ANNUAL REPORT 2017 Financial Highlights Financial Highlights (Unit: Thousand Baht) 2014 2015 2016 2017
Revenues
Revenue from television programs 1,843,211 2,124,549 2,416,210 3,478,354
Revenue from animation and computer graphic 14,122 5,050 268 535
Revenue from movies 20,625 20,117 - -
Revenue from concerts and plays - 167,923 118,145 184,330
Revenue from event marketing 169,533 108,063 116,357 138,010
Revenue from management fee 150 60 Revenue from sale of goods and rendering of other services 5,307 8,000 15,925 51,213
Other income 57,138 20,376 26,420 24,998
Share of gain of investments in joint ventures 52,009 14,430 2,139 -12,840
Total revenues 2,161,943 2,468,507 2,695,614 3,864,661
Total costs 1,433,824 1,375,861 1,504,750 1,741,278
Selling and Administrative expenses 661,153 763,681 823,039 859,618
Net Profit -16,021 150,341 198,631 904,089
Financial Position
Current Assets 1,288,336 1,760,674 1,725,621 2,676,586
Total assets 4,985,067 5,588,357 5,422,405 6,447,772
Liabilities 3,306,141 2,801,687 2,435,899 2,004,348
Equity 1,678,926 2,786,670 2,986,506 4,443,424
2 (Unit: Thousand Baht) 2014 2015 2016 2017
Financial Ratio
Current Ratio (Times) 1.4 1.6 1.8 2.2
Debt to Equity Ratio (Times) 2.0 1.0 0.8 0.5
Gross Profit (%) 30.2 43.5 43.6 54.8
Net Profit (%) -0.7 6.1 7.4 23.5
Return on Assets (%) -0.4 2.8 3.7 14.0
Return on Equity (%) -1.0 6.8 6.7 20.3
Earnings per Share -0.0 0.4 0.5 2.1
Dividend per Share 0.44 0.34 0.27 1.388 *
Dividend Payout Ratio to Net Income (%) 73% 81% 81% 77%*
* Notes The Board of Directors the meeting No.1/2018 on February 26,2018. Approved the allocation of the net profit as the cash dividends payment from the company’s operation from January 1,2017 to December 31,2017 at the rate of Baht 1.388 per share, or not exceeding in total of Baht 606,000,000 or 76.8%
Income and Net Profit Asset
(unit : MB) (unit : MB) 4000 7500
3,865 6000
3000 6,447
4500 4,443 5,588 2,696 2000 5,422 2,469 2,801 3000 2,986 2,435 2,786 904 1000 2,004
199 1500 150 0 0 2015 2016 2017 2015 2016 2017 Income Net Profit Asset Liabilities Equity
3 Board of Directors
1. Mr. Phanya Nirunkul (Age 63 years) Position : Chairman Chairman of the Nomination and Remuneration Committee 2. Mr. Prapas Cholsaranon (Age 58 years) Date of Directorship : February 19, 2004 Position : Vice Chairman Education : Member of the Nomination and Doctoral Degree Remuneration Committee • Doctor of Arts (Honorary Degree) Date of Directorship : February 19, 2004 of Communication Arts, Mahasarakham University Education : • Doctor of Arts (Honorary Degree) Doctoral Degree of Business Administration (Marketing), • Doctor of Arts (Honorary Degree) Rajamangala University of Technology Tawan-ok of Communication Arts (Broadcasting), • Doctor of Arts (Honorary Degree)of Sripatum University Communication Arts (Broadcasting), Bachelor’s Degree Sripatum University • Bachelor of Architecture , Chulalongkorn University Bachelor’s Degree Experience : • Bachelor of Architecture , Chulalongkorn University 1989 - Present Vice Chairman Experience : Member of the Nomination and 1989 - Present Chairman Remuneration Committee, Chairman of the Nomination and Workpoint Entertainment Public Remuneration Committee, Company Limited Workpoint Entertainment Public Certifications : Company Limited • Directors Accreditation Program (DAP) No. 10/2004, Certifications : Thai Institute of Directors Association (IOD) • Directors Accreditation Program (DAP) No. 10/2004, • The Executive Program in Energy Literacy Thai Institute of Directors Association (IOD) for a Sustainable Future Tea Class 10, Thailand Energy Academy Number of Share Holding : (as of 31/12/2017) • 105,845,822 shares or 24.118% Number of Share Holding : (as of 31/12/2017) of the total paid up capital • 101,286,187 shares or 23.080% of the total paid up capital
4 4. Mr. Kanit Vattanapradit (Age 58 years) Position : Director , Chief Internal Control Officer Date of Directorship : March 1, 2013 Education : 3. Mr. Phanich Sodsee (Age 54 years) Master’s Degree Position : Director, Group Chief Executive Officer • Master of Public Administration Program, Date of Directorship : February 19, 2004 National Institute of Development Education : Administration Bachelor’s Degree Bachelor’s Degree • Bachelor of Fine Arts (Sculpture Division), • Bachelor of Business Administration, Chiang Mai University Ramkhamhaeng University Experience : Experience : 1991 - Present Director, March 2012 - Present Director, Group Chief Executive Officer, Chief Internal Control Officer, Workpoint Entertainment Public Workpoint Entertainment Company Limited Public Company Limited Certifications : 2004- February 2012 Director, Chairman of Audit Committee, • Directors Accreditation Program (DAP) Workpoint Entertainment No. 10/2004 , Thai Institute of Directors Public Company Limited Association (IOD) 1999 - February 2012 Financial Manager, Number of Share Holding : (as of 31/12/2017) Thai Sumiden Engineering and • 195,000 shares or 0.044% Construction Company Limited of the total paid up capital Certifications : • Directors Accreditation Program (DAP) No. 9/2004, Thai Institute of Directors Association (IOD) Number of Share Holding : (as of 31/12/2017) • None 5 6. Mr. Chalakorn Panyashom (Age 43 years) Position : Director, Chief Operating Officer Date of Directorship : April 11, 2014 Education : Master’s Degree 5. Mrs. Vichanee Srisawat (Age 47 years) • Master6 of Economics Program (Business Economics), Position : Director, Chief Marketing Officer National Institute of Development Administration Date of Directorship : April 26, 2010 Bachelor’s Degree Education : • Bachelor of Engineering (Instrumentation Engineering), King Mongkut’s Institute of Technology Ladkrabang Master’s Degree • Master of Business Administration, Experience : Chulalongkorn University 2013 - Present Director , Chief Operating Officer, Bachelor’s Degree Workpoint Entertainment Public • Bachelor of Business Administration, Company Limited Ramkhamhaeng University 2005 - 2012 Vice President - Satellite Television and Special Project, Experience : Workpoint Entertainment Public 1994 - Present Director, Chief Marketing Officer, Company Limited Workpoint Entertainment Public Certifications : Company Limited • Directors Accreditation Program (DAP) No. 133/2017, Certifications : Thai Institute of Directors Association (IOD) • Directors Accreditation Program (DAP) No. 89/2011, • Academy of Business Creativity (ABC) No.3, Sripatum Thai Institute of Directors Association (IOD) University • Academy of Business Creativity (ABC) No.5, • Leader Program No.22, Capital Market Academy Sripatum University Number of Share Holding : (as of 31/12/2017) Number of Share Holding : (as of 31/12/2017) • 10,000 shares or 0.002% • 150,200 shares or 0.034% of the total paid up capital of the total paid up capital
6 8. Pol.Maj.Gen. Pratchai Jaichansukit (Age 62 years) Position : Director, Chairman of the Audit Committee, Member of the Nomination and Remuneration Committee Date of8 Directorship : February 19, 2004 Education : 7. Miss Aongorn Somprasong (Age 48 years) Master’s Degree • Master of Public Administration, Position : Director Chulalongkorn University Date of Directorship : April 24, 2015 • Master of Science (Environmental Science), Education : Kasetsart University Master’s Degree Bachelor’s Degree • Master of Business Administration, • Bachelor of Laws, Thammasat University San Diego State University USA • Bachelor of Arts (Political Science), Bachelor’s Degree Ramkhamhaeng University • Bachelor of Accountancy, Experience : Chulalongkorn University 2004 - Present Director , Chairman of the Experience : Audit Committee, Member of the Present Director , Nomination and Remuneration Workpoint Entertainment Public Committee, Company Limited Workpoint Entertainment Public 2002 - 2013 Vice President - Finance & Accounting, Company Limited Minor International Public 2015 - 2016 Commander of Samutsongkhram Company Limited Provincial Police Director , Private Equity(Thailand) Certifications : Company Limited • Directors Accreditation Program (DAP) No. 9/2004, Certifications : Thai Institute of Directors Association (IOD) • Director Certification Program (DCP) No. 164/2012, • Audit Committee Program (ACP) No.20/2007, Thai Institute of Directors Association (IOD) Thai Institute of Directors Association (IOD) Number of Share Holding : (as of 31/12/2017) Number of Share Holding : (as of 31/12/2017) • None • None
7 10. Miss Pornthip Moonsawat (Age 54 years) Position : Director , Member of the Audit Committee Date of Directorship : March 30, 2012 Education : Master’s Degree • Master of Business Administration (Marketing), National Institute of Development Administration Bachelor’s Degree • Bachelor of Accounting, Thammasat University Experience : 2012 - Present Director, Member of the Audit Committee, Workpoint Entertainment Public Company Limited 9. Mr. Somkiat Tiloklert (Age 63 years) Present Managing Director, Position : Director, Member of the Audit Committee North Accounting Company Limited Date of Directorship : November 11, 2008 Managing Director, JK Consulting Company Limited Education : Accounting Director, IV Global Securities Bachelor’s Degree Public Company Limited • Bachelor of Architecture, Advisor , Thepnakorn Service Chulalongkorn University Korat Limited Partnership Experience : Advisor , Ratchasima Thepnakhon 2008 - Present Director, Member of the Company Limited Audit Committee, Advisor , Thepnakorn Auto Service Workpoint Entertainment Public Company Limited Company Limited Advisor , Thep Nakorn Car Company Limited 1982 - 2016 Pilot, Thai Airways International Advisor , Thepnakorn Motor Sales Public Company Limited Company Limited Certifications : Advisor , Chrysler Nakhonratchasima Company Limited • Directors Accreditation Program (DAP) No. 77/2009, 2002 - 2003 Special Instructor, Eastern Asia University. Thai Institute of Directors Association (IOD) 1989 Accounting Manager, BIR Leather (Thailand) Number of Share Holding : (as of 31/12/2017) Company Limited • None Certifications : • Directors Accreditation Program (DAP) No. 97/2012, Thai Institute of Directors Association (IOD) Number of Share Holding : (as of 31/12/2017) • None 8 Executive Committee
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9 1. Mr. Phanya Nirunkul Position : Chairman Education : Doctoral Degree • Doctor of Arts (Honorary Degree) of Communication Arts, Mahasarakham University • Doctor of Arts (Honorary Degree) of Business Administration (Marketing), Rajamangala University of Technology Tawan-ok • Doctor of Arts (Honorary Degree) of Communication Arts (Broadcasting), Sripatum University Bachelor’s Degree : Bachelor of Architecture, Chulalongkorn University Experience : 1989 - Present Chairmany Chairman of the Nomination and Remuneration Committee, Workpoint Entertainment Public Company Limited 2. Mr. Prapas Cholsaranon Position : Vice Chairman Education : Doctoral Degree : Doctor of Arts (Honorary Degree) of Communication Arts (Broadcasting), Sripatum University Bachelor’s Degree : Bachelor of Architecture , Chulalongkorn University Experience : 1989 - Present Vice Chairman Member of the Nomination and Remuneration Committee, Workpoint Entertainment Public Company Limited 3. Mr. Phanich Sodsee Position : Group Chief Executive Officer Education : Bachelor’s Degree : Bachelor of Fine Arts (Sculpture Division), Chiang Mai University Experience : 1991 - Present Director, Group Chief Executive Officer, Workpoint Entertainment Public Company Limited 4. Mr. Kanit Vattanapradit Position : Chief Internal Control Officer Education : Master’s Degree : Master of Public Administration Program, National Institute of Development Administration Bachelor’s Degree : Bachelor of Business Administration, Ramkhamhaeng University Experience : March 2012 - Present Director, Chief Internal Control Officer, Workpoint Entertainment Public Company Limited 2004 - February 2012 Director, Chairman of Audit Committee, Workpoint Entertainment Public Company Limited 1999 - February 2012 Financial Manager, Thai Sumiden Engineering and Construction Company Limited 5. Mrs. Vichanee Srisawat Position : Chief Marketing Officer Education : Master’s Degree : Master of Business Administration, Chulalongkorn University Bachelor’s Degree : Bachelor of Business Administration, Ramkhamhaeng University Experience : 1994 - Present Director, Chief Marketing Officer, Workpoint Entertainment Public Company Limited
10 6. Mr. Chalakorn Panyashom Position : Chief Operating Officer Education : Master’s Degree : Master of Economics Program (Business Economics), National Institute of Development Administration Bachelor’s Degree : Bachelor of Engineering (Instrumentation Engineering), King Mongkut’s Institute of Technology Ladkrabang Experience : 2013 - Present Director, Chief Operating Officer, Workpoint Entertainment Public Company Limited 2005 - 2012 Vice President - Satellite Television and Special Project, Workpoint Entertainment Public Company Limited 7. Mr. Chayan Chantawongsatorn Position : Chief Production Officer Education : Master’s Degree : Global Mini MBA, Thammasat University Bachelor’s Degree : Bachelor of Communication Arts, Dhurakij Pundit University Experience : 2013 - Present Chief Production Officer, Workpoint Entertainment Public Company Limited 2001 - 2012 Vice President - Production, Workpoint Entertainment Public Company Limited 8. Mr. Dhanasak Hoonarak Position : Chief Business Development Officer Education : Master’s Degree : Master of Business Administration (Finance) Creighton University USA Bachelor’s Degree : Bachelor of Business Administration (Marketing) Assumption University Experience : 2013 - Present Chief Business Development Officer , Workpoint Entertainment Public Company Limited 9. Mr. Surakarn Sirimothya Position : Chief Financial Officer Education : Master’s Degree • Master of Business Administration (Finance), San Francisco State University • Master of Management, College of Management, Mahidol University Bachelor’s Degree • Bachelor of Engineering (Telecommunications Engineering), Sirindhorn International Institute of Technology, Thammasat University Experience : 2013 - Present Chief Financial Officer, Workpoint Entertainment Public Company Limited 2012 Vice President - Investment Banking, Thanachart Securities Public Company Limited 2008 - 2011 Senior Manager - Finance and Investment, Boutique Group of Companies (A JV of LBREP and Capital Land) 10. Flt.Lt. Supadet Asawadumrongdet Position : Chief Administrative Officer Education : Master’s Degree : Master of Science (Information Technology), Sripatum University Bachelor’s Degree : Bachelor of Science (Computer Science), Navaminda Kasatriyadhiraj Royal Air Force Academy Experience : Present Chief Administrative Officer, Workpoint Entertainment Public Company Limited 2012 - 2017 Vice President - Administration, Workpoint Entertainment Public Company Limited
11 Company and subsidiary company business overview
There are 3 business categories of The Company TV shows quality as mentioned above. Besides, the and subsidiary companies as follows: 1) TV programs company also invests through subsidiary companies as business 2) event organizing business and 3) concert & described below. stage plays business. The Company has been operated under the following vision, mission, and long-term goal Subsidiary companies that are 100% as regularly considered and reviewed by the Company’s invested by the Company directors: • Thai Broadcasting Company Limited (“Thai Vision : “To be a leading entertainment company Broadcasting”) is operated as a digital TV in Southeast Asian industry driven by innovative ideas station, named “Workpoint channel”, under and morals.” Commercial digital terrestrial TV license at Mission : “To create products with social national level for a variety standard definition responsibilities, to be driven by distinctive innovations, channel category that officially broadcasted in to develop organizational excellence on continuous and second quarter of 2014. sustainable basis, to provide entertainment services and promote social learning, to develop personnel • Workpoint Pictures Company Limited with organization’s culture of commitment and creative (“Workpoint Pictures”) is operated a movie thinking with good morals.” production business and also invests though joint venture in many movies and animations Long-term Goal : To be aleading entertainment such as ‘Mam diaw hua liam hua laem’, ‘Teng company of Thailand overing broadcasting in all channels Nong Khon Maha-Hia’, ‘Sing lek lek tee reak wa and platforms. rak’, ‘Yak’ or ‘The Robot Giant’, ‘Cat a Wabb’ The Company main business is TV program and ‘Thailand Only’. production for broadcasting in the Company’s TV station, • Bangkok Exhibition Company Limited named “Workpoint channel”. This channel is digital (“Krungthep Exhibition”) is operated an event broadcasting under “Commercial digital terrestrial TV organizing business such as exhibitions, press license at national level for a variety standard definition conferences, product - launch Event, corporate channel category” or digital TV license which is held events, light shows, and fashion shows. by subsidiary company. The Company policy focuses on presenting both knowledge and entertainment TV • Nanonesia Company Limited (“Nanonesia”) program. Most of them are successful, indicated by (formerly Six Degrees Production Company awards and advertisement sales volume. The Company Limited) was established on March 9, 2017 with is accepted as a leader of TV program producer and TV the purpose to sell products of the Company station in Thailand. Both of domestic and international Group. awards can guarantee success of the company and
12 Subsidiary company that is 98.29% Subsidiary company that is 50% invested by the Company (includes invested by the Company both direct and indirect shareholding) • Tohgloam Television Company Limited (“Tohgloam Television”) is operated as a TV • Siam Ganesha Company Limited (“Siam Pic-Ganesha”) is operated a theater program producer. Its past TV programs are management business, named ‘K-Bank Siam as follows, ‘Kon la dao deaw gun’, ‘Microphone Pic-Ganesha theater’. The theater was opened King’, ‘The Voice season 1&2’, ‘Smalltalk , in April 2015. In 2017, there are 5 concerts and ‘Wekid season 1&2’ and ‘Kwanjai Thailand’. stage plays under Siam Ganesha managements itself as follows, ‘Khun pra chuay sum dang sod Subsidiary company that is 30% 7 Nak Fon Mangkorn Rabum concert’, ‘Nitan invested by the Company Hinghoi the musical’, ‘Rongtaw Kong Phor the • FWR Company Limited (“FWR”) is operated a musical’, ‘Fukushima Youth Sinfonietta Concert Theme park business, named ‘Dinosaur Planet’, in Bangkok’ and ‘Talk a Teach Show by Kru that was opened in March 2016. Ngor’. Besides, Siam Ganesha also allows third party to rent the theater for concerts and stage The Company invests in related businesses to plays such as ‘Suphannahong National Film support the growth of the Company and subsidiary Awards 26th’, ‘Youtube Summit 2017 Awards’ companies. Investment in subsidiary companies is a and ‘TEDxBangkok 2017’. jointly own business between the company and skilled and widely accepted people. The Company is confident Subsidiary company that is 60% that subsidiaries investments would success and invested by the Company continuously increase income and profit of the Company. • Ground Company Limited (“Ground”) is operated Audio Editing and Recording business. Also plays, movies, advertisements, and narration sound recording included.
