Message From The Chairman

Dear All Shareholders,

    In the year 2019, the situation has been fluctuated since last year due to such domestic factor as Thai general election: prior to the election until the result of the election. Consequently, there was the slowdown of investment in both public and private sectors, with the unavoidable impact on domestic consumption. Moreover, Thai baht currency was appreciation compared with the U.S. dollar for several years, and this has an impact on the export sector, as the vital mechanism in driving economy. However, trade war between the United States and China turns opportunity into jewelry industry regarding to the increase of diversifying risks in more production in Thailand in the future.

     As a consequence of disruptive technology, Pranda Jewelry Public Co., Ltd. has modified business structure in accordance with digital society due to its broad network and various communicational channels. The business structures that had been modified are as follows:

    1. Production Transformation: Diversifying risks by creating 15 main potential customer bases and improving production skills, as well as using advance technology to increase working performance. The continuous operation has significantly increased the sales of production base, compared to that of last year.
    2. Distribution Transformation: Focusing on the online purchase via and well-known international online market such as Amazon; reducing size of subsidiaries having offline platform that was not making profits such as Pranda North America, Pranda UK, and HGG due to customers’ behavior on the online market, by considering the continuous decrease the sales of subsidiaries
    3. Retail Transformation: Expanding domestic and international retail markets through rebranding Owned Brand in order to serve the customers’ needs in 3 brands: Prima Gold, Prima Diamond, and Prima Art, under brand “PRIMA” as entire service for fine jewelry shop, and this operation is expected to increase significantly sales turnover

     For operating result in 2019, the Company had revenue from sales for 2,984.76 million baht, which was higher than that of last year for 190.91 million baht, or the increase rate as 6.83 %, resulting from the increase of sales during second half year from the production base, and the normalized gross margin is at 27.88 %, close to that of last year. The revenue is accomplished the goal in effective production management and normalized operating expenses decreased to 6.72 %, resulting in normalized operating loss change to be normalized operation profit amount of 1.62 million baht.

     Due to the appreciation of Thai baht currency compared to that of last year, the Company lost from exchange rate higher than the earlier year. The loss from the exchange rate is 73.46 million baht or increase of 19.08 %, while in the same period of last year, the loss from exchange rate was amount of 61.69 million baht. Almost of losses are unrealized losses and affected from one-time expenses, consisting of provision for long-term employee benefit expenses; loss on sales of leasehold right; and expenses on the reduction of distribution base. Thus, the company still has net loss from equity holders of the company for 241.41 million baht.

      The Company still has financial stability, by considering from debt to equity for only 0.87 times. with continuous debt repayment, the finance cost of Company was decreased to 17.30 million baht or at the rate of 24.24%.The Company also has liquidity, by considering from current ratio as high as 1.78 times and cash flow from operation including net cash flow are positive.

     The year 2019 was a proud year for the company in presenting loyalty for the ceremony of royal coronation of His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua, Together with decorating place with coronation emblem flags, royal emblem flags, and Thai national flags, and setting up an altar with the King’s photo and worship materials. The Company invited employees to wear yellow shirts in order to present our gratitude and loyalty to the King throughout July, 2019.

      2020 is a challenging year, due to the economic slowdown, the unexpected situations and the pandemic of coronavirus disease 2019 (COVID-19) which is spreading across the world. Under the circumstances, the Company has an awareness of the impacts that could occur in the future. The Company therefore aims to manage its financial liquidity in order to maintain the business operation by using the policies to reduce cash flows to a minimum level, to delay the investment plans and to extend the repayment period from financial institutions with regard to the current situation. However, the Company still closely monitors and prepares the response plans in order to get through this crisis.

       Finally, on behalf of the Chairman of Pranda Jewelry Public Company Limited., we would like to thank all shareholders and stakeholders for your continued support and trust to the Company. The chairman, executives and all employees strive for performing our duties under business ethics and morals to anti-corruption in all aspects, with the recognition of the interest of all stakeholders for the growth of organization in good business results, leading to the ultimate goal of sustainable organization in the future.

(Prida Tiasuwan)