Mr. Poonphiphat Tantanasin

Chief Executive Officer

According to geopolitical tensions caused by the battle between Israel-Hamas, Red Sea attacks, the war between RussiaUkraine and strategic competition between USA and China, economic condition of the world and Thailand has been affected unavoidably. Especially, higher price of energy cost increases production cost, transportation cost, and service fees. High level of problems on fluctuation of Thai baht against US dollar, inflation, and interest policies are considered as another factor causing industrial entrepreneurs to slow down investment or expansion of their enterprises in order to reduce risks. Although tourism’s revenue was increased in 2023 due to promotional policies of government, there was no significant investment in expanding hotel and accommodation business.

Such situation affects “QTC”, especially, costs of major materials, for example, copper, steel, transformer oil, and other things that must be imported from overseas. These effects increase production cost of transformer manufacturing and transportation whereas expansion of industry and real estate still slows down. Although Thai government invests in electric transformer business, price competition remains high.

However, in 2023, “QTC” still operated business carefully through organizational management process and expanded business on clean energy equipment while providing knowledge and building QTC brand to students in engineering and technical fields of various universities throughout Thailand in order to provide then some future opportunities after graduating and working in industrial field. Furthermore, “QTC” has also gained cooperation from employees and teams incorporated with truest from all stakeholders who always remain confident in brand and services of “QTC”. Business profits at the end of year (specific business) revealed that the company earned income from selling products and providing services in transformer business in the amount of 926.22 million baht and income from selling products in solar business in the amount of 359.70 million baht plus with other incomes in the amount of 23.19 million baht. Therefore, total income of the company was 1,309.21 million baht that was increased from 2022 by 10% with net profit of 48.04 million baht that was decreased from 2022 over than 50% due to internal factors as mentioned above. For business profits in consolidated financial statement, it was found that total income was 1,360.91 million baht that was increased from 2022 by 4% with net prfit that was increased from 2022 over than 300% (there was impairment of Q Solar 1 Power Plant in 2022).

With occurred geopolitical tensions with no sign of cessation whereas its continuity will unavoidably affect to economy throughout the world and Thailand as well as “QTC”, this year of 2024 will be another challenging year against abilities of “QTC” whereas executive team of “QTC” has already planed to deal with various dimensions of risks. In addition, “QTC” will operate business based on business plans given to stakeholders carefully with the aim to strengthen the company group with 10% growth.

Besides dealing with economic impacts in 2023, “QTC’ also encountered with a cyber-attack that was considered as force majeure that could not be prevented. However, with comprehensive risk management, we could recover our system without causing any affect against any data and the company has been able to operate business continuously without paying any money to cybercriminal. For internal management, the company still emphasizes on personnel development and promotion on best practice regarding ESG (Environment, Social, and Governance) based on defined policies.

For environment (E: Environment), “Green Culture” has been promoted in the organization via work process and innovation in various dimensions in order to reduce environmental impacts. The company declared the goal on Carbon Neutrality before 2035 and Net Zero before 2050 highly requiring us to adjust our behaviors and improve our operational process, tools and machines, and vehicles to increase the use of clean energy, to achieve our goals, and to give the right to live in good environment to next generation. In 2023, operations had been performed based on short-term and long-term plans continuously in order to achieve defined goals.

For society (S: Social), the company has promoted “Safety Culture” continuously that is the important risk against “QTC”. In 2023, number of accidents increased from 2022 by 11% with tendency of higher level of severity. From cause analysis conducted by the Safety Committee, it was found that most accidents were caused by negligence of operators and harmful environment that were emphasized and concerned by the company’s executives and Board of Directors therefore they provided new and comprehensive risk assessment and budget for improving and preventing reoccurrence while aiming to the goal of Zero Accident. Moreover, the company also emphasizes on participation in community development. In 2023, the company held the 10th “Community Discussion: Community Meets QTC” participated by community’s representatives and local government agencies to discuss and find useful demands for community and society. From mutual consulting, there are some projects that are under supporting capacity of “QTC” and most of them are in educational field in the form of mutual projects. These projects will continue in 2024 whereas operations in 2023 made assessment community engagement in the level of 96.90%.

For governance (G: Governance), the company has highly promoted and emphasized on best practice. All executives must be the good models and all employees must be under defined practice. This is considered as the mutual and strict commitment. All operations must be transparent and accountable in order to build trust of stakeholders comprehensively. In 2023, “QTC”passed ethical assessment and received the 21st TCC Best Awards of 2023 from Dr. Sumet Tantivejkul, the secretary of Chaipattana Foundation. In addition, we properly realize that giving emphasis and actions to these 3 dimensions (ESG: Environment, Social, Governance) simultaneously with responsibilities will enable the company and related stakeholders to grow together sustainably.

Finally, on behalf of the company’s Board of Directors, executives, and employees, we would like to express our gratitude to all shareholders, customers, trading partners, general people, and all groups of stakeholders who always support and encourage the company properly. We would like to promise that we will perform all operations based on our vision, missions, and given sustainable development framework. In addition, we will strive and dedicate to develop production process, tools, machines, and human capital among economic and social changes sustainably and stably.