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B A N P U P U B L I C C O M P A N Y L I M I T E D A n n u a l R e p o r t 2 0 0 5 I n n o v a t i o n I n t e g r i t y I n n o v a t i o n B A N P U S P I R I T I n t e g r i t y C a r e S y n e r g y C a r e S y n e r g y A n n u a l R e p o r t 2 0 0 5 1 C o n t e n t s 3 F i n a n c i a l H i g h l i g h t s 4 B o a r d o f D i r e c t o r s ’ R e v i e w 6 C h i e f E x e c u t i v e O f f i c e r R e v i e w 10 K e y F i n a n c i a l R e s u l t s 12 V i s i o n & M i s s i o n 14 B a n p u S p i r i t : C o r p o r a t e C u l t u r e S t r i v i n g B a n p u t o B e c o m e “ T h e A s i a n F a c e o f E n e r g y ” 17 B a n p u C o r p o r a t e S o c i a l R e s p o n s i b i l i t y 21 I n d u s t r i a l O u t l o o k 23 R i s k F a c t o r s 28 O p e r a t i o n s D u r i n g t h e P r e v i o u s Y e a r 30 R e v e n u e S t r u c t u r e 32 S u m m a r y o f M a j o r C h a n g e s a n d D e v e l o p m e n t s i n 2 0 0 5 a n d M a j o r C u r r e n t E v e n t s 34 M a j o r S h a r e h o l d e r s 36 O r g a n i z a t i o n C h a r t 37 M a n a g e m e n t S t r u c t u r e 44 B o a r d o f D i r e c t o r s a n d M a n a g e m e n t 54 S h a r e h o l d i n g s o f t h e B o a r d o f D i r e c t o r s a n d M a n a g e m e n t 55 R e m u n e r a t i o n o f t h e B o a r d o f D i r e c t o r s a n d M a n a g e m e n t 57 C o r p o r a t e G o v e r n a n c e a n d S u p e r v i s i o n o n t h e U s e o f I n t e r n a l I n f o r m a t i o n 67 I n t e r n a l C o n t r o l 70 C o n n e c t e d P e r s o n s a n d T r a n s a c t i o n s 76 R e p o r t o f t h e B o a r d o f D i r e c t o r s ’ R e s p o n s i b i l i t y i n t h e F i n a n c i a l S t a t e m e n t s 77 R e p o r t o f t h e A u d i t C o m m i t t e e t o S h a r e h o l d e r s 78 M a n a g e m e n t ’ s D i s c u s s i o n a n d A n a l y s i s o f t h e C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s 81 A u d i t o r ’ s R e p o r t 82 F i n a n c i a l S t a t e m e n t s 132 O t h e r R e f e r e n c e s 133 B a n p u G r o u p S t r u c t u r e 134 D e t a i l s o f t h e C o m p a n y a n d I t s S u b s i d i a r y a n d A s s o c i a t e d C o m p a n i e s 2 B a n p u P u b l i c C o m p a n y L i m i t e d F i n a n c i a l H i g h l i g h t s F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2005 2004 2003 F i n a n c i a l P o s i t i o n Total Assets (THB million) 45,088 39,538 33,993 Total Liabilities (THB million) 23,202 16,423 11,637 Total Shareholders’ Equity (THB million) 21,886 23,116 22,355 Issued and Paid-up Share Capital (THB million) 2,717 2,717 2,703 O p e r a t i o n a l R e s u l t s Sale Revenues (THB million) 25,209 17,227 12,482 Cost of Sales (THB million) 13,933 10,525 8,878 Gross Profit (THB million) 11,275 6,702 3,604 Selling and Administration Expenses (THB million) 3,332 2,228 1,858 Royalty Fee (THB million) 2,547 1,700 1,252 Other Revenues (THB million) 3,646 3,159 2,222 Other Expenses (THB million) 225 436 285 Profit from Operation (THB million) 8,818 5,498 2,431 Interest Expenses (THB million) 509 412 480 Corporate Income Tax (THB million) 2,217 1,204 124 Net Profit (THB million) 5,565 3,645 2,046 F i n a n c i a l R a t i o s Gross Profit Margin (%) 44.73 38.90 28.87 Net Profit Margin (%) 22.08 21.16 16.39 Returns on Assets (%) 13.15 9.91 7.11 Returns on Equity (%) 24.73 16.03 13.35 Interest Coverage Ratio (times) 8.94 11.65 2.01 Net Debt to Equity (times) 0.34 0.22 0.28 D a t a p e r S h a r e Earnings per Share (THB) 20.48 13.42 7.75 Book Value per Share (THB) 80.54 85.06 82.71 Dividend per Share (THB) 12.50* 5.50 4.00 * The Company has announced a payment of an interim dividend worth THB 3.50 per share on 29 September 2005 and a payment of an interim dividend paid on a special occasion worth THB 5.00 per share on 28 October 2005. There remains a dividend of THB 4.00 per share. which will be paid out of the Company’s retained earnings and operation results during the period between 1 July 2005 and 31 December 2005 of which the payment is scheduled on 11 April 2006. Note: Financial figures are based on the consolidated financial statement. A n n u a l R e p o r t 2 0 0 5 3 B o a r d o f D i r e c t o r s ’ R e v i e w B a n p u ’ s s e ve r a l a t t e m p t s h a v e b e c o m e f r u i t f u l a s t h e C o m p a n y h a s b e e n r e c o g n i z e d b y s e v e r a l r e p u t e d i n s t i t u t i o n s t o r e c e i v e a n u m b e r o f p r e s t i g i o u s a w a r d s .