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Offeringa New Height Annual Report 2018 a new height Home Product Center Public Company Limited Offering Annual Report 2018 Home Product Center Public Company Limited Location 31 Prachachuennonthaburi Rd.Bangkhen, Muang, Nonthaburi 11000 Telephone +66 2832 1000 Facsimile +66 2832 1234 Website www.homepro.co.th Type of business Retailer of products and provider of services relating to construction, extension, renovation, and improvement of buildings, houses, and residence as One Stop Shopping Registration No. 0107544000043 Registered Capital Common stock 13,151,198,025 shares (1 Baht per share) Paid-up Capital Common stock 13,151,198,025 shares Exchange Market Stock Exchange of Thailand Ticker Symbol HMPRO In this regards, investors may obtain further information from Form 56-1 at www.sec.or.th or www.homepro.co.th Content 14 Message from the Board of Directors 102 GRI Content Index 16 The Executive Committee’s Report 110 Shareholding Structure and Dividend 17 Nomination and Remuneration 113 Organizational Chart Committee’s Report 114 Management Structure 18 Audit Committee’s Report 133 Corporate Governance 20 Risk Management Committee’s Report 148 Risk Factors 22 Board of Directors 158 Risk Management 35 Management Team and Internal Control 38 Financial Information 164 Management’s Discussion and Analysis 39 Vision & Mission 171 Related Transactions 40 Business Objectives 173 Report of Board of Directors’ Responsibilities in the Financial 41 Organizational Culture Statements 42 General Information 174 Independent Auditor’s Report 49 Nature of Business 178 Financial Statements 53 Sustainable Development Report Service Excellence Determined and committed to excellent and standard service that meets all customer demands. An unrivalled service experience is guaranteed at HomePro. Shopping Experience “HomePro is your ultimate home solutions!” A defining one stop shopping at HomePro is characterized by our wide and extensive range of over 40,000 items 2 Annual Report 2018 A New Height of Satisfaction Customers’ satisfaction and demand reign supreme at HomePro as products and service are unmatched. Fast Checkout Payment will never be the same as HomePro’s state-of-the-art technological system enables you to enjoy a faster experience at cashiers dedicated to special customers like you. Room Consultant Our smiley, well-versed customer service professionals are ready to turn your concern into a home solution that cares and inspires every family member. Home Product Center Plc. 3 Customer 360๐ We gather and analyze customer records to propose the exact shopping experience you’re looking for. Call Center Our around-the-clock customer service team is always there to get your demand covered. 4 Annual Report 2018 A New Height of Engagement Demands across sections are exclusively addressed to ensure that the right solution is served for a particular need and lifestyle. Our offer is exclusive and privileged for all different challenges. @HomePro HomePro’s digital platform is all about convenient and fast. Catch up latest updates, offers and deals that suit you most. HomePro Thailand Offered home decoration ideas with our stylish tips and inspiration. Promotion and privileged are well updated for customer. Home Product Center Plc. 5 QR Code for product information These are the tokens of inspiration that showcases visual rooms, furniture and other products through a few clicks on QR code on smartphones. Digital-Catalog Try a new way to browse a catalog! Our digital inventive feature enables you to view our extensive catalog including an item’s price on your handy devices. 6 Annual Report 2018 A New Height of Digital Life Our digitalized service seeks to ensure that there is no boundary for convenience and fast shopping spree for every lifestyle. QR Code Payment Let’s go cashless! This is an unparalleled payment that utilizes QR code to ascertain that your expenditure is managed on a convenience and safe platform. Home Service App The alternate channel on application is to take care customer house for 24/7 by Home Service Application of HomePro, which offer full- range after-sale service is on hand all day and all night and service is guaranteed. Home Product Center Plc. 7 HomePro Our 90 stores in Thailand propel your dynamic needs to a simple, magnificent lifestyle. 33 stores are in Bangkok and other 57 stores are ready to serve you across Thailand. Online Shopping Our website www.homepro.co.th is far more comprehensive and versatile than you can imagine. The online platform is packed with varieties of products, discounts and deals that are ready to fulfill every demand regardless of time and place. Delivery, installation and guarantee are included. 