Mr. Poonphiphat Tantanasin

Chief Executive Officer

Mr. Poonphiphat Tantanasin

Chief Executive Officer

To All Stakeholders

In 2022, economic situations of the world, Asian region, and Thailand was economically affected by COVID-19 Pandemic that has not been recovered yet as well as affected by the war between Russia and Ukraine causing problems against economic system throughout the world, increase of oil price, in crease of production and service costs, fluctuations of Thai Baht per US dollar, and increase of inflation. These elements increased business costs making some entrepreneurs in Thailand and overseas had to slow down business expansion due to concerns on risks affecting to manufacturers in supply chain. In addition, since consumers had to spend money carefully, economic numbers of Thailand were only expanded by 2.6% in 2022.

“QTC” is also another company that has been avoidably affected by both incidents leading to increase of major material costs imported from overseas, for example, silicon and copper, as well as transportation cost and fluctuation of currency exchange rate. Consequently, the Company’s financial costs were increased whereas expansion of industrial sector and construction of real estate industry in Thailand and overseas as well as investment of government sector still slow down. As a result, competitive of transformer market, which is the major business of “QTC”, is quite high.

However, ”QTC” has performed all actions carefully through risk management process with cooperation from employees, profession of management team, and reliability from all stakeholders who are still confident with our brand and services. Year-end turnover (of specific business) showed that income from sales and services was 1,164.57 million baht that was increased from 2021 by 12.14% whereas net profit was reduced from 2021 by 0.69% or net profit of 8.38% per sale volume. For turnover of consolidated Financial Statements, total income was 1,216.45 that was increased from 2021 by 3.79% whereas net profit was reduced from 2021 over than 80% due to update of loss impairment on lands, buildings and equipment, electrical network connection service fee and power purchase agreement in consolidated Financial Statement as well as amortizing deferred tax assets in Financial Statement.

With the war between Russia – Ukraine, there is no signal when it will be stopped and what sanctions would be added by USA and alliances. If this war is still prolonged, it will affect to economy throughout the world unavoidably. Therefore, in 2023, it will be another challenging year of QTC but we still remain our determination to develop transformers that is our major business to have higher electric quality and properties equal or than to those of international standard by focusing on manufacturing products that can reduce consumption of electric energy and emission in order to respond to complete demands of customers. It is expected that the corporate group will remain our strength and growth to be over than 10% from 2022.

For internal management, the Company still emphasizes on personnel development and promotion of best practice on Environment, Social, and Governance (ESG).

Environment (E): It is performed by promoting “Green Couture” in organization through operational process and innovations in order to reduce environmental impacts. The Company sets the goal of the Company to become Carbon Neutrality in 2035 and Net Zero in 2050. Therefore, it is highly necessary for the Company to adjust our behavior and improve our operation process, tools, machines, and vehicles while increasing green energy consumption, etc., in order to achieve our goal and future of new generation with the right to live in good environment.

Social (S): The Company also promotes “Safety Couture” building consecutively. In 2022, number of accidents reduced from 2021 over than 22% due to seriousness in taking operations under safety measures with promotion measures for reducing accidents. The goal of the Company is still Zero Accident and the Company still emphasizes on participation in community development. In 2022, the Company held a seminar activity, “Community Seminar: QTC Meets Community”, that was participated by representatives of community and local government agencies in order to seek for demands that were beneficial for public and society. From mutual consulting, there are some projects that are under supporting capability of “QTC” and most of them are in educational sector. These projects will be mutually established and operated in 2023.

Governance (G): The Company highly promotes and emphasizes on Best Practice. Every executive must be the good model and all employers must be strictly under defined practices that are mutual obligations. All operations must be transparent and accountable for obtaining reliability from all stakeholders. We properly realize that emphasis and actual action taken with 3 dimensions, i.e., ESG: Environment, Social, Governance, along with responsibility will enable the Company to grow sustainably.

Finally, on behalf of the Board of Directors, executives, and employees, we would like to express our gratitude to all shareholders, customers, business partners, general people in communities, and stakeholders in all groups for supporting and encouraging us properly. We would like to promise that we will perform all actions under provided vision, missions, and sustainable development framework as well as strive to develop our processes, tools, machines, and human capital to be steadfast among social and economic changes sustainably and stably.