
Dividend income 33 31
Total revenues and other income 257 286
Timing of revenue recognition
At a point in time 65 159 1 1 - - 19 11 128 48 - - 213 219
Over time 11 36 - - - - - - - - - - 11 36
Total revenues 76 195 1 1 - - 19 11 128 48 - - 224 255
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
48
14 Segment information and disaggregation of revenue (Continued)
Separate financial statements
Hotel and hotel
management
Education Foods Others Non allocation Elimination Total
Nine-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
(in million Baht) Disaggregation of revenue
Primary geographical markets
Thailand 284 620 1 1 - - 39 25 304 144 - - 628 790
Overseas - - - - - - - - - - - - - -
Total revenues 284 620 1 1 - - 39 25 304 144 - - 628 790
Dividend income 233 262
Gain on sale of other long-term investment - 216
Arrangement fee income 297 -
Total revenues and other income 1,158 1,268
Timing of revenue recognition
At a point in time 219 490 1 1 - - 39 25 304 144 - - 563 660
Over time 65 130 - - - - - - - - - - 65 130
Total revenues 284 620 1 1 - - 39 25 304 144 - - 628 790
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
49
15 Leases
Consolidated
financial statements
Separate
financial statements
For the period ended 30 September 2020
For the
three-
month
period
For the
nine-
month
period
For the
three-
month
period
For the
nine-
month
period
(in thousand Baht)
Recognised in profit or loss Lease income 6,411 19,023 2,819 8,613
Interest income on finance lease receivable - - 45,022 131,206
Interest on lease liabilities 74,415 224,589 49,487 145,020
Expenses relating to short-term leases 849 2,548 443 1,328
Expenses relating to leases of low-value assets 298 894 30 90
Variable lease payments based on sales 6,135 2 - -
Total cash outflow for leases presented in the consolidated and separate statement of cash flows for
the nine-month period ended 30 September 2020 were Baht 398.82 million and Baht 54.78 million,
respectively.
16 Income tax
Income tax is recognised based on management’s best estimate of the weighted average annual
income tax rate expected for the full financial year applied to the pre-tax income of the interim period.
The Group’s effective tax rate in respect of continuing operations for the nine-month period ended 30
September 2020 and 2019 were 5.6% and 27.9%, respectively. This change in effective tax rate was
caused mainly by unrecognised tax losses.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
50
17 Earnings (loss) per share
Consolidated
financial statements
Separate
financial statements
Three-month period ended 30 September 2020 2019 2020 2019
(in thousand Baht / thousand shares)
Profit (loss) for the period attributable to
ordinary shareholders of the Company (basic) Profit (loss) excluding Dusit Thani College (339,102) 66,936 (143,750) (125,555) Profit (loss) from Dusit Thani College (3,188) 6,003 - -
Total (342,290) 72,939 (143,750) (125,555)
Number of ordinary shares outstanding (basic)
Number of ordinary shares outstanding
At 1 July 850,000 850,000 850,000 850,000
At 30 September 850,000 850,000 850,000 850,000
Less treasury shares by Dusit Thani
Properties Company Limited (4,715) (4,715) - -
Number of ordinary
shares outstanding (basic) 845,285 845,285 850,000 850,000
Earnings (loss) per share (basic) (in Baht)
Earnings (loss) per share excluding
Dusit Thani College (0.40) 0.08 (0.17) (0.15)
Earnings (loss) per share from Dusit Thani College (0.00) 0.01 - -
Total (0.40) 0.09 (0.17) (0.15)
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
51
17 Earnings (loss) per share (Continued)
Consolidated
financial statements
Separate
financial statements
Nine-month period ended 30 September 2020 2019 2020 2019
(in thousand Baht / thousand shares)
Profit (loss) for the period attributable to
ordinary shareholders of the Company (basic) Profit (loss) excluding Dusit Thani College (886,708) 28,927 (46,872) 40,779 Profit from Dusit Thani College 9,037 22,474 - -
Total (877,671) 51,401 (46,872) 40,779
Number of ordinary shares outstanding (basic)
Number of ordinary shares outstanding
At 1 January 850,000 850,000 850,000 850,000
At 30 September 850,000 850,000 850,000 850,000
Less treasury shares by Dusit Thani
Properties Company Limited (4,715) (4,715) - -
Number of ordinary
shares outstanding (basic) 845,285 845,285 850,000 850,000
Earnings (loss) per share (basic) (in Baht)
Earnings (loss) per share excluding
Dusit Thani College (1.05) 0.03 (0.06) 0.05
Earnings per share from Dusit Thani College 0.01 0.03 - -
Total (1.04) 0.06 (0.06) 0.05
18 Dividends
The dividends paid by the Company to the shareholders of 850 million shares were as follows:
Appropriation of
dividend from Approval date
Payment
schedule
Dividend rate
per share Amount
(in Baht) (in million Baht)
2020
Interim dividends* Retained earnings 19 March 2020 17 April 2020 0.19 161.50
2019
Annual dividends Net profit 26 April 2019 15 May 2019 0.17 144.50
*The annual general meeting of shareholders acknowledged the interim dividend payment on 4 August
2020.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
52
19 Financial instruments
Carrying amounts and fair values
The following table shows the carrying amounts and fair values of financial assets and financial
liabilities including their levels in the fair value hierarchy for financial instruments. It does not include
fair value information for financial assets and financial liabilities not measured at fair value if the
carrying amount is a reasonable approximation of fair value.
