Message from the Chief Executive Officer
Dear Shareholders,
The year 2023 was considered a very challenging year for the Company, involving many events that occurred in every business of the Company and were caused by many factors. T he past year involved planning, operations, problem solving, and analyzing various events. These events have brought us together to learn, unite, cooperate, and combine strength of the entire organization. It was considered an important work experience for us all in overcoming obstacles in the year 2023 together.
In respect of the Company's overall operating results, total revenue was Baht 547.43 million, an increase of Baht 50.01 million or 10 percent. There was a slight change in the proportion of revenue. Revenue from natural gas private mother station accounts for 22 percent of the total revenue. Revenue from Mae Krating Biomass Power Plant accounts for 49 percent of the total revenue. Revenue from management of waste or unused materials that are not hazardous by sorting and producing RDF accounts for 28 percent of the total revenue and other income accounts for 1 percent of the total revenue. In the year 2023, the Company’s EBITDA was Baht 24.19 million, a decrease of Baht 83.27 million or 78 percent from the previous year EBITDA of Baht 107.46 million. The net loss was Baht 129.63 million, a decrease of Baht 131.32 million.
The Company’s overall operating performance was results of many reasons that occurred at almost the same time. For instance, construction of a new RDF plant in Saraburi Province was approved in the year 2021. The Company proceeded according to the plan and completed the construction of the plant. The plant commenced its commercial operation in January 2023. From the start of commercial operation until present, the Company has produced and sold RDF to contracting parties, but the production is still not at full capacity because the Company is still in the process of adjusting the production process, machinery, and other management within the plant. Therefore, even though there was an increase in the amount of waste sold during the past year, the plant has not been utilized at its full capacity as planned. In respect of the plant in Chonburi Province, there were uncontrollable external factors such as reduced disposal volume from the same customer which varies according to decrease in the amount of waste in the industrial estate and suspension of purchase of RDF from some factory customers due to their annual maintenance. In respect of Mae Krating Biomass Power Plant, there was a decrease in production and distribution of electricity to the Provincial Electricity Authority’s system. This was because from the middle of August 2023 until the beginning of September 2023, production was on hold for major repairs and maintenance. The maintenance was in accordance with the schedule and must be carried out every four years. In respect of development of securities trading software business, trading on the Stock Exchange of Thailand was on hold since the end of the previous year due to changes in the program for trading operations of the Stock Exchange of Thailand. Therefore, the software must be further developed for compatibility with the Stock Exchange of Thailand’s program and increasing competitiveness of the software in the market. In the past year, the Company has undergone the process of improving the software. The Company’s operating results were affected by the foregoing reasons and events.
The Company has encountered many challenges and problems to date that tested the strength and determination of everyone in the Company. Every problem that we face not only makes the Company stronger, but also causes the Company to become aware of the real problem so that we can get through various situations and proudly move towards the organization's goals. In the past, the Company has set a clear and efficient operational plan or business plan. For instance, for management of waste or unused materials that are not hazardous by sorting and producing RDF, machinery, production and raw material procurement process, inspection process, and personnel development of the RDF production plant in Saraburi Province have been improved by the Company to be ready for production of RDF at full capacity to generate revenue as expected. In respect of the RDF production plant in Chonburi Province, the Company used to purchase high volume of raw material to achieve high production and distribution volumes. Hence, there was a competition in terms of price. The Company will adjust its strategy by not purchasing raw material, but will provide more waste management service. This is a proactive plan to increase the number of customers for industrial waste management and will result in having sufficient waste for production without having to compete on prices. The Company also plans not to overproduce during periods when some customers’ factories are closed for annual maintenance. This will create additional income from waste management and lower raw material purchasing costs. The level of inventory will not be higher than necessary at certain times. In respect of Mae Krating Biomass Power Plant, major maintenance work has been completed in the past year. The Company has entered into an operation and maintenance agreement with a local company, which will be responsible for operations, maintenance, and other related works of the biomass power plant for a period of 1 year. If performance by the O&M contractor is in accordance with terms of the agreement, the agreement will be in effect for a period of 4 years. Therefore, we will evaluate and study the performance closely during this year to prepare for the situation in a timely manner. In respect of securities trading software development business, the development has been carried out until completed. Therefore, it is expected that securities trading will begin within the middle of this year. The Company has used its past experiences in preparing a new business development plan. It will continue to develop existing businesses to achieve efficiency in operations and will continue to conduct studies in order to expand on the waste management business. The Company is still committed to studies and continuously creating new business opportunities because it sees an opportunity in doing business related to waste, apart from industrial waste disposal and RDF production from waste. There are many other types of waste that provide an opportunity for experiment and study, including municipal solid waste, plastics, or electronic waste. Each type of waste requires different management methods, technologies, machineries, knowledge, and specializations. The Company is also interested in an opportunity to conduct clean energy business to which it has been paying attention and having continuous studies. The group places importance on business growth, which goes alongside with the development of society and the environment, to grow the organization steadily and sustainably.
On behalf of the Executive Committee, I wish to express our gratitude to shareholders, financial sponsors, customers, trade and business partners, society, communities, employees, and every sector for providing continuous cooperation and support. We will try to overcome obstacles and carry on original businesses and develop new businesses as planned. Not only aiming for profit, but the Company will also continue to develop businesses that have a positive impact on the society, environment, and people.
Mr. Chutchai Sumethchotimetha
Chairman of Executive Committee,
Chief Executive Officer
