reduction due to microchip shortage which has negatively impacted total car production in Europe. The dealership business experienced lower sales both in Thailand and Malaysia compared to Q3 2020 mainly due

MANAGEMENT DISCUSSION & ANALYSIS 1Q 2020 15 MAY 2020 U CITY PCL 1Q 2020 - MD&A (for three-month period ended 31 March 2020) 1 U CITY PCL 1Q 2020 KEY FINANCIAL HIGHLIGHTS • Total revenue increased by

decreased year-on-year, attributable to improved efficiency as well as on-going cost reduction and cost control. Hence, gross profit margin improved from 7.0% of sales in Q1 2016 to 7.7% of sales in Q1 2017

as compared to last year and this was mainly due to the following: • The overall revenue from hotel operations which comprise of hotel, golf and retail operations increased by Baht 174 million over the

. - Cost of sales decreased from Baht 393.55 million in 2016 to Baht 324.85 million in 2017, or 17.46%, due to the decrease in labor force from the voluntary resignation program and the cost reduction

was THB 26.28 million, while that in 2018 was THB 107.53 million. The THB 81.25 million increase in 2018 was equivalent to 309.23 percent. Costs of service in 2018 increased from 2017 by THB 45.94

THB 36 mil. or 10.3% negative growth when compared to the same period of last year, primarily due to dumping price by competitors and focusing on electronic payment and number of bank branches reduction

18.85 million mainly from the decrease of an unrealized gain from mark-to-market price of investment in listed equity securities and the gain on debt securities from the reduction the Company’s investment

gain / (loss) from FX – Non-recurring income / (expense) KEY FINANCIAL HIGHLIGHT Sales and Service Income • Sales and service income increased 13.5% year- on-year from Baht 27,747 million in 2016 to Baht

Baht 557 million and gross profit margin for 2019 was increased from 21% to 28%. This is due to a decrease in reduction of cost of inventories to the net realisable value which is shown as a part of cost