Dear Shareholders of Singer Thailand Public Company Limited.
For the Company, 2019 can be considered to be one of the most successful year in terms of achieving the best positive operating results with the highest Total Consolidated Net Profit for the past 5 years. After 2018, the Company endeavored to revise its strategic management focus together with controlling its operating costs - especially its distribution and debtors administrative expenses to be at the most appropriate level for its business operations - in order to achieve positive net performance results.
For the full year 2019 operating performance results, the Company achieved a year-on- year (YoY) 305% increase in Net Profit that totaled Baht 165.89 million compared to a Total Net Loss of Baht 80.77 in 2018; whereby it is the highest achieved total net profit for the past 5 years. As for total revenues, it was at Baht 2,610.37 million, a decrease from the previous year’s total revenues of Baht 2,889.0 million, or a decrease of 9.61% YoY, as a result of the focus being on achieving profits. Despite the lower Total Sales Revenues, the Singer Group of Companies still achieved an increase in the overall Gross Profit Margin to be at 40.4%, since the Company focused on selling those products having a high gross margin together with also focusing on controlling and reducing distribution costs from the previous year. At the same time the overall achieved level of Non-Performing Loans (NPL) was 9.4 %, which is considered to be the lowest for the past 3 years
For this year, the Company is targeting to grow its ‘car for cash’ loans business that uses vehicle ownership licenses as a collateral. This is subsequent to the Company receiving the personal loans business license under the supervision of the Ministry of Finance, which will give confidence that the Company will operate this business in an equitable manner and in accordance with the rules and regulations of the Bank of Thailand with regards to its market conduct. It is also an opportunity for the Company to build up a new category of consumer credit business to attract an increasing new generation of customers. Apart from personal loans using vehicle ownership licenses as a collateral, the electrical appliances hire-purchase loans are also being better supervised and managed through the use of information and communications technology so as to more effectively control each process in the credit approval procedures. The Company will continue to focus on promoting and selling the Singer Franchise business, in order to expand this business and achieve maximum market coverage
Y 2020 is considered to be a challenging year for the Company’s business operations. The Board of Directors and the Management recognize and are well-aware that the economic environment and the political situation together with other negative external factors will all have an impact on the operating performance results of the Company in the immediate future. The ability to maintain sales revenues and to effectively control costs as well as to continue managing the Company’s loans customers in remaining good quality borrowers are all key strategies that the Company must adhere to and manage within the current economic environment. As such, the Company hopes that Y 2020 will be another year in which the Company can prove to its Shareholders and other involved Stakeholders that, under the supervision and management of its Board of Directors and the Management, it will continue to drive future business growth for the Singer Group of Companies, as well as will achieve the set business targets as planned. Additionally, all our staff have demonstrated their intent and full commitment to devote the energy and collective will in discharging their responsibilities so as to drive the successful achievement of the stated goals of the Company; as well as recognize the need to continue being responsible towards society through giving ongoing active support and help to local communities in being able to be stand up by themselves and be self-sufficient on a firm and sustainable basis; whereby further relevant details are given below in the section on “Corporate Social Responsibility” in this Annual Report.
Singer Thailand Pcl., would like to take this opportunity to thank all our Shareholders, customers, Business Partners and Suppliers together with the Management and all our staff for the valued participation in supporting the Company to achieve continuing business growth. The Company wishes to assure every party that it will conduct its businesses in a professional manner; as well as will further develop the capabilities of the organization together with implementing its policies for corporate social responsibilities so as to be a positive role model for society and to enable the overall society to have ongoing improved quality of life.