Mr. Poonphiphat Tantanasin

Chief Executive Officer

Mr. Poonphiphat Tantanasin

Chief Executive Officer

To All Stakeholders

According to the situation of the new coronavirus disease 2019 outbreak or the newly emerging COVID-19 since the beginning of the year 2020, it has affected people's lifestyles. Everyone needs to change and adjust their daily life behaviors to a New Normal to ensure the safety of themselves and surrounding people. Organizations or establishments need to adapt their business plans and internal management for the survival of the business. The government needs to enforce more intensive measures to control disease in order to limit the disease outbreak. Of course, this situation inevitably affects Thai and global economies. According to the summary of Thai economic figures in 2020 prepared by the NESDC, it showed the decrease of more than 6%, while the IMF concluded that the global economic figures shrank more than 3% from the year 2019.

“QTC” is one of Thai private organizations affected by the COVID-19 crisis. The impacts occur to the business plans and the goals of the corporate growth. However, since the Company is aware of the outbreak situation and the comprehensive corporate risk management, the Management Committee was specially appointed for the COVID-19 crisis at once to perform the risk assessment in the COVID-19 crisis to cover business activities and also establish measures to prevent the disease outbreak and other measures that will help reduce the economic and social impacts appropriately and provide the safety to employees, customers, business partners, and other stakeholders relating to the business operations of the Company and its affiliates. The Company also reviews and adjusts its business plans regularly in order to be consistent with the current situations and turn the crisis to opportunities for the best interests of the organization and its stakeholders. As a result, regarding the separate operating results at the end of the year 2020, the revenues increased by more than 6% from the year 2019. The proportion of the revenue from sales of products in the solar business and the revenue from services increased over 300% from the year 2019, which compensated the revenue from sales of transformers that decreased by over 5% due to the slowdown of the investment in infrastructure and construction projects caused by the COVID-19 crisis. These affected domestic and international customers of “QTC” in the group of transformer products. At the end of the year 2020, the Company’s separate net profit increased by over 14% from the year 2019. Regarding the operations of Q Solar 1 Company Limited in 2020, the revenue and net profit slightly decreased from the year 2019 because there were additional public holidays in 2020 compared with the year 2019. As a result, the revenues from power consumption per unit decreased while the power generation capacity did not decrease significantly.

The corporate management in 2020 was conducted carefully. A lot of processes had been adjusted in order to provide safety to the personnel while the business could be operated without interruption. As a result, there were a number of new innovations in work processes. The adjustment of management processes during the COVID-19 crisis causes certain measures established by the Company to possibly affect the customer's right to perform the incoming inspection at the laboratory or possibly affect the supplier's material delivery process or affect the rights and freedom or deprive of right for some welfares of employees. The Company understands all groups of affected persons and received good cooperation from concerned parties. However, the Company still pays attention to human resource development and promotes the best practice for environmental, social, and governance (ESG) under the limitation of the COVID-19 outbreak situation. The anti-corruption policy has been updated to be in line with the changing practices. In addition, environmental management processes are studied and developed to mitigate impacts and promote activities to create happiness in the organization continuously.

Regarding the management of occupational safety which is the major risk of the Company, the number of work-related accidents occurred in 2020 were higher than that of the year 2019, which mainly caused by the careless operations of employees. The executives and the Board of Directors pay attention to this matter and establish the policy and approaches to improve the high effective safety management process in 2021 and maintain the goal of Zero Accident.

Regarding the engagement in community development in 2020, some projects planned and established by the Company needed to be canceled or postponed for the health safety of all concerned persons. However, the Company realizes that the COVID-19 outbreak situation has affected the daily life of people nationwide. Some people are unemployed, have no income, lack of food and essential supplies for infection prevention. As a result, the Company established the project to help people affected by the COVID-19 crisis by providing 300 sets of bags for dry food, beverages, alcohol gel, and face masks and distributing them to 3 communities in the area where the Company and its subsidiaries are located. In addition, 4,000 face masks for students were also provided to 5 schools in Rayong where the factory is located. A "Pansuk Transformer" cabinet is also located in front of the factory to allow employees or the general public to act as a giver by donating food or essential items into the cabinet for those affected who can take such items back as needed. It is mutual assistance based on the availability and ability to keep our business, our society, and our nation safe.

Finally, on behalf of the Board of Directors, all executives, and employees, I would like to express my gratitude to shareholders, customers, business partners, the general public in the community, and all groups of stakeholders who have always provided great support and encouragement to the Company. We promise to operate businesses based on the specified vision, mission, and framework of sustainable development and strive and dedicate to develop processes, tools, machineries, and human capital to survive stably and sustainably in the midst of economic and social changes.