8 Annual Report 2018 A New Height of Accessibility Convenience is just around the corner as HomePro expands across Thailand and Malaysia. Mega Home Discover the best store for professional contractors! Over 80,000 products, including service, are offered at 12 stores nationwide to respond to all professional mechanic challenges, whether construction, repair or maintenance. HomePro Malaysia A new gateway to Southeast Asia presents a full range of products and service at 6 HomePro stores across Malaysia. Home Product Center Plc. 9 DJSI For two years in a row, HomePro has been selected as a member of the Dow Jones Sustainability Indices for outstanding of corporate sustainability performance for all dimensions of environment, social and governance. Responsible Consumption Our choices of consumption are offered on the basis of responsibility and environmental awareness to ensure that HomePro delivers eco products that are environmental friendly through innovative collaboration with suppliers. 10 Annual Report 2018 A New Height of Sustainable Development Meaningful engagement with all stakeholders is fostered as we share thoughts, actions and development towards mutual growth filled with corporate governance and social and environmental responsibility. Young Entrepreneur We strive for sustainable growth in concert with suppliers. Among job opportunities, income and trainings are offered to Young Entrepreneur that enhance knowledge and competency development for small contractors. Operational Efficiency Efficiency improvement is on top of our agenda. Furthermore, environmental conservation are initiated through solar energy, water saving and waste management, and etc. Home Product Center Plc. 11 Sales Total Asset (Million Baht) (Million Baht) HomePro is the leading home improvement retailer in Thailand. 2.8% 7.6% 61,581 56,928 59,888 54,811 Number of New Stores 52,513 51,746 50,949 47,965 44,313 46,991 1. Kanlapraphruek HomePro+1 1. Paseo Park Kanchanaphisek 2. BigC Bang Na 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 3. Market Place Nanglinchee HomePro+5 S 4. Sena Fest 5. Gateway at Bang Sue Net Profit Dividend Amount (Million Baht) (Baht) HomePro HomePro Malaysia Mega Home HomePro S 14.9% 12.9% 6 4,886 5,613 0.35 6 8 0.31 3 4,125 0.28 0.27 2 82 81 3,313 3,499 0.25 1 80 76 12 12 11 7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2015 2016 2017 2018 In 2014, it included dividend payment of 0.19 bahtshare. 1,228 10,771 .m Customers . Home Service Associate Home Card and Mega Home Card Eco product sales mix Home mroement erce dened HomePro e Comn eme on recrutment nd retenton o Prlee rode to our lued cutomer. Crdolder ll e Comn encoure cutomer to underte rom our undertndn o cutomer need. ur high otentl emloee ell te contnuou et dcount or urcn roduct or erce nd reonle conumton trou mercnde nd roeonl tecncn o e nolede n ter deeloment o emloee cometenc to meet eer urce mde t te crd ll ccumulte ont to romoton o co roduct. o ll rode te erce nd el cutomer cutomer demnd. redeem c eulent or te net urce. ede ccurtel mne udet nd tme. tt te cutomer lo et oter rlee. 12 Annual Report 2018 Sales Total Asset (Million Baht) (Million Baht) HomePro is the leading home improvement retailer in Thailand. 2.8% 7.6% 61,581 56,928 59,888 54,811 Number of New Stores 52,513 51,746 50,949 47,965 44,313 46,991 1. Kanlapraphruek HomePro+1 1. Paseo Park Kanchanaphisek 2. BigC Bang Na 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 3. Market Place Nanglinchee HomePro+5 S 4. Sena Fest 5. Gateway at Bang Sue Net Profit Dividend Amount (Million Baht) (Baht) HomePro HomePro Malaysia Mega Home HomePro S 14.9% 12.9% 6 4,886 5,613 0.35 6 8 0.31 3 4,125 0.28 0.27 2 82 81 3,313 3,499 0.25 1 80 76 12 12 11 7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2015 2016 2017 2018 In 2014, it included dividend payment of 0.19 bahtshare. 1,228 10,771 .m Customers . Home Service Associate Home Card and Mega Home Card Eco product sales mix Home mroement erce dened HomePro e Comn eme on recrutment nd retenton o Prlee rode to our lued cutomer. Crdolder ll e Comn encoure cutomer to underte rom our undertndn o cutomer need. ur high otentl emloee ell te contnuou et dcount or urcn roduct or erce nd reonle conumton trou mercnde nd roeonl tecncn o e nolede n ter deeloment o emloee cometenc to meet eer urce mde t te crd ll ccumulte ont to romoton o co roduct. o ll rode te erce nd el cutomer cutomer demnd. redeem c eulent or te net urce. ede ccurtel mne udet nd tme. tt te cutomer lo et oter rlee. Home Product Center Plc. 13 MESSAGE from the Board of Directors Dear Stakeholders With the speed of evolving trends today, the world is experiencing rapid changes in demography, the way of life in the digital era and the globalization that contributes to a diverse range of investments.
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