13 Company Group Structure
Workpoint Entertainment Public Company Limited
Audio Editing Theater Event Organising Movie Theme Park Cosmetic TV Business and Recording Management service Business Business Business Business Business Business
9,499,994 Shares 119,996 Shares 2,704,000 Shares 769,996 Shares 2,999,997 Shares 49,996 Shares (100.00%) (60.00%) (96.57%) (100.00%) (100.00%) (100.00%)
Thai Broadcasting Ground Siam Ganesha Bamgkok Workpoint FWR Nanonesia Company Limited Company Limited Company Limited Exhibition Pictures Company Limited Company Limited* Company Limited Company Limited
269,911 Shares (30.00%)
599,998 Shares (50.00%)
Tohgloam 96,000 Shares Television Company Limited (3.43%)
Notes : The voting rights of Group of companies percentage of shareholding (1share:1vote) Structure as of December 31, 2017 *Formerly Six Degrees Production Company Limited
14 Business category
There are 3 business categories of The Company contents, ideas, and knowledge in the program via and subsidiary companies as follows,1) TV programs the quiz or interviewing guests or invited experts. The business, 2) event organizing business, and 3) concert & audiences would get both entertainment and knowledge stage plays business. The businesses as mentioned through various and amusing presentations. These above are related and supported each other. These are light entertainment local content are also divided into the details for all of business synopses. 2 categories as follows TV programs business 1.1.1 Local developed content such as ‘Fan pun tae TV programs business of The Company are divided Super Fan’, ‘Way tee thong way tee ter’, ‘mic thongkum into 3 categories as follows 5’, ‘Mic thong kum mor lum fung petch’, ‘Mic thong kum dek’, ‘Mic on Debt off’, ‘Lightning quiz’, ‘Little Lightning 1. TV programs business via digital TV station quiz’, ‘Game jarachon ku hu antaray’, ‘Super mum’, 2. TV programs business via online channels ‘Ching roi ching lan wow wow wow’, ‘Khun pra chuai’, ‘Lek auad gum’, ‘Jam auad nha jor’, ‘Microphone King’, 3. Licensed programs business ‘Teng Nhong wittayakom’ and ‘Kon auad pee’ and so on. Product or service category 1.1.2 Format content is the program that The The product or service category of TV programs Company purchases Format licenses from licenses business are divided by business types as follows owner. Most of them are purchased from foreign companies to produce the program follow through their • TV programs business via digital TV station patterns with some changes to adjust for audiences in The Company runs a business by programs Thailand such as, ‘Let me in Thailand’, ‘I Can See Your production and purchasing program licenses to Voice’, ‘The Mask Singer season 1-3’, ‘Wekid season broadcast on The Company TV channel. The income 1-2’, ‘Smalltalk’, ‘My Little TV’ and ‘Hear Me Love Mee comes from selling advertisements and promoting See Me’ and so on. products & services while the programs are on air. 1.2) Sit Com The Company’s Sit Com has a unique Also, the TV station of The Company is named style that is comedy, presenting people lifestyles in ‘WORKPOINT channel’ which is digital broadcasting parody and humor by creating a situation in funny way under Commercial digital terrestrial TV licence at National such as ‘Raberd terdterng Dracula maharuk’, ‘Kwanjai level for a variety standard definition channel category Thailand’, ‘Porban jaiklar’ and ‘Talok hok chak’ and so on. that holds the license by subsidiary company and officially 1.3) Drama The Company’s drama has a unique broadcast in second quarter of 2014. Before the digital style that is comedy, presenting people lifestyles in series broadcasting, ‘WORKPOINT channel’ was broadcasting such as ‘7 Days series season1-2’, ‘Office Syndrome under the satellite TV license since 2012 then this TV season1-2’ and ‘Dokmai Laiphatklon’ and so on. station is continuously broadcasting for many years more than 5 years. 1.4) News is the news that reporting various event of crimes, economy, politic, social, entertainment, and The TV programs that broadcast in ‘WORKPOINT also sport from both in Thailand and international. The channel’ are divided into 3 categories as follows Company has its own studios (Workpoint News Studio) 1) Local content for broadcasting the contents all days. The contents are such as ‘Workpoint News’, ‘Banjong chong khao’, ‘Ta-lad 1.1) Light Entertainment which are variety show, quiz khao’, ‘Hong khao bunterng’ and ‘E-jun sueb sayong’ show, and reality show that focus on the entertainment and so on. and knowledge for guests and audiences by adding
15 1.5) Sports is the program that represent sports Since the Company started broadcasting via with innovative and large-scale production such as ‘Super online platforms along with WORKPOINT Channel, rating Muay Thai fight talom lok’ and so on. of the Company’s programs on TV increased significantly 2) Licensed program along with the increase of Subscribers/ Followers on Online Platforms. 2.1) Finished Program is the program that The Company purchases various programs including food Online channels of The Company’s TV programs program, health program, cartoon, game show, and are divided into 3 categories as follows: series etc. 1) Youtube 2.2) Licensed live program which are live sports Youtube is the world’s leading VDE platform enabling and live events such as ‘Garena ROV esports (online users to upload VDO clips and perform live streaming game)’, ‘International Muaythai Festival’, ‘WLF World of various TV programs. The name of The Company’s Boxing Championship live’, and ‘Kun-Lun fight’ and so on. youtube channel is “WorkpointOfficial” presenting rerun 3) Program that is air-time rented by third party clips, new edited clips, and Live Streaming. Such channel earns income from advertising based on the proportion This is the program that is air-time rented by third as agreed with Youtube. party on WORKPOINT channel such as ‘The Giving’, ‘Super Jew’, ‘Super 10’, ‘Make Awake’,‘Kum ka tuen’, In 2017, “WorkpointOfficial” on Youtube had over and ‘Young Self Made Millionaire’ etc. 11 million subscribers. The Company was awarded Daimond Play Button by Youtube. On that success • TV programs business via online channels the view of The Company’s The Mask Singer Season 1 Formerly, The Company has broadcasted its was also the highest rank of the world in 2017. contents only on The Company’s TV channel. However, The number of subscribers of The Company’s since 2016, The Company has added another Youtube channel is in the top rank of Thailand and broadcasting channel via online platforms, for example, ranks 97th of the World Top 200 Most Subscribe Channel Youtube, Facebook, and Company’s Website/ Application List on March 16th, 2018. along with broadcasting via “WORKPOINT channel” in order to capturing the audiences’ trends or behaviors. Comparison on Youtube Subscribers among the Same Business Group World Top 200 Most Subscribe Channel List
Source : Viastatsx.com
16 Comparison on Increase of Subscribers among the Same Business Group
2) Facebook Statistic on Facebook’s Likes Facebook is one of the world’s leading social networks. The Company’s facebook page is called “Workpoint Entertainment” presenting VDO clips and PR news via Feeds of Facebook as well as Live Streaming of the Company’s TV programs. The Company earned incomes from Facebook by selling feed to customers directly and revenue sharing as agreed between Facebook and the Company. World Top 200 Most Subscribe Channel List The Company’s Facebook Page is also a popular page as other online channels. Currently, there are over 11 million likes and ranks 5th of Thailand. 3) Company’s Website/Application Besides Youtube and Facebook, the Company also 1) Format broadcasts its programs via the Company’s Website and The Company sells program formats to the foreign Application in order to increase the viewing channels for customers for reproducing under instruction of the various groups of audiences. Currently, the Company’s Company such as ‘Ching Roi Ching Lan Wow Wow Wow’, application has been downloaded over 2 million times. ‘Talok Hok Chak’, ‘Rat Cha Rot Ma Kei’, ‘Mic on Debt off’, • Licensed Program ‘Fan Pan Tae’, ‘Kadee See Chompu’ and ‘Lightning Quiz’, etc. Besides selling advertising time and promoting products via WORKPOINT channel and online platforms, 2) Finished Program the Company also sells License of its programs to the The Company sells Finished Programs to customers customers in Thailand and other countries. Since 2013, for broadcasting with dubbing of language of each country the Company has sold over than 27 program license such as ‘Raberd Terdtern Singto Thong’ sit-com, ‘Raberd to 15 countries including U.S.A., Indonesia, Vietnam, Terdtern Dancer Taluang Sai’ sit-com, ‘Nang Khaen’ Cambodia, Singapore, and so on. The license are as drama, ‘Office Syndrome’ drama, ‘Talok Hok Chak’, follows: ‘Khon Aud Pee’ and so on.
17 Target Group However, the target group of online channel is The Company’s Target group is audiences audiences with the age ranged from 15 – 34 years with with all occupations seeking for both knowledge and similar proportions between males and females. entertainment. The major audiences of each program is planned to meet with category of each program. However, Online Channel’s Audience Group most programs are suitable for all family members with all genders and ages. Especially, most audiences of WORKPOINT channel are persons with the age of 35 years and over with similar proportions on gender and area.
WORKPOINT Channel’s Audience Group
The competition of TV stations was still high although there were many entrepreneurs suspended their broadcasting. Therefore, contents and their quality are becoming more important factors. Consequently, it is necessary for TV entrepreneurs to improve their programs to meet with demands and preference of all groups of consumers.
Overall Rating of WORKPOINT Channel WORKPOINT TV RATING (06.00 AM-00.00 AM) WORKPOINT TV RATING (06.00 PM-10.30 PM) 18 HRS. NATIONWIDE 15+ PRIME TIME BKK 15+
Source : AGB Nielsen Media Research
18 AGB Nielsen Rating, 15+, January-December 2017, 18 hours (06:00-24.00)
Source : AGB Nielsen Media Research
AGB Nielsen Rating, 15+, January-December 2017, Primetime (18:00-22.30)
Source : AGB Nielsen Media Research 19 Event organizing business Concert & stage plays business Product and Service Product and service Event organizing business is a business that The Company runs a concert and stage plays provides activities organizing entirely to meet the client’s business. Concerts and stage plays are performed by demand and objective. Previously, The Company was famous singers and actors with well-decorated stage and trusted by both government and individuals to organize professional dancers. Previously, the exhibitions mainly many events such as Future for vocational students’ took place by renting third party stages. However, in 2015, project for vocational education commission, Storytelling, Siam Ganesha Company limited (Siam Pic-Ganesha) read and play with kids, festival for Ministry of social which is a subsidiary company, runs a theater business, development and human security, ‘Ratchaphruek ruam jai named ‘K-Bank Siam Pic-Ganesha Theater’. The theater pak rak por luang’ public relation for tourism authority of was opened in April 2015. In 2017 , there are 5 concerts Thailand, Money Me Show event for Kasikorn bank Public and stage plays under Siam Ganesha managements Company Limited, and Chonburi buffalo race festival for itself as follows, ‘Khun pra chuay sum dang sod 7 Nak Ministry of culture. Fon Mangkorn Rabum concert’, ‘Nitan Hinghoi the Besides of event organizing for clients, the musical’, ‘Rongtaw Kong Phor the musical’, ‘Fukushima Company also organizes events itself by seeking for Youth Sinfonietta Concert in Bangkok’ and ‘Talk a Teach sponsorships. Some event activities are developed from Show by Kru Ngor’. Besides, Siam Ganesha also allows Company’s programs. The Company has good feedbacks third party to rent the theater for concerts and stage plays from many event activities organized by itselfs such as such as ‘Suphannahong National Film Awards 26th’ , The Dish Foodival, Siam Street World Compettition 2017, ‘Youtube Summit 2017 Awards’ and ‘TEDxBangkok 2017’. Sam Cha Carniwow, The Mask Fan Meeting, and so on.
20 Revenue Structure The Revenue of the Company and Subsidiaries during 2016 - 2017 are as follow: Unit : Thousand Baht
% Shareholding Business Comapny of 2016 % 2017 % The Company
1. TV Business Workpoint Entertainment Public - Company Limited Tohgloam Television Company 50% 2,416,210 89.7% 3,478,354 90% Limited Thai Broadcasting Company 100% Limited 2. Animation and Computer Ground Company Limited 60% 268 0.0% 535 0.0% Graphic Business 3. Concerts and Plays Workpoint Entertainment Public - 118,145 4.4% 184,330 4.8% Business Company Limited Siam Ganesha Company Limited 96.57% 4. Event Marketing Business Workpoint Entertainment Public - 116,357 4.3% 138,010 3.6% Company Limited Bangkok Exhibition Company 100% Limited 5. Merchandise Business Workpoint Entertainment Public - 15,925 0.6% 51,213 1.3% and Other Services Company Limited Thai Broadcasting Company 100% Limited Nanonesia Company Limited * 100% Other Income 26,570 1.0% 25,058 0.6% Total Revenue 2,693,475 100% 3,877,500 100%
Notes *Formely Six Degrees Production Company Limited **Some programs shown in Statement of Financial Position as of 31 December 2016 and Statement of Comprehensive Income for the Year Ended 31 December 2016 are newly categorized to be consistent with presented Financial Statement for the Year Ended 31 December 2017.
21 Risk Factors
The Company gives priority to the policy of doing addition to broadcasting the contents on Workpoint business under risk management. The policy includes the channel, the Company also broadcasts its contents management plan for potential risks and the support of thru online channel to expand the audience base. AGB risk management process to minimize and control risk at Nielson Media Research shows that “WORKPOINT appropriate level. The Company also maintains the risk channel” has been the top 3 TV stations in Thailand since management report and the monitoring process on the 2014 up till now. In 2017, the Company’s average rating regular basis. was ranked as number one of Thailand for Prime-Time among audeinces in Bangkok with the age of 15 years and over. High Competition of Digital TV Business Nowadays, Digital TV business is considered as The Decline of TV Programs’ Populairty or the Change a high competitive market. Although there are of Consumers’ Trends some entrepreneurs suspended their broadcasting, Consumer’s behavior is always changing based the competition still remains high. The competition on propularity while Digital TV’s revenue depends on the to maintain market share is expected to be remained. popularity of each TV program. Media buyer and agency The digital TV oprtators must keep adjusting and will consider number of audiences and/or TV programs’ improving the contenst at all times. Revenue from the popularity before they decide the budget allocation Digital TV business is depended on TV program ratings to each TV program. Therefore, if the popularity of TV and the popularity of the entire TV channel. The higher program declines, it would have impacts on the income rating will lead to the higher advertising prices and and profits of the Company. the higher chance for media and agency to buy the However, the Company has minimized such risk advertisments. by creating various TV programs. Each TV program will To catch up with the competition and the change be developed with creativity and great presentation. of audiences’ trends, the Company creates various Moreover, the Company always keep strong TV content programs for every group of audiences and also keep screening process and always prepare the pilot test improving the entire TV program schedule to maintain before making the real production of any broadcasted the market share. With more - than - 28 year - experience TV programs. Moreover, before on air, all TV programs in television production business, guaranteed by the must be screened to ensure the quality. TV rating result popularity of many TV programs and awards from many and feedback from the audience of each TV program institutions, the Company is confident that the Company will be evaluated and analyzed for further development. can keep providing the audience high quality TV The entire process is the key to the long-term success programs that not only meet with the taste of audences of the Company’s TV programs. but also, differentiate from the other TV channels. In
22 Expansion of New and Alternative Advertising opportunities. As such the Company starts broadcasting Medias its programs both television and online platforms in Besides TV advertising, online advertising is also order to capture demands of agency, media buyer, considered as another media that is continuously growing. and audiences. Currently, the Company broadcasts Most advertisements are purchased for broadcasting via programs via Facebook, Youtube, and Company’s many world’s leading Online Platform such as Facebook Website / Application along with the Company’s tevision and Youtube. Agency and media buyer pays more channel. Consequently, WORKPOINT channel’s rating attention on online platforms for communicating and is continuously growing along with increase of online advertising their products and services. Online platform is subscribers. Currently, the Company has over 12 million considered as another channel to approach consumers. subscribers and followers via Facebook and Youtube. The Company realizes the change occurring in advertising industry and see it as the business
“WORKPOINT Channel” Viewing Statistics via Social Media at December 31, 2017
Depending on People’s Talent well as promoting and supporting their development The Company’s success on TV business depends continuously, for example, providing personnel training on employees talent and experience on TV production. and fostering all employees to have commitment and It can be considered that human resource is the important participation in Company’s operation. The Company factor of business operation. Lacking human resource realizes on maintaining talented people by providing with high quality may impact the quality of TV programs them rewards, compensations, and welfares. Moreover, and other businesses. the Company also develops facilities to support their living standard adequately. The Company minimizes risks and possible impacts through emphasizing on personnel development as 23 Shareholding Structure Information
Number of Registered and Paid-up Capital As of December 31,2017. The Company’s registered capital was THB 452,094,295 , consisting of 452,094,295 common shares at Par value of THB 1 per share. These shares represented THB 438,857,442 in paid up or. 438,857,442 common shares at Par value of THB 1 per share.
Shareholders The top ten shareholders of the Company as of December 31,2017 are as follow : No. List of Shareholders Number of Shares Percentage 1. Mr. Phanya Nirunkul Groups1 114,245,822 26.030 1.1 Mr. Phanya Nirunkul 105,845,822 24.118 1.2 Miss Panvad Nirunkul 2,100,000 0.478 1.3 Miss Panta Nirunkul 2,100,000 0.478 1.4 Miss Panfun Nirunkul 2,100,000 0.478 1.5 Mr. Porawat Nirunkul 2,100,000 0.478 2. Mr.Prapas Cholsaranon Groups1 112,530,987 25.642 2.1 Mr. Prapas Cholsaranon 101,286,187 23.080 2.2 Mrs. Chedi Cholsaranon 2,222,800 0.506 2.3 Mr. Sangrag Cholsaranon 2,220,000 0.506 2.4 Miss Pumkow Cholsaranon 2,220,000 0.506 2.5 CSN99 Company Limited 4,582,000 1.044 3. Thai NVDR Company Limited 27,472,108 6.260 4. Dentsu X (Thailand) Limited 12,505,582 2.850 5. MINDO ASIA INVESTMENTS LIMITED 10,075,000 2.296 6. Mr. Sompong Cholkadeedamrongkul 7,054,700 1.608 7. Mr. Sompong Cholkadeedamrongkul 4,860,200 1.107 held by Asset Plus Fund Management 8. K 20 Select LTF 4,219,800 0.962 9. CHASE NOMINEES LIMITED 3,340,055 0.761 10. STATE STREET EUROPE LIMITED 3,321,685 0.757 Total 299,625,939 68.273 Source : Thailand Securities Depository Company Limited Notes : 1 This Grouping according to the Notification of the Securities and Exchange Commission gorjor.17/2551 on December 15, 2008 only, not grouping according to section 258 of Securities and Exchange Act B.E. 2535. (as amended) 24 Warrants Warrants of Workpoint Entertainment Public Company Limited No.1 (WORK-W1) to existing shareholders of the Company according to the proposition of shareholding. Term of Warrants 4 years Issuance Date October 1,2015 Expiry Date September 30,2019 Exercise Ratio 1 unit of Warrant shall be entitled to purchase 1 new ordinary share Exercise Price THB 38.10 per share Number of Warrants Issued 20,861,107 units Number of shares issued to support 20,861,107 shares exercising of WORK-W1 Number of exercised Warrants (units) 15,815,480 units as of December 31,2017 Number of unexercised Warrants (units) 5,045,627 units as of December 31,2017 Number of remaining shares reserved (shares) 5,045,627 shares
Dividend Payment Policy 1. The Company shall make dividend payment not less than 70 percent of net profit after corporate income tax based on the Separate Financial Statements, The dividend payment is subject to necessity and suitability of the Company and such payment must not have material impacts to the normal operation of the Company. The Company paid out cash dividends from the Company’s normal operation from January 1, 2017 to December 31, 2017 at the rate of THB 1.388 per share, or 76.77 percent of net profit based on the Separate Financial Statement, or not exceeding in total of THB 606,000,000. 2. Dividend History 2011 2012 2013* 2014 2015 2016 Earnings per Share 1.31 1.68 1.14 0.60 0.36 0.32 Dividend per Share 1.00 1.40 - 0.44 0.34 0.27 Dividend Payment Ratio** 76% 83% - 82% 81% 80%
* Due to the Company’s investment plan in many business , the dividend payment may have impacts on the Company’s normal operations. The Annual General Meeting of Shareholders 2014 on April 11, 2014. approved the omission of dividend distribution of the year 2013. ** calculated from the dividend per share devide by earnings per share.
