dusit thani public company limited and its...

Dusit Thani Public Company Limited

and its Subsidiaries

Condensed interim financial statements

for the three-month and nine-month periods ended

30 September 2020

and

Independent auditor’s review report

Independent Auditor’s Report on Review of Interim Financial Information

To the Board of Directors of Dusit Thani Public Company Limited

I have reviewed the accompanying consolidated and separate statements of financial position of Dusit Thani

Public Company Limited and its subsidiaries, and of Dusit Thani Public Company Limited, respectively, as at

30 September 2020; the consolidated and separate statements of income, comprehensive income for the

three-month and nine-month periods ended 30 September 2020; the consolidated and separate statements of

changes in equity and cash flows for the nine-month period ended 30 September 2020; and condensed notes

(“interim financial information”). Management is responsible for the preparation and fair presentation of this

interim financial information in accordance with Thai Accounting Standard 34, “Interim Financial Reporting”.

My responsibility is to express a conclusion on this interim financial information based on my review.

Scope of Review

I conducted my review in accordance with Thai Standard on Review Engagements 2410, “Review of Interim

Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial

information consists of making inquiries, primarily of persons responsible for financial and accounting

matters, and applying analytical and other review procedures. A review is substantially less in scope than an

audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to

obtain assurance that I would become aware of all significant matters that might be identified in an audit.

Accordingly, I do not express an audit opinion.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the accompanying

interim financial information is not prepared, in all material respects, in accordance with Thai Accounting

Standard 34, “Interim Financial Reporting”.

2

Emphasis of Matters

I draw attention to notes 3 and 4 to the interim financial statements which describes the followings:

1) the impact to the Company and its subsidiaries’ adoption of new accounting policies from 1 January

2020.

2) the impact of Covid-19 pandemic which described the impact to the Group operation and management

plan to deal with these circumstances as well as adoption of the accounting guidance on temporary

accounting relief measure for additional accounting options in dealing with the impact of Covid-19

pandemic issued by the Federation of Accounting Professions in preparation of the interim financial

statements for the three-month and nine-month periods ended 30 September 2020.

My conclusion is not modified in respect of these matters.

(Vipavan Pattavanvivek)

Certified Public Accountant

Registration No. 4795

KPMG Phoomchai Audit Ltd.

Bangkok

16 November 2020

Dusit Thani Public Company Limited and its SubsidiariesStatement of financial position

Separate

30 September 31 December 30 September 31 December

Assets Note 2020 2019 2020 2019

(Unaudited) (Unaudited)

Current assets

Cash and cash equivalents 487,935 2,600,475 44,296 92,500

Other current financial assets 420,188 932,785 - -

Trade and other current receivables 6,13,19,24 1,168,101 1,387,341 308,439 238,419

Inventories 61,468 69,277 8,067 12,054

Short-term loans to related parties 13 - - 1,633,653 1,205,570

Short-term loans to other party 15,829 15,077 - -

Current portion of prepaid rental of land and buildings - 115,447 - 115,108

Other current assets 24 262,097 167,550 57,809 84,400

Non-current assets classified as held for sale 9,465 - 64,465 44,000

Total current assets 2,425,083 5,287,952 2,116,729 1,792,051

Non-current assets

Other non-current financial assets 19 399,291 36,414 - -

Finance lease receivable 13 - - 3,046,476 -

Investments in associates 7 1,615,587 1,814,425 1,623,454 1,649,881

Investments in subsidiaries 8 - - 2,509,695 2,308,330

Investments in joint ventures 9 172,306 180,482 119,882 119,882

Long-term loans to related parties 13 326,629 234,139 837,445 344,448

Investment properties 174,806 174,806 144,572 144,572

Property, plant and equipment 10 4,331,450 3,474,627 727,367 688,989

Advance payment for construction 10 559,661 - - -

Prepaid rental of land and buildings - 1,380,980 - 1,376,092

Right-of-use assets 11 8,914,434 - 1,091,468 -

Intangible assets other than goodwill 588,806 616,793 29,508 31,017

Goodwill 5 658,411 580,980 - -

Deferred tax assets 175,479 74,911 - 26,371

Deposits 12 593,000 290,970 545,450 290,970

Withholding tax 20 49,111 36,466 24,143 11,847

Other non-current assets 63,281 53,129 11,877 21,375

Total non-current assets 18,622,252 8,949,122 10,711,337 7,013,774

Total assets 21,047,335 14,237,074 12,828,066 8,805,825

Consolidatedfinancial statements financial statements

(in thousand Baht)

The accompanying notes form an integral part of the interim financial statements.

3



Liabilities and equity Note 2020 2019 2020 2019


Current liabilities

Short-term loans from financial institutions 2,308,000 1,762,000 2,308,000 1,762,000

Short-term loans from related party 13 - - 1,401,000 315,000

Trade and other current payables 13 1,325,620 1,379,927 132,846 184,485

Current portion of payable for acquisition of business 5 89,543 61,947 - -

Current portion of long-term loans from financial institutions 117,207 96,451 33,000 33,000

Current portion of lease liabilities 235,161 - 57,192 -

Current portion of debentures 19 999,021 - 999,021 -

Current portion of deferred rental revenue 13 25,433 25,433 - 76,879

Income tax payable 19,955 152,067 - -

Other current liabilities 258,562 271,395 19,952 16,753

Total current liabilities 5,378,502 3,749,220 4,951,011 2,388,117

Non-current liabilities

Payable for acquisition of business 5 33,604 - - -

Long-term loans from financial institutions 24 1,346,056 1,382,565 1,045,700 1,053,950

Long-term loans from related party 13,24 508,332 219,335 - -

Lease liabilities 7,480,348 - 3,401,682 -

Debentures - 998,249 - 998,249

Deferred rental revenue 13 489,086 508,109 - 1,092,574

Deferred tax liabilities 86,266 128,512 50,017 -

Provisions for employee benefits 186,074 195,740 77,754 82,032

Deposit for right to lease building 13 984,760 984,760 - -

Liabilities from investment in joint venture 9 110,920 103,403 - -

Other non-current liabilities 7 114,312 62,684 734 463

Total non-current liabilities 11,339,758 4,583,357 4,575,887 3,227,268

Total liabilities 16,718,260 8,332,577 9,526,898 5,615,385

Consolidated Separatefinancial statements financial statements

(in thousand Baht)


4


Separate


Liabilities and equity (Continued) 2020 2019 2020 2019


Equity

Share capital

Authorised share capital

(850,000,000 ordinary shares, par value at Baht 1 per share) 850,000 850,000 850,000 850,000

Issued and paid-up share capital

(850,000,000 ordinary shares, par value at Baht 1 per share) 850,000 850,000 850,000 850,000

Treasury shares (15,740) (15,740) - -

Additional paid in capital

Premium on ordinary shares 1,643,000 1,643,000 1,643,000 1,643,000

Surplus on treasury shares 18,365 18,365 16,950 16,950

Retained earnings

Appropriated

Legal reserve 85,000 85,000 85,000 85,000

Dusit Thani College funds 415,272 415,272 - -

Treasury shares reserve 15,740 15,740 - -

Unappropriated 773,976 1,896,212 706,218 595,490

Other components of equity (136,174) (182,335) - -

Equity attributable to owners of the parent 3,649,439 4,725,514 3,301,168 3,190,440 Non-controlling interests 679,636 1,178,983 - -

Total equity 4,329,075 5,904,497 3,301,168 3,190,440

Total liabilities and equity 21,047,335 14,237,074 12,828,066 8,805,825

(in thousand Baht)

Consolidatedfinancial statements financial statements


5

Dusit Thani Public Company Limited and its Subsidiaries

Consolidated Separate

Note 2020 2019 2020 2019

Revenue from sales and services 13 402,438 876,895 81,503 164,088Cost of sales and services

Cost of sales and services 13 (292,230) (568,631) (64,702) (106,462)

Cost of services - depreciation and amortisation (162,566) (98,634) (35,227) (17,251)

Total cost of sales and services (454,796) (667,265) (99,929) (123,713) Gross profit (loss) (52,358) 209,630 (18,426) 40,375

Management service income 13 3,996 73,525 7,408 12,369

Interest income 13 4,637 4,667 64,608 10,537

Dividend income 13 - 127 33,646 31,053

Realised income from deferred rental revenue 13 6,411 7,154 - 19,220

Gain on reclassification of investment 7 126,542 - - -

Gain on sale of property, plant and equipment 13 186 589,905 120 2,131

Other income 13 72,204 68,631 69,944 46,553

Total income 213,976 744,009 175,726 121,863

Profit before expenses 161,618 953,639 157,300 162,238

Expenses

Selling expenses 13 (52,382) (73,289) (21,663) (27,211)

Administrative expenses 13 (351,030) (449,080) (160,567) (234,939)

Depreciation and amortisation (56,224) (16,350) (32,801) (5,970)

Total expenses (459,636) (538,719) (215,031) (268,120)

Profit (loss) from operating activities (298,018) 414,920 (57,731) (105,882) Finance costs 13 (106,782) (28,109) (87,376) (20,535)

Share of profit of joint ventures and associates

accounted for using equity method 26,188 337 - -

Profit (loss) before income tax expense (378,612) 387,148 (145,107) (126,417) Tax (expense) income 16 22,921 (88,238) 1,357 862

Profit (loss) for the period (355,691) 298,910 (143,750) (125,555)

Profit (loss) attributable to:Owners of the parent (342,290) 72,939 (143,750) (125,555)

Non-controlling interests (13,401) 225,971 - -

Profit (loss) for the period (355,691) 298,910 (143,750) (125,555)

Earnings (loss) per share (in Baht) 17

Basic earnings (loss) per share (0.40) 0.09 (0.17) (0.15)

financial statements financial statements

(in thousand Baht)

Statement of income (Unaudited)

Three-month period ended Three-month period ended

30 September 30 September


6



Note 2020 2019 2020 2019

Revenue from sales and services 13 1,588,199 3,053,189 260,228 493,437Cost of sales and servicesCost of sales and services 13 (1,009,652) (1,849,697) (194,968) (322,058)

Cost of services - depreciation and amortisation (482,389) (298,717) (103,637) (52,310)

Total cost of sales and services (1,492,041) (2,148,414) (298,605) (374,368) Gross profit (loss) 96,158 904,775 (38,377) 119,069

Management service income 13 75,769 215,107 27,047 50,912

Interest income 13 17,658 15,561 182,612 29,299

Dividend income 13 - 8,621 233,408 261,944

Realised income from deferred rental revenue 13 19,023 19,766 - 57,660

Arrangement fee income 13 231,364 - 296,620 -

Gain on capital reduction of subsidiary 8 23,220 - - -

Gain on sale of other long-term investment - 215,572 - 215,572

Gain on reclassification of investment 7 126,542 - - -

Gain on sale of property, plant and equipment 13 4,443 590,859 4,693 2,666

Other income 13 157,557 183,541 153,649 156,370

Total income 655,576 1,249,027 898,029 774,423

Profit before expenses 751,734 2,153,802 859,652 893,492

ExpensesSelling expenses 13 (166,495) (256,846) (60,948) (96,107)

