Over the past year, the Company has faced two major operational challenges which are:
Firstly, the global outbreak of the COVID-19 pandemic, which is still ongoing and affects the normal life and normal work practices to all people. The manufacturing operation of the Company has also stumbled at times. The Company has given priority on the prevention of this virus, with the intensive measures for the safety of those involved, especially employees in order to build confidence and further encourage everyone to continue to do their work. In addition, the company has improved the operation system and management so that the work can be carried out efficiently and meet the customers’ needs.
Secondly, the Company is in the process of technology transformation for the automotive industry, where the automakers gradually switch from the manufacturing of internal combustion engine (ICE) to electric vehicles. In this regard, the company has been closely monitoring the changes and preparing to play a role in the electric vehicle production line in the future by organizing the work system and preparing relevant personnel to handle this change, further laying the foundation of the company’s long-term business.
Thailand’s Gross Domestic Product (GDP) in 2020 shrank approximately by 6.1% from 2019 and impacted on the volume of domestic car production, also decreased by 29% from 2019, totaling 1,427,074 units.
Due to the operating results of companies in Somboon Group in 2020, the Company had total revenue as of 6,027 million baht, and net profit as of 374.76 million baht, decreased 58.30% compared to the previous year.
The Company path will continue under the policy mutually agreed by the Board of Directors and the management are:
First of all, the Company will still continue to be an auto part manufacturer, which is our expertise, by focusing on quality under the customer’s standard and the customer’s needs and continue to seek new customers in order to maximize the current production capacity.
Furthermore, in the meantime the Company has still improved the business to meet digital transformation by considering and following up the new potential business growing in both domestic and international market in the future. In this regard, the Company will monitor, study and jointly work with the expert in technology development leading to the new business in the future as to build a confidence for the business operation.
Thirdly, with the internal management during this time, the Company has highlighted on the cost reduction to gain a competitive sale with maintaining high quality and standard under the customer’s expectation. In part of internal management, the Company focuses on the people development, work in teamwork and adjust working process to be efficient organization.
The operation determination has still adhere to the SBG’s philosophy “Somboon Triple Bottom Line” which are “Smart People” to concentrate on the people development and working system to be efficient, “Business Trust” to take decisive steps to move on technology transformation and the business has capability to grow in “Growth society.” The Company will play a role to contribute to society with generosity and develop the quality of life in society to be better. Those Somboon Triple Bottom line will be able to run forward with balance.
Lastly, the Board of Directors would like to thank to shareholders, partners, customers, business partners and all stakeholders including the executives, staffs and employees for your always support. The Company will commit to drive our business with corporate good governance and corporate social responsibility forward sustainable growth.