25 Management Structure
Management Structure as of March 31,2017
Board of Directors Nomination and Remuneration Committee Audit Committee Chairman Mr. Phanya Nirunkul Internal Audit Office
Vice Chairman Mr. Prapas Cholsaranon
Executive Committee
GROUP Chief Executive Officer Mr. Phanich Sodsee
Internal TV Production Business Finance Marketing Digital TV Administration Control and Movie Development
Mr. Kanit Vattanapradit Mr. Chayan Mr. Dhanasak Hoonarak Flt.Lt. Supadet Mr. Surakarn Sirimothya Mrs. Vichanee Srisawat Mr. Chalakorn Panyashom Asawadumrongdet Chief Internal Control Chantawongsatorn Chief Business Chief Financial Officer Chief Marketing Officer Chief Operating Officer Officer Chief Production Officer Development Officer Chief Administrative Officer
26 Independent Auditor’s Report
To the Shareholders of Workpoint Entertainment Public Company Limited Opinion those standards are further described in the Auditor’s I have audited the consolidated and separate Responsibilities for the Audit of the Consolidated and financial statements of Workpoint Entertainment Public Separate Financial Statements section of my report. Company Limited and its subsidiaries (the “Group”) I am independent of the Group and the Company in and of Workpoint Entertainment Public Company accordance with the Code of Ethics for Professional Limited (the “Company”), respectively, which comprise Accountants issued by the Federation of Accounting the consolidated and separate statements of financial Professions that is relevant to my audit of the consolidated position as at 31 December 2017, the consolidated and and separate financial statements, and I have fulfilled my separate statements of comprehensive income, changes other ethical responsibilities in accordance with these in equity and cash flows for the year then ended, and requirements. I believe that the audit evidence I have notes, comprising a summary of significant accounting obtained is sufficient and appropriate to provide a basis policies and other explanatory information. for my opinion. In my opinion, the accompanying consolidated and separate financial statements present fairly, in all Key Audit Matters material respects, the financial position of the Group and Key audit matters are those matters that, in my the Company, respectively, as at 31 December 2017 and professional judgment, were of most significance in their financial performance and cash flows for the year my audit of the consolidated and separate financial then ended in accordance with Thai Financial Reporting statements of the current period. These matters were Standards (TFRSs). addressed in the context of my audit of the consolidated and separate financial statements as a whole, and in forming my opinion thereon, and I do not provide a Basis for Opinion separate opinion on these matters. I conducted my audit in accordance with Thai Standards on Auditing (TSAs). My responsibilities under
Revenue recognition from television programs Refer to Note to financial statements 3 (p) to the consolidated and separate financial statements. The key audit matter How the matter was addressed in the audit Revenues from television programs incurred from My audit procedures included: advertising activities are major revenues of the • Understand and assess the effectiveness of internal controls Group whereby the establishment of scope of related to the revenue recognition from television programs; services, the pricing arrangements, terms and conditions as stipulated in the service agreements • Perform.testing.on.sampling.basis.to.verify.supporting as well as relevant business processes and documents for revenue transactions incurred during the year respective internal controls are relatively complex. and during the periods before and after closed to the year end; These factors may affect the revenue recognition • Perform analysis on revenue from television programs by of the Group. Therefore, I have determined that comparison with historical data and industry information. this matter is a key audit matter.
27 Valuation of television program licenses Refer to Note to financial statements 3 (i) and 14 to the consolidated and separate financial statements. The key audit matter How the matter was addressed in the audit The Group has acquired television My audit procedures included: program licenses which have finite • Understand and assess the evaluation process of impairment. useful lives. The Group has regularly indicator.reviews and the considerations of the recoverable amount reviewed television program license of television program license; for the impairment indicators and the recoverable amounts. These television • Perform analysis on the usage of television program licenses by program license are significant to the comparison with historical data and industry information as well as consolidated financial statements of the the future business plan of the Group; Group. Therefore, I have determined that • Evaluate the adequacy of the financial statements disclosures in this matter is a key audit matter. accordance with Thai Financial Reporting Standards.
Other Information for such internal control as management determines is Management is responsible for the other information. necessary to enable the preparation of consolidated and The other information comprises the information included separate financial statements that are free from material in the annual report, but does not include the consolidated misstatement, whether due to fraud or error. and separate financial statements and my auditor’s report In preparing the consolidated and separate financial thereon. The annual report is expected to be made statements, management is responsible for assessing available to me after the date of this auditor’s report. the Group’s and the Company’s ability to continue as a My opinion on the consolidated and separate going concern, disclosing, as applicable, matters related financial statements does not cover the other information to going concern and using the going concern basis of and I will not express any form of assurance conclusion accounting unless management either intends to liquidate thereon. the Group and the Company or to cease operations, or In connection with my audit of the consolidated has no realistic alternative but to do so. and separate financial statements, my responsibility is Those charged with governance are responsible to read the other information identified above when it for overseeing the Group’s and the Company’s financial becomes available and, in doing so, consider whether reporting process. the other information is materially inconsistent with the Auditor’s Responsibilities for the Audit of the consolidated and separate financial statements or my Consolidated and Separate Financial Statements knowledge obtained in the audit, or otherwise appears to be materially misstated. My objectives are to obtain reasonable assurance about whether the consolidated and separate financial Responsibilities of Management and Those statements as a whole are free from material misstatement, Charged with Governance for the Consolidated and whether due to fraud or error, and to issue an auditor’s Separate Financial Statements report that includes my opinion. Reasonable assurance Management is responsible for the preparation is a high level of assurance, but is not a guarantee and fair presentation of the consolidated and separate that an audit conducted in accordance with TSAs will financial statements in accordance with TFRSs, and always detect a material misstatement when it exists.
28 Misstatements can arise from fraud or error and are continue as a going concern. If I conclude that considered material if, individually or in the aggregate, a material uncertainty exists, I am required to they could reasonably be expected to influence the draw attention in my auditor’s report to the related economic decisions of users taken on the basis of these disclosures in the consolidated and separate consolidated and separate financial statements. financial statements or, if such disclosures are As part of an audit in accordance with TSAs, I inadequate, to modify my opinion. My conclusions exercise professional judgment and maintain professional are based on the audit evidence obtained up to skepticism throughout the audit. I also: the date of my auditor’s report. However, future events or conditions may cause the Group and the Company to cease to continue as a going • Identify and assess the risks of material concern. misstatement of the consolidated and separate • Evaluate the overall presentation, structure financial statements, whether due to fraud or error, and content of the consolidated and separate design and perform audit procedures responsive financial statements, including the disclosures, to those risks, and obtain audit evidence that is and whether the consolidated and separate sufficient and appropriate to provide a basis for financial statements represent the underlying my opinion. The risk of not detecting a material transactions and events in a manner that achieves misstatement resulting from fraud is higher fair presentation. than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, • Obtain sufficient appropriate audit evidence misrepresentations, or the override of internal regarding the financial information of the entities control. or business activities within the Group to express an opinion on the consolidated financial • Obtain an understanding of internal control relevant statements. I am responsible for the direction, to the audit in order to design audit procedures supervision and performance of the group audit. that are appropriate in the circumstances, but not I remain solely responsible for my audit opinion. for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s I communicate with those charged with governance internal control. regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including • Evaluate the appropriateness of accounting any significant deficiencies in internal control that I identify policies used and the reasonableness of during my audit. accounting estimates and related disclosures made by management. I also provide those charged with governance with a statement that I have complied with relevant • Conclude on the appropriateness of management’s ethical requirements regarding independence, and use of the going concern basis of accounting and, to communicate with them all relationships and other based on the audit evidence obtained, whether matters that may reasonably be thought to bear on a material uncertainty exists related to events my independence, and where applicable, related or conditions that may cast significant doubt safeguards. on the Group’s and the Company’s ability to
29 From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
(Sasithorn Pongadisak) Certified Public Accountant Registration No. 8802
KPMG Phoomchai Audit Ltd. Bangkok 26 February 2018
30 Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of financial position Workpoint Entertainment Public Company Limited and its Subsidiaries AsStatement at 31 of financialDecember position 2017
Consolidated Separate financial statements financial statements 31 December 31 December Assets Note 2017 2016 2017 2016 (in Baht) Current assets Cash and cash equivalents 5 1,334,609,723 834,947,923 977,766,185 556,155,620 Short-term investments 6 559,280,425 405,905,036 559,280,425 405,905,037 Trade accounts receivable 4, 7 519,597,882 256,405,326 170,499,917 68,377,470 Other current receivables 4 58,684,058 25,334,868 12,561,859 160,470,957 Inventories 8 169,519,952 84,767,192 18,323,529 9,563,913 Other current assets 34,893,494 118,261,087 8,048,925 22,652,265 Total current assets 2,676,585,534 1,725,621,432 1,746,480,840 1,223,125,262
Non-current assets Restricted deposits at financial institutions - 1,843,075 - - Investments in subsidiaries 10 - - 1,369,508,154 757,465,818 Investments in joint ventures 9 23,314,918 36,097,019 900,000 1,050,000 Long-term loans to and interest receivable from related parties 4 - 1,500,000 1,089,417,825 992,845,789 Property, plant and equipment 11 1,099,840,934 1,009,107,141 737,608,687 809,801,974 Right to use of assets 12 288,663,909 311,630,281 - - Digital television license 13 1,564,271,492 1,702,501,511 - - Other intangible assets 14 605,831,575 496,899,168 43,398,001 42,884,974 Deferred tax assets 52,795,739 61,198,573 - 4,500,415 Other non-current assets 136,467,785 76,006,961 32,300,238 16,810,039 Total non-current assets 3,771,186,352 3,696,783,729 3,273,132,905 2,625,359,009
Total assets 6,447,771,886 5,422,405,161 5,019,613,745 3,848,484,271
The accompanying notes are an integral part of these financial statements.
31 The accompanying notes are an integral part of these financial statements.
5 Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of financial position Workpoint Entertainment Public Company Limited and its Subsidiaries AsStatement at 31 of financialDecember position 2017
Consolidated Separate financial statements financial statements 31 December 31 December Liabilities and equity Note 2017 2016 2017 2016 (in Baht) Current liabilities Trade accounts payable 4, 16 137,959,587 129,609,744 2,690,204 16,524,269 Other current payables 4, 17 337,713,713 157,614,221 32,188,654 22,647,983 Current portion of deferred subsidy income 22,380,025 22,380,025 - - Current portion of digital television license payable 13 369,398,744 388,375,470 - - Current portion of long-term loans from financial institutions 15 204,000,000 210,112,468 204,000,000 190,550,000 Current portion of finance lease liabilities 15 17,491,381 26,530,272 - 21,182,905 Income tax payable 93,331,611 860,894 - - Other current liabilities 53,642,437 21,110,968 19,057,172 11,473,775 Total current liabilities 1,235,917,498 956,594,062 257,936,030 262,378,932
Non-current liabilities Deferred subsidy income 17,588,575 32,670,807 - - - Digital television license payable 13 388,792,178 758,190,922 - - - Long-term loans from financial institutions 15 236,290,000 540,173,853 236,290,000 364,980,000 Finance lease liabilities 15 8,610,383 39,242,757 - 37,916,463 Deferred tax liabilities 1,477,024 - 1,477,024 - Non-current provisions for employee benefit 18 115,672,253 109,026,416 72,061,956 68,992,837 Total non-current liabilities 768,430,413 1,479,304,755 309,828,980 471,889,300
Total liabilities 2,004,347,911 2,435,898,817 567,765,010 734,268,232
The accompanying notes are an integral part of these financial statements.
32 The accompanying notes are an integral part of these financial statements.
6 Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of financial position AsWorkpoint at 31 EntertainmentDecember 2017Public Company Limited and its Subsidiaries Statement of financial position
Consolidated Separate financial statements financial statements 31 December 31 December Liabilities and equity Note 2017 2016 2017 2016 (in Baht) Equity Share capital 20 Authorised share capital 452,094,290 452,094,290 452,094,290 452,094,290 Issued and paid share capital 438,857,442 417,255,236 438,857,442 417,255,236 Share premium 20 2,717,666,946 1,840,524,772 2,717,666,946 1,840,524,772 Warrants 19 63,796,062 93,381,781 63,796,062 93,381,781 Surplus on business combination under common control - - 3,804,778 3,804,778 Retained earnings Appropriated Legal reserve 21 45,209,430 45,209,430 45,209,430 45,209,430 Unappropriated 1,171,111,045 585,592,768 1,182,514,077 714,040,042 Other components of shareholders' equity (1,734,818) (1,734,818) - - Equity attributable to owners of the parent 4,434,906,107 2,980,229,169 4,451,848,735 3,114,216,039 Non-controlling interests 22 8,517,868 6,277,175 - - - Total equity 4,443,423,975 2,986,506,344 4,451,848,735 3,114,216,039
Total liabilities and equity 6,447,771,886 5,422,405,161 5,019,613,745 3,848,484,271 ------
The accompanying notes are an integral part of these financial statements.
33 The accompanying notes are an integral part of these financial statements.
7 Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of comprehensive income ForWorkpoint the year Entertainment ended Public31 December Company Limited 2017 and its Subsidiaries Statement of comprehensive income
Consolidated Separate financial statements financial statements Year ended 31 December Year ended 31 December Note 2017 2016 2017 2016 (in Baht) Revenues 4 Revenue from television programs 3,478,354,140 2,416,209,874 8,607,231 935,763,441 Revenue from animation and computer graphic 535,444 267,888 - - Revenue from concerts and plays 184,329,944 118,144,692 - 19,792,056 Revenue from event marketing 138,009,602 116,357,324 - 50,598,717 Revenue from management fee 60,000 150,000 145,980,400 43,329,400 Revenue from sale of goods and rendering of other services 51,213,009 15,924,874 243,176,467 116,522,254 Total revenues 3,852,502,139 2,667,054,652 397,764,098 1,166,005,868
Costs 4 Cost of television programs (1,478,241,124) (1,324,806,114) (4,218,114) (544,878,049) Cost of animation and computer graphic (36,988) (3,128) - - Cost of concerts and plays (123,578,490) (81,419,382) - (17,827,991) Cost of event marketing (116,182,492) (94,372,116) - (45,073,262) Cost of management fee - - (59,291,501) (36,524,285) Cost of sale of goods and rendering of other services (23,239,180) (4,148,820) (63,444,429) (32,939,411) Total costs (1,741,278,274) (1,504,749,560) (126,954,044) (677,242,998)
Gross profit 2,111,223,865 1,162,305,092 270,810,054 488,762,870
Dividend income 4, 9, 10 - - 751,184,447 67,876,075 Other income 4 24,998,425 26,420,226 71,013,858 60,222,756 Selling expenses 4 (254,759,148) (237,477,295) (1,210,000) (55,571,390) Administrative expenses 4 (604,858,841) (585,561,658) (259,167,388) (358,419,012) Finance costs 26 (97,594,495) (112,669,528) (37,364,428) (31,782,384) Share of (loss) profit of investments in joint ventures 9 (12,839,557) 2,139,065 - -
Profit before income tax 1,166,170,249 255,155,902 795,266,543 171,088,915 Income tax expense 27 (257,676,127) (52,118,000) (8,221,592) (30,614,641) Profit for the year 908,494,122 203,037,902 787,044,951 140,474,274
The accompanying notes are an integral part of these financial statements.
34 The accompanying notes are an integral part of these financial statements.
8 Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of comprehensive income ForWorkpoint the year Entertainment ended Public31 December Company Limited 2017 and its Subsidiaries Statement of comprehensive income
Consolidated Separate financial statements financial statements Year ended 31 December Year ended 31 December Note 2017 2016 2017 2016 (in Baht) Profit for the year 908,494,122 203,037,902 787,044,951 140,474,274
Total comprehensive income for the year 908,494,122 203,037,902 787,044,951 140,474,274
Profit attributable to: Owners of the parent 904,089,193 198,630,796 787,044,951 140,474,274 Non-controlling interests 4,404,929 4,407,106 - - Profit for the year 908,494,122 203,037,902 787,044,951 140,474,274
Total comprehensive income attributable to: Owners of the parent 904,089,193 198,630,796 787,044,951 140,474,274 Non-controlling interests 4,404,929 4,407,106 - - Total comprehensive income for the year 908,494,122 203,037,902 787,044,951 140,474,274
Earnings per share 28 Basic earnings per share 2.1378 0.4760 1.8610 0.3367 Diluted earnings per share 2.1120 0.4758 1.8386 0.3365
The accompanying notes are an integral part of these financial statements.
