Message from the Board of Directors
Last year, the Company faced challenges in doing business amid the global economic crisis that continues to be impacted by the coronavirus (COVID-19) pandemic. It also affects the normal life of everyone. Caution measures against the spread of COVID-19 and social distancing are put in place. This has affected the Company because the business model is a direct sales method to physically demonstrate the water purifiers’ qualifications in our customers’ homes.
In 2021, the Company including the subsidiaries has revenue from sales including interest income through instalment contracts and income from loan receivables of subsidiaries (total revenue) equal to 1,657.76 million baht, a decrease of 252.15 million baht from the previous year or 13.20%. This consisted of sales revenue of products of 1,411.52 million baht, a decrease of 274.02 million baht or 16.26%, while interest from instalment contracts and interest from loan receivables amounted to 246.24 million baht, an increase of 21.87 million baht or 9.75%. The decrease in sales revenue was due to the decline in sales of water purifiers and electrical appliances due to the impact of the COVID-19 epidemic in many areas. This included not declaring income from sales of instalment contracts of trucks amounting to 110 million baht. This is in line with the accounting standards which income from sales of instalment contracts without product margin are required not to be declared. The income from the sale is deducted from the cost of goods sold in the same amount. However, interest income from instalment contracts and income from loan receivables increased from the expansion of the business of the Thiensurat Leasing Company Limited, which developed more secured loans including instalment contracts for cars and trucks, floor plan business and secured loans.
The Company’s sales decline due to the economic situation and change of lifestyle patterns during the pandemic as mentioned. The Company has continuously adjusted its operational plans in terms of cost reduction, such as the reduction of fixed costs of sales teams, by increasing strict consideration on the cost-effectiveness for building each sales team. This led to closing some non-profitable branches to enable a leaning organization for greater agility and efficiency of operations. As a result, the Company and its subsidiaries still have a net profit in 2021 of 31.01 million baht compared to last year’s net profit of 143.13 million baht. The lower profit was mainly due to lower sales.
2021 is a year of great pride as the Company has been awarded the honour of achievement in the Thai capital market, namely Business Excellence Young Rising Star CEO Award, Outstanding CEO Awards, Outstanding Company Performance Awards and Outstanding Investor Relations Awards. In addition, the Company has received the “Excellent” level of recognition for its good corporate governance for Thai Listed Companies for 3 consecutive years from the Thai Institute of Directors Association (IOD). It has exhibited the Company’s confidence in doing business with transparency and fairness in line with the good corporate governance principles. It is the result of the cooperation of everyone in the Company.
The guidelines of the Company focus on four core competencies as follows:
First, being a water solution expert, the Company focuses on expanding its business based on its expertise in clean water production with continuous research and development of new products.
Second, being a manufacturing expert, the Company has a manufacturing plant. There is a research and development team with expertise. Therefore, it can be expanded to be a production base for OEM customers or various distributors.
Thirdly, in addition to the direct sales and tele-marketing which are the main teams, the Company has built a sales network by expanding sales channels both online and offline to support each other. The TSR Network is then created with sales representatives whoever can help generate sales. The Company also seeks opportunities for business cooperation with other companies or organizations.
Fourth, the financing service of the TSR Leasing Company Limited, which is a subsidiary has experience and readiness to provide loans. In the past year, there has been continuous growth and can support various types of credit needs
The Board of Directors would like to thank the management team and all employees for their commitment and dedication to support the Company. The Board also appreciated the continued trust and would like to thank you the customers, partners, and all stakeholders. The Company will adhere to business operations in accordance with the principles of good corporate governance, honesty, and prudence, including taking social and environmental responsibilities to create business growth towards sustainability and stability.
Mr. Sahas Treetipbut
Chairman of the Board of Directors
Mr. Ekarat Changyoo
Chairman of the Executive Committee