As the company has no significant voting right and

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As the Company has no significant voting right and control over Red Planet due to such change in investment classification, the Company could not able to recognise investment service income derived from the increase in value of investment in Red Planet Hotels since 30 June 2015. • Revenue from business and investment advisory decreased from previous year by Baht 6.49 million, or 36.5% due to changing in the scope of advisory service during the current year. 51 Food Capitals Public Company Limited ANNUAL REPORT 2016
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Selling and Administrative Expenses In 2016, the Company recognised selling expenses of THB 524.47 million or 77.57% of total revenue, derived mainly from the food & beverage retail business. Selling expenses mainly comprised lease payments for restau- rant operations, marketing, advertising, promotional expenses as well as depreciation of leasehold improvement and assets used in the restaurant. The lease payments for restaurant included commercial building leases for Domino’s Pizza, department store lease/hotel leases for the Coffee Bean & Tea Leaf, Kyochon and Mr. Jones Orphanage, as well as the outdoor mall leases for stand-alone restaurants. Administrative expenses for the year 2016 were Baht 373.48 million, representing 55.23% of total revenue, an increase from the previous year of Baht 20.23 million (+5.73%). The increase in administrative expenses per- tains to food & beverage business which mainly due to one-time losses recognized from non-cash transactions increase from the previous year Baht 16.5 million which are mainly due to loss from fixed assets written-off as result from the closure of non-performing stores during the year, as well as doubtful debt from a receivable from sale of investment and impairment loss of goodwill. Financial Costs In 2016, the Company incurred increment in interest of Baht 9.82 million or 46.10% due to the issuance of unsecured debenture for the maturity within 1 year 9 month, at fixed interest rate of 6% per annum in the ag - gregate amount of Baht 600 million, representing debenture of 600,000 units at Baht 1,000 each. The interest incurred from debenture issuance will be due for payment on a quarterly basis through the debenture period until maturity in May 2018. The Company was repaid promissory note, Baht 57.50 million and closed a financial institution loan facility by using cash obtaining from issuance of debenture in the late year 2016. 52 Food Capitals Public Company Limited ANNUAL REPORT 2016
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Net Profit (Loss) In 2016, the Company posted a net loss from continuing operations of Baht 454.67 million, an increase in net loss of Baht 147.33 million or 47.94% compared to 2015, was mainly due to the change in an investment clas- sification in 2015. The Compnay recognised profit from change in Red Planet Hotels’s investment classification in accordance with the Financial Reporting Standards which is non-recurring and not arised from the Company’s normal operating results. Profit from such investment classification was recognised in 2015 of Baht 158.38 million.
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