Message from the Board of Directors

Dear Shareholders,

With the speed of evolving trends today, the world is experiencing rapid changes in demography, the way of life in the digital era and the globalization that contributes to a diverse range of investments. This phenomenon amplifies the opportunities for new market penetration while posting critical issues on both corporate and individual parties. The interrelationship between economy, society and environment offers new horizons and entails challenges in the current business operation.

For this reason, corporate growth in tandem with these global trends is essential to the Company’s sustainability. In 2018, the Company reshaped its strategies to keep pace with this economic and social evolution through the development of personnel,products and service. In addition to this, we continued to leverage internal management efficiency to ascertain adaptability engaged.

On the economic front, the purchasing power slowed in the country as a result of high household debts and worrying low crop prices. Therefore, the Company embraced the need for operational efficiency improvement to ensure that our products are durable,cost-effective and functional. Instead of focusing on store expansion, which was commonplace in the past,the Company also continues to offer new merchandise and achieves operational cost controllability to expand corporate value. On the contrary, we are of view that many locations, especially Bangkok and vicinity, has good potential thanks to the high purchasing power of clients in new residential area. As for new stores in the previous year, HomePro focused on Bangkok Metropolitan Region by launching 1 HomePro store at Kanlapraphruek and 5 HomePro S stores at (1) Paseo Park Kanchanaphisek (2) BigC Bang Na (3) Market Place Nanglinchee (4) Sena Fest and (5) Gateway at Bang Sue. The Company posted total revenue at 66,049.98 million baht and net profit of 5,612.62 million baht, or growth of 2.83% and 14.86 % year-on-year, respectively.

In 2018, the Thai economy had yet to fully recover, with significant improvement mainly seen in tourism, export and industry. The agricultural sector suffered a decline in crop prices and high household debts still remain. As for consumers’ behavior, online platform was on the rise in popularity. These factors culminated in external challenges and risks that affected our performance. As such, business plans and operations were adjusted to respond to these trends. Similarly, concerning strategies and processes, the Company placed an importance on social and environmental perspectives for operational sustainability. The Company also continued to improve products and services through a range of initiatives. For instance, Eco Products promote safety, energy saving and environmental concerns, new services to fulfill rising needs of users, and the Home Service application provides more convenience than ever.

With our commitment to sustainability and companywide cooperation, the Company was recognized and awarded by international agencies such as being the member of Dow Jones Sustainability Index (Emerging Market) for 2 consecutive years in 2018, the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. In Thailand, the Company was awarded “Excellent” by the Corporate Governance Report for 4 years in a row, “Outstanding” in Sustainable Management classification in the SET Sustainability Awards by the Stock Exchange of Thailand, and received an upgrade in rating from A+ (Single A Plus) to AA- (Double A Minus) stable outlook by TRIS Rating Agency Co., Ltd.

On behalf of the Board of Directors, I would like to express my sincere gratitude for the dedication, commitment and responsibility contributed by employees at all levels, as well as year-long warm wishes by stakeholders. The Company believes that corporate growth enhancing value to all stakeholders, from clients, employees, partners, shareholders and community to society, is central to organization on a sustainable growth ascertaining that sustainable development is being upheld at the national level as well.

 

(Mr. Khunawut Thumpomkul)

Representative of the Board of Directors