35 The accompanying notes are an integral part of these financial statements.
9 - - - (3,201,438) (3,201,438) 73,446,480 Total (14,059,633) (62,588,285) equity 203,037,902 203,037,902 2,986,506,344 2,786,669,880
- - - Non- 4,407,106 6,277,175 4,407,106 (2,189,104) (2,189,104) interests 18,118,806 (14,059,633) (14,059,633) (16,248,737) controlling
- - 2,189,104 2,189,104 73,446,480 10,858,195 13,047,299 (62,588,285) 198,630,796 198,630,796 owners 2,980,229,169 2,768,551,074 Total equity Total of the parent attributable to attributable
------(1,734,818) (1,734,818) of equity in subsidiaries
Other components
Discount on changes in interest ownership - - (in Baht) (in 2,189,104 2,189,104 (3,486,164) priated (62,588,285) (62,588,285) (60,399,181) 198,630,796 450,847,317 585,592,768 198,630,796 Unappro-
Consolidated financial statements Consolidated ------Retained earnings Legal 3,486,164 reserve 41,723,266 45,209,430
10 ------19,935,301 93,381,781 73,446,480 73,446,480 73,446,480 Warrants
------Share premium 1,840,524,772 1,840,524,772
------share capital paid-up 417,255,236 417,255,236 Issued and Issued
19 29 21 Note The accompanying notes are an integral part of these financial statements. financial these of part integral an are notes accompanying The Dividends to owners of the to owners CompanyDividends interests to non-controlling Dividends of the parent Total to owners distributions Distributions to owner of the parent transaction payment Share-based Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint equity in changes of Statement 2016 December 31 ended Year Balance at 1 January 2016 equity in directly recorded with owners, Transactions Changes in ownership interests in subsidiaries interests without of non-controlling a Acquisition in change control Total changes in ownership interests in subsidiaries equity in directly recorded with owners, transactions Total year the for income Comprehensive Profit year the for income comprehensive Total reserve legal to Transfer 2016 Balance at 31 December The accompanying notes are an integral part of these financial statements. an integral notes are The accompanying Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of changes in equity ended 31 December 2017 For the year 36 107,475 107,475 (2,271,711) 46,114,612 Total equity 601,709,719 221,334,330 908,494,122 548,316,034 548,423,509 908,494,122 (318,570,916) 2,986,506,344 4,443,423,975
- - - - 107,475 107,475 Non- 4,404,929 6,277,175 8,517,868 4,404,929 (2,271,711) (2,271,711) (2,164,236) interests controlling
- - - 46,114,612 904,089,193 601,709,719 221,334,330 550,587,745 550,587,745 904,089,193 owners (318,570,916) 2,980,229,169 4,434,906,107 Total equity Total of the parent attributable to attributable
------(1,734,818) (1,734,818) of equity in subsidiaries
Other components Discount on changes in interest ownership ------(in Baht) (in priated 904,089,193 585,592,768 904,089,193 Unappro- (318,570,916) (318,570,916) (318,570,916) 1,171,111,045
Consolidated financial statements Consolidated ------Retained earnings Legal reserve 45,209,430 45,209,430
------11 93,381,781 63,796,062 46,114,612 Warrants (29,585,719) (29,585,719) (75,700,331)
------Share 877,142,174 877,142,174 585,916,813 291,225,361 premium 1,840,524,772 2,717,666,946
------share 5,809,300 capital paid-up 21,602,206 21,602,206 15,792,906 417,255,236 438,857,442 Issued and Issued
19 19 29 Note 19, 20 The accompanying notes are an integral part of these financial statements. financial these of part integral an are notes accompanying The Issued of ordinary share from share-based payment exercised share payment from share-based of ordinary Issued transaction payment Share-based of the to owners CompanyDividends interests to non-controlling Dividends of the parent to owners Total distributions by and contributions Contributions by and distributions to owner of the to parent owner distributions by and Contributions share from warrants exercised of ordinary Issued interests without of non-controlling a Acquisition in change control Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint equity in changes of Statement 2017 December 31 ended Year Balance at 1 January 2017 equity in directly recorded with owners, Transactions Change in owership interests in subsidiaries Total changes in ownership interests in subsidiaries equity in directly recorded with owners, transactions Total year the for income Comprehensive Profit year the for income comprehensive Total 2017 Balance at 31 December The accompanying notes are an integral part of these financial statements. an integral notes are The accompanying Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of changes in equity ended 31 December 2017 For the year 37 -
3,804,778
10,858,195 10,858,195 73,446,480 (62,588,285) 140,474,274 140,474,274 3,114,216,039 2,959,078,792 Total equity Total
- - (3,486,164) (62,588,285) (62,588,285) (62,588,285) 714,040,042 140,474,274 639,640,217 140,474,274 Unappropriated
------Retained earnings 3,486,164
45,209,430 41,723,266
Legal reserve
------
3,804,778 3,804,778 (in Baht) (in
common control combination under Surplus on business on Surplus Separate financial statements financial Separate - - - - - 93,381,781 19,935,301 73,446,480 73,446,480 73,446,480 Warrants
------12 Share premium 1,840,524,772 1,840,524,772
------paid-up 417,255,236 417,255,236 Issued and Issued share capital
19 29 21 Note The accompanying notes part are these an The of integral accompanying financial statements. Dividends to owners of the Company the of owners to Dividends Distributions to owners of the parent the of owners to Distributions Share-based transaction payment Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint of changes equity in Statement Year ended 31 December 2016 at 1 JanuaryBalance 2016 Transactions with owners, recorded directly in equity Total distributions to owners of the parent Total transactions with owners, recorded directly in equity Comprehensive income for the year Profit Total comprehensive income for the year reserve legal to Transfer Acquisitions from entities under common control 2016 at 31 December Balance Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of changes in equity ended 31 December 2017 For the year The accompanying notes are an integral part of these financial statements. an integral notes are The accompanying 38 46,114,612 601,709,719 221,334,330 787,044,951 550,587,745 550,587,745 787,044,951 (318,570,916) 4,451,848,735 3,114,216,039 Total equity Total
- - - 787,044,951 714,040,042 787,044,951
(318,570,916) (318,570,916) (318,570,916) 1,182,514,077 Unappropriated
------Retained earnings 45,209,430 45,209,430
Legal reserve
------3,804,778 3,804,778 (in Baht) (in
common control combination under Surplus on business on Surplus Separate financial statements financial Separate - - - - 63,796,062 46,114,612 93,381,781 (75,700,331) (29,585,719) (29,585,719) Warrants
- - - - 13 Share 585,916,813 291,225,361 877,142,174 877,142,174
premium 1,840,524,772 2,717,666,946
- - - - 5,809,300
15,792,906 21,602,206 21,602,206 paid-up 417,255,236 438,857,442 Issued and Issued share capital
19 29 Note 19, 20 19, 20 The accompanying notes part are these an The of integral accompanying financial statements. Issued of ordinary share from share-based payment exercised payment share-based from share ordinary of Issued Share-based transaction payment Company the of owners to Dividends Contributions by and distributions to owner of the parent owner of the to and distributions by Contributions warrants from share ordinary of Issued Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint of changes equity in Statement Year ended 31 December 2017 at 1 JanuaryBalance 2017 Transactions with owners, recorded directly in equity Total contributions by and distributions to owner of the parent Total transactions with owners, recorded directly in equity Comprehensive income for the year Profit Total comprehensive income for the year 2017 at 31 December Balance Workpoint Entertainment Public Company Limited and its Subsidiaries Statement of changes in equity ended 31 December 2017 For the year The accompanying notes are an integral part of these financial statements. an integral notes are The accompanying 39 Workpoint Entertainment Public Company Limited and its Subsidiaries StatementWorkpoint Entertainment of Publiccash Company flows Limited and its Subsidiaries Statement of cash flows For the year ended 31 December 2017 Consolidated Separate financial statements financial statements Year ended 31 December Year ended 31 December 2017 2016 2017 2016 (in Baht) Cash flows from operating activities Profit for the year 908,494,122 203,037,902 787,044,951 140,474,274 Adjustments to reconcile profit to cash receipts Income tax expense 257,676,127 52,118,000 8,221,592 30,614,641 Finance costs 97,594,495 112,669,528 37,364,428 31,782,384 Depreciation and amortisation 506,316,086 564,561,550 60,749,695 108,899,048 Amortisation deferred subsidy (16,530,457) (15,155,280) - - Employee benefit expenses 6,645,837 9,687,091 3,069,119 6,730,669 Share-based payment 46,114,612 73,446,480 14,446,675 53,285,965 (Gain) loss from capital reduction from investment in subsidiaries - - 238,610 (709,792) Share of (gain) loss of investments in joint ventures 12,839,557 (2,139,065) - - Gain from sale of short-term investments (3,003,373) - (3,003,373) - Unrealised gain from sale of trading securities (341,954) (2,485,206) (341,954) (2,485,206) Dividend income - - (750,043,464) (67,876,075) Write-off withholding tax deducted at source 1,521,666 - 1,053,019 - Bad debt and doubtful account 4,318,356 4,377,662 585,955 1,078,906 (Reversal of) loss on decline in value of inventories 5,354,843 161,481 5,399,114 (435,617) Reversal of allowance for impairment of investments in subsidiaries - - (24,203) - Loss on impairment of investments in joint ventures 5,232,668 - 150,000 - (Gain) loss on disposal and write-off of assets 34,947,657 (2,280,511) (11,554,174) (2,262,356) Interest income (5,994,582) (8,914,061) (54,484,910) (55,279,318) 1,861,185,660 989,085,571 98,871,080 243,817,523 Changes in operating assets and liabilities Trade accounts receivable and other current receivables (301,395,250) (21,612,811) 26,576,207 54,578,541 Inventories (90,107,603) (38,279,901) (14,158,730) 50,109,326 Other current assets 27,144,623 - 83,642 - Other non-current assets (4,250,541) (901,684) 729,675 1,601,781 Trade accounts payable and other current payables 151,162,377 (37,717,307) (12,165,745) (87,767,138) Other current liabilities 32,531,469 - 7,583,397 - Withholding tax deducted at source refunded 9,445,903 - 4,148,003 - Cash generated from operating activities 1,685,716,638 890,573,868 111,667,529 262,340,033 Taxes paid (166,280,432) (28,529,227) (9,145,349) (2,997,788) Net cash from operating activities 1,519,436,206 862,044,641 102,522,180 259,342,245 The accompanying notes are an integral part of these financial statements. 40 The accompanying notes are an integral part of these financial statements.
14 Workpoint Entertainment Public Company Limited and its Subsidiaries
StatementWorkpoint Entertainment of Publiccash Company flows Limited and its Subsidiaries ForStatement the yearof cash flowsended 31 December 2017
Consolidated Separate financial statements financial statements Year ended 31 December Year ended 31 December 2017 2016 2017 2016 (in Baht) Cash flows from investing activities Cash received from investments in restricted deposits at financial institutions 1,843,075 2,553,602 - 2,573,510 Cash received (paid) for sale and purchase of short-term investments, net (150,030,062) (2,601,264) (150,030,062) (2,601,264) Cash received from loans to related parties 1,500,000 41,400,100 370,935,381 340,500,000 Cash paid for loans to related parties - (23,700,000) (463,310,000) (496,510,000) Cash received from sale of assets 160,865 2,725,470 32,533,422 158,128,565 Cash paid for purchase of property, plant and equipment, right to use and other intangible assets (541,156,759) (484,680,715) (61,397,496) (151,126,078) Cash paid for digital television license (388,375,470) (433,000,000) - - Cash received from sale of investment in subsidiaries - - 601,737 - Cash paid for acquisition of investments in subsidiaries - - (604,730,558) (252,898,800) Cash received from share capital reduction of subsidiaries - - 22,829,588 - Cash paid for acquisition of investments in joint ventures (7,455,000) (26,700,000) - - Cash received from capital return of investments in joint ventures 964,876 13,899,294 - 8,809,792 Dividend received 1,200,000 53,866,492 756,343,464 61,516,075 Interest received 6,599,411 8,933,558 62,611,983 54,517,250 Net cash used in investing activities (1,074,749,064) (847,303,463) (33,612,541) (277,090,950)
The accompanying notes are an integral part of these financial statements.
41
The accompanying notes are an integral part of these financial statements.
15 Workpoint Entertainment Public Company Limited and its Subsidiaries
StatementWorkpoint Entertainment of Public cash Company flows Limited and its Subsidiaries ForStatement the ofyear cash flowsended 31 December 2017
Consolidated Separate financial statements financial statements Year ended 31 December Year ended 31 December 2017 2016 2017 2016 (in Baht) Cash flows from financing activities Interest paid (91,606,349) (46,782,386) (37,338,305) (27,593,561) Cash received from long-term loans from financial institutions 463,310,000 463,310,000 463,310,000 463,310,000 Cash paid for long-term loans from financial institutions (779,319,000) (359,401,000) (578,550,000) (348,170,000) Cash paid for finance lease liabilities (39,671,265) (36,530,233) (6,324,179) (26,787,697) Proceed from issued of ordinary share from warrants exercised 601,709,719 - 601,709,719 - Proceed from issued of ordinary share from share-based payment exercised 221,334,330 - 221,334,330 - Proceed from transfer of ordinary share from share-based payment - - 710,427 - Advanced received for share capital 6,419,850 - 6,419,850 - Dividends paid to owners of the Company (318,570,916) (62,588,285) (318,570,916) (62,588,285) Dividends paid to non-controlling interests (8,631,711) (14,059,633) - - Net cash from (used in) financing activities 54,974,658 (56,051,537) 352,700,926 (1,829,543)
Net increase (decrease) in cash and cash equivalents 499,661,800 (41,310,359) 421,610,565 (19,578,248) Cash and cash equivalents at 1 January 834,947,923 876,258,282 556,155,620 575,733,868 Cash and cash equivalents at 31 December 1,334,609,723 834,947,923 977,766,185 556,155,620
Non-cash transactions Outstanding debts arising from investments in capital expenditures 41,563,215 2,825,556 3,142,297 1,618,918 Digital television license payable 758,190,922 1,149,411,368 - - Share-based payment 75,700,331 - 31,667,938 - Sale of assets under finance leases - - 52,775,192 -
The accompanying notes are an integral part of these financial statements.
42
The accompanying notes are an integral part of these financial statements.
16 Workpoint Entertainment Public Company Limited and its Subsidiaries Workpoint Entertainment Public Company Limited and its Subsidiaries NotesNotes to the tofinancial the statements financial statements For the year ended 31 December 2017 For the year ended 31 December 2017
Note Contents
1 General information 2 Basis of preparation of the financial statements 3 Significant accounting policies 4 Related parties 5 Cash and cash equivalents 6 Short-term investments 7 Trade accounts receivable 8 Inventories 9 Investments in joint ventures 10 Investments in subsidiaries 11 Property, plant and equipment 12 Right to use of assets 13 Digital television license 14 Other intangible assets 15 Interest-bearing liabilities 16 Trade accounts payable 17 Other current payables 18 Non-current provisions for employee benefits 19 Warrants 20 Share capital 21 Legal reserve 22 Non-controlling interests 23 Operating segment 24 Employee benefit expenses 25 Expenses by nature 26 Finance costs 27 Income tax expense 28 Earnings per share 29 Dividends 30 Financial instruments 31 Commitments with non-related parties 32 Events after the reporting period 33 Reclassification of accounts
43
17 WorkpointWorkpoint Entertainment Entertainment Public Public Company Company Limited Limited and andits Subsidiaries its Subsidiaries NotesNotes to the to fin theancial financial statements statements For theFor year the yearended ended 31 December 31 December 2017 2017
TheseThese notes notesform forman integral an integral part of part the of financial the financial statements. statements.
The financialThe financial statements statements issued issued for Thai for Thaistatutory statutory and regulatoryand regulatory reporting reporting purposes purposes are prepared are prepared in in the Thaithe Thailanguage. language. These These English English lang uagelang uagefinancial financial statements statements have havebeen beenprepared prepared from fromthe Thai the Thai languagelanguage statutory statutory financial financial statements, statements, and wereand wereapproved approved and authorisand authorised fored iss forue issbyue the by Board the Board of of DirectorsDirectors on 26 on February 26 February 2018. 2018.
1 1General General information information
WorkpointWorkpoint Entertainment Entertainment Public Public Company Company Limi ted,Limi theted, “ Company”,the “Company”, is incorporated is incorporated in Thailand in Thailand and and has itshas reg itsistered registered office office at 99 atMoo 99 Moo2, Tambon 2, Tambon Bang BangPoon ,Poon Amphoe, Amphoe Muang Muang Pathum Pathum Thani, Thani, Pathum Pathum ThaniT, haniThailand, Thailand. .
The CompanyThe Company was listed was listed on the on Stock the Stock Exchange Exchange of Thailand of Thailand in September in September 2004 .2004 .
The majorThe major sharehol shareholders derdurings during the yearthe yearwere wereMr. PMr.hanya Phanya Niru nkulNiru nkul(24.12 (24.12% shareholding% shareholding) and) and Mr. PrapasMr. Prapas Cholsarano Cholsaranon (23.08n (23.08% shareholding% shareholding). ).
The principalThe principal activity activity of the of C theompany Company are holding are holding and other and otherservice service provider. provider. The principalThe principal activities activities of theof Group the Group are digital are digital televisi television broadcastingon broadcasting and the and production the production of television of television programs, programs, animation animation and computerand computer graphics, graphics, movies, movies, concerts concerts and plays,and plays, event event marketing marketing and saleand ofsale goods of goods and servicesand services relatedrelated to the to Group’s the Group’s businesses. businesses.
DetailsDetails of the of Company’s the Company’s subsidiaries subsidiaries and joint and ventujoint resventu asres at 31as Decemberat 31 December were aswere follows: as follows:
OwnershipOwnership interest interest CountryCountry of of (%) (%) NameName of the of entities the entities TypeType of business of business incorporationincorporation 2017 2017 201 6 2016
SubsidiariesSubsidiaries WorkpointWorkpoint Publishing Publishing Co., Ltd. Co., Ltd. LiquidatedLiquidated ThailandThailand - - 99.99 99.99
TohgloamTohgloam Television Television Co., Ltd. Co., Ltd. ProductionProduction of television of television ThailandThailand 50.00 50.00 50.00 50.00 programsprograms
WorkpointWorkpoint Pictures Pictures Co., Ltd. Co., Ltd. ProductionProduction of movies of movies ThailandThailand 99.99 99.99 99.99 99.99
GroundGround Co., Ltd. Co., Ltd. EditingEditing and record and record sound sound ThailandThailand 60.00 60.00 60.00 60.00
NanonesiaNanonesia Co., Ltd.Co., (Ltd.Formerly (Formerly named named Trading Trading of goods of goods and and ThailandThailand 99.99 99.99 99.99 99.99 Six DegreesSix Degrees Production Production Co., Ltd. Co.,) Ltd.) renderingrendering of services of services
FlagshipFlagship Entertainment Entertainment Co., Ltd. Co., Ltd. On liquidationOn liquidation process process ThailandThailand 50.00 50.00 50.00 50.00
FreesizeFreesize Broadcasting Broadcasting Co., Ltd. Co., Ltd. LiquidatedLiquidated ThailandThailand - - 50.00 50.00
Thai BroadcastingThai Broadcasting Co., Ltd. Co., Ltd. DigitalDigital television television broadcast broadcast ThailandThailand 99.99 99.99 99.99 99.99 stationstation and production and production of of televisiontelevision programs programs
BangkokBangkok Exhibition Exhibition Co., Ltd. Co., Ltd. EntertainmentEntertainment event event ThailandThailand 99.99 99.99 99.99 99.99 organisingorganising services services
Siam SiamGanes Ganesha Co.,ha Ltd.Co., (and Ltd. 3.43(and% 3.43 held% heldTheater Theater management management ThailandThailand 96.57 96.57 88.00 88.00 by Tohgloamby Tohgloam Television Television Co., Ltd.) Co., Ltd.)
18 18
44 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Ownership interest Country of (%) Name of the entities Type of business incorporation 2017 2016
Joint ventures Joint Venture Jointly invested for movie Thailand - 50.00 “TengNongKhonmahahere”2 production “TengNongKhonmahahere”
Joint Venture “WSS”1 Jointly invested for movie Thailand 30.00 30.00 production “First love”
Joint Venture “PohTak”1 Liquidated Thailand - 40.00
Joint Venture “Work Right”1 Jointly invested for events Thailand 50.00 50.00 marketing in domestic and foreign
Joint Venture “Workpoint Fresh Air”1 On liquidation process Thailand 50.00 50.00
Joint Venture “YAK”2 Liquidated Thailand - 35.00
Joint Venture “Tukky Diary”2 Liquidated Thailand - 50.00
Joint Venture “PhraTengYomNhong”2 Liquidated Thailand - 50.00
Joint Venture “MM & TK2”2 Jointly invested for movie Thailand 50.00 50.00 production “Oh My Ghost”
Joint Venture “PanyaRaenu 2”2 Liquidated Thailand - 30.00
Joint Venture “Super Salaryman”2 Liquidated Thailand - 60.00
Joint Venture “TNC”2 Jointly invested for movie Thailand 50.00 50.00 production “Teng Nhong Cat A Wabb”
FWR Co., Ltd.3 Jointly Invested for Thailand 30.00 30.00 amusement park and exhibition
Joint Venture “Thailand Only” 2 Jointly invested for movie Thailand 33.33 - production “Thailand Only”
1 Joint ventures invested by the Company 2 Joint ventures invested by Workpoint Pictures Co., Ltd. 3 Joint ventures invested by Bangkok Exhibition Co., Ltd.
19 45 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
2 Basis of preparation of the financial statements
(a) Statement of compliance
The financial statements are prepared in accordance with Thai Financial Reporting Standards (TFRS); guidelines promulgated by the Federation of Accounting Professions (“FAP”); and applicable rules and regulations of the Thai Securities and Exchange Commission.
The FAP has issued new and revised TFRS effective for annual accounting periods beginning on or after 1 January 2017. The initial application of these new and revised TFRS has resulted in changes in certain of the Group’s accounting policies. These changes have no material effect on the financial statements.
In addition to the above new and revised TFRS, the FAP has issued a number of other new and revised TFRS which are effective for annual financial periods beginning on or after 1 January 2018 and have not been adopted in the preparation of these financial statements. The Group has made a preliminary assessment of the potential initial impact on the consolidated and separate financial statements of these revised TFRS and expects that there will be on material impact on the financial statements in the period of initial application.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following items:
Items Measurement bases Trading securities Fair value Non-current provisions for employee benefits Present value of the defined employee benefit obligations as explained in Note 18 Share-based payment Fair value of the equity instrument granted
(c) Functional and presentation currency
The financial statements are presented in Thai Baht, which is the Company’s functional currency.
(d) Use of judgements and estimates
The preparation of financial statements in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognised in financial statements is included in the following notes:
Note 14 Impairment test: key assumptions underlying recoverable amounts Note 18 Measurement of non-current provisions for employee benefits: key actuarial assumptions Note 19 Measurement of share-based payment
20
46 Workpoint Entertainment Public Company Limited and its Subsidiaries Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements Notes to the financial statements For the year ended 31 December 2017 For the year ended 31 December 2017
2 Basis of preparation of the financial statements Measurement of fair values
(a) Statement of compliance A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The financial statements are prepared in accordance with Thai Financial Reporting Standards (TFRS); guidelines promulgated by the Federation of Accounting Professions (“FAP”); and applicable rules The Group has an established control framework with respect to the measurement of fair values. This and regulations of the Thai Securities and Exchange Commission. includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including level 3 fair values, and reports directly to Chief Financial Officer. The FAP has issued new and revised TFRS effective for annual accounting periods beginning on or after 1 January 2017. The initial application of these new and revised TFRS has resulted in changes in The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If certain of the Group’s accounting policies. These changes have no material effect on the financial third party information, such as broker quotes or pricing services, is used to measure fair values, then statements. the valuation team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of TFRS, including the level in the fair value hierarchy in In addition to the above new and revised TFRS, the FAP has issued a number of other new and revised which the valuations should be classified. TFRS which are effective for annual financial periods beginning on or after 1 January 2018 and have not been adopted in the preparation of these financial statements. The Group has made a preliminary Significant valuation issues are reported to the Group’s Audit Committee. assessment of the potential initial impact on the consolidated and separate financial statements of these revised TFRS and expects that there will be on material impact on the financial statements in the When measuring the fair value of an asset or a liability, the Group uses observable market observable period of initial application. data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: (b) Basis of measurement Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. The financial statements have been prepared on the historical cost basis except for the following items: Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Items Measurement bases Level 3: inputs for the asset or liability that are not based on observable market data (unobservable Trading securities Fair value inputs). Non-current provisions for employee benefits Present value of the defined employee benefit obligations as explained in Note 18 If the inputs used to measure the fair value of an asset or liability might be categorised in different Share-based payment Fair value of the equity instrument granted levels of the fair value hierarchy, then the fair value measurement is categorised in its entirely in the same level of the fair value hierarchy as the lowest level input that is significant to the entire (c) Functional and presentation currency measurement.
