Message from the Chairman
The year 2019 was known for the global economy’s lack of stability, thus having an effect on the Thai business sector. This aforementioned lack of stability is the result of natural disasters, conflicts between countries in Europe and Asia, including the China/US trade war. The impact of global trade protection resulted in changes in business direction and the relocation of investment bases. Moreover, the withdrawal of the United Kingdom from the European Union (Brexit) may greatly affect the confidence of business investments.
This year, it is expected that the said economic unrest will globally affect financial economies of various countries which are still fluctuating and may further continue for another period of time. For the domestic factors, it was from the Thai baht appreciation. The mentioned internal and external factors affected business sectors, especially those of Thai exporters who will be required to adjust themselves to these changes.
For our company, more than 90 percent of the total revenue are from exports which is inevitably affected by the continuity of Thai baht appreciation. Therefore, the company has managed to reduce the impact on costs, by having periodic surveillance and adjustment plans in advance. The company purchases the main raw materials in foreign currencies to reduce the risk from exchange rates, therefore we are able to control the cost of raw materials. Moreover, the buying forward contract is one of the financial management tools. Having said that, the preparation has already been in place for such problems but its impact is still resulting in the decrease of total revenue, due to the Thai baht appreciation. This year, the company will continue to focus on the development of quality products, services, strategic planning and good corporate governance. Team work to present products and services that satisfy customers, opportunities from the Thai baht appreciation, speeding up the possibility of investment in overseas in various forms, building the new plant for expanding the production base, and considering joint investments with manufacturers to meet the needs of existing international customers for greater satisfaction were the keys for the company to retain the existing customers as well as gaining new customers, which can continuously grow the company’s operating results.
Even in difficult situations, SMPC still stands firm in the industry and will grow the business continuously and sustainably by improving the quality of products and services, including seeking opportunities to run new businesses. On top of that, the company continues to focus on the importance of social and environmental responsibility, through projects that are beneficial to society, such as preserving nature and the environment, quality of life development, health, education, sport and religion, for employees and the surrounding communities around the factories, etc.
On behalf of the Board of Directors, I would like to thank the shareholders, domestic and international customers, business alliances, financial partners, employees, and all related parties that have always supported the company’s operations. This is an integral part of the company’s success. The board including the executives and company employees would like to reassure our dedication to develop the company for sustainable growth.