In 2019, the Thai economy fell in the middle of the trade war between the United States and China and interest reduction measures of the United States Federal Reserve to protect the United States’ economy from global economic recession.

The aforementioned situation inevitably caused effects on the Thai economy. Fluctuations in exchange rates of the baht currency and other currencies changed according to the situation with both financial risks and opportunities. The Company had appropriate management measures.

In the aforementioned situation, the Thai government continued to push for use of budgets to develop infrastructure and support the industrial sector and government agencies to use environmentally friendly electrical appliances to reduce direct and indirect greenhouse gas emissions, resulting in an increase in demand and conversion to use high quality transformers capable of meeting SDG indices in the area of climate change at the national level.

Overall, QTC’s economy in 2019, specifically in transformers, electrical appliances and services, showed minor income gains from 2018 at 0.11 percent. Sales and service income amounted to 816.48 million baht and came from the government sector (33.25%), the private sector (33.54%), foreign countries (29.78%) and service income and other (3.43%). Although income in 2019 grew slightly from 2018, the Company was able to profit more. In 2019, the Company had a net profit of 14.55 percent while net profit in 2018 was 0.49 percent. This resulted from modifying strategic plans for 2019 – 2020 to be a year of quality and building strength for the organization with an emphasis on using financial strategies, trade account management policies and inventory management policies as instruments. This created liquidity and financial capacity. In addition, the Company reduced allowances for trade accounts and inventory. In the area of sales and marketing, the Company emphasized on profit and sale expense controls. In the area of production, the Company consistently modified production process to reduce time loss, waste and increase product quality based on Total Quality Management (TQM). Furthermore, the Company added new products for sale in 2019 such as BUSDUCT from Dynamic Electrical SDN. BHD., Malaysia, under the DE BUSDUCT brand, and Solar Inverters from Huawei Technology (Thailand) Co., Ltd. under the Huawei brand to provide another channel for increasing the Company’s income because both types of equipment can be offered to customers who have needs at the same time as transformer sales proposals in order to distribute economic risks and improve the organization’s strength in becoming a future global leader.

Regarding operations of Q Solar 1 Co., Ltd., income in 2019 increased from 2018 by 4.05 percent while management costs and expenses declined from 2018 by 12.87 percent, resulting in a 23.38 percent increase in net profits from improved solar panel efficiency and other equipment for maximum generation capacity.

In the area of significant management in the organization, the Company received a certificate as a member of the Thailand Private Sector Collective Action Coalition (CAC) Against Corruption. According to assessments of employee satisfaction, attachment and life balance in 2019, assessment results were found to be higher than 2018 by 7.46 percent, 5.14 percent and 1.2 percent, respectively. Employee work safety remains an issue recognized by the Company as a risk. The Company creates stringent measures and promotes awareness continually. In 2019, accidents were 17.39 percent less than 2018. In the area of environmental management, the Company remains committed to cost-effective use of resources and management of leftover materials from production. In 2019, the Company was able to follow the Zero Waste to Landfill guideline at 100 percent.

In the area of participation in community development, the Company remains focused on public participation in communities via activities where communities meet QTC. In 2019, the Company organized activities to promote education for students in activity models for creating inspiration and real experience based on issues learned from the activity in 2018. The Company received cooperation from the faculty and students from King Mongkut’s University of Technology North Bangkok in organizing Science Week activities for students in the Mab Yang Phon community. In addition, the Company supported many other activities and projects in the community.

In closing, on behalf of the Board of Directors, executives and all employees, the Company would like to thank shareholders, customers, trading partners, community members and all stakeholders for supporting and encouraging the Company. The Company promises to adhere to the Company’s given vision, missions and sustainable development frameworks. Moreover, the Company will be determined and dedicated in developing processes, tools, machines and human capital in order to be able to stand amidst economic and social change with security and sustainability.

(Mr. Poonphiphat Tantanasin)
Chief Executive Officer