The financial statements are presented in Thai Baht, which is the Company’s functional currency. The Group recognised transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. (d) Use of judgements and estimates Further information about the assumptions made in measuring fair values is included in the following The preparation of financial statements in conformity with TFRS requires management to make notes: judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these Notes 3 (n) and 19 Share-based payment estimates. Note 30 Financial instruments
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting 3 Significant accounting policies estimates are recognised prospectively. The accounting policies set out below have been applied consistently to all periods presented in these Information about significant areas of estimation uncertainty and critical judgments in applying financial statements. accounting policies that have the most significant effect on the amount recognised in financial statements is included in the following notes: (a) Basis of consolidation
Note 14 Impairment test: key assumptions underlying recoverable amounts The consolidated financial statements relate to the Company and its subsidiaries (together referred to Note 18 Measurement of non-current provisions for employee benefits: key actuarial as the “Group”) and the Group’s interests in joint ventures. assumptions
Note 19 Measurement of share-based payment
20 21
47 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Business combinations
The Group applies the acquisition method for all business combinations when control is transferred to the Group, as describe in subsidiaries section, other than those with entities under common control.
The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in determining the acquisition date and determining whether control is transferred from one party to another.
Goodwill is measured as the fair value of the consideration transferred including the recognised amount of any non-controlling interest in the acquiree, less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. Any gain on bargain purchase is recognised in profit or loss immediately.
Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing relationships between the Group and the acquiree, then the lower of the termination amount, as contained in the agreement, and the value of the off-market element is deducted from the consideration transferred and recognised in other expenses.
When share-based payment awards exchanged (replacement awards) for awards held by the acquiree’s employees (acquiree’s awards) relate to past services, then a part of the market-based measure of the awards replaced is included in the consideration transferred. If they require future services, then the difference between the amount included in consideration transferred and the market-based measure of the replacement awards is treated as post-combination compensation cost.
A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably.
Transaction costs that the Group incurs in connection with a business combination, such as legal fees, and other professional and consulting fees are expensed as incurred.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at that date.
Step acquisition
When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.
22
48 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Acquisitions from entities under common control
Business combinations of entities or businesses under common control are accounted for using a method similar to the pooling of interest method and in accordance with the Guideline issued in 2009 by the FAP.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
Non-controlling interests
At the acquisition date, the Group measures any non-controlling interest at its proportionate interest in the identifiable net assets of the acquiree.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
Interests in equity-accounted investees
The Group’s interests in equity-accounted investees comprise interests in joint ventures.
Interests in joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of equity - accounted investees, until the date on which significant influence or joint control ceases.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated. Unrealised gains arising from transactions with equity - accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
(b) Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currency of the Group entities at exchange rates at the dates of the transactions.
23
49 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting date.
Non-monetary assets and liabilities measured at cost in foreign currencies are translated to the functional currency using the foreign exchange rates ruling at the dates of the transactions.
Foreign currency differences are generally recognised in profit or loss.
(c) Derivatives financial instruments
The Group enters into forward foreign currency exchange contracts to protect the Group from movements in exchange rates by establishing the rate at which a foreign currency liability will be settled. The forward foreign currency exchange contracts are not recognised in the financial statements on inception but only when they are settled according to the contract terms.
(d) Cash and cash equivalents
Cash and cash equivalents in the statements of cash flows comprises cash balances, call deposits and highly liquid short-term investments.
(e) Trade and other accounts receivable
Trade and other accounts receivable are stated at their invoice value less allowance for doubtful accounts.
The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future expectations of customer payments. Bad debts are written off when incurred.
(f) Inventories
Inventories are measured at the lower of cost and net realisable value.
Cost is calculated using first in first out principle, and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Cost of television programs and television programs under production comprise of direct cost of production, filming cost and other production overheads.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to complete and to make the sale.
(g) Investments
Investments in subsidiaries and joint ventures
Investments in subsidiaries and joint ventures in the separate financial statements of the Company are accounted for using the cost method. Investments in joint ventures in the consolidated financial statements are accounted using equity method.
Investments in equity securities
Fixed deposits at banks are presented as part of short-term investments with maturities over three months, not exceeding one year.
24
50 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Marketable equity securities held for trading are classified as current assets and are stated at fair value, with any resultant gain or loss recognised in profit or loss.
Equity securities which are not marketable are stated at cost less any impairment losses.
The fair value of financial instruments classified as held-for-trading is determined as the quoted bid price at the reporting date.
Disposal of investments
On disposal of an investment, the difference between net disposal proceeds and the carrying amount together with the associated cumulative gain or loss that was reported in equity is recognised in profit or loss.
If the Group disposes of part of its holding of a particular investment, the deemed cost of the part sold is determined using the FIFO method applied to the carrying value of the total holding of the investment.
(h) Property, plant and equipment
Recognition and measurement
Owned assets
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self- constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised in profit or loss.
Leased assets
Leases in terms of which the Group substantially assumes all the risk and rewards of ownership are classified as finance leases. Plant and equipment acquired by way of finance leases is capitalised at the lower of its fair value and the present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and impairment losses. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss.
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51 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
Depreciation
Depreciation is calculated based on the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. The estimated useful lives are as follows:
Land improvements 5 years Building, building improvement and utility systems 10 - 45 years Furniture and fixtures 5 years Tools and equipment 5 - 10 years Office equipment 5 years Vehicles 5 years
No depreciation is provided on freehold land or assets under construction and installation.
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
(i) Intangible assets
Digital television license
The carrying amount of digital television licence consists of expenditures that are directly attributable to the acquisition of license for operating a national commercial digital terrestrial television broadcasting service in standard definition variety category, and is measured at cash price equivalent by discounting the future instalments to present value using a market discount rate. The asset is stated at cost less accumulated amortisation and impairment losses. The difference between the cash price equivalent and the total payments to be made is recognised as an interest expenses over the licence fee payment periods, which the asset is amortised from the date which it is ready to provide services.
Other intangible assets
Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated amortisation and accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, is recognised in profit or loss as incurred.
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52 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Amortisation
Amortisation is based on the cost of the asset, or other amount substituted for cost, less its residual value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated economic useful lives of intangible assets, from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.
The estimated useful lives for the current and comparative periods are as follows:
Television programs licenses Over the period of the agreement Book licenses Over the period of the agreement Music licenses Over the period of the agreement Software licenses 5 years Digital television license Over the period of the license Right to use of assets Over the period of the agreement
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
(j) Impairment
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated. For intangible assets that have indefinite useful lives or are not yet available for use, the recoverable amount is estimated each year at the same time.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The impairment loss is recognised in profit or loss.
Calculation of recoverable amount
The recoverable amount of a non-financial asset is the greater of the assets’ value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Reversals of impairment
An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised in profit or loss.
Impairment losses recognised in prior periods in respect of other non-financial assets are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
27
53 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
(k) Interest-bearing liabilities
Interest-bearing liabilities are recognised initially at fair value less attributable transaction charges. Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any difference between cost and redemption value being recognised in profit or loss over the period of the borrowings on an effective interest basis.
(l) Trade and other accounts payable
Trade and other accounts payable are stated at cost.
(m) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided.
Defined benefit plans
The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method.
Remeasurements of the defined benefit liability, actuarial gain or loss are recognised immediately in other comprehensive income. The Group determines the interest expense on the defined benefit liability for the period by applying the discount rate used to measure the net defined benefit obligation at the beginning of the annual period, taking into account any changes in the net defined benefit liability during the period as a result of benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Termination benefits
Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, then they are discontinues.
Short-term employee benefits
Short-term employee benefit obligations are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
28
54 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
(n) Share-based payments
The grant-date fair value of equity-settled share-based payment awards granted to employees is generally recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non- market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
(o) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
(p) Revenue
Revenue excludes value added tax and is arrived at after deduction of trade discounts and volume rebates.
Revenue from television programs
Revenue from television programs represents the service income from advertising are recognised when services are rendered and programs broadcast, and the income from production of television programs are recognised based on the proportion of completed service.
Revenue from animation and computer graphic
Revenue from animation and computer graphic are recognised based on the proportion of completed service.
Revenue from movies
Revenue from movies represents the income from movies production, which are recognised when the production is completed and delivered, and the income from box-office sharing between cinema’s owner and the joint ventures are recognised when the motion pictures have been exhibited, the income from sale of motion pictures copyright is recognised when the copyright is delivered, the income from granting the rights in motion pictures copyright is recognised in full when the licensee is entitled to exploit.
Revenue from concerts and plays
Revenue from concerts and plays including their promotion are recognised when the concerts and plays have been exhibited.
Revenue from event marketing
Revenues from event marketing are recognised based on the proportion of completed service.
29
55 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Sale of goods and rendering of services
Revenue is recognised in profit or loss when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there is continuing management involvement with the goods or there are significant uncertainties regarding recovery of the consideration due, associated costs or the probable return of goods. The Group recognised revenue from rendering of services as services are provided.
Investments
Revenue from investments comprises dividend and interest income from investments and bank deposits.
Dividend income
Dividend income is recognised in profit or loss on the date the Group’s right to receive payments is established.
Interest and other income
Interest and other income are recognised in profit or loss as it accrues.
(q) Finance Costs
Interest expenses and similar costs are charged to profit or loss for the period in which they are incurred, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial year of time to be prepared for its intended use or sale.
(r) Lease payments
Payments made under operating leases are recognised in profit or loss on a straight line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the lease.
Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.
Determining whether an arrangement contains a lease
At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. A specific asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the use of the underlying asset.
At inception or upon reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Group’s incremental borrowing rate.
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56 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
(s) Income tax
Income tax expense for the year comprises current and deferred tax. Current and deferred tax are recognised in profit or loss except to the extent that they relate to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and differences relating to investments in subsidiaries and joint ventures to the extent that it is probable that they will not reverse in the foreseeable future.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group/Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(t) Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees.
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57 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
(u) Segment reporting
Segment results that are reported to the Group’s CEO (the chief operating decision maker) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly.
4 Related parties
For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control or joint control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.
Relationships with joint ventures and subsidiaries are described in Notes 9 and 10. Relationships with key management and other related parties were as follows:
Country of incorporation Name of entities / nationality Nature of relationships Key management personnel Thailand Persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of the Group.
Other related parties Bungfire Entertainment Limited Partnership Thailand Joint director with subsidiary Barakao Development Co., Ltd. Thailand Relationship with Director GebHom Rom Rib Ordinary Partnership Thailand Relationship with Director of subsidiary Adang Entertainment Co., Ltd. Thailand Relationship with Director of subsidiary P S I Holding Co., Ltd. Thailand Relationship with Director of subsidiary P S I Broadcasting Co., Ltd. Thailand Relationship with Director of subsidiary Poly Telemedia Co., Ltd. Thailand Relationship with Director of subsidiary Fresh Air Festival Co., Ltd. Thailand Relationship with Director of joint venture Rightman Co., Ltd. Thailand Relationship with Director of joint venture Limbic Marketing Co., Ltd. Thailand Relationship with Director of subsidiary Rangsit Studio Co., Ltd. Thailand Relationship with Director of subsidiary Superjeew Co., Ltd. Thailand Relationship with Director of joint venture Sahamongkolfilm International Co., Ltd. Thailand Relationship with Director of joint venture Change Corporation Ltd. Thailand Relationship with Director of subsidiary Feel Corporation Ltd. Thailand Relationship with Director of subsidiary
32
58 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
The pricing policies for transactions with related parties are explained further below:
Topic Pricing policy Revenue from rendering of services At the rate agreed upon by the management Revenue from television programs Revenue from animation and computer graphic Revenue from concerts and plays Revenue from event marketing Management fee At the agreed rate Revenue from sale of goods and rendering of At the rate agreed upon by the management other services Other income At the rate agreed upon by the management Interest income MLR - 1.5% per annum Dividend income As declared for dividend Cost of rendering services At the rate agreed upon by the management Cost of television programs Cost of animation and computer graphic Cost of concerts and plays Cost of event marketing Cost of sale of goods and rendering of other services At the rate agreed upon by the management License fee At the agreed rate Other expenses Actual payment and at the rate agreed upon by the management Dividend paid As declared Purchase of assets/ Sale of assets At the agreed price
Significant transactions for the year ended 31 December with related parties were as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Subsidiaries Revenue from management fee - - 145,920 43,179 Revenue from sale of goods and rendering of services - - 223,713 863,864 Other income - - 50,379 48,291 Dividend income - - 749,984 14,660 Cost of sale of goods and rendering of services - - 2,257 41,421 Selling expenses - - - 48 Administrative expenses - - 33 380 Cost of rendering of services remaining in inventories - - - 113 Sale of assets - - 85,276 - Purchase of assets - - 1,826 -
33
59 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht)
Joint ventures Revenue from management fee 60 150 60 150 Revenue from sale of goods and rendering of services 5,275 18,347 5 1,139 Other income 180 1,713 - - Dividend income 1,200 53,866 1,200 53,215 Cost of sale of goods and rendering of services - 13 - - Administrative expenses - 307 - 307 Cost of rendering of services remaining in inventories - 40 - 3
Other related parties Revenue from sale of goods and rendering of services 1,671 6,381 - 1,221 Other income 17 1,362 12 - Cost of sale of goods and rendering of services 19,762 51,459 - 16,715 Selling expenses 69 5,193 - 31 Administrative expenses 146 5,450 97 5,037 Cost of rendering of services remaining in inventories 8,678 10,628 - -
Related persons Other income 30 30 30 30 Cost of rendering of services 16,703 7,612 - 6,250 Administrative expenses - 562 - 562 Cost of rendering of services remaining in inventories 1,116 126 - - Dividend paid 64,729 45,292 62,457 31,233 Sale of assets 47 - - -
Key management personnel Key management personnel compensation Short-term employee benefit 112,651 103,017 89,986 103,017 Post-employment benefit 1,640 1,552 1,640 1,552 Share-based payment 12,018 24,986 9,549 24,986 Total 126,309 129,555 101,175 129,555
34 60 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Balances as at 31 December with related parties were as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Trade accounts receivable Subsidiaries - - 169,742 65,006 Joint ventures 1,617 2,164 11 8 Other related parties 5,195 785 10 330 Related persons - 257 - - Total 6,812 3,206 169,763 65,344 Less allowance for doubtful accounts (1,606) (1,606) - - Net 5,206 1,600 169,763 65,344
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Other current receivables - related parties Subsidiaries - - 27 155,214 Other related parties 10 1,362 - - Total 10 1,362 27 155,214
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Short-term loans to and interest receivable from related parties Subsidiary - - - 3,148 Less allowance for doubtful accounts - - - (3,148) Net - - - -
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Reversal of bad and doubtful debt expense for the year ended 31 December - - (3,148) (500)
As at 31 December 2016, short-term loans to related parties bear interest at the rate of MLR - 1.5% per annum.
35
61 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Movements during the year ended 31 December of short-term loans to and interest receivable from related parties were as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Short-term loans Subsidiaries At 1 January - - 3,148 6,148 Decrease - - (3,148) (3,000) At 31 December - - - 3,148
Interest receivable from short-term loans Subsidiaries At 1 January - - - 5 Increase - - - 21 Decrease - - - (26) At 31 December - - - -
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Long-term loans to and interest receivable Subsidiaries - - 1,089,418 991,346 Related persons - 1,500 - 1,500 Total - 1,500 1,089,418 992,846
As at 31 December 2017, long-term loans to related parties bear interest at the rate of MLR-1.5% per annum (2016: MLR - 1.5% per annum).
Movements during the year ended 31 December 2017 and 2016 of long-term loans to and interest receivable from related parties were as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Long-term loans Subsidiaries At 1 January - - 983,815 824,805 Increase - - 463,310 496,510 Decrease - - (369,435) (337,500) At 31 December - - 1,077,690 983,815
Joint ventures At 1 January - 17,700 - - Increase 3,500 23,700 - - Decrease (3,500) (41,400) - - At 31 December - - - -
36
62 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Related persons At 1 January 1,500 1,500 1,500 1,500 Decrease (1,500) - (1,500) - At 31 December - 1,500 - 1,500
Total long-term loans At 1 January 1,500 19,200 985,315 826,305 Increase 3,500 23,700 463,310 496,510 Decrease (5,000) (41,400) (370,935) (337,500) At 31 December - 1,500 1,077,690 985,315
Interest receivable from long-term loans Subsidiaries At 1 January - - 7,531 6,764 Increase - - 50,373 48,270 Decrease - - (46,176) (47,503) At 31 December - - 11,728 7,531
Joint ventures At 1 January - 19 - - Increase 35 610 - - Decrease (35) (629) - - At 31 December - - - -
Related persons At 1 January - - - - Increase 30 30 30 30 Decrease (30) (30) (30) (30) At 31 December - - - -
Total interest receivable from long-term loans At 1 January - 19 7,531 6,764 Increase 65 640 50,403 48,300 Decrease (65) (659) (46,206) (47,533) At 31 December - - 11,728 7,531
Deposits - related parties Subsidiaries - - 5,683 826
Trade accounts payable - related parties Subsidiaries - - 195 901 Other related parties 4,306 2,479 - 601 Related persons 3,075 1,133 10 75 Total 7,381 3,612 205 1,577
37 63 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Other current payable-related parties Subsidiaries - - 2 1,688 Other related parties 90 67 90 65 Related persons 3,754 6,360 3,754 - Total 3,844 6,427 3,846 1,753
Significant agreements with related parties
1) The Company entered into agreements with subsidiaries to provide office services. The counterparty has a right to terminate the agreement by giving advance written notice of 60 days.
2) The Company entered into agreements with subsidiaries to provide supporting services. The counterparty has a right to terminate the agreement by giving advance written notice of 7 days.
3) The Company entered into agreements with subsidiaries to provide management services. The counterparty has a right to terminate the agreement by giving a written notice.
5 Cash and cash equivalents
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Cash on hand 184 176 53 31 Cash at bank - current accounts 382 374 142 132 Cash at bank - saving accounts 1,334,044 834,398 977,571 555,993 Total 1,334,610 834,948 977,766 556,156
6 Short-term investments
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Short-term deposits at financial institutions 252,638 202,608 252,638 202,608 Equity securities held for trading 306,642 203,297 306,642 203,297 Total 559,280 405,905 559,280 405,905
Short-term deposits at financial institutions
As at 31 December 2017, fixed deposits at financial institutions of the Group bear interest rates at 1.00% - 1.50% per annum (2016: 1.00% - 1.70% per annum).
38 64 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Movements during the year ended 31 December of marketable equity securities were as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Trading securities At 1 January 203,297 200,812 203,297 200,812 Acquisition of investments 453,074 151,344 453,074 151,344 Disposal of investments (350,071) (151,344) (350,071) (151,344) Adjustment on fair value measurement 342 2,485 342 2,485 At 31 December 306,642 203,297 306,642 203,297
7 Trade accounts receivable
Consolidated Separate financial statements financial statements Note 2017 2016 2017 2016 (in thousand Baht) Related parties: 4 Trade accounts receivable 6,277 2,340 169,763 60,687 Accrued income 535 866 - 4,657 6,812 3,206 169,763 65,344 Other parties: Trade accounts receivable 402,674 102,995 1,502 4,675 Accrued income 123,062 158,652 167 385 525,736 261,647 1,669 5,060
Total 532,548 264,853 171,432 70,404 Less allowance for doubtful accounts (12,950) (8,448) (932) (2,027) Net 519,598 256,405 170,500 68,377
Bad and doubtful debt expense for the year 5,908 4,378 1,727 1,079
Aging analyses for trade accounts receivable are as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Related parties Accrued income 535 866 - 4,657 Within credit terms 3,162 397 143,389 37,175 Overdue: Less than 3 months 1,509 7 26,374 23,182 6 - 12 months - 330 - 330 Over 12 months 1,606 1,606 - - 6,812 3,206 169,763 65,344 Less allowance for doubtful accounts (1,606) (1,606) - - 5,206 1,600 169,763 65,344
39
65 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Other parties Accrued income 123,062 158,652 167 385 Within credit terms 265,260 63,428 135 501 Overdue: Less than 3 months 119,080 22,983 295 1,029 3 - 6 months 4,417 5,750 - 820 6 - 12 months 2,332 7,457 6 13 Over 12 months 11,585 3,377 1,066 2,312 525,736 261,647 1,669 5,060 Less allowance for doubtful accounts (11,344) (6,842) (932) (2,027) 514,392 254,805 737 3,033 Net 519,598 256,405 170,500 68,377
The normal credit term granted by the Group ranges from 7 days to 90 days.
