The economic crisis since the year of 2021 is a main cause driving the price of construction materials higher, and severely affecting the profitability of the construction industry. For the Company’s operating performance in 2022, despite higher amount of revenues than year 2021, the soaring price of construction materials made the Company suffer some loss.

In addition, such economic crisis consequently made several investment projects initiated by either government or private sector slow down. This directly took effect to the Company’s project bidding, that is, the bidding competition was so serious; underselling by several operators to win the bids until the profit dropped; or the bid winners proposed the price that made them lose in some projects to have projects on hand and to have some cash flow. From these situations, the Company became cautious in tending bids for projects to ensure that the new projects awarded would not suffer any loss. In 2022, the Company won 4 new projects; namely, Wattanapat Hospital Samui and Bangkok Hospital Pluak Daeng. However, the project for supplying raw water for the production sector in Rayong province was cancelled due to the fluctuating prices of construction materials. The Company carefully took account of all factors affecting this project, and considered that if this project is continued, the Company would have some loss in the future. Such cancellation was mutually agreed by the Company and the employer. One more project or Central Nakhon Sawan project was executed in 2023.

The Company anticipates that, in 2023, the high competition of the construction industry would continue. The liquidity management and cost management are most focused on by the Company. Meanwhile, the improvement of machinery and other equipment to reduce the construction cost must be carried out simultaneously.

The past economic circumstances gave impact and more risks to the business operation inevitably. However, the Management Team and all employees of Thai Polycons Public Company Limited have strong determination to manage and improve the potential of business operation of the Company so that it would be competitive. The Management Team and all employees would like to extend our gratitude to the Board of Directors, shareholders and stakeholders who have always given deep trust and strong support to the Company.