Administrative expenses 13 (1,132,008) (1,307,945) (532,512) (681,895)

Depreciation and amortisation (140,851) (47,485) (71,608) (16,971)

Total expenses (1,439,354) (1,612,276) (665,068) (794,973)

Profit (loss) from operating activities (687,620) 541,526 194,584 98,519 Finance costs 13 (320,636) (84,237) (244,844) (52,785)

Share of profit of joint ventures and associates

accounted for using equity method 44,982 13,909 - -

Profit (loss) before income tax expense (963,274) 471,198 (50,260) 45,734Tax (expense) income 16 54,161 (131,617) 3,388 (4,955)

Profit (loss) for the period (909,113) 339,581 (46,872) 40,779

Profit (loss) attributable to:Owners of the parent (877,671) 51,401 (46,872) 40,779



Earnings (loss) per share (in Baht) 17

Basic earnings (loss) per share (1.04) 0.06 (0.06) 0.05

(in thousand Baht)

Statement of income (Unaudited)

financial statements financial statementsNine-month period ended Nine-month period ended



7



2020 2019 2020 2019

Profit (loss) for the period (355,691) 298,910 (143,750) -125,555Other comprehensive income Items that will be reclassified subsequently to profit or loss

Exchange differences on translating foreign operations 3,670 1,541 - -

Share of other comprehensive income of associates

accounted for using equity method 16,285 - - -

Gains (loss) on remeasuring available-for-sale investments - 7,454 - (1,488)

Income tax relating to items that will be reclassified to profit or loss - (1,491) - 298

Total items that will be reclassified subsequently to profit or loss 19,955 7,504 - (1,190)

Items that will not be reclassified to profit or loss

Gains on remeasurements of defined benefit plans - 39,524 - 4,527

Income tax relating to items that will not be reclassified

to profit or loss - (7,022) - (905)

Total items that will not be reclassified to profit or loss - 32,502 - 3,622Other comprehensive income for the period, net of tax 19,955 40,006 - 2,432Total comprehensive income (loss) for the period (335,736) 338,916 (143,750) (123,123)

Total comprehensive income (loss) attributable to:Owners of the parent (323,498) 114,879 (143,750) (123,123)


Total comprehensive income (loss) for the period (335,736) 338,916 (143,750) (123,123)

(in thousand Baht)

Statement of comprehensive income (Unaudited)

Three-month period ended Three-month period ended


financial statements financial statements


8



2020 2019 2020 2019

Profit (loss) for the period (909,113) 339,581 (46,872) 40,779Other comprehensive income Items that will be reclassified subsequently to profit or loss

Exchange differences on translating foreign operations (738) (110,352) - -

Share of other comprehensive income of associates

accounted for using equity method 16,397 - - -

Gains (loss) on remeasuring available-for-sale investments - 38,368 - (1,867)

Income tax relating to items that will be reclassified to profit or loss - (7,674) - 373

Total items that will be reclassified subsequently to profit or loss 15,659 (79,658) - (1,494)

Items that will not be reclassified to profit or loss

Gains on remeasurements of defined benefit plans - 39,524 - 4,527

Income tax relating to items that will not be reclassified

to profit or loss - (7,022) - (905)

Total items that will not be reclassified to profit or loss - 32,502 - 3,622 Other comprehensive income (loss) for the period, net of tax 15,659 (47,156) - 2,128Total comprehensive income (loss) for the period (893,454) 292,425 (46,872) 42,907

Total comprehensive income (loss) attributable to:Owners of the parent (831,510) 38,897 (46,872) 42,907


Total comprehensive income (loss) for the period (893,454) 292,425 (46,872) 42,907

(in thousand Baht)

Statement of comprehensive income (Unaudited)




9

Dusit Thani Public Company Limited and SubsidiariesStatement of changes in equity (Unaudited)

Exchange Differences Share of otherdifferences on comprehensive

on remeasuring income of Total EquityIssued and Premium on Surplus Dusit Treasury Translating available- associates other attributable Non-

paid-up Treasury ordinary on treasury Legal Thani College shares foreign for-sale using equity components to owners of controlling TotalNote share capital shares shares shares reserve funds reserve operations investments method of equity the parent interests equity

For the nine-month period ended 30 September 2019Balance at 1 January 2019 850,000 (15,740) 1,643,000 18,365 85,000 440,257 15,740 1,666,584 (112,728) 380,304 - 267,576 4,970,782 1,107,352 6,078,134 Transactions with owners, recorded directly in equity

Distributions to owners of the parentDividends 18 - - - - - - - (143,699) - - - - (143,699) (72,938) (216,637) Changes in ownership interests in subsidiariesAcquisition of non-controlling interests without a change in control - - - - - - - - - - - - - 54,366 54,366

Total transactions with owners, recorded directly in equity - - - - - - - (143,699) - - - - (143,699) (18,572) (162,271)

Comprehensive income for the periodProfit - - - - - - - 51,401 - - - - 51,401 288,180 339,581 Other comprehensive income (loss) - - - - - - - 31,343 (74,050) 30,203 - (43,847) (12,504) (34,652) (47,156)

Total comprehensive income (loss) for the period - - - - - - - 82,744 (74,050) 30,203 - (43,847) 38,897 253,528 292,425 Balance at 30 September 2019 850,000 (15,740) 1,643,000 18,365 85,000 440,257 15,740 1,605,629 (186,778) 410,507 - 223,729 4,865,980 1,342,308 6,208,288

For the nine-month period ended 30 September 2020Balance at 1 January 2020 850,000 (15,740) 1,643,000 18,365 85,000 415,272 15,740 1,896,212 (182,335) - - (182,335) 4,725,514 1,178,983 5,904,497 Transactions with owners, recorded directly in equity

Distributions to owners of the parentDividends 18 - - - - - - - (160,604) - - - - (160,604) (84,719) (245,323) Changes in ownership interests in subsidiariesAcquisition of non-controlling interests without a change in control 8 - - - - - - - (83,961) - - - - (83,961) (62,367) (146,328) Capital increase of subsidiary 8 - - - - - - - - - - - - - 79,483 79,483 Capital reduction of subsidiary 8 - - - - - - - - - - - - - (369,800) (369,800)

Total transactions with owners, recorded directly in equity - - - - - - - (244,565) - - - - (244,565) (437,403) (681,968)

Comprehensive income for the periodLoss - - - - - - - (877,671) - - - - (877,671) (31,442) (909,113) Other comprehensive income (loss) - - - - - - - - 29,764 - 16,397 46,161 46,161 (30,502) 15,659

Total comprehensive income (loss) for the period - - - - - - - (877,671) 29,764 - 16,397 46,161 (831,510) (61,944) (893,454) Balance at 30 September 2020 850,000 (15,740) 1,643,000 18,365 85,000 415,272 15,740 773,976 (152,571) - 16,397 (136,174) 3,649,439 679,636 4,329,075

(in thousand Baht)

Retained earnings Other components of equityConsolidated financial statements

Unappropriated

Premium on shares


10

Dusit Thani Public Company Limited and Subsidiaries

Other components

of equity

Differences on

Issued and remeasuring

paid-up Premium on Surplus on available-for-sale Total

Note share capital ordinary shares treasury shares Legal reserve Unappropriated investments equity

For the nine-month period ended 30 September 2019Balance at 1 January 2019 850,000 1,643,000 16,950 85,000 785,986 6,280 3,387,216Transactions with owners, recorded directly in equity Distributions to owners of the Company

Dividends 18 - - - - (144,500) - (144,500)

Total distributions to owners of the Company - - - - (144,500) - (144,500) Comprehensive income for the period Profit - - - - 40,779 - 40,779

Other comprehensive income (loss) - - - - 3,622 (1,494) 2,128

Total comprehensive income (loss) for the period - - - - 44,401 (1,494) 42,907 Balance at 30 September 2019 850,000 1,643,000 16,950 85,000 685,887 4,786 3,285,623

For the nine-month period ended 30 September 2020Balance at 31 December 2019 - as reported 850,000 1,643,000 16,950 85,000 595,490 - 3,190,440Impact of changes in accounting policies 3 - - - - 319,100 - 319,100

Balance at 1 January 2020 850,000 1,643,000 16,950 85,000 914,590 - 3,509,540

Transactions with owners, recorded directly in equity Distributions to owners of the Company

Dividends 18 - - - - (161,500) - (161,500)

Total distributions to owners of the Company - - - - (161,500) - (161,500) Comprehensive income for the period Loss - - - - (46,872) - (46,872)

Other comprehensive income - - - - - - -

Total comprehensive income for the period - - - - (46,872) - (46,872) Balance at 30 September 2020 850,000 1,643,000 16,950 85,000 706,218 - 3,301,168

Statement of changes in equity (Unaudited)

Separate financial statements

(in thousand Baht)

Retained earningsPremium on shares


11

Dusit Thani Public Company Limited and its SubsidiariesStatement of cash flows (Unaudited)


Note 2020 2019 2020 2019

Cash flows from operating activities


Adjustments to reconcile profit (loss) to cash receipts (payment)

Realised income from deferred rental revenue (19,023) (19,766) - (57,660)

Interest income (17,658) (15,561) (182,612) (29,299)

Dividend income - (8,621) (233,408) (261,944)

Gain on remeasuring of other financial assets (193) - (521) -

(Reversal of) bad and doubtful debts expenses 54,884 (4,362) 13,268 (1,066)

Depreciation of plant and equipment 10 278,245 316,029 83,100 63,320

Depreciation of right-of-use assets 11 342,106 - 86,160 -

Amortisation of other intangible assets 45,748 30,174 5,985 5,959

Loss on written-off withholding tax - 11,668 - -

Amortisation of prepaid rental of land and buildings - 94,008 - 69,507

Amortisation of deferred debenture fee 772 772 772 772

Provisions for employee benefits 29,848 53,612 11,942 19,814

Share of net profits from investments by the equity method (44,982) (13,909) - -

Gain on sale of property, plant and equipment (4,443) (590,859) (4,693) (2,666)

Reversal of impairment losses on investment - (56) - (56)

(Gain) loss on sale of investment in joint venture - 20 - (245)

Gain on sale of other financial assets (16) - - -

Gain on sale of other long-term investment - (215,572) - (215,572)

Gain on reclassification of investment (126,542) - - -

Loss on written-off of equipment 821 1,405 265 793

Gain on capital reduction of subsidiary (23,220) - - -

Finance costs 320,636 84,237 244,844 52,785

Tax expense (income) (54,161) 131,617 (3,388) 4,955

(126,291) 194,417 (25,158) (309,824)

Changes in operating assets and liabilities

Operating assets (increase) decrease

Trade and other current receivables 152,851 378,761 (55,335) 265,359

Inventories 7,275 11,074 3,987 1,684

Other current assets (95,306) (103,686) 26,591 (76,211)

