The year 2021 is a challenging year for business operations in the pandemic situation of COVID-19 and the global economic slowdown for the second consecutive year. As a result, the Company has adapted its operational plans and strategies to align with the current situation with focus on strengthening the competitiveness of current business and preparing for volatility of demand. Moreover, the Company develops a joint venture to explore industrial robotics and automation business opportunities.
The Company's business performance in 2021 was in line with the industry. In 2021, total car production of the automotive industry wasn1.685 million vehicles, compared to 1.427 million units in 2020 which was an increase of 18%. In addition, the agricultural machinery industry expanded more than 30% in 2021. As a result, revenue of the Company in 2021 was at 8,727 million baht, an increase of 45% from 2020, and net profit was 955 million baht, an increase of 155% from 2020.
The Company's business has been operated under corporate governance principles that considers business impact on environmental, social, and economic aspects according to international sustainability standards under the business philosophy of "Somboon Triple Bottom Line". This has resulted in the Sustainability Awards of Honor from the Stock Exchange of Thailand in 2021. In addition, the Company is aware of the importance of further cooperation and alliances between organizations in the field of sustainability. Therefore, the Company has joined and announced its commitment under the United Nations Global Compact: UN Global Compact to conduct business following ten international principles, with four main development themes: Human Rights, Labor, Environment, and Anti-Corruption
This past year, the Company has committed to integrating the sustainability concept of ESG (Environmental, Social, Governance) into corporate strategy and business operations. The Company has set a challenging goal of reducing its greenhouse gas emissions by 30% in 2030 from the 2018 base year. This goal setting and plan to reduce greenhouse gas emissions in the long term would include increasing renewable energy for its energy consumption and improving the production process. This would support the Paris Agreement to help maintain the earth’s temperature to not increase more than 1.5 degrees Celsius. The Company has followed the "Smart People" philosophy in the social dimension of ESG, which requires employees to be "Good and Smart people. "Good people" employees should be eager to utilize their knowledge to help society—emphasis on helping through in-process CSR, participating in community development, and creating educational opportunities for youth, as well as improving the quality of life for the disadvantaged groups in the society. During the COVID19 pandemic, the Company has provided medical equipment to public health agencies, co-established the center for COVID19 patients and provided a place for a vaccination unit in the community. As for "Smart People," it means developing employees to have knowledge and competence through a Competency Development program for employees to be equipped with practical skills. Competent employees help drive the organization to achieve the objectives and strategies to support sustainable business growth. In the corporate governance aspect, the Company has adapted to various challenges by implementing risk management principles and business continuity planning to be able to address the stakeholders' needs throughout the value chain.
In 2022, the Company will celebrate its 60th anniversary from its beginning as a manufacturer of automotive replacement parts (REM), developed into a manufacturer of automotive parts (OEM), to being listed in the Stock Exchange of Thailand. This shows its determination to adapt to the changing context of the world. This year, the Company has undergone another significant change to revise its vision, mission, and business restructuring. As a result, Somboon Advance Technology Public Company Limited (SAT) has restructured from being a holding company and operation company to a holding company only by transferring a part to Somboon Forging Technology Co., Ltd. (SFT) so that the Company can support the expansion and growth of the Company in the future
Finally, on behalf of Somboon Advance Technology, I would like to thank you for the support from all sectors, which together help drive sustainable business growth. We strongly believe that this dedication and collaboration will benefit the environment, economy, and society and lead the companies in the group to move forward steadily and sustainably.