The overall Thai economy in 2018 grew by 4.1 percent, the highest growth in 6 years through growth in private consumption which grew quarterly since the beginning of 2018. This is in parallel with the growth in investment in the private sector which grew by 3.9 percent compared to previous year, in the same direction the global economy which grew by 3.7 percent amidst challenges in the country together with changes in the global economy and international trade such as trends on interest rates and international trade wars. The Board of Directors has taken into account all the dimensions to account for the challenges and risks as well as taken all diligent measures by adhering to the Corporate Good Governance for the upmost benefit of the Company and all of its stakeholders.

For the fiscal year 2018, the Company continue to expand its investments from the year 2017 restructuring its food related business shareholding structure. The Company has invested in new businesses with value of more than 3,000 million baht under the concept “Unlocking Investment Possibilities” through joint investment with strategic partners to envision a creation of a sharing economy and smart city. As well as to restructured the financial structure towards long-term debt to be in line with the Company’s assets being able to maintain a healthy cost of debt which in turn will mitigate fluctuation interest rates hikes. In addition, the Company has reorganized its core business groups to provide its stakeholders with a coherent perspective into three business lines (1) investment in consumer products (2) investment in food and beverage (3) industrial park development and other businesses.

Operating results for the year 2018, the Company had revenue of 5,684 million baht, a decrease of 14.4 percent with a net profit of 2,595 million baht, a decrease of 25.8 percent. However, eliminating extraordinary items in 2017 and 2018, the Company’s revenue increased by 9.1 percent and a net profit of 22.7 percent as a result of share of profit from investment in associates and dividend income. In addition, the Company has gain confidence and support from holders of Convertible Debenture No. 1/2017, Due in 2024 (SPI246A), with a request for conversion into common shares within the first year at 99.5% issued. Moreover, the Company has received an assessment result for Corporate Good Governance for Thai listed companies at “Very good” and an assessment result for quality of the Shareholders’ General Meeting at “Excellent” with the Company resulting in a full 100 points for the 10th consecutive years.

2019 will still be a year of transformation and as a Holding Company of Saha Group the Company has construct various plans to readily support the Company and Saha Group of Companies. This is to be able to respond to customer behavior and customer needs according to the advancement in technology and new business models that may replace current business models.

Since the Company’s registration and trading on the Stock Exchange of Thailand in 1977, shareholders’ equity of the Company increase to 28,991 million baht in 2018 or a compounded annual growth rate of 17 percent per year. The Board of Directors would like to express our upmost appreciation and gratitude to all our shareholders, debenture holders, joint-venture partners, business partners, clients, executives, employees, including both domestic and international financial institutions, as well as government agencies and relevant parties for the continued support for the Company. The Company strongly adhere to our principles of “Good People, Good Products, Good Society” to ensure a sustainable growth in the years to come.

Mr. Boonsithi Chokwatana

Chairman of Board of Directors