8 Inventories
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Television programs and television programs under production 147,731 70,115 - 1,745 Work in process 1,004 5,498 - - Merchandise for sales 30,273 15,184 25,187 12,843 Total 179,008 90,797 25,187 14,588 Less allowance for obsolescence and decline in value (9,488) (6,030) (6,863) (5,024) Net 169,520 84,767 18,324 9,564
Inventories recognised as an expense in ‘cost of sales of goods’ - Cost 1,740,303 1,4 03,030 126,954 460,623 - Write-down to net realisable value 5,355 874 3,619 - - Reversal of write-down (1,897) (442) (1,780) (435) Net 1,743,761 1,4 03,462 128,793 460,188
40 66 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
9 Investments in joint ventures
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) At 1 January 36,097 75,024 1,050 9,150 Share of (loss) gain of investments in joint ventures (12,827) 2,139 - - Acquisitions 7,455 26,700 - - Dividend income (1,200) (53,866) - - Return of capital (965) (13,900) - (8,100) Allowance for impairment (5,233) - (150) - Disposals (12) - - - - At 31 December 23,315 36,097 900 1,050
During the year ended 31 December 2017, there were the following acquisitions and disposals of investments in joint venture:
Acquisition of investment in joint venture
On 4 January 2017, the Group acquired an additional investment in Joint Venture “Thailand Only” of 33.33% interest in the amount of Baht 7.46 million.
Return of capital in a joint venture
On 20 February 2017, the Group has received return of capital from Joint Venture “YAK” amounting to Baht 0.46 million, upon the joint venture liquidation.
On 14 November 2017, the Group has received return of capital from Joint Venture “TNC” amounting to Baht 0.5 million.
Allowance for impairment
During the year ended 31 December 2017, the Group has provided allowance for loss on impairment of investment in FWR Co., Ltd and Joint Venture “WSS” amounting to Baht 5.21 million and Baht 0.02 million, respectively, in the consolidated financial statements. The Company has provided allowance for loss on impairment of investment in Joint Venture “WSS” of Baht 0.15 million in separate financial statements.
41
67
11 ------244 432 208 6,071 2016 46,900 53,866
------1,200 1,200 Dividend income Dividend 2017
------
163 783 477 1,436 3,114 1,053 2016 net 29,071 36,097 -
86 ------863 533 At equity At 3,087 6,446 3,315 2017 12,300 2
------
2016
)
)
------Impairment (22) 2017 (5,211) (5,233 were as follows: were as
3 in thousand Baht thousand in
( ------16 783 477 016
1,436 3,114 1,053 2 29,071 36,097
Equity
22 86
------863 533 years then ended, then ended, years 3,087 6,446 2017 17,511 28,548
the
Consolidated Financial Statements Financial Consolidated
------150 900 609 679
42 8,550 1,367 2016
27,000 39,255
Cost
1
00 ------900 866 8,550 7,455 2017
12,3 30,07
------450 1,800 1,850 2,114 2,733
2016
and dividend income for income and dividend 17,100 90,000
6
up capital
-
------450 Paid 2017 1,800 1,733 17,100 22,365 90,000 and 201
7
- 201 r 2016 50.00 30.00 40.00 50.00 50.00 35.00 50.00 50.00 50.00 30.00 60.00 50.00 30.00
)
% ( embe
------2017 30.00 50.00 50.00 50.00 50.00 30.00 33.33 Ownership interest Ownership 31 Dec
at
as
”*
”*
2
”
2
joint ventures ancial statements
the year ended 31 December 2017 year ended 31 December the *Liquidated Investments in Investments ointVenture Only” “Thailand Total Joint ventures Joint Venture “TengNongKhonmahahere” Joint Venture “WSS” Joint Venture “PohTak”* Right” JointVenture “Work Joint Venture Air” “Workpoint Fresh Joint Venture “YAK”* Diary”* JointVenture “Tukky Joint Venture “PhraTengYomNhong”* TK & JointVenture “MM Joint Venture “PanyaRaenu Joint Venture “Super Salaryman Joint Ventue “TNC” Co.,FWR Ltd. J
Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
68
244 - 6,071 2016 46,900 53,215
- - - Dividend income Dividend 1,200 1,200 2017
- - 150 900
1,050 2016
net ,
-
At cost At
- - - 900 900 2017
- - - - -
2016
Baht)
Impairment
- - - (150) (150) 2017 (in thousand (in
0
- -
15 900 2016 1,050
Separate financial statements financial Separate
Cost
43
- - 150 900 1,050 2017
- - 450 1,800 2016
up capital -
- - 450 Paid 1,800 2017
terest 2016 30.00 50.00 50.00 40.00
(%)
- 2017 30.00 50.00 50.00 Ownership in Ownership
*
ancial statements
*Liquidated quotations. price published do not have consequently and listed publicly are joint ventures the Group’s of None Joint Venture “PohTak” Total Joint ventures Joint Venture “WSS” Right” JointVenture “Work Joint Venture Air” “Workpoint Fresh
the year ended 31 December 2017 year ended 31 December the Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For 69 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Joint Ventures
The following table summarises the financial information of the joint venture as included in its own financial statements, adjusted for fair value adjustments at acquisition date and differences in accounting policies. The table also reconciles the summarised financial information to the carrying amount of the Group’s interest in these companies.
FWR Co., Ltd 2017 2016
(in thousand Baht) Statement of comprehensive income Revenue 156,984 305,756
Total comprehensive income (100%) (38,533) 7,003 Group’s share of total comprehensive income (11,560) 2,101
Statement of financial position Current assets 42,357 79,293 Non-current assets 61,037 130,666 Current liabilities (44,805) (112,545) Non-current liabilities (221) (511) Net assets (100%) 58,368 96,903 Carrying amount of interest in joint venture 17,511 29,071
Immaterial joint ventures
The following is summarised financial information for the Group’s interest in immaterial joint ventures based on the amounts reported in the Group’s consolidated financial statements.
Immaterial joint venture 2017 2016 (in thousand Baht) Carrying amount of interests in immaterial joint ventures 11,037 7,026 Group’s share of total comprehensive income (1,267) 38
10 Investments in subsidiaries
Separate financial statements 2017 2016 (in thousand Baht) At 1 January 757,466 484,407 Acquisitions 604,731 252,898 Share-based payment 30,957 20,161 Return of capital (23,068) (3,982) Disposals (602) - Reversal of allowance for loss on impairment 28,195 3,982 Write-off of investments (28,171) - At 31 December 1,369,508 757,466
44
70 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Acquisitions of investments in subsidiaries
On 20 January 2017, the Company acquired an additional investment in Flagship Entertainment Co., Ltd., amounting to Baht 1.42 million.
On 23 January 2017, the Company acquired an additional investment in Siam Ganesha Co., Ltd., amounting to Baht 156.91 million.
On 28 June 2017 and 5 July 2017, the Company acquired an additional investment in Bangkok Exhibition Co., Ltd. and Thai Broadcasting Co., Ltd. amounting to Baht 47.00 million and Baht 400.00 million, respectively.
Return of investment from subsidiaries
On 15 February 2017, 31 August 2017 and 8 November 2017, the Company received cash returned from investment from Flagship Entertainment Co., Ltd., amounting to Baht 3.08 million.
On 5 September 2017, the Company received cash returned from investment from Workpoint Pictures Co., Ltd., amounting to Baht 19.00 million
On 20 November 2017, the Company received cash returned from investment from Freesize Broadcasting Co., Ltd., amounting to Baht 1.33 million and reversed the allowance for loss on impairment of investment amounting to Baht 0.02 million.
Disposals of investment in subsidiary
On 30 June 2017, the Company received proceed from sale of its investment in Flagship Entertainment Co., Ltd., amounting to Baht 0.60 million.
45
71
------
6,360 1,800 6,500 14,660 2016
697 ------31 December 2,950 3,000 Dividend income Dividend for the endedyear 2017
743,337 749,984
:
0
- 6,566 1,539 2,40 2,339 1,306
2016 30,408 31,314 566,786 114,808 757,466
net
-
75
- At cost At
- 7,390 2,034 2,400 11,408 80,225 2017 994,261 271,715
1,369,508
were as, were follows ended then
s
------
year 2016 (10,000) (18,194) (28,194)
Baht)
for the
Impairment
housand ------2017 (in t
6,566 1,539 2,400 2,339 2016 10,000 30,408 19,500 31,314 566,786 114,808 785,660
Separate financial statements financial Separate
Cost from those investments investments those from
75
- - 7,390 2,034 2,400 46 2017 11,408 94,261 80,225 9 271,715
1,369,508
2,000 2,500 4,000 2016 10,000 12,000 30,000 39,000 30,000 550,000 130,000
up capital -
200 - - Paid 2,000 2,500 2017 12,000 11,000 77,000 and dividend income income dividend 201 6 and and 950,000 280,000
20 1 7
2016 99.99 50.00 99.99 60.00 99.99 50.00 50.00 99.99 99.99 88.00
(%)
0
- - December 2017 50.00 99.99 60.00 99.99 50.0 99.99 99.99 96.57
Ownership interest Ownership at 31 as
Ltd.
Ltd.
Ltd.
Co., Ltd. Ltd. Co.,
ancial statements
dcasting Co.,dcasting
Co., Ltd. Co.,
Broa
the year ended 31 December 2017 year ended 31 December the otal Investments in subsidiaries in subsidiaries Investments T Subsidiaries Ltd. Co., Publishing Workpoint Ltd. Television Co., Tohgloam Workpoint Pictures Ltd. Co., Ground Nanonesia Co., Ltd. Flagship Entertainment Freesize Broadcasting Co., Thai ExhibitionBangkok Co., Co., Ltd. Ganesha Siam Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
72
)
- - - 623 127
7,806 15,485 Total (15,930) (10,729) 137, 216, 823,134 (598,456) (125,499) (708,470) (122,470) ( 1,595,884 1,717,577 1,922,975
) on
536 250 ------,955)
8,255 7,834 (2,716) and 54, 178,645 108, (224,926 (105 installation
constructi Assets under
s
-
115
- - 1,551 2,141 11,614 14,487 (14,519) (76,406) (14,172) (76,091) (13,018) (89,109) 122,582 109,729 123,484 Vehicle
(4)
340 274 (297) (443) 1,754 (1,765) (7,863) (9,585) Office 56,580 12,249 68,872 12,525 79,628 (35,604) (43,636) (51,467) equipment
Baht)
403 620
(966) 4,269 (4,411) 41,592 35,317 53,929 71,328 (60,563) (70,623) 396,004 471,947 592,793
(164,342) (223,882) (290,236) Tools and equipment
(in thousand (in
)
27
(70)
6,473 7,184 1,374 7,419 1,753 (1,807) ( (8,323) and 15,118 Consolidated financial statements (25,916) (91,499) (83,773) (90,343) 125,045 105,532 112,283 fixtures Furniture
47
) )
,
77 30 (78) (30) utility 5,535 21,222 21,643 35,413 15,078 ( ( (20,850) 586,286 215,070 822,500 849,648 building systems (228,640) (279,054) (299,874) Building and mprovement i
64
(69) (71) ------
2,134 2,134 2,198 (1,965) (2,034) (2,105) Land
improvements
------
Land 26,499 128,608 128,608 155,107
and and
ancial statements 2016
als Property, plant and equipment Property, January 2016 January
the year ended 31 December 2017 year ended 31 December the 1 January 2017 1 January 2017 1 January Cost 1 JanuaryAt 2016 Additions Transfers Disposals At 31 December Additions Transfers Disposals At 312017 December Depreciation and impairment losses At 1 Depreciation charge for the year Transfers Dispos At 312016 December Depreciation charge for the year Disposals At 312017 December Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For 11
73
33,339 80,637 Total 066,502 891,901 105,527 997,428 928,470 1,009,107 1, 1,099,841
- - -
8,255 8,255 7,834 7,834 and 178,645 178,645 installation construction Assets under
s
-
16,213 29,963 46,176 14,428 19,210 33,638 34,375 34,375 Vehicle
- - -
20,976 20,976 25,236 25,236 28,161 28,161 Office equipment
Baht)
75,564 61,427 33,339 156,098 231,662 186,638 248,065 269,218 302,557 Tools and
equipment
(in thousand (in
- - -
and 33,546 33,546 21,759 21,759 21,940 21,940 Consolidated financial statements fixtures Furniture
48
,
- - - utility 357,646 357,646 543,446 543,446 549,774 549,774 systems building Building and mprovement
i
93 93
169 169 100 100
- - -
Land
improvements
- - -
Land
128,608 128,608 128,608 128,608 155,107 155,107
and
6
ancial statements
book value the year ended 31 December 2017 year ended 31 December the
1 January 2017 1 January Net 201 1 January At Owned assets Assets under leases finance At 312016 December Owned assets Assets under leases finance At 312017 December Owned assets Assets under leases finance Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
74
501 - - -
7,609 89, 50,684 48,637 (93,515) (49,123) Total 144,531 (287,401) (122,391) (550,923) (499,907) (500,393) 1,50 1,309,709 1,238,002
) )
360
------
3,244 1,071 33, 31,290 33,463 and ( 178,645 (208,761
installation construction Assets under
s
- 115 796
1,510 11,614 14,488 17,929 86,812 (14,519) (28,788) (72,905) (12,869) (71,286) (10,340) (63,697) 116,084 103,190 Vehicle
3 3)
- 336 943
(94 8,630 (6,604) (7,505) Office 50,427 10,147 49,998 10,167 59,225 (10,912) (32,104) (30,078) (36,640) equipment
Baht)
- - -
,939 (5,510) 17,704 19,360 22,947 28 (91,818) (33,409) (44,787) (21,358) 333,709 114,765 117,731 (256,008) (129,109) Tools and
equipment
(in thousand (in )
424 826 (842)
Separate financial statement 5,891 2,617 5,373 8,771 3,682 (5,962) ( (5,197) and 89,348 91,547 (19,150) (82,697) (75,617) (79,988) 108,569 fixtures Furniture
49
) )
,
- - - - 5,749 utility (8,771 20,889 21,422 35,191 ( (20,499) 589,433 208,100 818,422 845,593 (232,143) (276,105) (296,604) building systems Building and mprovement
i
65
(69) (72) ------
2,134 2,134 2,199 (1,965) (2,034) (2,106) Land improvements
------
Land 128,608 128,608 128,608
and and
ancial statements ember 2016 ember
the year ended 31 December 2017 year ended 31 December the 1 January 2017 1 January 2017 1 January Cost 1 JanuaryAt 2016 Additions Transfers Disposals At 312016 December Additions Transfers Disposals At 312017 December Depreciation and impairment losses 1 JanuaryAt 2016 Depreciation charge for the year Transfers Disposals At 31 Dec Depreciation charge for the year Disposals At 312017 December Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
75
92,474 74,780 09,802 Total 864,212 956,686 735,022 8 737,609 737,609 million
2016: Baht Baht 2016:
3 67 (
Baht
- -
3,244 3,244 1,071 1,071 and 178,645 178,645 installation construction Assets under
amounted to to amounted
s 7
15,517 27,662 43,179 13,885 18,019 31,904 23,115 23,115 Vehicle
- -
term loan from financial institution financial from loan term
- 18,323 18,323 19,920 19,920 22,585 22,585 Office equipment long
d for Baht)
1,589 1,589 64,812 13,217 56,761 69,978 139,788 204,600 secure Tools and equipment
was
(in thousand (in
- - Separate financial statement million and 25,872 25,872 13,731 13,731 11,559 11,559
fixtures Furniture 664 50
,
- - utility 357,290 357,290 542,317 542,317 548,989 548,989 systems building Building and mprovement i
ated plant and equipment that was still in use as at 31 December 201 December 31 at as use in still was that equipment and plant ated
t book value of Baht Baht of value book t 93 93
169 169 100 100 - -
Land improvements
- -
Land s properties with a ne s with properties 128,608 128,608 128,608 128,608 128,608 128,608 Company’s fully depreci fully Company’s
(2016: Baht 335 million and Baht 278 million, respectively) 278 million, and Baht million Baht 335 (2016: . Company’ ly Group and Group
d the , an
6
ancial statements , respective
).
358 million the year ended 31 December 2017 year ended 31 December the million 1 January 2017 1 January Net book value 201 1 January At Owned assets Assets under leases finance At 312016 December Owned assets Assets under leases finance At 312017 December Owned assets The gross amount of the of amount gross The Security 2017 31 December At and 642 Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
76 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
12 Right to use of assets
Consolidated financial statements Leasehold improvement (in thousand Baht) Cost At 1 January 2016 344,304 Additions 7,491 At 31 December 2016 and 1 January 2017 351,795 Additions 933 At 31 December 2017 352,728
Amortisation At 1 January 2016 (16,392) Amortisation charge for the year (23,773) At 31 December 2016 and 1 January 2017 (40,165) Amortisation charge for the year (23,899) At 31 December 2017 (64,064)
Net book value At 1 January 2016 327,912 At 31 December 2016 and 1 January 2017 311,630 At 31 December 2017 288,664
13 Digital television license
Consolidated financial statements (in thousand Baht) Cost At 1 January 2016 2,073,450 At 31 December 2016 and 1 January 2017 2,073,450 At 31 December 2017 2,073,450
Amortisation At 1 January 2016 (232,719) Amortisation charge for the year (138,230) At 31 December 2016 and 1 January 2017 (370,949) Amortisation charge for the year (138,230) At 31 December 2017 (509,179)
Net book value At 1 January 2016 1,840,731 At 31 December 2016 and 1 January 2017 1,702,501 At 31 December 2017 1,564,271
51
77 WorkpointWorkpoint Entertainment Entertainment Public Public Company Company Limited Limited and itsand Subsidiaries its Subsidiaries NotesNotes to the to fin theancial financial statements statements For theFor year the endedyear ended 31 December 31 December 2017 2017
On 25On April 25 2014April, 2014Thai , BroadcastingThai Broadcasting Co., Ltd. Co.,, aLtd. subsidiary,, a subsidiary, was granted was granted a license a license for operating for operating a a nationalnational commercial commercial digital digital terrestrial terrestrial television television broadcasting broadcasting service service in a standard in a standard definition definition channel channel categorycategory for a periodfor a period of 15 years,of 15 years,commencing commencing from 25from April 25 2014April to2014 24 Aprilto 24 2029April at2029 a bid at pricea bid ofprice of Baht 2Baht,355 2million,355 million (exclusive (exclusive of VAT) of VAT)The subsidiary The subsidiary was required was required to make to makepayment payment to Nation to Nation BroadcastingBroadcasting and Telecomand Telecommunicationsmunications Commission Commission (“NBTC”) (“NBTC”) under underthe followingthe following payment payment conditions:conditions:
1) For1) theFor minimum the minimum bid price bid priceamounting amounting to Baht to 380Baht million,380 million, the payment the payment is divided is divided into 4into 4 installmentsinstall mentsand has and to hasbe madeto be withinmade within 3 years 3 fromyears thefrom date the of date acquiring of acquiring the licence the licence as specified as specified by Nationby Nation Broadcasting Broadcasting and Telecom and Telecommunicationsmunications Commission Commission (“NBTC”) (“NBTC”). .
2) For2) the For exceeding the exceeding amount amount of the ofminimum the minimum bid price bid amountingprice amounting to Baht to 1,975 Baht million,1,975 million, the payment the payment is dividedis divided into 6 intoinstal 6 lmentsinstall mentsand has and to hasbe madeto be madewithin within 5 years 5 fromyears thefrom date the of date acquiring of acquiring the the licencelicence as specified as specified by NBTC. by NBTC.
As at 31As Decemberat 31 December 2017, 2017,the subsidiary the subsidiary had the had outstanding the outstanding balance balance of letter of ofletter guarantee of guarantee issued issued by by financialfinancial institution institution placed placed to NBTC to NBTC of Baht of 845.30Baht 845.30 million million to secure to secure the remaining the remaining of license of license fee fee payablepayable to NBTC to NBTC (2016: (2016: Baht 1,308.61 Baht 1,308.61 million) million). .