Prepaid rental of land and buildings - 49,857 - -

Other non-current assets (10,152) (4,365) 9,498 14,708

(in thousand Baht)




12



Note 2020 2019 2020 2019

Cash flows from operating activities (Continued)

Operating liabilities increase (decrease)

Trade and other current payables (18,780) (134,278) (43,287) (94,691)

Other current liabilities (12,833) 8,701 3,199 (6,484)

Other non-current liabilities 17,117 1,561 271 (2,075)

Payment for provisions for employee benefits (39,514) (89,266) (16,220) (88,783)

Cash generated from (used in) operating activities (125,633) 312,776 (96,454) (296,317)

Taxes paid (228,719) (80,536) (7,721) (22,872)

Net cash from (used in) operating activities (354,352) 232,240 (104,175) (319,189)

Cash flows from investing activities

Interest income 2,228 10,380 18,835 12,224

Proceeds from sale of other financial assets 478,768 - 5,389 -

Payment for other financial assets (16,154) (1,463) (4,868) -

Payment for short-term loans to related parties 13 - - (590,083) -656,900

Proceeds from short-term loans to related parties 13 - - 162,000 34,600

Payment for long-term loans to related parties 13 (92,490) (43,803) (492,997) (30,353)

Proceeds from long-term loans to related parties - 1,707 - -

Payment for short-term loans to other party - (15,300) - -

Dividend received - 8,621 - 127

Dividend received from subsidiaries 8 - - 193,482 209,823

Dividend received from associate 7 39,926 51,995 39,926 51,995

Proceeds from sales of investment in joint venture - 245 - 245

Payment of investment in associate - (565,969) - (525,927)

Net cash outflow for acquisition of subsidiaries 5 (11,258) (388,425) - -

Payment of shares subscription in subsidiaries - - (212,314) (8,999)

Payment of change in ownership interest in subsidiaries

without a change in control 8 (146,328) - - -

Proceeds from sale of other long-term investment - 215,628 - 215,628

Proceeds from capital reduction of associate 7 16,961 9,219 16,961 -

Payment from shares reduction of subsidiary (431,909) - - -

Proceeds from sale of property, plant and equipment 16,922 2,369,949 16,600 6,776

Payment of equipment (926,593) (718,070) (141,804) -201,382

Payment of other intangible assets (17,761) (35,830) (4,476) -3,392

Payment for advance for construction (581,864) - - -

Payment for right-of-use assets 11 (7,793) - (4,500) -

(in thousand Baht)




13



Note 2020 2019 2020 2019

Cash flows from investing activities (Continued)

Payment of prepaid rental of land and buildings - (772,583) - (748,883)

Payment for deposits 12 (302,030) (190,860) (254,480) (190,860)

Proceeds from non-controlling interests

for the increase in capital of a subsidiary 79,483 - - -

Net cash used in investing activities (1,899,892) (64,559) (1,252,329) (1,835,278)

Cash flows from financing activities

Proceeds from short-term loans from financial institutions 3,083,000 5,657,000 3,083,000 5,657,000

Repayment of short-term loans from financial institutions (2,537,000) (3,222,000) (2,537,000) (3,222,000)

Proceeds from short-term loans from related parties - 37,705 - -

Repayment of short-term loans from related parties - (42,076) - (90,400)

Proceeds from long-term loans from related parties 13 288,997 - 1,086,000 -

Repayment of long-term loans from related parties - (289,642) - -

Repayment of long-term loans from financial institutions (53,668) (13,500) (8,250) (13,500)

Repayment of lease liabilities (395,375) (542) (53,367) -

Interest paid (90,277) (90,356) (100,583) (52,251)

Dividend paid (245,323) (216,637) (161,500) (144,500)

Net cash from financing activities 50,354 1,819,952 1,308,300 2,134,349

Net increase (decrease) in cash and cash equivalents,

before effect of exchange rates (2,203,890) 1,987,633 (48,204) (20,118)

Effect of exchange rate changes on cash

and cash equivalents 91,350 (50,950) - -

Net increase (decrease) in cash and cash equivalents (2,112,540) 1,936,683 (48,204) (20,118) Cash and cash equivalents at 1 January 2,600,475 1,112,332 92,500 105,481

Cash and cash equivalents at 30 September 487,935 3,049,015 44,296 85,363

Non-cash transactions

Payables from acquisition of assets 13,054 38,878 7,592 29,895

Interest income from finance lease receivables - - 131,205 -

(in thousand Baht)




14

Dusit Thani Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements

For the three-month and nine-month periods ended 30 September 2020 (Unaudited)

15

Note Contents

1 General information

2 Basis of preparation of the interim financial statements

3 Changes in accounting policies

4 Impact of Covid-19 outbreak

5 Acquisition of subsidiaries 6 Trade and other current receivables

7 Investments in associates

8 Investments in subsidiaries

9 Investments in joint ventures

10 Property, plant and equipment

11 Right-of-use assets

12 Deposits

13 Related parties

14 Segment information and disaggregation of revenue

15 Leases

16 Income tax

17 Earnings (loss) per share

18 Dividends

19 Financial instruments

20 Commitments

21 Contingent liabilities

22 Others

23 Events after the reporting period

24 Reclassification of accounts



16

These notes form an integral part of the interim financial statements.

The interim financial statements issued for Thai regulatory reporting purposes are prepared in the

Thai language. These English language financial statements have been prepared from the Thai

language financial statements, and were approved and authorised for issue by the Board of Directors

on 16 November 2020.

1 General information

The principal activities of the Company and the Group are to operate hotel business, hotel management

service, education and foods.

2 Basis of preparation of the interim financial statements

(a) Statement of compliance

The condensed interim financial statements are presented in the same format as the annual financial

statements and prepared its notes to the interim financial statements on a condensed basis (“interim

financial statements”) in accordance with Thai Accounting Standard (TAS) No. 34 Interim Financial

Reporting, guidelines promulgated by the Federation of Accounting Professions and applicable rules

and regulations of the Thai Securities and Exchange Commission.

The interim financial statements do not include all of the financial information required for full annual

financial statements but focus on new activities, events and circumstances to avoid repetition of

information previously reported. Accordingly, these interim financial statements should be read in

conjunction with the financial statements of the Company and its subsidiaries for the year ended 31

December 2019.

The Group has initially applied TFRS - Financial instruments standards and TFRS 16 Leases and

disclosed impact from changes to significant accounting policies in note 3.

In addition, the Group has not early adopted a number of new and revised TFRS, which are not yet

effective for the current period in preparing these financial statements. The Group has assessed the

potential initial impact on the financial statements of these new and revised TFRS and expects that

there will be no material impact on the financial statements in the period of initial application.

(b) Use of judgements and estimates

In preparing these interim financial statements, judgements and estimates are made by management in

applying the Group’s accounting policies. Actual results may differ from these estimates. The

accounting policies, methods of computation and the key sources of estimation uncertainty were the

same as those that described in the financial statements for the year ended 31 December 2019, except

for the new significant judgements and key sources of estimation uncertainty related to the application

of new TFRS and Covid-19 outbreak as described in notes 3 and 4, respectively.



17

3 Changes in accounting policies

From 1 January 2020, the Group has initially applied TFRS - Financial instruments standards and TFRS

16. Impact of changes in accounting policies on shareholders’ equity are as follows:

Consolidated

financial

statements

Separate

financial

statements

Retained

earnings

Retained

earnings

Note (in thousand Baht)

At 31 December 2019 - as reported 1,896,212 595,490

Increase (decrease) due to:

Adoption of TFRS 16 - net of tax B - 319,100

At 1 January 2020 - restated 1,896,212 914,590

A. TFRS - Financial instruments standards

These TFRS - Financial instruments standards establish requirements related to definition,

recognition, measurement, impairment and derecognition of financial assets and financial

liabilities, including accounting for derivatives and hedge accounting. The impact from adoption

of TFRS - Financial instruments standards are as follows:

(1) Classification and measurement of financial assets and financial liabilities

TFRS 9 contains three principal classification categories for financial assets: measured at

amortised cost, fair value through other comprehensive income (FVOCI) and fair value to profit

or loss (FVTPL). The classification under TFRS 9 is based on the cash flow characteristics of

the financial asset and the business model in which they are managed. TFRS 9 eliminates the

previous classification of held-to-maturity debt securities, available-for-sale securities, trading

securities and general investment as specified by TAS 105.

The following table shows measurement categories under previous standards and TFRS 9 of the Group’s

other investments as at 1 January 2020. Other financial assets and financial liabilities are measured at

amortised cost.

Consolidated financial statements

Classification under previous standards

at 31 December 2019

Classification under TFRS 9 at 1 January 2020

Carrying

amounts

Fair value

- applied

hedge

accounting

Fair value

through

profit or

loss

Fair value

through other

comprehensive

income

Amortised

cost - net

(in thousand Baht)

Other financial assets

- Deposits at financial institutions 458,901 - - - 458,901

- Equity instruments held for

trading 473,884

-

473,884

-

-

- Other non-marketable equity

instruments 33,804

-

33,804

-

-

Total other financial assets 966,589 - 507,688 - 458,901



18

3 Changes in accounting policies (Continued)

The Group intends to hold non-marketable equity securities amounted of Baht 34 million for the long-

term strategic purposes. The Group has designated them as measured at fair value through profit or

loss.

(2) Impairment - Financial assets

TFRS 9 introduces forward-looking ‘expected credit loss’ (ECL) model whereas previously

the Group estimates allowance for doubtful account by analysing payment histories and future

expectation of customer payment. TFRS 9 requires considerable judgement about how

changes in economic factors affect ECLs, which will be determined on a probability-weighted

basis. The new impairment model applies to financial assets measured at amortised cost.

The Group has determined that the application of TFRS 9’s impairment requirements at

1 January 2020 have no material impact on allowance for impairment losses.

B. TFRS 16 Leases

From 1 January 2020, the Group has initially adopted TFRS 16 on contracts previously identified

as leases according to TAS 17 Leases and TFRIC 4 Determining whether an arrangement contains

a lease using the modified retrospective approach.

(1) As a lessee

Previously, the Group, as a lessee, recognised payments made under operating leases in profit or

loss on a straight-line basis over the term of the lease. Under TFRS 16, the Group assesses whether

a contract is, or contains, a lease. If a contract contains lease and non-lease components, the Group

allocates the consideration in the contract based on stand-alone selling price (transaction price). As

at 1 January 2020, the Group recognised right-of-use assets and lease liabilities, as a result, the

nature of expenses related to those leases was changed because the Group recognised depreciation

of right-of-use assets and interest expense on lease liabilities.

On transition, the Group also elected to use the following practical expedients:

- do not recognise right-of-use assets and lease liabilities for leases with less than 12 months of

lease term;

- do not recognise right-of-use assets where the underlying asset has a low value.



