Dear Shareholders of Singer Thailand Public Company Limited.
The past year, 2018, has been a challenging one in conducting the business operations of the Company, after having achieved an Operating Loss situation in the first Quarter as a result of having to make a fairly high provision in our accounts. However, the Management then determined new business plans and revised operating strategies so as in to result in the return to a normal positive operating situation in achieving profits once again in the subsequent Quarters.
The overall operating performance results for full year 2018 is a Total Net Loss of Baht 80.8 million compared to the Total Net Loss of Baht 9.8 million in the previous year, that resulted mainly from high expenses relating to losses from loans write-offs and from the provisions for doubtful debts together with the increased total finance costs. Nevertheless, the Company did achieve increased total revenues, whereby the full year 2018 Total Income increased from Baht 2,363.40 in 2017 to Baht 2,888.00 or equal to an increase of 22.2% year-on-year.
As for 2019, the Company has set a target to increase its business from loans that use vehicle license ownership documents as a collateral, which totaled Baht 950 million in 2018, as well as through enhancing further stable growth from hire purchase customer loans together with those customer loans that use vehicle license ownership documents as a collateral, since these loans have collateral and thus tend to be of good quality, coupled with the fact that they now come under the oversight of the Bank of Thailand. As such, the competitive activities will be equitable, and it will be an opportunity for the Company to create a new product category so as to enter and gain an increased share of this new segment of the loans market. Apart from the loans business that uses vehicle license ownership documents as a collateral, the original core loans business of Singer Thailand were hire purchase loans for electrical appliances, that also have quality control measures in place through the use of information and communications technology systems to more effectively control the various selling processes together with the established new payments channels to receive loans repayments which allows sales representatives to maintain ongoing contacts with the customers in collecting their installment payments. Furthermore, the Company is still able to focus on giving hire purchase loans for those products that have a high Gross Margin but low risks.
Additionally, the Company is still focusing on expanding the Singer retail business franchise, so as to continue increasing its overall market coverage and access to as many potential customers as possible.
2019 will also be another important milestone for the Company, as it will be the 130th Anniversary of the Company. It will be another year in which the Company will prove to the Shareholders to have continued confidence in the Board of Directors and the Management in being fully committed to lead the Company together towards further growth on a continuing and stable basis, so as to achieve the set business objectives and goals. Furthermore, all the Company’s staff have shown their respective intent to fully devote themselves in carrying out their work and driving the Company towards the successful achievement of established goals, together with being mindful to maintaining their responsibilities towards society through supporting and helping local communities to be able to stand on their own with a positive foundation and in a sustainable manner; whereby further details of this aspect are described in this Annual Report in the Section on “Corporate Social Responsibility”.
The Company would like to take this opportunity to thank all our Shareholders, customers, clients, and business partners together with the Management and all our staff for your participation in supporting the Company to grow its businesses on a continuing basis; as well as to especially thank our Shareholders for continuing to always give us the trust and confidence in a positive manner.