Message from the Board of Directors

In 2023, the global economy remains in a state of slowdown due to various risk factors, including the Russia-Ukraine war and the Israel-Palestine war. These factors have slowed the economic recovery from the COVID-19 pandemic. Additionally, rising production costs and the high level of household debt in Thailand, along with the technological transition in the automotive industry from internal combustion engines to electric vehicles, have led to a decrease of more than 3% in domestic vehicle production compared to 2022. These factors have directly impacted Somboon Advance Technology Public Company Limited. However, with over 60 years of experience, the Company has made every effort to maintain sales by seeking new orders and managing costs efficiently through technological improvements and an emphasis on using renewable energy. As a result, the Company was able to maintain its sales and profit effectively, with a total revenue of 9,201 million baht and a net profit of 978 million baht in 2023, representing increases of 1% and 4% respectively from the previous year.

Despite the economic and industrial slowdown, the Company continues to pursue sustainability, considering a balance in all dimensions, including environmental, social, and governance (ESG) aspects, and adhering to the United Nations Sustainable Development Goals (UN SDGs). Under the business philosophy of “Somboon Triple Bottom Line” based on the philosophy of Sufficiency Economy, the Company achieved its sustainability goals in 2023 according to the ESG guidelines: 1) Environmental: Reduced greenhouse gas emissions from the production process by 30.5%, exceeding the target reduction of 11% compared to the baseline year of 2018. 2) Social: Created social value equal to 1.0% of net profit, surpassing the target of 0.5% of net profit. 3) Governance: Complied 100% with legal requirements.

These achievements led to the Company receiving the Sustainability Awards of Honor for the 6^th consecutive year from the Stock Exchange of Thailand.

Nevertheless, the Company continues to face national and global challenges, particularly in the ESG aspects, which pose both risks and opportunities that we must seriously prepare for. The COP28 conference emphasized important environmental goals, including limiting global temperature increases to no more than 1.5 degrees Celsius, and reducing greenhouse gas emissions by 43% by 2030 and 60% by 2035. To respond to these targets, the Company needs to accelerate the study and planning of projects to efficiently reduce energy use and greenhouse gas emissions. Additionally, we continue to emphasize social and governance aspects by responding to customer needs, creating added value for society through production processes or employee potential, and enhancing supply chain management to promote sustainable growth and social and environmental responsibility.