November 12, 2009

Subject : Clarification of operation results of the third quarter year 2009

To : President

The Stock Exchange of Thailand

Asian Insulators Public Company Limited (AI) would like to clarify for the third quarter year 2009 operating results based on the consolidated financial statement. The Net Profit for the third quarter year 2009 was 38.36 million Baht, while in the same period of the third quarter year 2008, the net loss was 31.48 million Baht, increasing of 69.85 million Baht or 221.85% was come from the main reasons as follows:

Operating results (Consolidated) :

• The Company realized 82.17 million Baht from selling of Porcelain Insulators and component which was decreased by 5.50% or 4.78 million Baht compared with the third quarter year 2008. The main reason was the decrease in demands of Porcelain Insulators. While the cost of goods sold in the third quarter year 2009 was 48.06 million Baht, increased by 9.46% or 4.15 million Baht compared with the third quarter year 2008, and the gross profit was 34.11 million Baht.

• Raw materials sales in the third quarter year 2009 was 82.60 million Baht, decreased by 3.43 million Baht or 3.99% compared with the third quarter year 2008. While the cost of goods sold in the third quarter year 2009 was 63.51 million Baht, decreased by 9.84% or 6.93 million Baht compared with the third quarter year 2008 due to decrease in demand, and the gross profit was 19.09 million Baht.

• Revenue from the Construction of Transmission Lines and Substations in the third quarter year 2009 was 146.10 million Baht. It was increased by 120.47 million Baht or 469.92% compared with the third quarter year 2008. While the cost of construction in the third quarter year 2009 was 133.86 million Baht, increased by 443.26% or 109.22 million Baht compared with the third quarter year 2008, and the gross profit was 12.25 million Baht.

• The Company realized the revenue for 20.11 million Baht from freight charter services in the third quarter year 2009 was decreased by 0.14 million Baht, or 0.71% compared with the third quarter year 2008. While the cost of vessel operating in the third quarter year 2009 was 22.65 million Baht, decreased by 0.66% or 0.15 million Baht compared with the third quarter year 2008 which the cost of vessel operating was 22.80 million Baht. The cost of vessel operating was decreased due to the lower fuels price.

• The Company realized 196.12 million Baht from sales of Biodiesel(B100), vegetable oil, and it’s by products in the third quarter year 2009, was decreased by 42.03 million Baht or 17.65% by compared with the third quarter year 2008 from the decreasing of customer demands. However, the Company realized 35.94 million Baht from the production of Biodiesel (B100), and the gross profit was 20.47 million Baht.

• The Company realized 6.63 million Baht from sales of ice cube for fishing industry in the third quarter year 2009 while the cost of goods sold was 4.77 million Baht, and the gross profit was 1.86 million Baht.

• The Company realized 0.91 million Baht from Ports and Terminals service at Chumporn and Samut Sakorn Province which were completed of construction, commissioning, and operating since August 2009. While cost of service was 4.87 million Baht.

• Selling & administration expense was 28.35 million Baht in the third quarter year 2009, decreased by 4.50 million Baht compared with the third quarter year 2008, the decreasing was come from subsidiary companies’ expenses.

Balance Sheet (Consolidated) :

• Total assets as September 30, 2009 was 2,865.42 million Baht which was increased by 403.82 million Baht or 16.40% compared with the ending of year 2008 which was 2,461.61 million Baht from the following reasons.

  • Increasing of property, plant, vessel and equipment 258.14 million Baht for Ports and Terminals in Chumporn and Samut Sakorn Province.

  • Increasing of cash and cash equivalents and investments in open-end fund 180.90 million Baht which were reserved for working capital.

  • Decreasing of Advance payment to subcontractors 53.48 million Baht due to increasing percentage of project success.

• Total liabilities as September 30, 2009 was 1,446.35 million Baht which was increased by 314.41 million Baht or 27.78% compared with 4Q2008 which was 1,131.94 million Baht from the following reasons.

  • Increasing of loans from financial institutions 459.68 million Baht due to Ports and Terminals Construction.

  • Increasing of Trade accounts payable 79.71 million Baht which was come from operating.

  • Decreasing of Accrued Dividend 250 million Baht which was announced for year 2008 dividend payment.

• Total Shareholders' equity as September 30, 2009 was 1,419.08 million Baht which was increased by 89.40 million Baht or 6.72% compared with the fourth quarter year 2008 which was 1,329.67 million Baht. The main reasons were the increasing of retained earning.

Liquidity (Consolidated) :

• Liquidity ratio as the third quarter year 2009 was 1.25 times which was decreased by 0.13 times compared with the fourth quarter year 2008, which was 1.38 times. Mainly came from increasing of short-term loans from financial institutions, decreasing of Accrued dividend and increasing of investments in open-end fund.

• Debt to equity ratio was 1.02 times which was increased by 0.17 time compared with the fourth quarter year 2008 which was 0.85 time due to increasing of loans from financial institutions.

Please be informed accordingly.

Yours sincerely,

(Thanit Thareratanavibool)

Chief Executive Officer