Message from the Chairman of the Board

Message from the Chairman of the Board
Kang Yong Electric Public Company Limited

During the fiscal year 2024, both the global and Thai economies continued to face persistent challenges arising from various external factors, including global economic volatility, inflationary pressures, rising raw material costs, and the impact of geopolitical tensions between the United States and China. In response, the Company implemented adaptive measures to align its operations with the prevailing economic slowdown. These measures focused on effective raw material cost management, maintaining production efficiency despite lower production volumes, reducing non-essential expenses, and postponing low-return investments.

Throughout the year, the Company was affected by higher raw material and energy costs, as well as exchange rate volatility. In addition, changes in consumer behavior and the acceleration of digital transformation have significantly influenced the overall operating landscape of the electrical appliance industry. Accordingly, the Company adjusted its strategies to address these challenges by emphasizing the reduction of production lead time as part of its supply chain management improvement initiatives. The Company also adopted AI and IoT technologies in its manufacturing processes to enhance the speed and accuracy of product quality management, while continuing to focus on product development and value-added innovation to strengthen competitiveness and better meet customer needs.

For the operating results in 2024, the Company recorded a gross profit of 624 million baht, representing 10.3% of revenue from sales and services, a decrease of 3.4 percentage points compared to 13.7% in 2023. This decline was primarily attributable to the prolonged economic slowdown, which adversely affected consumer purchasing power. Net profit amounted to 703 million baht, or 11.6% of revenue from sales and services, representing an increase of 1.13 percentage points compared to 10.42% in 2023.

The Board of Directors has resolved to propose to the 2025 Annual General Meeting of Shareholders the approval of a dividend payment at the rate of 17.80 baht per share, equivalent to 50.17% of net profit, totaling 352.4 million baht.

Looking ahead to 2025, Thailand’s economic growth is expected to decelerate due to several factors, including political uncertainty, persistently high household debt levels that continue to weigh on consumer purchasing power, and negative impacts from the tourism sector as tourist arrivals decline. As a result, the Company may face challenges with domestic sales performance. Furthermore, exchange rate volatility, the global economic slowdown, retaliatory trade measures by the United States, and rising global oil prices driven by geopolitical conflicts across multiple regions pose additional downside risks that could exert pressure on the Company’s overseas sales.

The Company continues to place strong emphasis on conducting business with due regard to environmental, social, and governance (ESG) principles. Investments have been made in clean energy initiatives such as solar power systems, environmentally friendly packaging, and energy-efficient machinery, as well as community and stakeholder engagement projects. These efforts reaffirm the Company’s commitment to sustainable growth.

In addition, the Company has established concrete policies to reduce greenhouse gas emissions, including the implementation of Corporate Carbon Footprint (CFO) initiatives and a commitment to develop Product Carbon Footprint (CFP) in the future. The Company aims to achieve net-zero greenhouse gas emissions for Scope 1 and Scope 2 by 2030, and for Scope 3 by 2050, through the increased use of renewable energy, reduction of fossil fuel consumption, improved production efficiency, and adoption of environmentally friendly technologies.

On behalf of the Board of Directors and management, I would like to express my sincere appreciation to our shareholders, business partners, employees, and all stakeholders for their continued support and trust. The Company remains committed to achieving stable and sustainable growth while continuously creating value for all stakeholders under our new business philosophy: “Innovating for a Better Tomorrow.”