19

3 Changes in accounting policies (Continued)

(2) As a lessor

The accounting policies under TFRS 16 that the Group applied as a lessor are not different from

those under TAS 17, except for a sub-lease. Under TFRS 16, the sub-leases are classified with

reference to the right-of-use asset rather than the underlying asset. However, the consideration received are allocated to each lease and non-lease component based on its stand-alone selling

prices.

The Company entered into a land lease agreement to develop a Mixed Use Property Development

Project with The Crown Property Bureau for a period of 30 years (excluding the project’s

construction period of 7 years) from 1 July 2024 with the right to renew the lease for another 30

years until 30 June 2084. Subsequently, the Company entered into a land sub-lease agreement with

Vimarn Suriya Co., Ltd., a subsidiary (“the sub-lessee”). The sub-lessee has the right to construct

building and structure on the land. The sub-lease term is for 30 years from 1 July 2024 with the

right to renew the lease for another 30 years until 30 June 2084. The Company reassessed the

classification of sub-leases contracts, resulting in recognition of finance lease receivables and

recognition in retained earnings, net of tax at 1 January 2020 totalling Baht 319.10 million.

Impact from the adoption of TFRS 16

Consolidated

financial

statements

Separate

financial

statements

(in thousand Baht)

At 1 January 2020

Increase in finance lease receivables - 2,915,270

Increase in right-of-use assets 9,146,529 1,173,128

Decrease in prepaid rental of land and buildings (1,496,427) (1,491,200)

Increase in lease liabilities (7,650,102) (3,367,776)

Decrease in deferred rental revenue - 1,169,453

Increase in deferred tax liabilities - (79,775)

Increase in retained earnings - (319,100)

Measurement of lease liabilities

Consolidated

financial

statements

Separate

financial

statements

(in thousand Baht)

Operating lease commitment at 31 December 2019 22,028,348 14,561,456

Recognition exemption for short-term leases (2,274) (1,316)

Recognition exemption for leases of low-value assets (1,828) (120)

Extension and termination options reasonably certain to be exercised 38,302 38,302

22,062,548 14,598,322

Present value of remaining lease payments, discounted using the

incremental borrowing rate at 1 January 2020

7,650,102

3,367,776

Lease liabilities recognised at 1 January 2020 7,650,102 3,367,776

Weighted-average incremental borrowing rate (% per annum) 6.23 5.76

Right-of-use assets and lease liabilities shown above were presented as part of hotel and hotel

management segment, foods segment and others segment.



20

4 Impact of Covid-19 outbreak

Due to the Covid-19 outbreak at the beginning of 2020, Thailand and many other countries have

enacted several protective measures against the outbreak. The management is closely monitoring the

situation to ensure the safety of the Group’s staff and customers and to manage the negative impact

on the business as much as possible.

The management has decided to temporarily close hotel operations in the Philippines from 16 March

2020. Other overseas owned hotels by the Company and its subsidiaries may also be temporarily

closed, depending on the local situation and respective government policy. In addition, the Company

temporarily close all its seven owned hotels in Thailand from 7 April 2020. This conformed with the

orders of several provincial governments to temporarily cease operation or reduce operating hours.

The management is continuously taking corrective actions to address this situation in order to lessen

the impact on the Group’s assets and operations.

Since Covid-19 outbreak situation in Thailand has seen positive signs, the government and

government agencies has eased restrictions to control the epidemic widespread of Covid-19 and

issued measures to promote local travelling to accelerating tourism, starting from June 2020, the

Company and the group has opened three of its owned hotels including Dusit Thani Hua Hin, Dusit

Thani Pattaya, and Dusit Suites Hotel Ratchadamri Bangkok. Properties managed by Dusit has

gradually begun opening from early July 2020 onwards.

Other owned 4 hotels by the Group including Dusit Princess Srinakarin Bangkok, Dusit Thani

Laguna Phuket and dusitD2 Chiang Mai has gradually begun opening from early August 2020. Dusit

Princess Chiang Mai, which cater primarily to international visitors and business travellers, are

slated to reopen when travel restrictions are further eased.

Baan Dusit Thani has been fully operational since early May 2020.

Overseas owned hotels by the Company and the Group may also be considered reopened depending

on the local situation and respective government policy.

Besides aforementioned business operational adjustment, the Company also prudently managed its

financial management particularly implementing the cost cutting measures including lowering salary

of executives, professional fees and other administration expenses as well as negotiating with

counterparties to delay or postpone payments. In addition, the organisational transformation has

been put in place to respond the future business model, to enhance operational efficiency, to reduce

redundancy, and to save cost and expense in the long term. The Company has also adjusted

investment plan and delayed the new investments.

The Company priority also to preserve financial liquidity. As at 30 September 2020, the Group and

the Company had cash and short-term investments around Baht 908 million and Baht 44 million with

undrawn credit facilities approximately Baht 1,201 million and Baht 992 million, respectively. The

Company has got the approval from a financial institution for the project finance loan approximately

worth Baht 1,400 million that is currently in process of drafting agreement.



21

4 Impact of Covid-19 outbreak (Continued)

As at 30 September 2020, the situation of Covid-19 outbreak is still ongoing, resulting in estimation

uncertainty on the potential impact, therefore, the Group elected to apply accounting guidance on

temporary accounting relief measures for additional accounting options in response to impact from the

situation of Covid-19 outbreak issued by the Federation of Accounting Professions on the following:

(a) Impairment of assets

The Group considered impairment of trade receivables under simplified approach using historical

loss rate and did not take forward-looking information into account.

The Group elected to exclude the Covid-19 situation as impairment indicator for property, plant

and equipment, investment properties, intangible assets, and elected to exclude the Covid-19

situation, which may affect future financial forecasts, from the impairment testing factors of

goodwill, other intangible assets with an indefinite useful life.

(b) Fair value measurement

The Group elected to measure investment in non-marketable equity securities at 30 September

2020 using fair values at 1 January 2020.

(c) Deferred tax assets

The Group elected to exclude the factor of Covid-19 situation in considering sufficiency of future

taxable profits to review the amount of deferred tax assets at 30 September 2020.

5 Acquisition of subsidiaries

On 13 August 2020, the Group obtained control of The Caterers Co., Ltd. group (formerly named The

Caterers Joint Stock Company) which engages in the food and beverage catering business in Vietnam,

by acquiring 100% of shares and voting interests in the company through Epicure Catering Co., Ltd, an

indirect subsidiary of the Company (70% shareholding), representing a total investment value of USD

2.91 million (approximately Baht 91.1 million). The Group paid for the share purchase prices of USD

0.91 million (approximately Baht 28.6 million) and the remaining amount of USD 2.00 million

(approximately Baht 62.5 million) will be paid by 2022 according to installments indicated in the share

purchase agreement. The Group recognised the remaining unpaid amount of share price as at 30

September 2020 at present value.

During the period from the acquisition date to 30 September 2020, The Caterers Co., Ltd. group

contributed revenue of Baht 20.1 million and profit of Baht 1.2 million including in the Group’s

results. Management expected that if the Group has acquired the business from 1 January 2020, there

will be a further increase in total revenue of Baht 72.1 million and total loss for the three-month and

nine-month periods ended 30 September 2020 will be increase in amount of Baht 2.7 million and Baht

15.7 million, respectively. For finalisation of the fair values of business acquisition, management uses

the assumptions to adjust fair value. It is considered that the business combination that occurred during

that period has occurred since 1 January 2020.



22

5 Acquisition of subsidiaries (Continued)

The following summarises the major classes of consideration transferred, and the recognised amounts

of assets acquired and liabilities assumed at the acquisition date:

Assets acquired and liabilities assumed

Fair values

(in million Baht)

Cash and cash equivalents 17

Trade and other receivables 29

Inventories 1

Goodwill 9

Other current assets 1

Property, plant and equipment 8

Trade and other payables (45)

Total identifiable assets acquired and liabilities assumed 20

Less non-controlling interests -

Fair value of identifiable assets acquired and liabilities assumed 20

Goodwill 68

Purchase consideration transferred 88

- Purchase consideration transferred - paid 28

- Purchase consideration transferred - not paid (recorded as payable for

acquisition of business)

60

Net cash acquired with the subsidiary 17

Cash paid (28)

Net cash outflows (11)

The Group engaged independent appraisers to determine the fair values of assets acquired and

liabilities assumed from acquisition of business. However, the valuation has not been completed. The

fair values of net assets acquired and the allocation of purchase price have been provisionally

determined and are subject to potential amendment.

In accordance with TFRS 3, management is required to make a preliminary assessment of the fair

values of net assets acquired as at the acquisition date. During the measurement period, which must not

exceed one year from the acquisition date, the acquirer shall retrospectively adjust the provisional

amounts recognised at the acquisition date to reflect new information obtained about facts and

circumstances that existed as of the acquisition date. Finalisation of the fair values of business

acquisition is dependent on completion of the purchase price allocation exercise.



23

6 Trade and other current receivables




Note 2020 2019 2020 2019 (in thousand Baht)

Trade receivables - net 19 202,035 195,480 15,686 21,408 Trade receivables -

management fee and

other services - net 19 27,258 59,782 90,960 90,331 Other receivables - others 84,090 214,310 100,657 77,630 Less allowance for impairment (2019: allowance for doubtful accounts) (29,431) (8,740) (14,496) (8,740) 283,952 460,832 192,807 180,629

Other receivable - World Intertrade Corporation Limited 40,879 40,879 40,879 40,879 Less allowance for impairment (2019: allowance for doubtful accounts) (40,879) (40,879) ) (40,879) (40,879) - - - - Receivable from sale of investment 675,379 775,379 - - Receivable from framework

development income 13 30,000 - 30,000 -

Accrued interest income 42,877 22,991 67,499 34,973

Accrued income 492 2,851 4 99

Prepaid income tax 47,891 42,562 18,129 22,703

Prepayment for room rental 83,336 78,124 - -

Deposits 4,168 3,970 - -

Insurance claim 6 632 - 15

Total 1,168,101 1,387,341 308,439 238,419



24

7 Investments in associates

Investments in associates as at 30 September 2020 and 31 December 2019, and dividend income from those investments for the nine-month periods ended 30

September 2020 and 2019 were as follows:

Consolidated

financial statements

Separate


Type of

business

Ownership

interest

Paid-up capital

Equity

Cost

Dividend income

for the nine-month

period ended

30 September 31 December 30 September 31 December 30 September 31 December 30 September 31 December 30 September

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(%) (in thousand Baht)

Direct associates

Dusit Thani Freehold and Leasehold

Real Estate Investment Trust (1)

Lease the

investment

properties 30.02 30.02 5,351,243 5,407,736 1,439,184 1,415,011 1,594,980 1,611,942 39,926 51,995

Suanlum Property Co., Ltd. (2) Department

store, plaza

and cinema 22.00 22.00 172,000 172,000 - 32,881 28,374 37,839 - -

Phraram 4 Development Co., Ltd. Office

construction 10.00 10.00 1,000 1,000 - - 100 100 - -

Indirect associates

NR Instant Produce Public Co., Ltd. (3) Manufacturing - 6.38 - 1,066 - 182,683 - - - -

Dusit Hospitality Education

Philippines, Inc. Education 35.54 35.54 PHP 900,000 PHP 900,000 176,403 183,850 - - - -

Total 1,615,587 1,814,425 1,623,454 1,649,881 39,926 51,995



25

7 Investments in associates (Continued)

(1) Dusit Thani Freehold and Leasehold Real Estate Investment Trust (“the Trust”) is listed on Stock

Exchange of Thailand. As at 30 September 2020, the fair value of the Company’s investment in

the Trust was Baht 816.04 million (31 December 2019: Baht 1,367.19 million), which is

determined to be level 2 of the fair value measurement.

