MD & A

The Company is principally engaged in the development and sale of real estate, which consists of house and land allotment and apartments in condominiums and hotel business. For the results of the period ending December 31, 2021, the company has a proportion of revenue in the real estate business and hotel business were 1,451.6 million baht and 336.8 million baht, respectively, or accounted for 63.17% and 14.65% of the total revenue, respectively. In 2021, the company has been affected by the economic slowdown from the past year causing consumers to buy real estate to slow down. In addition, there is the problem of the global epidemic of the novel coronavirus disease 2019 (COVID-19) that has affected tourism businesses heavily by having to temporarily suspend hotel operations due to the closure of government agencies and cancellation of travel of both domestic and international tourists. However, the Company still had the main income from the sale and transfer of real estate from the low-rise projects that were completed and ready for delivery to customers in the year that increased significantly compared to the previous year and the income from rental and service fees 2.99 percent of total revenue. There is also income from sales of gas station business and shops in the commercial area that have been operating since the end of 2019, including income from administrative fees and other income. In this year 2021, the Company has other income from the rental exemption under the asset lease agreement mostly.

In 2021, the Company continues to invest in developing real estate projects that are under construction to generate sales and recognize future revenues. The company views that if the economy has recovered the Covid-19 coronavirus outbreak is showing signs of improvement. The company will be able to drain the current completed inventories as expected, including the project. The total revenue of the Company in 2021 increased by 61% from the year 2020 as a result of the Company’s positive feedback on flat-panel projects that can be sold and delivered to customers in the year. Only the main income from the sale of real estate in 2021 increased by 124% from the year 2020 and the revenue from hotel business continued to be affected from the previous year. In addition, since the beginning of 2021, the situation of the Covid-19 pandemic has been severe and long, causing the company to be heavily affected by the hotel business that has to stop operating temporarily. Revenue from hotel operations decreased by 26% compared to 2020.

At the beginning of 2021, the Company provided financing by issuing and selling one tranche of secured and redeemable bonds worth 950 million baht as part of the repayment of two tranches of existing bonds that were due in the year. Total value is 1,200 million baht.

In 2021, the company has total debt to equity ratio (D/E ratio) 3.25 times and interest-bearing debt to equity ratio 2.76 times, which is a lower ratio compared to the year 2020 is 3.43. and 3.02 times, respectively. The decrease in the ratio was due to the proportion of total liabilities and the overall interest-bearing liabilities of the Company in 2021 compared to 2020 are 7% and 10%, respectively.

Details of assets, liabilities and equity as well as detailed operating results have been categorized by type. Including the numbers of important financial ratios as follows.

Financial Position


The Company’s total assets as of December 31, 2021 amounted to 10,199 million baht, a decrease of 606 million baht from 2020 or 6%.

  1. Cost of real estate development projects for sale, amounting to 4,932 million baht, or 48% of total assets, decreased from 2020 by 419 million baht due to the transfer of ownership of real estate to customers during the year at a higher rate than the company’s investment in real estate development for sale.
  2. Right-of-use assets decreased by 201 million baht from the write-off of right-of-use assets during the year.
  3. Investment properties decreased by 58 million baht from the sale of some investment properties during the year. In addition, the fair value of the assets decreased.


The Company has total liabilities as of December 31, 2021, equal to 7,797 million baht, a decrease from December 31, 2020, amounting to 570 million baht or 7%, with the changes being as follows:

  • Loans from financial institutions decreased by 542 million baht due to the company repaying loans from the sale and transfer of ownership of the Company’s real estate to customers.
  • Liabilities under lease contracts decreased by 132 million baht due to the exemption from rental contracts and pay rent during the period net of interest amortization incurred during the year.
  • Debentures, a decrease of 252 million baht due to issuance of debentures during the period of 950 million baht and repayment of maturing debentures of 1,200 million baht, plus amortization fee for issuing debentures during the years.
  • Liabilities arising from contracts increased by 207 million baht, mainly from advance receipts from real estate sales during the year.
  • Long-term loans from other companies increased by 254 million baht for project development. and enhance the liquidity of the company.


The Company’s total shareholders’ equity as of December 31, 2021 was 2,402 million baht, a decrease from December 31, 20193 (2,438 million baht) by 36 million baht due to the company’s operating results being affected by the economic slowdown. And the spread of the Covid-19 virus has resulted in a decrease in revenue from hotel business and real estate rental business. Although the performance in the real estate business has increased and received investment from capital increase from non-controlling interests in subsidiaries amounting to 120 million baht during the year.

Shareholders in 2021 are net shareholders’ equity of 1,468 million baht and non-controlling interests of 934 million baht.