DigitalDigital television television license license payable payable as at 31 as December at 31 December were as were follows as follows: :
2017 2017 2016 2016 Future Futurevalue value Present Present value value Future Futurevalue value Present Present value value of paymentof payment Interest Interest of payment of payment of payment of payment Interest Interest of payment of payment (in thousand(in thousand Baht) Baht) WithinWithin one year one year 395,000395,000 25,601 25,6 01 369,399 369,399 433,000 433,000 44,625 44,625 388,375 388,375 After oneAfter year one year but within but withinfive years five years395,000 395,000 6,208 6,208 388,792388,792 790,000790,000 31,809 31,809 758,191758,191 Total Total 790,000790,000 31,809 31,809 758,191 758 ,1911,223,000 1,223,000 76,434 76,434 1,146 ,5661,146 ,566
MovementsMovements during during the year the ended year ended31 December 31 December of digital of digital television television license license payable payable were as were follows: as follows:
ConsolidatedConsolidated financialfinancial statements statements 2017 2017 2016 2016 (in thousand(in thousand Baht) Baht) DigitalDigital television television license license payable payable at 1 January at 1 January 1,146,5661,146,566 1,515,569 1,515,569 PaymentPayment (433,000)(433,000) (433,000) (433,000) InterestInterest paid paid 44,62544,625 63,997 63,997 DigitalDig televisionital television license license payable payable at 31 Decemberat 31 December 758,191758,191 1,146,566 1,146,566
52 52 78
) ) 1
507 699 - - ,
9, Total 951,492 336,269 958,388 362,835 929,530 309,509 35 323 457,554 496,899 605,83 (329,373) (391,693 (493,938) (277,060) (461,489) (221,717) (
------
1,050 4,217 8,777 1,050 4,217 8,777 (8,661) 36,165 13,221 (32,998) installation Assets under Assets
- - - -
3,206 3,654 8,661 (8,132) (4,653) 20,048 32,998 56,252 68,567 11,916 43,467 43,948 license (12,785) (11,834) (24,619) Software Baht)
7
------
license (in thousand (in 4,090 c 14,496 14,496 35,23 35,872 13,861 22,565 (13,861) (10,406) (10,406) (16,762) (13,307) Musi
Consolidated financial statements Consolidated
------538 230 icense (518) (308) (826) (230) 1,056 1,056 1,056 (1,056) 53
Book l Book
) )
1
- - ,590
929,338 282,402 882,367 310,723 376,776 816,314 309,509 344 444,050 444,895 530,54 (329,373) ( (485,288) (261,693) (437,472) (192,891) (285,773 license programs Television
7 7
1 2017 January
and 1 January 201 1 January and 201 1 January and and
6 7 6 7
off off off off - - - - 6
6 r 201
ancial statements
December 201 December
Cost 2016 January 1 At Additions Transfers and Disposal write 31 At Additions Transfers and Disposal write 31 Decembe At losses impairment and Amortisation 201 January 1 At for charge the year Amortisation and Disposal write 201 31 December At for charge the year Amortisation and Disposal write 201 31 December At Net book value 201 1 January At 2016 31 December At 2017 31 December At Other intangibleOther assets the year ended 31 December 2017 year ended 31 December the
Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For 14
79
5 1 8)
- -
2,781 (2,781) 33,270 48,23 55,663 12,139 65,021 16,65 19,225 42,885 43,398 Total (25,842) (14,045) (15,384) (12,77 (11,626) (21,623)
------
2,979 8,285 2,979 8,285 (6,000) 32,157 11,306 (29,178) installation
Assets under Assets
aht) )
B 1 3 8
- - 833
1,98 6,000 3,17 (5,072) (7,923) (3,842) (8,587 (9,461) 19,366 29,178 45,45 52,286 11,443 36,866 34,238 (18,048) licenses Software
financial statements financial
(in thousand (in
------Seperate
6,564 (6,564) 13,861 (13,861) Music licenses
236 875 - - - ,231
7 4,450 6,909 2,781 7,782 3,040 (6,909) (2,781) (6,122) (4,978) (4,191) (2,165) (3,575) 13,904 licenses programs Television 54
7 7 7
1 201 January
and 201 1 January and 201 1 January and
7 6 7 6 7
off off off off - - - - 6
6
ancial statements
t 31 December 201 t 31 December Cost 2016 January 1 At Additions Transfers and Disposal write 2016 31 December At Additions Transfers and Disposal write 201 31 December At losses impairment and Amortisation 201 January 1 At for charge the year Amortisation and Disposal write 201 31 December At for charge the year Amortisation and Disposal write 201 31 December At Net book value 201 1 January At A 201 31 December At the year ended 31 December 2017 year ended 31 December the Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
80 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Television program license
The Group has television program license from acquisition and have finite useful lives, therefore the Group has measured recoverable amount of this CGU was based on profit, estimated using discounted cash flows. The fair value measurement was categorised as a level 3 fair value based on the inputs in the valuation technique used.
The key assumption used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions represent management’s assessment of future trends in the relevant industries and have been based on historical data from both external and internal source.
Consolidated financial statements 2017 2016 (%) Discount rate 6.64 6.26 Growth rate 4-10 6-23
These assumptions are based on management’s judgment and past experience as well as the future prediction that is believed to be reasonable in the present situation. Changes in the information or new noticeable information may lead to the change in the assumptions and the discount rate for the estimation of the discounting future cash flows along with sensitivity of key assumptions effect to the recoverable amount.
Base on the impairment test, the recoverable amount was higher than its carrying amount. Therefore, the Group did not recognise impairment loss in the consolidated financial statements.
15 Interest-bearing liabilities
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Current Current portion of long-term loans from financial institutions - secured 204,000 210,112 204,000 190,550 Current portion of finance lease liabilities 17,491 26,530 - 21,183 Total current interest-bearing liabilities 221,491 236,642 204,000 211,733
Non-current Long-term loans from financial institutions - secured 236,290 540,174 236,290 364,980 Finance lease liabilities 8,610 39,243 - 37,916 Total non-current interest-bearing liabilities 244,900 579,417 236,290 402,896 Total 466,391 816,059 440,290 614,629
Long-term loans from financial institutions
The Company has long-term loan from a financial institution with the principal amounting to Baht 2,520 million, with monthly repayment, commercing in March 2015. Interest is monthly payable at MLR minus 1.5% per annum. The Company must comply with certain covenants and restrictions as specified in the loan agreement.
55
81 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
On 22 May 2017, the Company entered into Interest Rate Swap agreement with a local financial institution, for a period of 1 year, to hedge interest rate risk exposure for the loan from financial institution amounting to Baht 200 million. Under such agreement, the Company has swapped interest rate from rate of MLR minus 1.5% to THBFIX minus 1.88%.
Secured interest bearing liabilities as at 31 December 2017 was secured by land and construction thereon with net book value of Baht 664 million (2016: Baht 642 million)
The periods to maturity of interest-bearing liabilities, excluding finance lease liabilities, as at 31 December were as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Within one year 204,000 210,112 204,000 190,550 After one year but within five years 236,290 540,174 236,290 364,980 Total 440,290 750,286 440,290 555,530
As at 31 December 2017, the Company had unutilised credit facilities totaling to Baht 341 million (2016: Baht 341 million).
Finance lease liabilities
Finance lease liabilities as at 31 December were payable as follows:
Consolidated financial statements 2017 2016 Present Present Future value of Future value of minimum minimum minimum minimum lease lease lease lease payments Interest payments payments Interest payments (in thousand Baht) Within one year 18,591 1,100 17,491 29,663 3,133 26,530 After one year but within five years 8,764 153 8,611 41,266 2,023 39,243 Total 27,355 1,253 26,102 70,929 5,156 65,773
Separate financial statements 2017 2016 Present Present Future value of Future value of minimum minimum minimum minimum lease lease lease lease payments Interest payments payments Interest payments (in thousand Baht) Within one year - - - 24,030 2,847 21,183 After one year but within five years - - - 39,881 1,965 37,916 Total - - - 63,911 4,812 59,099
56
82 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
16 Trade accounts payable
Consolidated Separate financial statements financial statements Note 2017 2016 2017 2016 (in thousand Baht) Related parties 4 7,381 3,612 205 1,577 Other parties 130,579 125,998 2,485 14,947 Total 137,960 129,610 2,690 16,524
17 Other account payables
Consolidated Separate financial statements financial statements Note 2017 2016 2017 2016 (in thousand Baht) Accrued expense and other payables 4 287,393 140,283 16,382 13,424 Payables for purchase of assets 41,563 2,826 3,142 1,619 Advance received for share capital 6,725 305 6,725 305 Retention payable 1,862 7,608 5,940 7,156 Dividend payable - 6,360 - - Others 171 232 - 144 Total 337,714 157,614 32,189 22,648
18 Non-current provisions for employee benefits
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Statement of financial position Non-current provisions for: Post-employment benefits 115,672 109,026 72,062 68,993
Year ended 31 December Statement of comprehensive income: Recognised in profit or loss: Post-employment benefits 10,124 9,687 3,527 6,731
Recognised in other comprehensive income: Cumulative actuarial losses recognised (7,746) (7,746) (6,626) (6,626)
57
83 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Defined benefit plan
The Group operate a defined benefit plan based on the requirement of Thai Labour Protection Act B.E. 2541 (1998) to provide retirement benefits to employees based on pensionable remuneration and length of service.
The defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.
Movement in the present value of the defined benefit obligations
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) At 1 January 109,026 99,854 68,993 93,990 Include in profit or loss: Current service costs 8,215 7,956 2,701 5,437 Interest on obligation 1,909 1,731 826 1,294 Reversal of employee benefit obligations (3,478) (515) (458) -
Include in other comprehensive income Transfer to subsidiaries - - - (31,728) At 31 December 115,672 109,026 72,062 68,993
Acturial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (%) Discount rate 2.9 2.9 2.9 2.9 Future salary increases 8-10 8-10 8-10 8-10 Employee turnover rate 0-25 0-25 0-25 0-25
Assumptions regarding future mortality are based on published statistics and Thailand Mortality Ordinary Life table.
At 31 December 2017, the weighted-average duration of the defined employee benefit obligations was 32 year (2016: 32 year).
58
84 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
Consolidated Separate financial statements financial statements Increase Decrease Increase Decrease (in thousand Baht) At 31 December 2017 Discount rate (1% movement) (12,182) 14,308 (7,190) 8,401 Future salary increases (1% movement) 15,716 (13,561) 9,324 (8,090) Employee turnover rate (20% movement) (15,611) 20,071 (9,004) 11,454 Future mortality (1% movement) 476 (538) 281 (317)
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
19 Warrants
19.1) Warrants WORK-W1
The significant information of warrants (WORK-W1) are as follows:
Grant date: 1 October 2015 Number of warrants offered: 20,861,107 Units Offered price per unit: Baht 0 (zero Baht) Term of warrants: Not exceeding 4 years from the date of initial offer of the warrants Exercise rate: 1 unit of warrant per 1 ordinary share Exercise price: 38.10 Baht/share Number of reserved shares: 20,861,107 Shares Expired date of warrants 30 September 2019
Movements in the number of warrants (WORK-W1) for the year ended 31 December 2017 and 2016 are as follows:
Consolidated / Separate financial statements 2017 2016 (in thousand units) At 1 January 20,839 20,839 Less exercised during the period (15,793) - At 31 December 5,046 20,839
59
85 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
During the year ended 31 December 2017, the Company received share subscription from WORK-W1 as below:
Share issued Date registered Number Exercise price (in thousand with Ministry of (share) ( Baht) Baht) Commerce February 31 38.1 1 7 March 2017 May 95,524 38.1 3,639 5 June 2017 August 110,175 38.1 4,198 5 September 2017 November 15,587,176 38.1 593,872 4 December 2017 Total 15,792,906 601,710
19.2) Warrants ESOP-2
The significant information of warrants (ESOP-2) are as follows:
Grant date 25 September 2015 Number of warrants offered 14,000,000 Units Offered price per unit Baht 0 (zero Baht) Term of warrants Not exceeding 4 years from the date of initial offer of the warrants Exercise rate 1 unit of warrant per 1 ordinary share Exercise price 38.10 Baht/share Number of reserved shares 14,000,000 Shares
Movements in the number of warrants for the year ended 31 December 2017 and 2016 were as follows:
Consolidated / Separate financial statements 2017 2016 Average Average exercise price Option shares exercise price Option shares per share (in thousand per share (in thousand (Baht) units) (Baht) units) At 1 January 13.31 14,000 13.31 14,000 Less exercised during the period 13.03 (5,809) - - At 31 December 13.50 8,191 13.31 14,000
60
86 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
During the year ended 31 December 2017, the Company received share subscription from ESOP-2 as below:
Exercise Share issued Date registered Number price (in thousand with Ministry of (share) (Baht ) Baht) Commerce December 8,000 38.1 305 9 January 2017 January 1,200,300 38.1 45,731 3 February 2017 February 720,050 38.1 27,434 7 March 2017 March 492,600 38.1 18,768 5 April 2017 April 434,500 38.1 16,554 11 May 2017 May 326,150 38.1 12,426 5 June 2017 June 289,500 38.1 11,030 4 July 2017 July 194,500 38.1 7,410 4 August 2017 August 87,500 38.1 3,334 5 September 2017 September 10,000 38.1 381 4 October 2017 October 1,901,200 38.1 72,436 3 November 2017 November 145,000 38.1 5,525 4 December 2017 Total 5,809,300 221,334
On 31 December 2017, the Company’s management and employees had exercised warrants in amount of 176,500 shares. The Company received proceed for paid-up share capital in amount of Baht 6.72 million, which was recorded under other current payables account. The Company registered additional paid-up share capital with the Ministry of Commerce in January 2018.
Fair value measurement
The Group measured the value of share-based payment by reference to the fair value of the equity instrument granted at the grant date using binomial model. The major assumptions are as below:
Weighted average fair value at the grant date 12.9125 Baht/share 13.2699 Baht/share 13.6315 Baht/share Share price at the grant date 42.00 Baht/share Exercise price 38.10 Baht/share Expected volatility 45% Expected dividend 2.5% per annum Risk-free interest rate 1.49% - 2.06% per annum depend on period of time
For the year ended 31 December 2017, the Group and the Company recognised share-based payment expense of Baht 46.11 million (2016: Baht 73.45 million) in the consolidated and separate financial statements.
61
87 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
20 Share capital
Par value 2017 2016 per share Number Amount Number Amount (in Baht) (thousand shares / in thousand Baht) Authorised At 1 January - ordinary shares 1 452,094 452,094 452,094 452,094 At 31 December - ordinary shares 1 452,094 452,094 452,094 452,094
Issued and paid-up At 1 January - ordinary shares 1 417,255 417,255 417,255 417,255 Issue of new shares 1 21,602 21,602 - - At 31 December - ordinary shares 1 438,857 438,857 417,255 417,255
Share premium
Section 51 of the Public Companies Act B.E. 2535 requires companies to set aside share subscription monies received in excess of the par value of the shares issued to a reserve account (“Share premium”). Share premium is not available for dividend distribution.
21 Legal reserve
Section 116 of the Public Companies Act B.E. 2535 Section 116 requires that a public company shall allocate not less than 5% of its annual net profit, less any accumulated losses brought forward, to a reserve account (“Legal reserve”), until this account reaches an amount not less than 10% of the registered authorised capital. The legal reserve is not available for dividend distribution.
During the year ended 31 December 2017, the Group and the Company allocated legal reserve for the amount of Baht 3.49 million.
62
88
8,518 4,404
Total
)
3,839 group group (22,391 - controlling interest, before any any interest, before controlling Intra eliminations -
102 (142)
Other immaterial immaterial subsidiaries individually individually
)
5
36 (874) (in thousand Baht) thousand (in 31 December 2017 31 December 9,85 1,047 1,047 6,807 (3,212) 83,157 10,893 (44,170 (63,024) 311,461 287,424 120,777
Siam Siam 3.4288% Ganesha Co., Ltd. Co.,
d 564 (739) (423) 40% 63 1,896 5,916 6,071 6,071 2,428 5,987 (1,234) (5,000) 14,868 14,791 15,359 Groun Co., Ltd. Co.,
)
- (948) 50% (2,827) (3,515) (3,515 (1,757) (1,010) 20,399 13,447 30,071 15,036 35,526 21,688 20,678 Co., Ltd. Co., Tohgloam Television
income
controlling controlling - g activities g
controlling interest controlling
- on
in cash and cash equivalents cash and in cash s ancial statements
ntrolling interests for the year co
group eliminations: group controlling interest percentage interest controlling current assets current liabilities - - - - - tement of cash flows cash of tement interest intra Non non a material has that Group’s ofsubsidiaries the to each relating information the table summarises following The Non position financial of Statement Current asset Non liabilities Current Non Net assets n of amount Carrying income Total comprehensive non to allocated Profit Sta activities operating from flows Cash investin from flows Cash activities financing from flows Cash Net increase Statement of comprehensive of Statement Revenue Profit the year ended 31 December 2017 year ended 31 December the Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For 22
89
6,277 4,407 Total
group group - (6,951) (27,720) Intra eliminations
(547) 1,380 Other
immaterial immaterial subsidiaries individually individually
% 6 162 8,149 2,692 2,692 1,132 89,629 Siam Siam (56,630) (18,046) (13,163) (30,077) 330,166 135,818 124,715 (227,347) Ganesha Co., Ltd. Co.,
(in thousand Baht) thousand (in 31 December 2016 31 December
) )
% (535 (410) 40 1,419 5,290 7,059 7,059 2,824 7,740 4,330 (1,075 (3,000) 13,416 13,225 14,741 Ground Co., Ltd. Co.,
64
) )
% 62 50 7,819 7,819 3,909 5,362 (2,453 (1,164) 34,383 18,870 32,7 16,381 70,765 19,246 (18,038 (12,720) Co., Ltd. Co., Tohgloam Television
) )
% 281 (214 (232) 50 6,845 5,594 2,797 5,010 1,652 (1,318 54,704 10,020 10,020 14,884 (13,000) Flagship Co., Ltd. Co., Entertainment
income
controlling controlling - controlling interest controlling
-
decrease) in cash and cash cash and in decrease)
ancial statements
for the year
controlling interest percentage interest controlling current assets current liabilities - - - interest equivalents Non position financial of Statement Current assets Non liabilities Current Non Net assets non of amount Carrying income Total comprehensive non to allocated Profit activities operating from flows Cash activities investing from flows Cash activities financing from flows Cash ( Net increase comprehensive of Statement Revenue Profit flows cash of Statement the year ended 31 December 2017 year ended 31 December the Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For
90 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
23 Operating segment
The Group’s has six reportable segments, as described below, which are the Group’s strategic divisions. The strategic divisions offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic divisions, the chief operating decision maker (CODM) reviews internal management reports on at least a quarterly basis. The following summary describes the operations in each of the Group’s reportable segments.
Segment 1 Business of television programs Segment 2 Business of animation and computer graphic Segment 3 Business of movies Segment 4 Business of concerts and plays Segment 5 Business of event marketing Segment 6 Business of sale of goods and other services
Information regarding the results of each reportable segment is included below. Performance is measured based on segment gross profit, as included in the internal management reports that are reviewed by the Group’s CODM. Segment gross profit is used to measure performance as 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.
65
91
)
5
2016 504,750 162,305 5,422,405 2,435,899 2,667,05 1,
(1,
Total
)
2
2017 447,772 111,224 6, 2,004,348 3,852,50 2,
(1,741,278
)
6,806 4,149
15,913 16,075 ( 11,926 2016
le of goods le of Business of of Business 73 34 sa ,2 ,0 21,611 12,526 2017 and otherand services 51 28
(23,239)
)
3,643 78,440 94,372 2016 21,985 ( 116,357
)
0 Business of of Business 12,843
1,827 event marketing event 111,896
2017 2 138,01
(116,183
)
83 ,420
d from, or assets located in, foreign countries. foreign in, located or assets d from, 2016 36,725 419,7 268,493 (81 118,145
and plays 30 52 ,3 ,7 (in thousand(in Baht) 59,387 2017 60 394,524 184 Business of concerts of Business (123,578)
66
1
- - - 4,57 2016 53,159
- - - 1,195 16,572 2017
Business of of Business movies
(3) 268 265 1,389 2016 13,217
Business of of Business 535 498 (37) 1,914 animation and 13,902 2017
computer graphic
2016 416,210
2, 1,091,404 4,841,893 2,150,997
(1,324,806)
)
Business of Business
6,483 2017 television programs television 5,889,267 1,91 3,478,354 2,000,113 (1,478,241
ancial statements
is managed and operates principally in Thailand. There are no material revenues derive revenues no material are There Thailand. in principally operates and is managed
31 December the year ended 31 December 2017 year ended 31 December the For the ended year revenue External Costs profit Gross As at 31 December assets Segment liabilities Segment Information about reportable segments: reportable about Information segments Geographical Group The
Workpoint Entertainment Public Company Limited and its Subsidiaries its and Limited Company Public Entertainment Workpoint fin to the Notes For 92 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
24 Employee benefit expenses
Consolidated Separate financial statements financial statements Note 2017 2016 2017 2016 (in thousand Baht) Wages and salaries 532,635 457,885 171,374 310,102 Share-based payment 19 46,115 73,446 14,447 53,286 Pension costs - defined benefit plans 18 10,124 9,687 3,527 6,731 Contribution to provident fund 13,347 12,212 5,698 9,741 Others 27,555 17,228 8,671 12,869 Total 629,776 570,458 203,717 392,729
Provident fund
The defined contribution plans comprise provident fund established by the Group for its employees. Membership to the fund is on a voluntary basis. Contributions are made monthly by the employees at rates ranging from 2% to 5% of their basic salaries and by the Group at rates ranging from 2% to 5% of the employees’ basic salaries. The provident fund is registered with the Ministry of Finance as juristic entities and is managed by a licensed Fund Manager.