Consolidated financial statements
Carrying amount Fair value
At 30 September 2020
Fair value
through
profit or
loss
Amortised
cost - net Total
Level 1
Level 2
Level 3
Total
(in thousand Baht)
Financial assets
Equity instruments 346,676 - 346,676 - - 346,676 346,676
Debt instruments - 50,000 50,000 - 49,715 - 49,715
Total financial assets 346,676 50,000 396,676
Financial liabilities
Debentures - 999,021 999,021 - 998,727 - 998,727
Total financial liabilities - 999,021 999,021
Separate financial statements
Carrying amount Fair value
At 30 September 2020
Fair value
through
profit or
loss
Amortised
cost - net Total
Level 1
Level 2
Level 3
Total
(in thousand Baht)
Financial liabilities
Debentures - 999,021 999,021 - 998,727 - 998,727
Total financial liabilities - 999,021 999,021
Type Valuation technique
Investments in the non-
marketable equity
instruments
Based on cost which considered as estimated fair values, except
there are significant changes in their operations.
Corporate debt securities
Bid prices from the Thai Bond Market Association as of the
reporting date.
Debentures
Bid prices from the Thai Bond Market Association as of the
reporting date.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
53
19 Financial instruments (Continued)
Impairment loss
Impairment on cash and cash equivalents was measured on a 12-month ECLs. The Group considers
that cash and cash equivalents have low credit risk based on the external credit ratings of the
counterparties.
Allowance for impairment loss for trade receivables are measured at an amount equal to lifetime
ECLs. ECLs on these financial assets are estimated using a provision matrix based on the historical
credit loss experience, adjusted for factors that are specific to the debtors and assessment of both the
current and forecast general economic conditions.
Trade receivables Consolidated
financial statements
Separate
financial statements
30
September
31
December
30
September
31
December
2020 2019 2020 2019
(in thousand Baht)
Within credit terms 125,165 72,928 13,323 17,565
Overdue:
Less than 3 months 47,879 97,874 1,737 3,817
3 - 6 months 18,363 16,809 31 26
6 - 12 months 10,597 5,450 595 -
Over 12 months 25,367 9,762 1,917 198
Total 227,371 202,823 17,603 21,606
Less allowance for impairment (25,336) (7,343) (1,917) (198)
Net 202,035 195,480 15,686 21,408
Trade receivables
- management fee and other services
Consolidated
financial statements
Separate
financial statements
30
September
31
December
30
September
31
December
2020 2019 2020 2019
(in thousand Baht)
Within credit terms 16,060 27,848 21,777 35,348
Overdue:
Less than 3 months 2,723 14,063 9,785 4,383
3 - 6 months 3,870 5,051 37,592 4,694
6 - 12 months 4,604 6,020 7,357 17,606
Over 12 months 27,914 18,513 26,713 34,771
Total 55,171 71,495 103,224 96,802
Less allowance for impairment (27,913) (11,713) (12,264) (6,471)
Net 27,258 59,782 90,960 90,331
The normal credit term granted by the Group ranges 30 days
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
54
20 Commitments
20.1 Capital commitments
Consolidated
financial statements
Separate
financial statements
30 September 31 December 30 September 31 December
2020 2019 2020 2019
(in thousand Baht) Contracted but not provided
the services
- Dusit Central Park Project 2,307,483 1,132,815 - -
- ASAI China Town Project 452,587 3,305 452,587 3,305
- ASAI Sathorn Project 132,078 116,301 132,078 116,301
- Others 39,308 34,354 23,668 30,663
Total 2,931,456 1,286,775 608,333 150,269
20.2 Service agreement commitments
Consolidated
financial statements
Separate
financial statements
30 September 31 December 30 September 31 December
2020 2019 2020 2019
(in thousand Baht) Within one year 130,991 117,929 112,152 52,855
After one year but within
five years 21,292 232,981 12,653 35,762
Total 152,283 350,910 124,805 88,617
20.3 Other commitments
Consolidated
financial statements
Separate
financial statements
30 September 31 December 30 September 31 December
2020 2019 2020 2019
(in thousand Baht) Bank guarantee 120,271 120,271 89,574 89,574
As at 30 September 2020 the Group and the Company have bank guarantee totalling Baht 105.10
million and Baht 80.48 million, respectively, for the corporate income tax return for 2017 before
the tax audits are completed and the Group has bank guarantee totalling Baht 2.73 million, which
was pledged by cash at bank of the subsidiary.
