margin from sales and -64.89% of gross profit margin from services. The main reason for the decrease in gross profit margin was from services segment due to higher actual construction cost than what was

year, representing a decrease of 6% and recorded net profit of THB 93 million compare to net profit of THB 141 million at the same period last year, representing a decrease of 34%. The details were as

DECREASE IN NET PROFIT OVER 20 PERCENT FOR YEAR 2018 COMPARE TO THE PREVIOUS YEAR ATTENTION PRESIDENT, THE STOCK EXCHANGE OF THAILAND Khon Kaen Sugar Industry Public Company Limited and its subsidiaries

No. AC 070/2562 KHON KAEN SUGAR INDUSTRY PUBLIC CO., LTD 503 K.S.L. TOWER, 9th FLOOR, SRIAYUDHYA ROAD, RAJATHEVI, BANGKOK 10400 16 September 2019 SUBJECT EXPLANATION FOR THE DECREASE IN NET PROFIT

wishes to submit herewith explanation and analysis of the Management as follows. 1. Income, gross profit, net profit Unit : Million Baht 1. Income 2019 2018 2017 Increase (decrease) 2019-2018 1.1

(decrease) 2020-2019 1.1 Construction material 152.83 250.69 219.60 (97.86) -39% 1.2 Real estate 27.52 63.90 98.65 (36.38) -57% 1.3 Total income 180.35 314.59 318.25 (134.24) -43% 2. Gross profit (% of sales

June 30 ,2018 showed that the net profit amount of 37 million baht had decrease 4 million baht equivalent 11%, Less than from the same period of last year. Therefore the company would like to clarify

184.1million, a decrease of Baht 8.21million or equal to approx. 4.27% yoy; whereas, core revenue fromFerry service was Baht 161.35 million, 87% of total revenue which decrease of Baht 6.61 million, or equal to

1,171.34MB in Q1 2017 due to higher unit cost of imported metals against the unit cost of PDI’s own production. This resulted to a decrease of gross profit rate of Q1 2018 by 12% from Q1 2017. The selling and

mainly derived from the following reasons:- 1. Management Service (“MS”) had a decrease of gross profit for (3.17) million baht. Main reason was that, in Q3/2018, the company already had a renew contract