On 25 March 2020, the Company received of Baht 16.96 million from the capital reduction of the

Trust.

(2) According to the share purchase agreement, the Company shall partially sell investment in ordinary

shares of Suanlum Property Co., Ltd. of 94,655 shares at a par value of Baht 100 per share (represented

5.5% shareholding) to a company in 2021. As such, the investment is presented as non-current assets

classified as held for sale in the statement of financial position as at 30 September 2020.

The Group has eliminated deferred income based on shareholding proportion of Baht 65.26

million (note 13), resulting in the investments in associate amounting to Baht 41.97 million

presented as other non-current liabilities in the statement of financial position as of 30 September

2020.

(3) On 28 September 2020, the Group has reclassified investment in NR Instant Produce Public Company

Limited, an indirect associate, to other non-current financial assets due to the Group has lost

significant influence from no representative on the board of directors of the associate. The Group

recognised difference between the carrying amount of the investment at the date the equity method

was discontinued and the fair value as gain on reclassification of investment in the amount of Baht

126.54 million in consolidated financial statements for the three-month and nine-month periods end

30 September 2020. In addition, the share certificates of such company of 10,997,300 shares which

pledged as collateral for loan from financial institution of such company have been released.

All associates were incorporated in Thailand, except Dusit Hospitality Education Philippines, Inc.

which was incorporated in the Philippines.



26

8 Investments in subsidiaries

Investments in subsidiaries as at 30 September 2020 and 31 December 2019, and dividend income for the nine-month periods ended 30 September 2020 and

2019 were as follows:


Ownership interest

Paid-up capital

Cost

Dividend income

for the nine-month

period ended

Country of 30 September 31 December 30 September 31 December 30 September 31 December 30 September

Type of business incorporation 2020 2019 2020 2019 2020 2019 2020 2019


Direct subsidiaries

Dusit Thani Properties Co., Ltd. Holding Thailand 99.99 99.99 800,000 800,000 799,999 799,999 168,800 204,800

Landmark Hotel Co., Ltd. Hotel Thailand 99.88 99.88 10,000 10,000 9,988 9,988 - -

Devarana Spa Co., Ltd. Spa Thailand 99.99 99.99 8,000 8,000 8,000 8,000 - -

Dusit Thai Properties Public Company Limited Hotel and hotel

management Thailand 2.75 2.75 825,000 825,000 40,110 40,110 17,682 -

Dusit Worldwide Co., Ltd. Management Thailand 99.99 99.99 50,000 50,000 50,000 50,000 - 1,023

Dusit Management Co., Ltd.(1) Hotel Thailand 99.99 99.99 22,000 9,000 22,000 9,000 - 4,000

Dusit USA Management Inc. Hotel management

United States

of America 100.00

100.00

USD 40

USD

40 1,243

1,243 -

-

Dusit China Capital Co., Ltd. Holding Thailand 99.99 99.99 68,000 68,000 68,000 68,000 - -

Dusit Excellence Co., Ltd. Leasing and

sub-leasing Thailand 99.99

99.99 120,000 120,000 120,000 120,000 -

-

Vimarn Suriya Co., Ltd.(2) Hotel, resorts and

residence Thailand 65.00

65.00 1,100,000

880,020 660,000

528,012 -

-

Dusit Thani Properties REIT Co., Ltd. REIT manager for

real estate

investment trust Thailand 99.99

99.99 10,000 10,000 10,000 10,000 7,000

-

Asai Holdings Co., Ltd.(3) Holding Thailand 99.99 99.99 75,000 18,825 75,000 18,825 - -

Dusit Foods Co., Ltd. Holding Thailand 99.99 99.99 713,000 713,000 713,000 713,000 - -

Dusit Hospitality Services Co., Ltd. Services Thailand 99.97 99.97 1,000 1,000 1,000 1,000 - -

Grace Me Co., Ltd. Hospitality and

other lifestyle

services Thailand 99.99

99.99

3,000

3,000 3,000

3,000 -

-

D&J Co., Ltd.

(formerly named Dusit Colours Co., Ltd.) Hotel management Japan 100.00 100.00 JPY 10,000 JPY 10,000 2,976 2,926 - -

Dusit Japan Godo Gaisha.Co., Ltd.(4) Hotel management Japan 100.00 - JPY 500 - 152 - - -



27

8 Investments in subsidiaries (Continued)


Ownership interest

Paid-up capital

Cost

Dividend income

for the nine-month

period ended




Indirect subsidiaries

Dusit Thai Properties Public Company Limited Hotel and hotel

management

Thailand 84.04

84.04 825,000 825,000

-

-

-

-

Dusit Thani Philippines, Inc. Hotel Philippines 88.00 88.00 PHP 455,000 PHP 455,000 - - - -

DMS Property Investment Pvt. Ltd.(5)

Hotel

Republic of

Maldives 56.41

56.41

USD 200

USD

38,500

-

-

-

-

Dusit Thani College Education Thailand 86.79 86.79 217,716 217,716 - - - -

LVM Holdings Pte. Ltd Holding Singapore 100.00 100.00 SGD 11 SGD 11 - - - -

Private Homes and Villas Pte. Ltd.

Business of marketing,

booking, and villa

management

Singapore

100.00

100.00

SGD

100

SGD

100

-

-

-

-

PT. Elite Havens

Management

consultancy Indonesia

100.00

100.00

IDR

2,536,500

IDR

2,536,500

-

-

-

-

Shanghai Yi-Nong Travel Consultation Co., Ltd. Marketing People’s

Republic

of China 100.00 100.00 CNY 69 CNY 69 - - - -

PT Bali Home Manajemen

Management

consultancy Indonesia

100.00

100.00

IDR

2,500,000

IDR

2,500,000

-

-

-

-

Bali Luxe Ltd. Servicing Hong Kong 100.00 100.00 HKD 10 HKD 10 - - - -

Marketing Villas Ltd. Marketing Hong Kong 100.00 100.00 USD 832 USD 832 - - - -

Elite Havens Ltd. Servicing Hong Kong 100.00 100.00 HKD 10 HKD 10 - - - -

Niseko Gourmet Co., Ltd. Property management

and marketing Japan 100.00

100.00

JPY 5,000

JPY

5,000

-

-

-

-

Dusit Overseas Co., Ltd. Management Hong Kong 99.99 99.99 HKD 33 HKD 33 - - - -

Dusit Maldives Management Pvt. Ltd. Hotel Republic of

Maldives 99.99

99.99

USD 10

USD

10

-

-

-

-

Dusit Worldwide Maldives Pvt. Ltd.(6) Management Republic of

Maldives 99.98

99.98

USD 5

USD

5

-

-

-

-

Dusit Gourmet Co., Ltd.

Sales and marketing

for food related

products Thailand 92.52 92.52 30,000 30,000

-

-

-

-

Dusit Real Foods Co., Ltd.(7) Healthy food

restaurant Thailand 51.00 51.00 15,000 10,000

-

- -

-



28



Ownership interest

Paid-up capital

Cost

Dividend income

for the nine-month

period ended




Epicure Catering Co., Ltd.(8) Food and beverage Thailand 70.00 51.00 14,000 14,000 - - - -

Epicure Catering Indochina Co., Ltd.(8) Food and beverage Vietnam 70.00 51.00 VND 2,250,200 VND 2,250,200 - - - -

Epicure Catering (Cambodia) Co., Ltd.(8) Food and beverage Cambodia 70.00 51.00 KHR 20,000 KHR 20,000 - - - -

The Caterers Co., Ltd.

(formerly named The Caterers Joint Stock

Company) (9) Food and beverage Vietnam 70.00

-

VND 1,119,730 - - - - -

School Foods Co., Ltd.(9) Production and

distribution of food

and beverage Vietnam 70.00

-

VND 16,568,000 - - - - -

Quang Lap Production and Trading Co., Ltd.(9) Production and



-

VND 1,500,000 - - - - -

S & D Sai Gon Food Distribution and

Processing Trading Co., Ltd.(9)

Production and



-

VND 350,000 - - - - -

Total 2,584,468 2,383,103 193,482 209,823

Less allowance for impairment (74,773) (74,773)

Net 2,509,695 2,308,330



29


(1) On 9 April 2020, the extraordinary meeting of the shareholders of Dusit Management Co., Ltd.

passed a resolution to additional increase its registered capital of 1.30 million shares at a par

value of Baht 10 per share, totalling Baht 13 million. The Company has invested in whole

amount. (2) On 29 May 2020, Vimarn Suriya Co., Ltd. has called for the remaining 20% share subscription,

totalling Baht 219.98 million. The Company has already paid in proportion of its invested

amount. According to the share purchase agreement, the Company shall partially sell investment

in ordinary shares of Vimarn Suriya Co., Ltd. of 550,000 shares (accounted for 5% shareholding)

to another company in 2020. Therefore, the investment is presented as non-current assets

classified as held for sale in the statement of financial position as at 30 September 2020. (3) On 13 February 2020, Asai Holdings Company Limited has called for the remaining 75% share

subscription, totalling Baht 56.18 million. The Company has fully paid for the share subscription. (4) On 30 June 2020, the Company has 100% invested in Dusit Japan Godo Gaisha Co., Ltd.,

totalling JPY 500,000. (5) On 12 March 2020, DMS Property Investment Pvt. Ltd. has register a reduction of registered

share capital from USD 38.50 million to USD 0.20 million with the Government agencies of the

Republic of Maldives. Therefore, the Group recognised gain on capital reduction of subsidiary

totalling Baht 23.22 million in the consolidated statement of income for the nine-month period

ended 30 September 2020. (6) On 15 September 2019, Dusit Worldwide Co., Ltd., the subsidiary, has established Dusit

Worldwide Maldives Pvt. Ltd. in Republic of Maldives to manage Dusit Thani Maldives hotel.

This subsidiary has fully paid for the share subscription. (7) On 22 June 2020, Dusit Real Foods Co., Ltd., an indirect subsidiary, has increase its registered

capital amount of Baht 5.00 million and Dusit Foods Co., Ltd., a subsidiary has paid for this

capital increase in proportion of its investment in this indirect subsidiary. (8) On 31 January 2020, Dusit Foods Co., Ltd., the subsidiary, has additionally invested 19%,

totalling Baht 146.33 million in Epicure Catering Co., Ltd. (9) On 13 August 2020, Epicure Catering Co., Ltd., an indirect subsidiary, invested 100% in The

Caterers Co., Ltd. group (formerly named The Caterers Joint Stock Company) (see note 5).