25 Expenses by nature
The statements of comprehensive income include an analysis of expenses by function. Significant expenses by nature disclosed in accordance with the requirements of various TFRS were as follows:
Consolidated Separate financial statements financial statements Note 2017 2016 2017 2016 (in thousand Baht)
Other.related cost of television program production 862,602 796,273 3,719 390,737 Employee benefit expenses 24 629,776 570,458 203,717 392,729 Depreciation and amortisation 506,316 564,562 60,750 108,899 Commission and sales promotion 198,765 158,242 1,210 11,679 Other related cost of organising of the event marketing 103,619 52,596 - 45,073 Other related cost of organising of concerts and plays 94,648 52,558 - 17,828 License fee 76,980 36,046 - - Other related cost of sale of goods and rendering of other services 44,939 2,024 19,055 5,307 Others 83,251 95,030 98,880 118,981 Total cost of sale and services, selling expenses and administrative expenses 2,600,896 2,327,789 387,331 1,091,233
67
93 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
26 Finance costs
Consolidated Separate financial statements financial statements Note 2017 2016 2017 2016 (in thousand Baht) Loan from financial institutions 35,914 38,373 35,275 27,617 Interest expense from digital television license payable 13 44,625 63,997 - - Total interest expense 80,539 102,370 35,275 27,617 Other finance costs 17,055 10,300 2,089 4,165 Total 97,594 112,670 37,364 31,782
27 Income tax expense
Income tax recognised in profit or loss
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Current tax expense Current year 246,984 28,415 1,666 20,013 Under (over) provided in prior years 812 408 576 (118) 247,796 28,823 2,242 19,895
Deferred tax expense Movements in temporary differences 9,880 23,295 5,980 10,720 Total income tax 257,676 52,118 8,222 30,615
Reconciliation of effective tax rate Consolidated financial statements 2017 2016 Rate (in thousand Rate (in thousand (%) Baht) (%) Baht) Profit before income tax expense 1,166,170 255,156 Income tax using the Thai corporation tax rate 20 233,234 20 51,031 Tax incentive (12,091) (5,310) Income not subject to tax (151,687) - Expenses not deductible for tax purposes 14,369 16,382 Under provided in prior years 812 408 Intra-group eliminations 172,411 (10,783) Unrecognised deferred tax 628 390 Total 22 257,676 20 52,118
68
94 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Separate financial statements 2017 2016 Rate (in thousand Rate (in thousand (%) Baht) (%) Baht) Profit before income tax expense 795,267 171,089 Income tax using the Thai corporation tax rate 20 159,053 20 34,218 Tax incentive (6,642) (3,629) Income not subject to tax (150,248) (13,575) Expenses not deductible for tax purposes 5,481 12,958 Under (over) provided in prior years 578 (118) Surplus on business combination under common control - 761 Total 1 8,222 12 30,615
Income tax reduction
Revenue Code Amendment Act No. 42 B.E. 2559 dated 3 March 2016 grants a reduction of the corporate income tax rate to 20% of net taxable profit for accounting periods which begin on or after 1 January 2016.
28 Earnings per share
Basic earnings per share
The calculation of basic earnings per share for the years ended 31 December 2017 and 2016 were based on the profit for the years attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding during the years as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (thousand Baht / thousand shares) Profit attributable to ordinary shareholders of the Company (basic) 904,089 198,631 787,045 140,474 Number of ordinary shares outstanding at 1 January 417,255 417,255 417,255 417,255 Effect of shares options exercised 5,652 - 5,652 - Weighted average number of ordinary shares outstanding (basic) 422,907 417,255 422,907 417,255 Basic earnings per share (in Baht) 2.1378 0.4760 1.8610 0.3367
69
95 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Diluted earnings per share
The calculation of diluted earnings per share for the years ended 31 December 2017 and 2016 were based on the profit for the years attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding during the years after adjusting for the effects of all dilutive potential ordinary shares as follows:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (thousand Baht / thousand shares) Profit attributable to ordinary shareholders of the Company (diluted) 904,089 198,631 787,045 140,474 Weighted average number of ordinary shares outstanding (basic) 422,907 417,255 422,907 417,255 Effect of exercise of share options 5,163 197 5,163 197 Weighted average number of ordinary shares outstanding (diluted) 428,070 417,452 428,070 417,452 Diluted earnings per share (in Baht) 2.1120 0.4758 1.8386 0.3365
29 Dividends
At the Board of Directors Meeting held on 10 August 2017, the Board of Directors approved the payment of interim dividends of Baht 0.488 per share, totalling Baht 205.39 million, which were paid to the shareholders in September 2017.
At the Annual General Meeting of the shareholders of the Company held on 4 April 2017, the shareholders passed a resolution to approve the appropriation of dividends of Baht 0.27 per share, totalling Baht 113.18 million, which were paid to the shareholders in May 2017.
At the Annual General Meeting of the shareholders of the Company held on 7 April 2016, the shareholders passed a resolution to approve the dividends, from the Company’s operation result from 1 July 2015 to 31 December 2015, of Baht 0.15 per share, totalling Baht 62.59 million. The said dividends were paid to the shareholders in May 2016.
30 Financial instruments
Financial risk management policies
The Group is exposed to normal business risks from changes in market interest rates and currency exchange rates and from non-performance of contractual obligations by counterparties. The Group does not hold or issue derivative financial instruments for speculative or trading purposes.
Risk management is integral to the whole business of the Group. The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved.
70
96 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Capital management
The Board of Directors’ policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board monitors the return on capital, which the Group defines as result from operating activities divided by total shareholders’ equity, excluding non-controlling interests and also monitors the level of dividends to ordinary shareholders.
Interest rate risk
Interest rate risk is the risk that future movements in market interest rates will affect the results of the Group’s operations and its cash flows because debt securities and loan interest rates are mainly float rate. The Group is primarily exposed to interest rate risk from its borrowings. The Group mitigates this risk by ensuring that the majority of its borrowings are at fixed interest rates.
The effective interest rates of debt securities and loans receivable as at 31 December and the periods in which the loans receivable and debt securities mature or re-price were as follows:
Consolidated financial statements Effective interest After 1 year rate Within 1 but within 5 (% per year years After 5 years Total annum) (in thousand Baht) 2016 Non-current Long-term loans to related parties 2.39 - 1,500 - 1,500 Total - 1,500 - 1,500
Separate financial statements Effective interest After 1 year rate Within 1 but within 5 (% per year years After 5 years Total annum) (in thousand Baht)
2017 Non-current Long-term loans to related parties 5.25 - - 1,077,690 1,077,690 Total - - 1,077,690 1,077,690
2016 Non-current Long-term loans to related parties 4.72 - - 985,315 985,315 Total - - 985,315 985,315
71
97 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
The effective interest rates of interest-bearing financial liabilities as at 31 December and the periods in which those liabilities mature or re-price were as follows:
Consolidated financial statements Effective interest After 1 year rate Within 1 but within 5 (% per year years After 5 years Total annum) (in thousand Baht) 2017 Current Long-term loans from financial institutions 4.75 204,000 - - 204,000 Finance lease liabilities 2.77 17,491 - - 17,491 Non-current Long-term loans from financial institutions 4.75 - 236,290 - 236,290 Finance lease liabilities 2.77 - 8,610 - 8,610 Total 221,491 244,900 - 466,391
2016 Current Long-term loans from financial institutions 4.75 210,112 - - 210,112 Finance lease liabilities 2.50 26,530 - - 26,530 Non-current Long-term loans from financial institutions 4.75 - 540,174 - 540,174 Finance lease liabilities 2.50 - 39,243 - 39,243 Total 236,642 579,417 - 816,059
Separate financial statements Effective interest After 1 year rate Within 1 but within 5 (% per year years After 5 years Total annum) (in thousand Baht) 2017 Current Long-term loans from financial institutions 4.75 204,000 - - 204,000 Non-current Long-term loans from financial institutions 4.75 - 236,290 - 236,290 Total 204,000 236,290 - 440,290
2016 Current Long-term loans from financial institutions 4.72 190,550 - - 190,550 Finance lease liabilities 2.50 21,183 - - 21,183 Non-current Long-term loans from financial institutions 4.72 - 364,980 - 364,980 Finance lease liabilities 2.50 - 37,916 - 37,916 Total 211,733 402,896 - 614,629
72
98 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Foreign currency risk
The Group is exposed to foreign currency risk relating to purchase of goods and services which are denominated in foreign currencies. However, the Group did not manage to prevent the foreign currency risk as management believed that exposure to the risk is insignificant.
At 31 December, the Group and the Company were exposed to foreign currency risk in respect of financial assets and liabilities denominated in the following currencies:
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) United States Dollars (USD) Cash and cash equivalents 4,411 4,836 4,411 4,836 Trade accounts receivable 6,098 13,756 - - Trade accounts payable 20,221 16,416 - - Other payables 13,293 - - - Gross financial position exposure 44,023 35,008 4,411 4,836
Japanese Yen (JPY) Trade accounts receivable - 155 - - Gross financial position exposure - 155 - -
Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Group as and when they fall due.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. At the reporting date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. However, due to the large number of parties comprising the Group’s customer base, Management does not anticipate material losses from its debt collection.
Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.
73
99 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
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 measured at fair value. 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 Level 1 Level 2 Level 3 Total (in thousand Baht) At 31 December 2017 Financial assets measured at fair value Trading securities 306,642 306,642 - - 306,642
Financial liabilities not measured at fair value Long-term loans from financial institutions 436,040 - 447,553 - 447,553 Finance lease liabilities 26,102 - 28,055 - 28,055
At 31 December 2016 Financial assets measured at fair value Trading securities 203,297 203,297 - - 203,297
Financial assets and financial liabilities not measured at fair value Long-term loans to related parties 1,500 - 1,507 - 1,507 Long-term loans from financial institutions 750,287 - 873,219 - 873,219 Finance lease liabilities 65,773 - 92,692 - 92,692
74
100 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
Separate financial statements Carrying amount Fair value Level 1 Level 2 Level 3 Total (in thousand Baht) At 31 December 2017 Financial assets measured at fair value Trading securities 306,642 306,642 - - 306,642
Financial assets and financial liabilities not measured at fair value Long-term loans to related parties 1,077,690 - 1,209,231 - 1,209,231 Long-term loans from financial institutions 440,290 - 467,011 - 467,011
At 31 December 2016 Financial assets measured at fair value Trading securities 203,297 203,297 - - 203,297
Financial assets and financial liabilities not measured at fair value Long-term loans to related parties 985,315 - 1,021,256 - 1,021,256 Long-term loans from financial institutions 555,530 - 672,272 - 672,272 Finance lease liabilities 59,099 - 85,132 - 85,132
Financial instruments not measured at fair value
Type Valuation technique Long-term loans to related parties Discounted cash flows Long-term loans from financial institutions Discounted cash flows Finance lease liabilities Discounted cash flows
75
101 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
31 Commitments with non-related parties
Consolidated Separate financial statements financial statements 2017 2016 2017 2016 (in thousand Baht) Capital commitments Contracted but not provided for: Property, plant and equipment - 890 - 802 Other intangible assets 1,189 4,610 1,189 4,610 Total 1,189 5,500 1,189 5,412
Future minimum lease payments under non-cancellable operating lease Within one year 11,589 10,347 - - After one year but within five years 62,186 60,772 - - After five years 92,814 105,817 - - Total 166,589 176,936 - -
Television network services agreements commitments Within one year 56,644 56,644 - - After one year but within five years 226,578 226,578 - - After five years 302,104 358,748 - - Total 585,326 641,970 - -
Other commitments Bank guarantees 854,740 1,354,850 - - Services agreement 84,977 91,461 9,351 3,048 Purchase orders for goods and material accepted by supplier 24,300 - - - Network services agreements 7,323 1,297 - - Others 29,200 83,745 - - Total 1,000,540 1,531,353 9,351 3,048
Other agreements
The Group entered into several agreements for television program production and service agreements with period of less than 1 year to 6 years.
76
102 WorkpointWorkpoint Entertainment Entertainment Public Public Company Company Limited Limited and and its Subsidiariesits Subsidiaries NotesNotes to the to fintheancial financial statements statements For Forthe yearthe year ended ended 31 December 31 December 2017 2017
32 32Events Events after after the reportingthe reporting period period
AcquisitionsAcquisitions of investments of investments
On 15On January15 January 2018, 2018, the Companythe Company acquired acquired an additionalan additional investment investment in Bangkokin Bangkok Exhibition Exhibition Co., Co.,Ltd. ,Ltd. a subsidiary,, a subsidiary, for 800,000 for 800,000 shares shares with withpar valuepar value of Baht of Baht 100 per100 shareper share, total, ltotaling lBahting Baht 80.00 80 .00 million.million. The CTompanyhe Company was calledwas called for 25% for 25%paid -paidup of-up share of share capital, capital, totalling totalling Baht Baht 20.00 20 million.00 million. .
On On18 January18 January 2018, 2018, the tCompanyhe Company acquire acquired and additionalan additional invest investmentment in Thaiin ThaiBroadcasting Broadcasting Co., Co.,Ltd. ,Ltd. a subsidiary,, a subsidiary, for 4,000,000for 4,000,000 shares shares with withpar valuepar value of Baht of Baht 100 100per shareper share, total, ltotaling lBahting Baht 400.00400 million..00 million. The TCheompany Company was wascalled called for 25%for 25%paid -paidup of-up share of share capital capital, totalling, totalling Baht Baht 100 .00100 .00 millionmillion. .
DividendDividend payment payment
At theAt Board the Board of Directors of Directors Meeting Meeting of the of Compa the Company heldny heldon 26 on February 26 February 2018, 2018, the Board the Board of Directors of Directors had ahad resolution a resolution to endorse to endorse for the for paymentthe payment of dividends of dividends for the for yearthe year2017 2017 of Baht of Baht 1.388 1.388 per shareper share, , totalingtotaling Baht Baht 606.00 606.00 million. million.
33 33Reclassification Reclassification of accounts of accounts
CertainCert accountsain accounts in the in 201 the6 201 financial6 financial statement statements haves have been been reclassified reclassified to conform to conform to the to presentation the presentation in thein 201 the7 201 financial7 financial statements statements as follows: as follows:
2016 2016 ConsolidatedConsolidated SeparateSeparate financialfinancial statements statements financialfinancial statements statements Before Before AfterAfter BeforeBefore After After reclassireclassi- - ReclassReclassi- i-reclassreclassi- i- reclassreclassi- i- ReclassReclassi- i-reclassreclassi- i- ficationfication fication fication fication fication fication fication fication fication fication fication (in thousand(in thousand Baht) Baht) StatementStatement of financial of financial positionposition as at as at 31 December31 December 2016 2016 TradeTrade and other and otheraccounts accounts receivable receivable 454,183454 ,183 (454 ,183)(454 ,183) - - 256,701 256,701 (256,701) (256,701) - - TradeTrade accounts accounts receivable receivable - - 256,405 256,405 256,405 256,405 - - 68,377 68,377 68,377 68,377 OtherOther current current receivables receivables - - 25,335 25,335 25,335 25,335 - - 160,471 160,471 160,471 160,471 OtherOther current current assets assets - - 118,261 118,261 118,261 118,261 - - 22,652 22,652 22,652 22,652 OtherOther non- currentnon-current assets ass ets 21,82521,825 54,182 54,182 76,007 76,007 11, 60911, 609 5,201 5,201 16,810 16,810 TradeTrade and other and otheraccounts accounts payable payable 330,715 330,715 (330,715) (330,715) - - 50,64650,646 (50,646) (50,646) - - TradeTrade accounts accounts payable payable - - 129,610 129,610 129,610 129,610 - - 16,524 16,524 16,524 16,524 OtherOther current current payable payable - - 157,614 157,614 157,614 157,614 - - 22,648 22,648 22,648 22,648 CurrentCur portionrent portion of deferred of deferred subsidy subsidy income income - - 22,380 22,380 22,380 22,380 ------OtherOther current current liabilities liabilities - - 21,111 21,111 21,111 21,111 - - 11,474 11,474 11,474 11,474 - - - -
77 77
103 Workpoint Entertainment Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017
2016 Consolidated Separate financial statements financial statements Before After Before After reclassi- Reclassi- reclassi- reclassi- Reclassi- reclassi- fication fication fication fication fication fication (in thousand Baht) Statement of comprehensive income for the year ended 31 December 2016 Revenue from television programs 2,391,690 24,520 2,41 6,210 928,963 6,800 935,763 Revenue from animation and computer graphic 12,338 (12,070) 268 - - - Revenue from concerts and plays 119,727 (1,582) 118,145 - - - Revenue from event marketing 106,220 10,137 116,357 - - - Revenue from publication 3,562 (3,562) - 3,562 (3,562) - Revenue from management fee - 150 150 - 43,329 43,329 Revenue from sale of goods and other services - 15,925 15,925 - 116,522 116,522 Cost of television programs (1,318,036) (6,770) (1,324,806) (544,878) - (544,878) Cost of animation and computer graphic (6,773) 6,770 (3) - - - Cost of concerts and plays (81,900) 481 (81,419) - - - Cost of event marketing (87,851) (6,521) (94,372) - - - Cost of management fee - - - - (36,524) (36,524) Cost of sale of goods and other services - (4,149) (4,149) - (32,939) (32,939) Cost of publication (1,597) 1,597 - (1,597) 1,597 - Other income 50,620 (24,200) 26,420 213,995 (153,772) 60,223 Selling expenses (237,198) (279) (237,477) (48,771) (6,800) (55,571) Administrative expenses (585,115) (447) (585,562) (423,768) 65,349 (358,419) - -
The reclassifications have been made because, in the opinion of management, the new reclassification is more appropriate to the Group’s business.
78
104 General Information
General Information
Company Name : Workpoint Entertainment Public Company Limited Nature of Business : The production of television programs for broadcasting and sale of advertising in the Company’s Digital TV channel Head Office : 99 Moo 2 Bangpoon , Muang Pathumthani , Pathumthani 12000 Registration Number : 0107547000125 Registered Capital : Registered capital totaled THB 452,094,295 (as of December 31,2017) , consisting of the Issued and Paid-Up capital of 438,857,442 common shares at par value of THB 1 per share. Website : http://www.workpoint.co.th Telephone : 02-833-2000 Fax : 02-833-2999
Reference
Registrar : Thailand Securities Depository Company Limited Address : The Stock Exchange of Thailand 93 Ratchadaphisek Road , Dindaeng , Dindaeng , Bangkok 10400 Telephone : 02-009-9999 , 02-009-9382 Fax : 02-009-9476
Auditor : KPMG Phoomchai Audit Ltd. Address : Empire Tower 48th Floors 1 South Sathorn Road , Yannawa , Sathorn Bangkok 10120 Telephone : 02-677-2000 Fax : 02-677-2222
105 WORKPOINT ENTERTAINMENT PCL 99 MOO 2 BANGPOON, MUANG PATHUM THANI, PATHUM THANI 12000 TEL : 02 833 2000 FAX : 02 833 2998-9 www.workpoint.co.th