In the past decade, 2023 turned out to be the most turbulent year for the global economy. Initially, it seemed like the world economy was recovering from the COVID-19 pandemic. However, the resurgence of the war between Russia and Ukraine disrupted this progress, leading to another economic downturn. This conflict, along with ongoing tensions between various countries, led to problems such as soaring oil prices and transportation costs, causing severe inflation worldwide. While our country did not face inflation as severe as Western nations, we still felt the pinch due to skyrocketing costs of raw materials and energy. Prices of some imported raw materials surged by up to 36 percent, and electricity prices jumped by about 15 percent. Consequently, the cost of our main raw material, cement, shot up by around 20 percent. These hikes significantly increased our production expenses. To address this challenge, our management team worked diligently. We explored alternative sources for raw materials, negotiated better prices, and optimized our raw material usage to cut costs where possible. However, despite our efforts, we could only mitigate the impact to a certain extent. Ultimately, we had to adjust the prices of certain products to reflect the increased production STATEMENT FROM THE CHAIRMAN “Excellent” Corporate Governance by the Thai Institute of Directors. costs. This price adjustment naturally affected our sales, but we were fortunate that our customers and consumers understood the situation. They recognized the need for these adjustments and accepted them positively, supporting our company through this challenging period.

For last year’s operating results, with the diligence of every executive and employee, the company achieved product and service sales of 5,631.15 million baht, reflecting a 7.63 percent increase from year 2022 sales of 5,232.11 million baht. This increase was driven by higher production costs. Consequently, the company recorded a net profit of 623.89 million baht, a 0.93 percent increase from year 2022 net profit of 618.15 million baht (excluding special items from reversing reserves for impairment of investments in subsidiaries), which was lower than the high sales growth rate. However, the committee observed that the company had a strong cash flow statement and robust statement of financial position, indicating no issues with debt repayment. Therefore, it was resolved to propose to shareholders to approve the payment of dividends for year 2023 at the rate of 0.52 baht per share, a 4 percent increase from the previous year.

In terms of production, the company maintained a high utilization rate of its production capacity and had to expand capacity for certain products. The concrete tile production expansion project, initiated in 2022, progressed to approximately 90 percent completion and is anticipated to commence testing and production around May 2024. Additionally, to address market demand and ensure business sustainability, the board approved investment in expanding the production capacity of lightweight bricks by an additional 163,200 tons per year during the December 2023 meeting, with a total investment of 648 million baht. Construction is scheduled to commence around mid-2024, with production slated to begin in 2025. Routine maintenance operations, such as constructing additional exhibition rooms at both Factory 1 and Factory 2, proceeded as usual. Furthermore, the company purchased an additional 25 rai of land adjacent to Factory 2 this year to prepare for future expansion, bringing the total land area of Factory 1 and Factory 2 to over 336 rai.

In terms of corporate governance, last year the company received the “Sustainable Stock” award or Thailand Sustainability Investment (“THSI”) for the 7th consecutive year, spanning from 2017. In 2023, following a name change by the Stock Exchange of Thailand from THSI to SET ESG Ratings, the company was rated AA in the real estate and construction sector. Additionally, it garnered other accolades from the Stock Exchange of Thailand, Thai Institute of Directors Association (IOD), and other capital market-related agencies. Regarding the company's performance, it was generally evaluated at a higher level than the standards of listed companies across the market in every category.

At the year 2023 annual shareholder meeting, Mr. Sakda Maneeratchatchai, currently serving as the Independent Director and Chairman of the Audit Committee, expressed his intention to resign. Similarly, Mr. Anun Louharanoo, currently serving as an Independent Director, member of the Audit Committee, and member of the Nomination and Remuneration Committee, indicated that his term as a director would expire and he no longer wished to be re-elected. Both have been directors since the company became listed, contributing their considerable knowledge, abilities, and experience to the company’s business. They have dedicated their energy to the company, and their tenure coincided with a period of prosperity for the company up to the present. The committee wishes to gratitude for their service while also announcing the vacancy of the director positions. Consequently, the committee resolved to propose Mr. Somjai Phagaphasvivat, an independent academic with expertise in both national and global economic matters, who has previously served as an economic advisor to the Prime Minister under General Prayut Chan-o-cha, as a candidate for the position of independent director to replace Mr. Anun Louharanoo. Additionally, the committee resolved to appoint Mr. Chak Chulakiat, a new-generation interior designer with a reputable portfolio and numerous successful projects, as an independent director to replace Mr. Sakda Maneeratchatchai. It is believed that both candidates will bring valuable knowledge, abilities, and experiences to further strengthen the administration of the committee.

Lastly, the committee extends its heartfelt gratitude to the customers and consumers of the company's products. We deeply appreciate your understanding of the challenging circumstances and your acceptance of the necessary product price adjustments. Your continued support for our products is invaluable, and we are truly grateful. We also want to express our thanks to all distributors who have played a vital role in efficiently distributing our products, enabling the company to achieve its goals. To all executives and employees, we extend our sincerest appreciation for your hard work and dedication throughout the year, as you do every year. We would also like to thank the shareholders for their unwavering encouragement and trust in the company. Your support is crucial to our success. As we look forward, the committee hopes that 2024 will bring even greater prosperity, both for the company and for the country as a whole. Thank you.

Mr. Prakit Pradipasen
Chairman of the Board