Reading between the lines in the 2Q26 Management Discussion and Analysis of Itthirit Nice Corporation Public Company Limited (ITTHI): Revenue down 46.3%. Net profit down 76.3%. And a renewable electricity revenue line that does not appear in 1Q26.
The numbers
Government solar sales fall away
ITTHI distributes lighting equipment and renewable energy products, with solar street lighting its largest line. In 2Q26, revenue fell 46.3% YoY to Bt108m. For 6M26, solar street lighting sales were Bt219m, 75.5% of revenue. Sales to real estate developers continued to decline as project customers delayed construction.
A higher margin on a smaller base
Gross margin rose to 16.8% in 2Q26 from 13.7% in 2Q25. The MD&A attributes the improvement to lower revenue from government project customers, a group with an average gross margin of about 10%. Administrative expenses fell 19.2% YoY, but net profit fell 76.3% to Bt1.8m, a net margin of 1.7%.
Cash drawn down as subsidiary assets build
Cash fell Bt82m from end-4Q25 to Bt112m, with the MD&A citing investments in subsidiary assets, dividend payments, and normal operations. Over the same period, building improvements, equipment, and right-of-use assets rose by Bt69m, and total liabilities rose by Bt33m to Bt117m, driven by asset payables and lease liabilities at subsidiaries.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a few things stand out.
A renewable electricity segment that does not appear in 1Q26
The 1Q26 MD&A named the project behind a Bt49m rise in building improvements and equipment: a subsidiary’s Solar Rooftop investment in solar power generation. Its customer breakdown showed three groups: property development, government projects, and retail and wholesale. The 2Q26 breakdown adds a fourth: the sale of renewable energy electricity, with customers including schools, accounting for about Bt2m of 6M26 revenue, at a gross margin of 42%.
The 2Q26 text does not discuss the new segment or name Solar Rooftop. The Bt69m rise in building improvements, equipment, and right-of-use assets since end-4Q25, including the 1Q26 investment, is attributable to investments in subsidiary assets.
Finance costs rise; control described as achieved in 1Q26, expected in 2Q26
In 1Q26, finance costs fell to Bt0.3m from Bt0.5m, and the MD&A noted that net profit declined despite improved control over administrative expenses and finance costs. In 2Q26, finance costs rose to Bt1.1m from Bt0.5m a year earlier. The net profit section now states that the company “expects to improve its control” over the same two items. The 2Q26 filing does not discuss what drove the rise in finance costs.
Selling expenses described as moving with sales in both filings
The 1Q26 MD&A attributed a 30.0% YoY rise in selling expenses to commissions that moved with government project sales. The 2Q26 MD&A attributes the lower selling expenses to commissions and referral fees that track the decline in sales. In 2Q26, revenue fell 46.3% YoY while selling expenses fell 29.7%. For 6M26, revenue fell 25.3%, and selling expenses fell 2.7%.