None of the subsidiaries are publicly listed and consequently do not have published price quotation.



30

9 Investments in joint ventures

Investments in joint ventures as at 30 September 2020 and 31 December 2019, and dividend income from those investments for the nine-month periods ended

30 September 2020 and 2019 were as follows:

Consolidated


Separate


Ownership

interest

Paid-up capital

Equity

Cost

Dividend income

for the nine-month

period ended

Type of Country of 30 September 31 December 30 September 31 December 30 September 31 December 30 September 31 December 30 September

business incorporation 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019


Joint ventures

Le Cordon Bleu Dusit Co., Ltd. Cooking school Thailand 49.99 49.99 40,000 40,000 57,825 62,469 - - - -

Dusit Fudu Hotel Management

(Shanghai) Co., Ltd. (1) Hotel

management

People’s

Republic

of China 44.99 44.99 CNY 30,000 CNY 30,000 - - - - - -

The Origin Dusit Co., Ltd. (2) Construction

and

development

condominium Thailand 44.79 49.00 189,529 173,260 114,481 118,013 119,882 119,882 - -

Total 172,306 180,482 119,882 119,882 - -

(1) Dusit Fudu Hotel Management (Shanghai) Co., Ltd. was held by Dusit China Capital Co., Ltd., a subsidiary at 44.99% shareholding. Liabilities from

investment in joint venture derived from such subsidiary provided financial support to this joint venture. Therefore, the Group recognised cumulative loss

over cost of the joint venture to liabilities from investment in joint venture totalling Baht 110.92 million in the consolidated statement of financial position as

at 30 September 2020. (2) In August 2020, The Origin Dusit Co., Ltd. has called for the additional 10% ordinary shares subscription of 31,900,000 shares. However, the Company’s

management is considering for further investment in this joint venture. Resulting in decrease in proportion of its invested from 49% to 44.79%.

None of the Company’s joint ventures are publicly listed and consequently do not have published price quotations.



31

10 Property, plant and equipment

Acquisitions, disposals and transfers of property, plant and equipment during the nine-month period ended

30 September 2020 were as follows:

Note

Consolidated

financial

statements

Separate

financial

statements

(in thousand Baht)

Net book value

At 1 January 2020 3,474,627 688,989

Additions 1,080,168 123,067

Assets acquired from business acquisition 5 7,855 -

Disposals, net (12,479) (11,907)

Written-off, net (821) (265)

Transfer 13,220 10,583

The effect of changes in foreign exchange rates 47,125 -

Depreciation (278,245) (83,100)

At 30 September 2020 4,331,450 727,367

On 16 April 2020, Vimarn Suriya Co., Ltd., a subsidiary, entered into sub-structure basement

construction contract for Dusit Central Park project with total project cost of Baht 2,105.17 million.

The subsidiary made advance payment before its construction in the amount not exceeding 30% of

project cost totalling of Baht 631.55 million, as specified in the agreement. The subsidiary will deduct

this advance payment at the rate of 30% of the amount of work progress in each period until reach the

full amount of the advance paid. The construction is expected to be completed in May 2023.

11 Right-of-use assets

Movements in right-of-use assets during the nine-month period ended 30 September 2020 were as

follows:

Note

Consolidated

financial

statements

Separate

financial

statements

(in thousand Baht)

Net book value

At 1 January 2020 3 9,146,529 1,173,128

Additions 7,793 4,500

Depreciation of right-of-use assets (342,106) (86,160)

The effect of changes in foreign exchange rates 102,218 -

At 30 September 2020 8,914,434 1,091,468



32

12 Deposits


31 December 30 September

2019 Increase Decrease 2020

(in thousand Baht)

Deposit 290,970 302,030 - 593,000

Total 290,970 302,030 - 593,000


31 December 30 September

2019 Increase Decrease 2020

(in thousand Baht)

Deposit 290,970 254,480 - 545,450

Total 290,970 254,480 - 545,450

On 4 February 2020, Asai Holdings Co., Ltd., a subsidiary, has paid a deposit of JPY 166.67 million

or equivalent to Baht 47.55 million for the reservation right of the building lease agreement for

development project of ASAI Kyoto with total project cost of JPY 5,000 million. The agreement is for

the period of 25 years starting from the handover date of the property or the hotel opening date. The

Company is the guarantor of the said agreement.

On 23 April 2019, the Company has entered into space rental agreement and service contract for a

period of 32 years and sale and purchase agreement of the decoration and equipment to develop

project named “ASAI China Town” totalling Baht 954.30 million. During 2020, the Company has paid

additional deposit of Baht 254.48 million, totalling deposits of Baht 445.34 million and the remaining

balance will be paid in 2020. The agreement will be effective from the date of completion of the

contractual conditions or any other period agreed by both parties. As of 30 September 2020, the

agreement is not yet effective.

13 Related parties

Relationships with associates, subsidiaries and joint ventures are described in notes 7, 8 and 9,

respectively. Other related parties which have material changes in relationships and that the Group had

significant transactions during the period with were as follows:

Country of incorporation/ Type of

Name of entity nationality business Nature of relationships Saladaeng Property Management

Co., Ltd. Thailand Renting and operating

of self-owned or leased of non-residential buildings

Common shareholder

Pricing policies for new significant transactions during the nine-month period ended 30 September

2020 were as follows:

Transactions Pricing policy

Arrangement fee income Based on the contractually agreed prices.

Framework development income Based on the contractually agreed prices.



33

13 Related parties (Continued)

Significant transactions for the three-month and nine-month periods ended 30 September 2020 and 2019 with related parties were as follows:


Revenue Management Arrangement Cost of Fixed and

from sales service Other Rental fee Interest sales and variable rent Selling Administrative Finance

and services income income revenue income income services expense expenses expenses costs

(in thousand Baht)

For the three-month period

ended 30 September 2020

Joint ventures 825 - 2,233 - - 1,002 - - 2,242 1,352 -

Associates - - 4,680 6,411 - 1,138 - 51,250 - - -

Other related parties 1 119 30,213 - - - 15 - - 402 248

For the nine-month period


Joint ventures 1,808 - 9,766 - - 2,928 - - 5,847 1,352 -

Associates - - 11,433 19,023 231,364 2,848 - 153,750 - - -

Other related parties 391 3,201 32,427 - - - 28 - 237 659 737



34



Revenue Management Gain on sales Cost of Fixed and

from sales service Dividend Other of property, plant Rental Interest sales and variable rent Selling Administrative Finance

and services income income income and equipment revenue income services expense expenses expenses costs

(in thousand Baht)

For the three-month period ended 30 September 2019

Joint ventures 1,159 - - 187 - - 882 - - 2,012 - -

Associates - - - 19,719 587,759 4,320 985 - 27,332 - - -

Other related parties 1,216 1,897 - 628 - - - 8 - 317 276 54

For the nine-month

period ended

30 September 2019

Joint ventures 1,510 - - 5,795 - - 2,541 - - 7,018 1,445 -

Associates - - - 23,132 587,759 16,932 2,800 - 142,399 - - -

Other related parties 1,399 6,661 8,494 1,900 - - - 1,511 - 913 604 136



35



Revenue Management Arrangement Cost of

from sales service Dividend Other Rental fee Interest sales and Selling Administrative Finance

and services income income income revenue income income services expenses expenses costs

(in thousand Baht)



Subsidiaries 3,187 1,865 - 22,263 19,220 - 61,164 1,102 2,701 11,431 10,086

Joint ventures - - - 2,211 - - 1,002 - - 1,352 -

Associates - - 33,646 - - - 1,138 - - - -

Other related parties - 119 - 30,176 - - - - - 330 -



Subsidiaries 9,982 16,273 193,482 74,930 57,660 - 175,417 4,083 14,985 31,892 20,655

Joint ventures - - - 6,401 - - 2,928 - - 1,352 -

Associates - - 39,926 - - 296,620 2,848 - - - -

Other related parties 15 2,601 - 30,601 - - - - 238 473 -



36



Revenue Management Cost of

from sales service Dividend Other Rental Interest sales and Selling Administrative Finance

and services income income income revenue income services expenses expenses costs

(in thousand Baht)



Subsidiaries 1,693 10,434 - 28,113 19,220 8,670 12,465 11,684 21,491 -

Joint ventures - - - 164 - 882 - 544 - -

Associates - - 30,927 - - 985 - - - -

Other related parties 83 1,697 - 985 - - - 317 219 -



Subsidiaries 6,482 45,425 209,823 91,347 57,660 23,651 17,885 38,132 60,725 697

Joint ventures - - - 1,180 - 2,541 - 973 - -

Associates - - 51,995 - - 2,800 - - - -

Other related parties 143 5,860 - 1,507 - - - 914 460 -



37


Consolidated


Separate


For the three-month period ended 30 September 2020 2019 2020 2019

(in thousand Baht)

Key management personnel compensation

Salaries and other short-term

employee benefits 26,540 37,585 25,090 29,382

Post-employment benefits 1,696 1,993 1,276 1,534

Total key management personnel

compensation 28,236 39,578 26,366 30,916

Consolidated


Separate


For the nine-month period ended 30 September 2020 2019 2020 2019

(in thousand Baht)

Key management personnel compensation

Salaries and other short-term

employee benefits 85,173 109,427 68,892 83,547

Post-employment benefits 5,088 5,979 3,827 4,602

Total key management personnel

compensation 90,261 115,406 72,719 88,149



38


Balances as at 30 September 2020 and 31 December 2019 with related parties were as follows:


Deferred Deposit for

Trade Other Trade Other rental right to lease

receivables receivables payables payables revenue building

(in thousand Baht)

At 30 September 2020

Joint ventures - 48,904 - - - -

Associates - 15,260 - - 514,519 984,760

Other related parties - 34,093 199 1,432 - -

Total - 98,257 199 1,432 514,519 984,760

At 31 December 2019


Associates - 16,017 - - 533,543 984,760

Other related parties 358 2,764 369 1,676 - -

Total 358 51,033 369 1,676 533,543 984,760



39



Deferred Finance

Trade Other Trade Other rental lease

receivables receivables payables payables revenue receivable

(in thousand Baht)


Subsidiaries 196 198,387 914 16,899 - 3,046,476


Associates - 3,010 - - - -

Other related parties - 31,143 - - - -

Total 196 237,907 914 16,899 - 3,046,476

At 31 December 2019

Subsidiaries 413 144,603 - 18,737 1,169,454 -


Other related parties 15 2,188 - 291 - -

Total 428 151,388 - 19,028 1,169,454 -



40


Movements during the nine-month period ended 30 September 2020 of loans to related parties were as follows:

Long-term loans to Interest rate Consolidated financial statements

31

December

2019

30

September

2020

31

December

2019

The effect

of changes

in foreign

exchange rates

30

September

2020 Increase Decrease

(% per annum) (in thousand Baht)

Dusit Fudu Hotel Management (Shanghai) Co., Ltd. 5.70 - 5.88 5.70 - 5.88 108,691 - - 5,490 114,181

Suanlum Property Co., Ltd. 3.06 - 3.25 2.36 125,448 87,000 - - 212,448

Total 234,139 87,000 - 5,490 326,629

Long-term loans to Interest rate Separate financial statements

31

December

2019

30

September

2020

31

December

2019

The effect

of changes

in foreign

exchange rates

30

September



Suanlum Property Co., Ltd. 3.06 - 3.25 2.36 125,448 87,000 - - 212,448

Vimarn Suriya Co., Ltd. 5.01 - 5.20 4.31 219,000 405,997 - - 624,997

Total 344,448 492,997 - - 837,445



41


Short-term loans to Interest rate Separate financial statements

The effect of

changes in

foreign

exchange rates

31

December

30

September

31

December

30

September

2019 2020 2019 Increase Decrease 2020


Dusit China Capital Co., Ltd. 2.48 - 3.14 2.43 - 3.14 127,500 15,700 - - 143,200

Dusit Foods Co., Ltd. 2.42 - 3.55 2.27 - 3.55 469,500 219,300 (105,000) - 583,800

Dusit Excellence Co., Ltd. 2.45 - 4.00 2.45 - 4.00 170,772 3,300 (3,000) - 171,072

Dusit Overseas Co., Ltd. 4.00 4.00 313,798 - - 15,871 329,669

Dusit Hospitality Services Co., Ltd. 2.40 - 3.58 2.40 - 5.50 40,000 46,000 - - 86,000

Asai Holdings Co., Ltd. 2.40 - 2.70 2.32 - 5.50 16,000 59,700 (52,000) - 23,700

Dusit Worldwide Co., Ltd. 3.58 2.19 - 5.50 68,000 89,700 (2,000) - 155,700

Dusit Management Co., Ltd - 2.50 - 5.50 - 117,700 - - 117,700

Grace Me Co., Ltd. - 3.55 - 2,000 - - 2,000

D&J Co., Ltd. - 3.55 - 17,919 - - 17,919

Dusit Japan Godo Gaisha Co., Ltd. - 3.55 - 2,893 - - 2,893

Total 1,205,570 574,212 (162,000) 15,871 1,633,653



42


Long-term loans from Interest rate Consolidated financial statements

31

December


30

September

2020

31

December

2019

30

September

2020


Central Pattana Public Company Limited 5.01 - 5.20 4.31 219,335 288,997 - 508,332

Total 219,335 288,997 - 508,332

Short-term loans from Interest rate Separate financial statements

31

December


30

September

2020

31

December

2019

30

September

2020


Dusit Thani Properties Company Limited 3.08 2.19 - 3.25 315,000 1,086,000 - 1,401,000

Total 315,000 1,086,000 - 1,401,000



43


Loan agreements

On 28 May 2020, Vimarn Suriya Co., Ltd., a subsidiary, has entered into addendum of loan

agreements for additional loan limit from both major shareholders by proportionally to its

investment for the development of Dusit Central Park project, consisted of loan limit not exceeding

Baht 746 million provided by the Company and Baht 510 million provided by another shareholder

with reference market interest rates.

Building lease arrangement agreement

In the second quarter of 2020, the Company has completed performing its duties under the terms and

conditions specified in the retail building lease arrangement agreement with Suanlum Property Co., Ltd.,

an associate. As a result, the Company recognised arrangement fee income amounting to Baht 296.62

million in the separate statement of income and Baht 231.36 million in the consolidated statement of

income (net of deferred income based on shareholding proportion of Baht 65.26 million (note 7)).

Building lease agreement

On 30 June 2020, Vimarn Suriya Co., Ltd., a subsidiary, has entered into a building lease agreement to

operate retail and shopping center with Suanlum Property Co., Ltd., an associate for a period of 30 years

from 1 July 2024. The total rental fee is Baht 3,880 million, with the rental payment and the conditions

as stipulated in the agreement. In addition, the lease agreement has the right to renew the lease for

another 30 years until 30 June 2084. The lessee has to pay a deposit to secure the renewal of Baht

433.90 million on the date of delivery of the leased property. Both parties agree that the deposit is the

total rental fee during the lease renewal period.

Framework development agreement

In the third quarter of 2020, the Company has completed performing its duties under the terms and

conditions specified in Framework Development Agreement with Saladaeng Property Management Co.,

Ltd. As a result, the Company recognised framework development income amounting to Baht 30

million as other income in the separate and consolidated statement of income. The Group and the

Company recorded receivable from framework development income of Baht 30 million (note 6) which

is part of trade and other current receivables as at 30 September 2020. The Company received the full

amount in October 2020.



44

14 Segment information and disaggregation of revenue

Management determined that the Group has four reportable segments which are the Group’s

strategic divisions for different products and services, and are managed separately because they

require different marketing strategies. The following summary describes the operations in each of

the Group’s reportable segments.

• Segment 1 Hotel and hotel management

• Segment 2 Education

• Segment 3 Foods

• Segment 4 Others

Other operations include Investment holding and Other services, none of these segments meets the

quantitative thresholds for determining reportable segments in 2020 or 2019.

Information regarding the results which is profit before tax of each reportable segment is included

below as included in the internal management reports that are reviewed by the Group’s CODM.

Management believes that such information is the most relevant in evaluating the results of certain

segments relative to other entities that operate within these industries.



45

14 Segment information and disaggregation of revenue (Continued)


Hotel and hotel

management

Education Foods Others Non allocation Elimination Total

Three-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in million Baht) Information about reportable segments

External revenue 204 795 93 95 110 93 30 47 53 1 - - 490 1,031

Inter-segment revenue 6 3 - - - - 2 3 17 18 (25) (24) - -

Total revenues 210 798 93 95 110 93 32 50 70 19 (25) (24) 490 1,031

Gain on sale of property, plant and

equipment

- 590

Gain on reclassification of investment 127 -

Total revenues and other income 617 1,621

Share of profit (loss) from investments (1) (6) 10 (4) - 5 17 5 - - - - 26 -

Depreciation and amortisation 164 86 12 10 16 4 13 6 14 9 - - 219 115

Segment profit (loss) before income tax (371) (47) 1 (17) (15) 6 (5) 557 23 (97) (12) (15) (379) 387

Tax (expense) income 23 (88)

Profit (loss) for the period (356) 299

Disaggregation of revenue

Primary geographical markets

Thailand 119 389 93 95 80 93 30 47 53 1 - - 375 625

Overseas 85 406 - - 30 - - - - - - - 115 406

Total revenues 204 795 93 95 110 93 30 47 53 1 - - 490 1,031

Timing of revenue recognition

At a point in time 200 702 6 4 - - 20 39 53 1 - - 279 746

Over time 4 93 87 91 110 93 10 8 - - - - 211 285

Total revenues 204 795 93 95 110 93 30 47 53 1 - - 490 1,031



46



Hotel and hotel

management


Nine-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in million Baht) Information about reportable segments

External revenue 1,176 2,776 280 304 239 301 66 91 121 24 - - 1,882 3,496

Inter-segment revenue 13 11 - - - - 7 9 52 53 (72) (73) - -

Total revenues 1,189 2,787 280 304 239 301 73 100 173 77 (72) (73) 1,882 3,496

Gain on sale of other long-term investment - 216

Gain on sale of property, plant and

equipment

4 591

Arrangement fee income 231 -

Gain on reclassification of investment 127 -

Total revenues and other income 2,244 4,303

Share of profit (loss) from investments (8) (11) (12) (18) 4 9 61 34 - - - - 45 14

Depreciation and amortisation 462 269 34 29 47 10 38 12 42 26 - - 623 346

Segment profit (loss) before income tax (892) 39 (22) (25) (50) 41 (36) 581 74 (123) (37) (42) (963) 471

Tax (expense) income 54 (131)

Profit (loss) for the period (909) 340

Disaggregation of revenue


Thailand 598 1,455 280 304 209 301 66 91 121 24 - - 1,274 2,175

Overseas 578 1,321 - - 30 - - - - - - - 608 1,321

Total revenues 1,176 2,776 280 304 239 301 66 91 121 24 - - 1,882 3,496


At a point in time 1,081 2,515 6 4 - - 48 71 121 24 - - 1,256 2,614

Over time 95 261 274 300 239 301 18 20 - - - - 626 882

Total revenues 1,176 2,776 280 304 239 301 66 91 121 24 - - 1,882 3,496



47



Hotel and hotel

management


Three-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in million Baht) Disaggregation of revenue


Thailand 76 195 1 1 - - 19 11 128 48 - - 224 255

Overseas - - - - - - - - - - - - - -

Total revenues 76 195 1 1 - - 19 11 128 48 - - 224 255

Dividend income 33 31

Total revenues and other income 257 286


At a point in time 65 159 1 1 - - 19 11 128 48 - - 213 219

Over time 11 36 - - - - - - - - - - 11 36

Total revenues 76 195 1 1 - - 19 11 128 48 - - 224 255



48



Hotel and hotel

management


Nine-month period ended 30 September 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in million Baht) Disaggregation of revenue


Thailand 284 620 1 1 - - 39 25 304 144 - - 628 790

Overseas - - - - - - - - - - - - - -

Total revenues 284 620 1 1 - - 39 25 304 144 - - 628 790

Dividend income 233 262

Gain on sale of other long-term investment - 216

Arrangement fee income 297 -

Total revenues and other income 1,158 1,268


At a point in time 219 490 1 1 - - 39 25 304 144 - - 563 660

Over time 65 130 - - - - - - - - - - 65 130

Total revenues 284 620 1 1 - - 39 25 304 144 - - 628 790



49

15 Leases

Consolidated


Separate


For the period ended 30 September 2020

For the

three-

month

period

For the

nine-

month

period

For the

three-

month

period

For the

nine-

month

period

(in thousand Baht)

Recognised in profit or loss Lease income 6,411 19,023 2,819 8,613

Interest income on finance lease receivable - - 45,022 131,206

Interest on lease liabilities 74,415 224,589 49,487 145,020

Expenses relating to short-term leases 849 2,548 443 1,328

Expenses relating to leases of low-value assets 298 894 30 90

Variable lease payments based on sales 6,135 2 - -

Total cash outflow for leases presented in the consolidated and separate statement of cash flows for

the nine-month period ended 30 September 2020 were Baht 398.82 million and Baht 54.78 million,

respectively.

16 Income tax

Income tax is recognised based on management’s best estimate of the weighted average annual

income tax rate expected for the full financial year applied to the pre-tax income of the interim period.

The Group’s effective tax rate in respect of continuing operations for the nine-month period ended 30

September 2020 and 2019 were 5.6% and 27.9%, respectively. This change in effective tax rate was

caused mainly by unrecognised tax losses.