20.4 Contractual commitments
As at 30 September 2020, material changes in the Group's contractual commitments during the
period were as follows :
On 29 September 2020, D&J Co., Ltd., a subsidiary in Japan, has entered into hotel management
agreement with Yasuda Real Estate Company Limited to manage “Dusit Thani Kyoto Hotel” in
Japan and the Company acts as a guarantor. The subsidiary shall pay advance performance
guarantee totalling JPY 376.90 million or equivalent to Baht 113.03 million. The terms of
payment of performance guarantee amount will be installment paid as specified in agreement.
Hotel management agreement is for the period of 240 months, starting from the handover date of
the property.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
55
21 Contingent liabilities
As at 30 September 2020, there was no material changes in contingent liabilities during the period
which was required additional disclosures from notes to the financial statements for the year ended 31
December 2019: no. 36 Contingent liabilities.
22 Others
22.1 Joint Investment with Metro Pacific Investments Corporation
On 18 February 2020, the Company has entered into an investment agreement with Metro Pacific
Investments Corporation to jointly carry out the development of real estate projects of hotels and
residential condominiums in the Philippines. For this investment, the Company will establish a new
subsidiary in the Philippines, Dusit Philippines Corporation and invest 100% of total shares. The
initial registered capital approximately USD 0.352 million or approximately Baht 10.91 million. This
new investment is subject to a number of conditions precedent requiring to fulfill as stipulated in the
agreement. Due to the impact of the Covid-19 situation, the parties agreed to postpone the plan to
establish this new subsidiary and to wait and see the situation and review the business plan again.
Therefore, as of 30 September 2020, such subsidiary has not been established and no calling for shares
subscription.
22.2 Disposition of shares in Dusit Hospitality Education Philippines, Inc.
On 5 March 2020, Dusit Thani Philippines, Inc. an indirect subsidiary has executed the share purchase
agreement with the third party to sell all its investment in Dusit Hospitality Education Philippines,
Inc., an indirect associate in the amount of Peso 359,999,700, or approximately Baht 219.60 million.
As of 30 September 2020, the parties agreed to postpone such selling shares, therefore, such purchase
transaction has not been completed.
23 Events after the reporting period
23.1 Loan agreement
On 16 October 2020, the Company has entered into long-term loan agreement with a financial
institution in amount of Baht 468 million for “Dusit Suites Hotel Ratchadamri Bangkok” project.
The right sublease building space agreement and service contracts for this project, including cash at
bank 1 account of the Company have been pledged as collateral for the interest payment. The
Company has drawdown such amount on 22 October 2020.
The loan agreement has terms and conditions as specified in the agreements such as interest-bearing
liabilities to equity ratio.
23.2 The dissolution of Devarana Spa Co., Ltd.
On 11 November 2020, the extraordinary general shareholders’ meeting of Devarana Spa Co., Ltd.,
a subsidiary, had a special resolution to dissolve the company. Such subsidiary will process to
register for dissolution of business.
Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements
For the three-month and nine-month periods ended 30 September 2020 (Unaudited)
56
24 Reclassification of accounts
Certain accounts in the statement of financial position as at 31 December 2019 have been reclassified
to conform to the presentation in the 2020 interim financial statements as follows:
Consolidated financial statements
Before
reclassification
Reclassification
After
reclassification
(in thousand Baht)
Statement of financial position
as at 31 December 2019
Trade and other current receivables 1,464,801 (77,460) 1,387,341
Other current assets 90,090 77,460 167,550
Long-term loans 1,601,900 (1,601,900) -
Long-term loans from financial institutions - 1,382,565 1,382,565
Long-term loans from related party - 219,335 219,335
Total -
Separate financial statements
Before
reclassification
Reclassification
After
reclassification
(in thousand Baht)
Statement of financial position
as at 31 December 2019
Trade and other current receivables 276,581 (38,162) 238,419
Other current assets 46,238 38,162 84,400
Long-term loans 1,053,950 (1,053,950) -
Long-term loans from financial institutions - 1,053,950 1,053,950
Total -