Chan Issara Development Public Company Limited and its Subsidiaries’ total revenue from operations in 2021 was 2,299 million baht, an increase of 870 million baht from 2020 or an increase of 61%. Consists of income from 4 main businesses and other income as follows

  1. Revenue from sales of real estate in 2021 is 1,451 million baht, an increase of 802 million baht from 2020 or a 126% increase because in 2021. The construction of the company’s real estate projects was completed. It has been well received from high-end customers.
  2. Rental and service income in 2021 was 69 million baht, a decrease of 9 million baht from 2020 or 11% due to the company giving a discount on rent and service fees to help tenants. And some tenants canceled the lease early or not renew the lease because the tenants are affected by the economic situation that has deteriorated severely from the Covid-19 epidemic situation.
  3. Revenue from hotel business in 2021 was 337 million baht, a decrease of 119 million baht from 2020 or 26% due to the pandemic situation of the Covid-19 virus that is more severe than the year 2020. resulting in tourists decreased in the country. In addition, foreign tourists continued to decline from the previous year. As a result, the revenue from the hotel business has decreased significantly.
  4. Revenue from sales of the Company’s products in 2021 is similar to that of 2020.
  5. Other income in 2021 equal to 358 million baht, an increase of 200 million baht from 2020 or a 127% increase due to the company’s gains from the exemption of rent under the asset lease agreement between Sri Panwa Management Company Limited (a subsidiary) and Sri Panwa Hotel Real Estate Investment Trust (REIT) amounting to 267 million baht due to the impact of the of coronavirus disease (COVID-19) in the second wave and the third wave. The REIT therefore considers helping by exempting the rental fee for the assets invested No. 1 and No. 3 in Sri Panwa Hotel Real Estate Investment Trust for the month of February 2020 to June 2021.

(Unit: Baht million)

Income Item 2021 2020 Increase / Decrease % Increase
Income from real estate sales 1,451 649 802 125.52
Income from rental and service 69 78 (9) (11.41)
Income from hotel business 337 455 (118) (26.03)
Income from the sale of goods 61 61 - (0.03)
Income from administrative fees and other fees 23 28 (5) (17.82)
Other income 358 158 200 126.88
Total Income 2,299 1,429 870 60.89

Gross profit

The Company’s gross profit margin from real estate sales in 2021 is approximately 30%, which is a slight increase from the previous year while the gross profit ratio from the rental and office business in Charn Issara Towers 1 and 2 and condominiums in Issara Ladprao is 42%, a decrease of about 5% from 2020. Due to 2021 the Company has provided assistance to tenants affected by the economic situation by reducing rent and/or service charges While the company’s fixed costs have not decreased. Gross profit margin from hotel business in 2021 was a loss of about 28 percent (28%), an increase of about 10 percent from a loss in 2020 due to a sharp drop in revenue from hotel operations while the company’s fixed cost remains the same. The gross profit margin from sales of goods in 2021 is approximately 7%, which is an increase of approximately 7% from a loss in 2020 (1) due to the change in the costing method of goods. In 2021, the cost of gas stations, which is a major component ofthis business will include only refinery costs and transportation costs, while in 2020 costs include other fixed expenses such as depreciation, etc.

Details of gross profit for each business are shown in the table as follows:

(Unit : Million Baht)

Gross Profit 2021 2020 % increase
Gross profit from the sale of real estate 29.84 29.05 0.79
Gross profit from rental and service charges 41.69 46.55 (4.86)
Gross profit from hotel business (27.73) (9.75) (17.98)
Gross profit from sales of goods 6.58 (0.77) 7.35
Total Gross Profit 19.42 14.48 4.94


  1. Selling and administrative expenses in the year 2021 is 552 million baht, accounting for 24% of total revenue, which is an increase of 8% compared to 2020. In 2020, the company has expenses. Selling and administrative expenses amounted to 510 million baht. The increase in expenses was mainly related to the increase in the sale of real estate. such as brokerage fees and taxes
  2. Financial expenses in 2021 decreased from the year 2020 by 7 million baht because the company repaid loans from financial institutions during the period. from the transfer of real estate to customers
  3. Profit / (Loss) Net

    The company has profit (loss) from operations in 2021 equal to (99) million baht, with net profit (loss) attributable to shareholders of the company equal to (45) million baht and loss (283) million baht. Baht compared to the year 2020, net profit (loss) attributable to the Company’s shareholders per share equal to (0.04) baht.

    Important financial ratios

    1. Earnings before interest, tax and depreciation (EBITDA) ratio in 2021 is 20.66%, with net profit attributable to equity holders of the Company in 2021 is equal to (1.94%), which is in line with changes in the income mentioned above.
    2. EBIT / Interest Expenses in 2021 is 1.47 times, an increase from 2020, which is approximately 0.42 times interest-paying capability. The significant increase is a result of income. of companies that have increased as mentioned above.
    3. The current ratio in 2021 is 2.11 times, an increase from the year 2020 which is 1.85 times.
    4. The debt-to-equity ratio in 2021 was at 3.25 times, down from 3.43 in 2020 due to the company repaying loans from financial institution from a much better performance in the real estate business.
    5. Book value per share in 2021 is 1.38 baht per share, a decrease from 2020, which has a book value per share equals 1.47 baht per share due to the operating results of the year 2021 -Loss due to the aforementioned.