The year 2016 was the year of the great loss of Thai people throughout the country after the announcement of the passing of His Majesty King Bhumibol Adulyadej on 13th October 2016. With a sense of graciousness, the Board of Directors, executives, and personnel have applied the Philosophy of Sufficiency Economy in business operation by demonstrating the strong intention complying with good governance, placing importance on taking care of all stakeholders appropriately and fairly, along with community, society, and environment for the sustainable growth.
From 2016 to the first quarter of 2017, it is a challenging time of the Company, caused by the change in politics and world economy, for example, the election in United States of America, the Brexit of United Kingdom, the leak of capital out of China and the weakness of Yuan currency, the good development of ASEAN economy and the rising oil prices. As for economics, the domestic economy grew by 3.2%, which its supporting factors are government expense, manufacturing sector, Private investment, and household consumption. The Company recognizes these changes and applies main strategies in operation which is the market expansion to other countries, especially the market in ASEAN countries, the development of innovative products, including the manufacturing technology for increasing the manufacturing efficiency and competitiveness; therefore, the Company can always survive through all changes.
In the year 2016/2017, the company had the total revenue from sale of 9,279.8 million Baht, which is increased by 5.9%; and had the net profit of 1,382.7 million baht, which is decreased by 2.2%, comparing to the previous year. Although some businesses are affected from uncontrollable factors, the Company still can maintain the gross margin as set. Based on past performance, the Board of Directors has resolved to pay an interim dividend for the first six-month period of 2016/2017 at the rate of 0.10 Baht per share, totaling 280 million Baht. This is the result of the effective management in terms of the innovation invention by focusing on the research and development for creating added value to the product, prioritizing the marketing in both domestic and international market, and the effective cost management. The dividend was paid to shareholders on 9th December 2016, and if including the dividend payment of 0.15 Baht, which will be approved by the Annual General Meeting of Shareholders for the year 2016/2017, it will allow the company to pay a total dividend of 0.25 Baht per share which equal to 420 Million Baht or 50.6% dividend payout ratio.
The Company's success is to be a global leader in innovation, and to be a world-class manufacturer and distributor for sustainable growth.
Creative Innovation Organization
The Company applies innovation and technology in propelling the business by expecting sustainable growth, while always ready for change all the time. The Company’s operation is relevant to the new economic development models Thailand 4.0 in order to adjust the economic structure to an innovation-driven economy. As a result of dedication to create the innovative products, the Company has been awarded the Outstanding innovative company from Aeroklas Canopy: the innovative roofing plastic pickup truck from the Stock Exchange of Thailand and the Financial and Banking Magazine. In addition, EPG Innovation Center Co., Ltd. (EIC), a subsidiary of EPG, has been certified for testing automotive plastics, paints and auto parts under Ford Laboratory Accreditation from Ford Motor Research and Engineering (Nanjing) Co., Ltd. This enables EIC to support Ford testing and testing services for Ford customers immediately. This is another important step that has been recognized and trusted by the leading global companies.
Business operation in global market
Last year, Aeroflex focused on expanding the market in Asia, especially in Japan, Vietnam, and Indonesia. Aeroklas and TJM cooperatively operated showcases and introduced the innovative products in the world's leading automotive parts and accessories exhibition, for example, Sema Show 2016, scheduled in Las Vegas, USA. Moreover, TJM Product Pty. has revised contracts with TJM stores to tighten the coverage area, enabling TJM to increase the number of TJM stores in the future. This included the application of Supplier Partnership program in managing the TJM shop inventory. Eastern Polypack has launched a new brand ‘eici’ in order to expand the market to economical products; the marketing was begun in both domestic and foreign markets in Southeast Asia.
To create sustainable growth
In order to operate business with sustainable growth, the Company still continually cultivates the morality and ethics to personnel and creates the organizational culture to work with morality, by relying on the Company’s principle “Contribution toward better Society”. The growth of EPG still adheres to the vision of the organization to grow with creative innovation that develops quality products to benefit the society and create a better living under the good governance principles and sustainable development. On behalf of the Board of Directors, we would like to thank all of our personnel, business partners, customers, shareholders and supporters in all areas for their support and trust in the Company, and please be confident that the Company will operate business with prudence and morality to generate most benefit to all parties concerned.
Mr. Vachara Tuntariyanond
(Chairman of the Boards)
Dr. Pawat Vitoorapakorn
(Chief Executive Officer)