Message from Board of Directors PDF Print E-mail
 
                                         

Message from the Chairman

                                                            

During 2009, Thailand was affected by the economic and financial crisis that emerged and spread throughout the world aswell as the domestic political crisis that severely slowdown investment projects from both private and public sectors.Demand for construction works declined sharply, Nevertheless, the Company successfully achieved its goal of yielding a growth of the Company.  

Financial Status and Operational Results during 2009

          Dynasty Ceramic Public Company had not affected by the aforementioned crisis, which resulted in 2009 performance better than expectation. The Company and Subsidiaries are still maintain sales growth regularly.The Company reported 2009 revenue of Baht 5,884 million,increased 16% from last year, and net profits of Baht 996 million,increased up to 50% from last year (Highest Profit since the Establishment of The Company). Furthermore, the Company still had a strong financial status and good cash flow level,which enabled the Company to repay all debts and pay dividend to shareholders much more than before The Company has current Ratio of 1.7 times and net debt to equity ratio of 0.34:1, which is considerably low and should provide some room to make more loans should the Company would embark on future investment without increasing It’s Share Capital.

 

In the past year, the management team continues to use the outlet expansion strategy to cover more upcountry area by opening 7 more outlets. The outlet expansion strategy also complied with our mission by having easy access for our customers and has been successful. A successful part of growth in sales was the 11th anniversary marketing campaign which gives away prices 11 times and biggest price each time is a chance to win a car every month throughout the year. The marketing campaign has also been successful since the 10th anniversary campaign. We publicized by having event cars and advertisement on radio and newspaper which has been very cheap and effective.

The company continues to concentrate on research and development for our production process. Designs of our products have been continually improved. Kilns have been modified and maintained for highest efficiency resulting in lower cost of production. To comply with the rapid growing sales, Dynasty Ceramic Public Company announced three production capacity expansion projects which will increase its capacity to 58 million m2 per year by the end of 2011. The first project including one new kiln which is already up and running at Tile Top Industry since New Year 2010 which has a production capacity of 250,000-300,000 m2 per month. Another being a replacement to a wall-tile kiln at Tile Top Industry. The first project’s total cost 80 million Baht. The second kiln which will operate at the end of second quarter at Dynasty Ceramic will also have the same production capacity as the first. Both of these kilns are Italian made with the total cost of 180 million Baht including its modifications. The company also announced to invest in a complete new set of kiln at Tile Top Industry which will cost another 180 million Baht by the end of this year. The new kiln will have an equal production capacity as the first two but its cost including hydraulic press which can feed more kilns in the future. 

              In terms of Corporate Social Responsibility, the company had put effort under a CSR campaign. In this year, we give away tiles for improving environment to three upcountry schools. The company also participating in “CSR Club” since 29th of September 2009 by Stock Exchange of Thailand to exchange knowledge about corporate and environment issues. The company supports our products and money to social welfare organizations such as “Wad Prabaht Numpu” in Saraburi province as well.

              In 2009, the company has a total net profit of 994 million baht with profit per share of 2.44 Baht from 1.00 Baht par value. The board of committee announced 2.08 Baht or 85% for dividend payout and transactions will be finished by 6th of May 2010. The company has already paid up 1.59 Baht of the amount during 2009; therefore, 0.55 Baht is to be paid.

               We reckon that political and economical issue that already happened in 2009 will also effecting  2010. However, the management committee will operate carefully using “Good Corporate Governance” idea. Cash flow will be managed intelligently and always prepared for any effect caused by crisis.

 

The management committee greatly appreciates every shareholder, supplier, employee and customer who has been continually supporting the company. Lacking any part stated will not result in the successful of the company we are today. As a representative of the company, I would like to say thank you to every part of this success and stable growth of the company. We will continue to improve our performance and keeping this success as always.

 Roongroj SaengsastraPresident