Message from the Chairman

Investor Relations

 

“Nearly three decades since its inception, Sri Trang Group has emerged as the world’s largest producer of natural rubber. With a view to lasting growth, we constantly seek to innovate and develop the myriad facets of our operations, from human resources to research and development, which allow us to enhance our competitiveness and adaptability in today’s fast-paced business landscape.”

CONTINUOUS DEVELOPMENT AND GROWTH

The year 2015 was in many ways a year of development and growth for Sri Trang Group. First of all, we were able to successfully expand our production capacity by opening four new processing plants for block rubber, bringing our total production capacity to more than 1.5 million tons per annum. With regard to our rubber plantations, 83% of the total areas of 51,650 rai have already been planted. December 2015 also marked the first time our own rubber trees were tapped. Additionally, we established Research and Development Department to devise new technologies that would allow us to improve the quality of our products, increase productivity as well as bring down production costs in the long run. And because our business has expanded continually, we also inaugurated SAP to facilitate our operations and continued to groom a new generation of employees who would bring fresh perspectives and contribute to Sri Trang Group’s lasting growth.

OUTSTANDING PERFORMANCE ROOTED FROM STRONG MANAGEMENT

In the light of market volatility and uncertainties of external factors, the natural rubber industry underwent a downturn throughout the year 2015. Rubber prices have declined by approximately 80% since the beginning of 2011 and reached the lowest level in 6 years owing to the global economic slowdown, especially in China - the world’s largest consumer of natural rubber, the appreciation of USD on account of the Federal Reserve’s decision to raise interest rates, and the continuing decline of oil prices.

Nonetheless, our strong management and the dedication of our employees, coupled with our cutting-edge technology and effective risk management strategies, have alleviated the impact of the volatility of rubber prices and allowed Sri Trang Group to maintain our status as leader in the natural rubber business with markedly better performance than our competitors. Although our revenues have declined as a result of the decline in rubber prices and weakened demand, we have managed to increase our net profit by 8% to Baht 1,118 million and are in a strong financial position that would allow us to seek out attractive investment opportunities.

OPERATING ON THE BASIS OF SUSTAINABILITY

As a “green rubber company”, equally important as the steps that we take toward growth is our commitment to the environment and corporate social responsibility (CSR). It is our intention that all our stakeholders must be well taken care of. In 2015 we organised many CSR projects, including Sri Trang Sri Baan Sri Muang, Green Ambassador, Development of Tapping Skills, Quality Cup Lump. The SET Sustainability Award 2015 we received and our inclusion in the list of Thailand Sustainability Investment are a testament to our commitment with regard to sustainability.

APPRECIATION

On behalf of the Board of Directors, I would like to welcome Mr. Chalermpop Kanchan to the Board of Directors. I also would like to extend our condolences to the family of Mr. Prasit Panidkul who sadly passed away during November 2015. He tirelessly devoted himself to our Group and played a significant role over 28 years in transforming our Group from a small company to industry leading enterprise. I would like to thank our shareholders, customers, employees as well as the financial institutions and all those involved in our operations. Sri Trang Group is committed to operating in accordance with the principles of good corporate governance and corporate social responsibility and in a manner that is in the best interests of all stakeholders with a view to delivering sustainable returns for our shareholders. We are determined to be part of the engine that propels the Thai economy toward prosperity and to maintain our status as leader in the global natural rubber business.

Sincerely yours,

Dr. Viyavood Sincharoenkul
Chairman
Sri Trang Agro-Industry Public Company Limited
February 2016