compared to the year 2017. Total operating expenses were included employee benefit expenses, fee and service expenses, financial costs and other expenses. LH Financial Group Public Company Limited Management

the year 2018. Total operating expenses included employee benefit expenses, fee and service expenses, financial costs, bad debts and doubtful accounts and other expenses. LH Financial Group Public

inventory, the sales promotion expenses (excluding ownership transfer expenses) increase 26.76%. As a result, the net profit has decreased 5.34% from that of the same quarter of the previous year. In Q1/2018

17.6% Cost of sales - 684.8 - 747.8 8.4% Selling expenses - 19.6 - 20.1 2.3% Administrative expenses - 36.1 - 44.0 17.9% Finance costs - 12.2 - 7.9 -54.3% Profit for the period 35.3 42.6 -17.2% Net

fee as subsidiaries were established abroad. This caused additional travelling expenses and related expenses. The vehicle depreciation is 0.54 million Baht more as more tractors were bought from the

Statement (Consolidated) Unit : Million Baht 2Q/19 1Q/20 2Q/20 %QoQ %YoY 1H19 1H20 %YoY Operating and administrative expenses and others Bad debts and doubtful accounts Finance costs 2,293 1,593 557 2,086

% 9,898 10,461 6% Operating and administrative expenses 1,985 1% 3,895 4,018 3% 3,489 3,672 5% Expected credit loss 1,851 -8% 3,231 3,415 6% 2,618 3,334 27% Finance costs 468 4% 901 905 0.4% 939 946 0.7

Administration Expenses Selling and administration expenses in Year 2018 increased by Baht 49.0 million or 7.4%, as result of human resource and IT system development and internal control of subsidiaries

the overall costs down. The Company’s total SG&A decreased by THB 363 million or -21.4% YoY to THB 1,336 million in Q4’18 which mostly due to the absence of various non-recurring expenses booked under

year2017 which presented in the amount of Baht 1,591.27 million or 83.31 percent. Due to the leather business group has continuously improved the production process to reduce production costs and the energy