Message from the Chief Executive Officer

Dear Shareholders

Mr. Anavin Jiratomsiri
Chairman of Executive Committee

Accordingly, the Company Group has adjusted a new business strategy and set forth as guidance for business expansion for 2020, which will mainly concentrate on Thailand.

In 2020, Chow Steel Industries Public Company Limited Group ("Company Group") had passed the adverse impact from Coronavirus 2019 (COVID-19) with satisfied operation results. Despite the lower revenue from sales and net profit this year compared to the previous year, the cash flow profitability from the operation based on gross profit of every business type in 2020 was higher than in 2019. The Company Group's EBITDA significantly increased from the year 2019 thanks to the strategy and business plan adjustment that conform to the current situation with the Board of Directors' aim to achieve sustainable and robust growth amid any scenarios.

The COVID-19 pandemic in 2020 significantly affected the alternative energy business. The pandemic hinders overseas traveling. Therefore, the solar power plant expansion abroad is delayed from the plan. Accordingly, the Company Group has adjusted a new business strategy and set forth as guidance for business expansion for 2020, which will mainly concentrate on Thailand. Since the COVID-19 pandemic is unpredictable, the Company Group is now expanding the power plant projects in Thailand based on our resources, experiences, knowledge, and readiness to start the proactive power plant and /or solar power plant to state and private sectors. The Company Group has jointly invested with partners with wide ranges of expertise of each market to reach more customers and new projects, including government, major private entities, and minor customers. Such expansion will strengthen the personnel of each expertise field, achieving all business groups as planned. Meanwhile, the Company Group continues to seek opportunities to invest in the solar power plant in potential overseas countries with a worthwhile investment return.

In December 2020, the Board of Directors had approved the disposal of solar power plant project in Japan which is consistent to the Company Group's vision and business operation policy which cover the development of renewable power plant, from construction phase until commercial operation date. Upon positive feedback from the market, the Company realizes the chance to expand the power plant to enlarge another project in significant regions, including Japan, Thailand, and Australia. Such a result conforms to the strategic plan for project expansion to generate higher profit, strengthening our financial status, accommodating the investment and continue business promptly once the COVID-19 pandemic is resolved.

Upstream steel manufacturing business: After adjustment of management strategy, from round bar steel manufacturer to OEM of billet, the Company is no longer exposed to the risk of materials and steel bar selling price. Upon new strategic adjustment, the Company relies solely on its knowledge, expertise, properties, plants, and machines as a contracted manufacturer. At present, the Company's preparedness is available for full production orders.

Despite the COVID-19 pandemic, the Company persists in choosing the excellent and valuable benefits to all shareholders by broadening solar power plants' investment in supported countries. We will devote our effort in the upstream steel business to cultivate stable and robust growth while constantly searching for opportunities and progressing business amid the changes of the trend to enhance business contingency and continued development of corporation for the interest of all shareholders.

Conclusively, the Company Group would like to express our gratefulness to shareholders, debenture stockholders, joint-stock companies, 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.