50

17 Earnings (loss) per share

Consolidated


Separate


Three-month period ended 30 September 2020 2019 2020 2019

(in thousand Baht / thousand shares)

Profit (loss) for the period attributable to

ordinary shareholders of the Company (basic) Profit (loss) excluding Dusit Thani College (339,102) 66,936 (143,750) (125,555) Profit (loss) from Dusit Thani College (3,188) 6,003 - -

Total (342,290) 72,939 (143,750) (125,555)

Number of ordinary shares outstanding (basic)

Number of ordinary shares outstanding

At 1 July 850,000 850,000 850,000 850,000

At 30 September 850,000 850,000 850,000 850,000

Less treasury shares by Dusit Thani

Properties Company Limited (4,715) (4,715) - -

Number of ordinary

shares outstanding (basic) 845,285 845,285 850,000 850,000

Earnings (loss) per share (basic) (in Baht)

Earnings (loss) per share excluding

Dusit Thani College (0.40) 0.08 (0.17) (0.15)

Earnings (loss) per share from Dusit Thani College (0.00) 0.01 - -

Total (0.40) 0.09 (0.17) (0.15)



51

17 Earnings (loss) per share (Continued)

Consolidated


Separate


Nine-month period ended 30 September 2020 2019 2020 2019

(in thousand Baht / thousand shares)

Profit (loss) for the period attributable to

ordinary shareholders of the Company (basic) Profit (loss) excluding Dusit Thani College (886,708) 28,927 (46,872) 40,779 Profit from Dusit Thani College 9,037 22,474 - -

Total (877,671) 51,401 (46,872) 40,779

Number of ordinary shares outstanding (basic)

Number of ordinary shares outstanding

At 1 January 850,000 850,000 850,000 850,000

At 30 September 850,000 850,000 850,000 850,000

Less treasury shares by Dusit Thani

Properties Company Limited (4,715) (4,715) - -

Number of ordinary

shares outstanding (basic) 845,285 845,285 850,000 850,000

Earnings (loss) per share (basic) (in Baht)

Earnings (loss) per share excluding

Dusit Thani College (1.05) 0.03 (0.06) 0.05

Earnings per share from Dusit Thani College 0.01 0.03 - -

Total (1.04) 0.06 (0.06) 0.05

18 Dividends

The dividends paid by the Company to the shareholders of 850 million shares were as follows:

Appropriation of

dividend from Approval date

Payment

schedule

Dividend rate

per share Amount

(in Baht) (in million Baht)

2020

Interim dividends* Retained earnings 19 March 2020 17 April 2020 0.19 161.50

2019

Annual dividends Net profit 26 April 2019 15 May 2019 0.17 144.50

*The annual general meeting of shareholders acknowledged the interim dividend payment on 4 August

2020.



52

19 Financial instruments

Carrying amounts and fair values

The following table shows the carrying amounts and fair values of financial assets and financial

liabilities including their levels in the fair value hierarchy for financial instruments. It does not include

fair value information for financial assets and financial liabilities not measured at fair value if the

carrying amount is a reasonable approximation of fair value.


Carrying amount Fair value


Fair value

through

profit or

loss

Amortised

cost - net Total

Level 1

Level 2

Level 3

Total

(in thousand Baht)

Financial assets

Equity instruments 346,676 - 346,676 - - 346,676 346,676

Debt instruments - 50,000 50,000 - 49,715 - 49,715

Total financial assets 346,676 50,000 396,676

Financial liabilities

Debentures - 999,021 999,021 - 998,727 - 998,727

Total financial liabilities - 999,021 999,021


Carrying amount Fair value


Fair value

through

profit or

loss

Amortised

cost - net Total

Level 1

Level 2

Level 3

Total

(in thousand Baht)

Financial liabilities

Debentures - 999,021 999,021 - 998,727 - 998,727

Total financial liabilities - 999,021 999,021

Type Valuation technique

Investments in the non-

marketable equity

instruments

Based on cost which considered as estimated fair values, except

there are significant changes in their operations.

Corporate debt securities

Bid prices from the Thai Bond Market Association as of the

reporting date.

Debentures

Bid prices from the Thai Bond Market Association as of the

reporting date.



53

19 Financial instruments (Continued)

Impairment loss

Impairment on cash and cash equivalents was measured on a 12-month ECLs. The Group considers

that cash and cash equivalents have low credit risk based on the external credit ratings of the

counterparties.

Allowance for impairment loss for trade receivables are measured at an amount equal to lifetime

ECLs. ECLs on these financial assets are estimated using a provision matrix based on the historical

credit loss experience, adjusted for factors that are specific to the debtors and assessment of both the

current and forecast general economic conditions.

Trade receivables Consolidated


Separate


30

September

31

December

30

September

31

December

2020 2019 2020 2019

(in thousand Baht)

Within credit terms 125,165 72,928 13,323 17,565

Overdue:

Less than 3 months 47,879 97,874 1,737 3,817

3 - 6 months 18,363 16,809 31 26

6 - 12 months 10,597 5,450 595 -

Over 12 months 25,367 9,762 1,917 198

Total 227,371 202,823 17,603 21,606

Less allowance for impairment (25,336) (7,343) (1,917) (198)

Net 202,035 195,480 15,686 21,408

Trade receivables

- management fee and other services

Consolidated


Separate


30

September

31

December

30

September

31

December

2020 2019 2020 2019

(in thousand Baht)

Within credit terms 16,060 27,848 21,777 35,348

Overdue:

Less than 3 months 2,723 14,063 9,785 4,383

3 - 6 months 3,870 5,051 37,592 4,694

6 - 12 months 4,604 6,020 7,357 17,606

Over 12 months 27,914 18,513 26,713 34,771

Total 55,171 71,495 103,224 96,802

Less allowance for impairment (27,913) (11,713) (12,264) (6,471)

Net 27,258 59,782 90,960 90,331

The normal credit term granted by the Group ranges 30 days



54

20 Commitments

20.1 Capital commitments

Consolidated


Separate



2020 2019 2020 2019

(in thousand Baht) Contracted but not provided

the services

- Dusit Central Park Project 2,307,483 1,132,815 - -

- ASAI China Town Project 452,587 3,305 452,587 3,305

- ASAI Sathorn Project 132,078 116,301 132,078 116,301

- Others 39,308 34,354 23,668 30,663

Total 2,931,456 1,286,775 608,333 150,269

20.2 Service agreement commitments

Consolidated


Separate



2020 2019 2020 2019

(in thousand Baht) Within one year 130,991 117,929 112,152 52,855

After one year but within

five years 21,292 232,981 12,653 35,762

Total 152,283 350,910 124,805 88,617

20.3 Other commitments

Consolidated


Separate



2020 2019 2020 2019

(in thousand Baht) Bank guarantee 120,271 120,271 89,574 89,574

As at 30 September 2020 the Group and the Company have bank guarantee totalling Baht 105.10

million and Baht 80.48 million, respectively, for the corporate income tax return for 2017 before

the tax audits are completed and the Group has bank guarantee totalling Baht 2.73 million, which

was pledged by cash at bank of the subsidiary.

20.4 Contractual commitments

As at 30 September 2020, material changes in the Group's contractual commitments during the

period were as follows :

On 29 September 2020, D&J Co., Ltd., a subsidiary in Japan, has entered into hotel management

agreement with Yasuda Real Estate Company Limited to manage “Dusit Thani Kyoto Hotel” in

Japan and the Company acts as a guarantor. The subsidiary shall pay advance performance

guarantee totalling JPY 376.90 million or equivalent to Baht 113.03 million. The terms of

payment of performance guarantee amount will be installment paid as specified in agreement.

Hotel management agreement is for the period of 240 months, starting from the handover date of

the property.



55

21 Contingent liabilities

As at 30 September 2020, there was no material changes in contingent liabilities during the period

which was required additional disclosures from notes to the financial statements for the year ended 31

December 2019: no. 36 Contingent liabilities.

22 Others

22.1 Joint Investment with Metro Pacific Investments Corporation

On 18 February 2020, the Company has entered into an investment agreement with Metro Pacific

Investments Corporation to jointly carry out the development of real estate projects of hotels and

residential condominiums in the Philippines. For this investment, the Company will establish a new

subsidiary in the Philippines, Dusit Philippines Corporation and invest 100% of total shares. The

initial registered capital approximately USD 0.352 million or approximately Baht 10.91 million. This

new investment is subject to a number of conditions precedent requiring to fulfill as stipulated in the

agreement. Due to the impact of the Covid-19 situation, the parties agreed to postpone the plan to

establish this new subsidiary and to wait and see the situation and review the business plan again.

Therefore, as of 30 September 2020, such subsidiary has not been established and no calling for shares

subscription.

22.2 Disposition of shares in Dusit Hospitality Education Philippines, Inc.

On 5 March 2020, Dusit Thani Philippines, Inc. an indirect subsidiary has executed the share purchase

agreement with the third party to sell all its investment in Dusit Hospitality Education Philippines,

Inc., an indirect associate in the amount of Peso 359,999,700, or approximately Baht 219.60 million.

As of 30 September 2020, the parties agreed to postpone such selling shares, therefore, such purchase

transaction has not been completed.

23 Events after the reporting period

23.1 Loan agreement

On 16 October 2020, the Company has entered into long-term loan agreement with a financial

institution in amount of Baht 468 million for “Dusit Suites Hotel Ratchadamri Bangkok” project.

The right sublease building space agreement and service contracts for this project, including cash at

bank 1 account of the Company have been pledged as collateral for the interest payment. The

Company has drawdown such amount on 22 October 2020.

The loan agreement has terms and conditions as specified in the agreements such as interest-bearing

liabilities to equity ratio.

23.2 The dissolution of Devarana Spa Co., Ltd.

On 11 November 2020, the extraordinary general shareholders’ meeting of Devarana Spa Co., Ltd.,

a subsidiary, had a special resolution to dissolve the company. Such subsidiary will process to

register for dissolution of business.



56

24 Reclassification of accounts

Certain accounts in the statement of financial position as at 31 December 2019 have been reclassified

to conform to the presentation in the 2020 interim financial statements as follows:


Before

reclassification

Reclassification

After

reclassification

(in thousand Baht)

Statement of financial position

as at 31 December 2019

Trade and other current receivables 1,464,801 (77,460) 1,387,341

Other current assets 90,090 77,460 167,550

Long-term loans 1,601,900 (1,601,900) -

Long-term loans from financial institutions - 1,382,565 1,382,565

Long-term loans from related party - 219,335 219,335

Total -


Before

reclassification

Reclassification

After

reclassification

(in thousand Baht)

Statement of financial position

as at 31 December 2019

Trade and other current receivables 276,581 (38,162) 238,419

Other current assets 46,238 38,162 84,400

Long-term loans 1,053,950 (1,053,950) -

Long-term loans from financial institutions - 1,053,950 1,053,950

Total -

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