Message from the Chief Executive Officer

Dear Shareholders

Mr. Anavin Jiratomsiri
Chairman of Executive Committee

The year 2019 marked a major change in billet production and distribution of CHOW. The Company has diverted into a new business direction by establishing the Original Equipment Manufacturer (OEM) service, with an improvement of production process and machinery development and installation to enhance production efficiency, leveraging product quality and broadening product types. The development was initiated at the beginning of 2019 and the Company estimates the re-start-up during the first quarter of 2020. The OEM business will enable competitiveness of the Company in steel industry, generate continual revenue and reduce risks from volatility of the global steel price.

In regard to the alternative energy, in 2019, the Company has put more investment in several the solar power plants in Japan. During the year, the solar power plant in Aomori city, Japan with a production capacity 7.21 MW has started its commercial operation date. As a result, as at 31 December 2019, the Company has a total production capacity for commercial distribution 67.12 MW, which includes projects in Thailand with capacity of 6.62 MW, and projects in Japan capacity of 60.50 MW, contributing to the increase of production capacity when comparing to the commercial distribution of 65.8 MW in 2018. However, to follow the strategy that aims to generate revenue and bring about the highest benefits to the entity, during the year, the Company has disposed 5 solar power plants to the Infrastructure Project Fund in Japan with a total production capacity 5.85 MW.

Moreover, the Company has sought for an opportunity to invest in a solar power plant in abroad during the previous year and has conducted a feasibility study and applied for permission to establish a solar power plant in Australia, a country with a high growth rate of alternative energy as a result of support from the government and private sector. The Company plans to expand the investment continuously to embrace the business potential in the near future.

For this 2020, the Company persists on choosing the fine and valuable benefits to all shareholders by broadening the investment in solar power plants in Japan and Australia with ongoing support. We will as well carry on devoting our effort in the upstream business - steel to cultivate stable and robust growth while constantly searching for opportunities and progressing business amid the changes of trend as to enhance business contingency and continued development of corporation for interest of all shareholders.

On this occasion, I would like to express my sincere gratitude to all shareholders, customers, trading partners, sponsors, employees, business alliances for your support and trust in CHOW. It always been a commitment of the Company that we will conduct business adhering to a concept to create sustainability, with productive, transparent and ethical management, taking into account interest of all shareholders as well as the missions to lead the Company toward the goal set forth.