Message from the Chief Executive Officer

Dear Shareholders

Mr. Anavin Jiratomsiri
Chairman of Executive Committee

In 2021, Chow Steel Industries Public Company Limited and its subsidiaries continued their steady and stable growth. Although, the Group’s business was affected by the COVID-19 pandemic, both in the steel and energy businesses. Steel business: The production line was stopped due to COVID-19 impairment. However, with this stoppage, the company took the opportunity and invested in a new factory and improved the products and production process to serve customer orders for various types of products to be more competitive in the market in 2022. The management planned to resume production and started to receive orders in the 1st quarter of 2022.

Energy business: The Group has gradually completed the transfer of 4 solar power plants in Japan with a total capacity of 5.1 MW(DC) to the buyer. As a result, the Group recorded a gain on sale of the said power plant projects amounting to Baht 45.3 million. The sale of the power plant projects was in accordance with the contract signed by the Group in December 2020 and is in line with the Group’s strategic plan which is to achieve the highest profitability and expand the power plant business for sustainable growth. However, the Group is still affected by the COVID-19 situation, which is becoming more and more prevalent in Japan. This has caused an unavoidable delay in the delivery of the remaining power plant projects. Management expects that the remaining four projects with a total capacity of 56.9 MW(DC) can be delivered by the first quarter of 2022.

Green energy is one of the megatrends where both the government and the private sector have started to pay more attention and support the use of alternative energy and reduce the usage of oil, which has higher costs. It is an opportunity for the Group to expand the business by taking advantage of the cash flow generated from the sale of the solar power plant projects in Japan to re-invest in solar power projects in both domestic and overseas markets. In 2021, the Group has signed power purchase agreements with private sectors in various industries (private PPA) total of 28.15 MW(DC) and is expected to start selling power commercially from the 2nd quarter of 2022 onward. The Group already has PPA projects in domestically totaling of 6.6 MW(DC), resulting in the Group’s total solar power plant projects generation capacity of 34.75 MW(DC) in Thailand. On the other hand, the Group will look for more opportunities to develop solar power plants in Thailand and leverage our expertise and valuable technical skills for new projects to generate higher revenue and profits for the group.

The Group’s overall performance has steadily improved. This is due to the implementation of the strategic plan, which is reflected in the positive operating cash flow of the Group. In addition, the company also improved on its profitability which was reflected by EBITDA margin reported at 678.67 million Baht which is a 10 percent increase YoY.

Conclusively, the Company Group would like to express our gratefulness to shareholders, debenture stockholders, joint venture, vendors, business partners, customers, and all related persons, local and overseas financial institutions for your ongoing support of our business operation. The Company Group also praises our employees for their dedication as a part of our robust growth. It is our commitment to conduct business based on the concept to create sustainability to business, effective and transparent management, adhering to good corporate governance, taking into account all stakeholders. The Company Group well aware of the mission to drive the Group toward the goal set forth.