Message From The Chairman
Dear Shareholders of Singer Thailand Public Company Limited
2016 was a year of great sadness for the Thai people with to the passing away of His Majesty the late King Bhumibol Adulyadej, the much beloved monarch of all Thais. On behalf of the Board of Directors, the Management and all Staff, we humbly mourn in remembrance of His late Majesty’s endless benevolence and compassion for the Thai people, as well as prostrate at His feet to say farewell as His late Majesty ascends up to the heavens and pledge to carry on His various Royal Initiatives for the future benefit of the country.
Despite being a period of much sadness since last year, the Management Group and all Staff of the Company still need to continue discharging their respective duties and responsibilities with full commitment, honesty, and virtuous moral standards. As such, 2016 was also another year of great changes for the Company both with regards to its overall corporate structure and business operating model; whereby such changes are considered to be for the better and take into account the overall maximum benefits of the Company and its Shareholders.
As for the operating performance results for full year 2016, the Company achieved Total Consolidated Revenues of Baht 2,545.6 million, a decrease from Baht 3,394.6 million in 2015 or equal a decrease of 25.0% year-on-year (YoY); together with achieving a Total Net Profit of Baht 119.8 million compared to a Total Net Profit of Baht 143.2 million in the previous year or equal to a decrease of 16.3 % YoY. This then resulted in an Earnings per Share (EPS) of Baht 0.44 for 2016 compared to an EPS of Baht 0.53 for the previous year.
While overall Total Consolidated Revenues decreased YoY, at the same time gross profits increased due to the increased margins gained from sales of consigned products together with compensation received from mobile phones airtime services providers, as well as from fees received in executing hire purchase agreements and for late monthly payment fines that increased by 68%YoY or totaling Baht 108.3 million. As such, sales of the core products have decreased YoY for every Quarterly period, except for sales of Petrol vending machines, sewing machines, and Air Cooler that all achieved increased sales. This resulted from the ongoing domestic economic slowdown and slow economic recovery, the continued low agricultural commodities prices, and continuing increase in average household debts. This decrease also resulted from the changes made in the hire purchase services model so as to better to focus on the high quality hire purchase accounts and to prevent against acts of fraudulence; changes made in the credit approval system and procedures by the Credit Control Center; and also changes in the customer hire purchase collections procedures from being made by sales staff to customers making direct deposits to the Company’s bank account via various convenient payment channels - such as, banks, post offices, counter service outlets, and even online mobile banking services applications on smart phones. This is a temporary changes in the customers payment procedures while further more permanent changes in the business operations are being implemented. Additionally, as at the end of 2016, the Company had 177 branch outlets together with more than 9,000 effective direct sales representatives, with plans to add up to 20,000 new direct sales representatives so as to support the continuing growth of the Group of Companies.
Given the current economic slowdown, recovery of overall domestic demands has been slow together with decreased consumer consumption, low purchasing power in the private sector, and average household debts still increasing - especially in the provinces. As such, the Company undertook various measures to exercise strict control of hire-purchase accounts together with closely overseeing and following up on those hire-purchase accounts that have long overdue payments. This is in order to prevent any possible acts of fraudulence and to take follow up actions to resolve these late payment accounts in a timely manner, or to extend the repayment period so as to provide some financial relief for customers with regards to their burden in meeting monthly repayments. Furthermore, the Company has also taken actions to reduce its costs and various expenses so as to manage the overall cost of doing business in a more effective manner.
Additionally, the Company has research and studied various projects and business plans, in order to find ways to increase overall total revenues for the organization - such as: making further development of existing products to make them more modern and launching new attractive products to meet the needs of the consumers and customers, together with developing additional revenue streams relating to the mobile airtime sales business or car for cash business, etc.
In order to facilitate ongoing sustainable economic and social development of our Staff and customers as well as of local communities and the country and society as a whole, the Company continues to be confident and always by fully aware of its corporate social responsibility and associated contributions. As such, during the past year, the Company and all its Staff have collaborated together in undertaking various activities and projects so to support as well as help improve the livelihood and positive environment of local communities on a continuing basis, that are based on achieving sustainability. Further details of such activities and projects relating to the Company’s Corporate Social Responsibility (CSR) are given in the Section on CSR in this Annual Report document.
Lastly, despite the overall economic and business situation continue to be challenging for the Company throughout 2016; and the Board of Directors and the Management Group have always continued to be strongly committed to enabling the Company to achieve its stated business objectives and goals. Additionally, all the Company’s Staff have also continued to devote their physical and mental efforts in joining together to undertake their assigned work activities, in order to help drive and eventually realize the stated goals of the Company.
The Company wishes to take this opportunity to thank all our customers and clients, the Management, and all our Staff together with the Company’s Business Partners, all of whom have always given their positive support and kind assistance in many various ways. Most importantly, we also wish to thank all our Shareholders for their continuing positive confidence and trust in the Company, as always.