Sino-Thai Engineering & Construction Public Company Limited ANNUALANNUAL REPORTREPORT 20052005 √“¬ß“πª√–®”ªï 2548 ∫√‘…—∑ ´‘‚π-‰∑¬ ‡ÕÁπ®’‡π’¬√‘Ëß ·Õπ¥å §Õπ μ√—§™—Ëπ ®”°—¥ (¡À“™π) CCOONTENTSNTENTS ¢âÕ¡Ÿ≈∑—Ë«‰ General Information √ÿª¢âÕ¡Ÿ≈∑“ß°“√‡ß‘ Financial Highlight “√®“°ºŸâ°àÕμ— Message from the Founder “√®“°°√√¡°“√ºŸâ®—¥°“ Message from the President π‚¬∫“¬¢Õß∫√‘…—∑œ„πªï 254 Policy in 2005 §≥–°√√¡°“√∫√‘…—∑ Board of Directors §≥–ºŸâ∫√‘À“ Management Team ‚§√ß √â“ßÕß§å° Organization Chart ‚§√ß √â“ߺŸâ∂◊ÕÀâ Shareholder's Structure ≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘ Business Overview ‚§√ß √â“ß°“√∂◊ÕÀâ Investment in Other Companies ¿“«–μ≈“¥·≈–¿“«–°“√·¢àߢ— Industry & Competition ªí®®—¬§«“¡‡ ’ˬ Risk Factors ‚§√ß √â“ß°“√®—¥°“ Management Structure °“√°”°—∫¥Ÿ·≈°‘®°“ Corporate Governance °“√§«∫§ÿ¡¿“¬„ Internal Control §«“¡√—∫º‘¥™Õ∫μàÕ —ߧ Social Responsibility °“√§”π÷ß∂÷ߧ«“¡ª≈Õ¥¿—¬·≈– ‘Ëß·«¥≈âÕ Safety and Environmental Concerns √“¬°“√√–À«à“ß°— Connected Transaction §”Õ∏‘∫“¬·≈–°“√«‘‡§√“–Àå∞“π–°“√‡ß‘π·≈–º≈°“√¥”‡π‘πß“ Management Discussion and Analysis √“¬ß“π¢Õߧ≥–°√√¡°“√μ√«® Õ Audit Committee's Report √“¬ß“𧫓¡√—∫º‘¥™Õ∫¢Õߧ≥–°√√¡°“ Report on the Responsibility of μàÕ√“¬ß“π∑“ß°“√‡ß‘ the Board of Directors §à“μÕ∫·∑π¢ÕߺŸâ Õ∫∫—≠ Remuneration for Auditor ß∫°“√‡ß‘ Financial Statements ¢âÕ¡Ÿ≈∑—Ë«‰ª (General Information) ∫√‘…—∑ : ∫√‘…—∑ ´‘‚π-‰∑¬ ‡ÕÁπ®’‡π’¬√‘Ëß ·Õπ¥å §Õπ μ√—§™—Ëπ ®”°—¥ (¡À“™π) ª√–‡¿∑∏ÿ√°‘® : √—∫‡À¡“°àÕ √â“ß ‡≈¢∑–‡∫’¬π∫√‘…—∑ : 0107536001001 (‡¥‘¡‡≈¢∑’Ë ∫¡®. 174) ∑’Ëμ—Èß : 32/59-60 ™—Èπ 29-30 Õ“§“√´‘‚π-‰∑¬ ∑“«‡«Õ√å ∂ππÕ‚»° ·¢«ß§≈Õß‡μ¬‡Àπ◊Õ ‡¢μ«—≤π“ °√ÿ߇∑æ 10110 ‚∑√»—æ∑å +66 (0) 2260-1321 ‚∑√ “√ +66 (0) 2260-1339 ‡«Á∫‰´μå : http://www.stecon.co.th ∑ÿπ®¥∑–‡∫’¬π : 1,350,250,000 ∫“∑ ∑ÿπ∑’ËÕÕ°®”Àπà“¬·≈– : 1,024,482,589 ∫“∑ (≥ 31 ∏—𫓧¡ æ.». 2548) ™”√–‡μÁ¡¡Ÿ≈§à“·≈â« À≈—°∑√—æ¬å∑’ËÕÕ°®”Àπà“¬ : Àÿâπ “¡—≠ (STEC) 1,024,482,589 Àÿâπ „∫ ”§—≠· ¥ß ‘∑∏‘ (STEC-W) 168,117,650 Àπ૬ „∫ ”§—≠· ¥ß ‘∑∏‘§√—Èß∑’Ë 2 (STEC-W2) 6,371,539 Àπ૬ ∫§§≈Õÿ â“ßÕ‘ßÕ◊ËπÊ π“¬∑–‡∫’¬πÀ≈—°∑√—æ¬å : ∫√‘…—∑ »Ÿπ¬å√—∫Ω“°À≈—°∑√—æ¬å (ª√–‡∑»‰∑¬) ®”°—¥ 62 Õ“§“√μ≈“¥À≈—°∑√—æ¬å·Ààߪ√–‡∑»‰∑¬ ™—Èπ 4,6-7 ∂ππ√—™¥“¿‘‡…° ‡¢μ§≈Õß‡μ¬ ·¢«ß§≈Õß‡μ¬ °√ÿ߇∑æ 10110 ‚∑√»—æ∑å: +66 (0) 2359-1200-1 ‚∑√ “√: +66 (0) 2359-1261-2 ºŸâ Õ∫∫—≠™’ : ”π—°ß“π ‡Õ‘π å∑ ·Õπ¥å ¬—ß ®”°—¥ ™—Èπ 33 Õ“§“√‡≈§√—™¥“ ‡≈¢∑’Ë 193/136-137 ∂ππ√—™¥“¿‘‡…°μ—¥„À¡à °√ÿ߇∑æ 10110 ‚∑√»—æ∑å: +66 (0) 2264-0777 ‚∑√ “√: +66 (0) 2264-0790 ∑’˪√÷°…“°ÆÀ¡“¬ : ∫√‘…—∑ ‡¥™Õÿ¥¡ ·Õπ¥å ·Õ ‚´´‘‡Õ∑ å ®”°—¥ ™—Èπ 9 Õ“§“√™“≠Õ‘ √– ‡≈¢∑’Ë 942/142-3 ∂ππæ√–√“¡ 4 °√ÿ߇∑æ 10500 ‚∑√»—æ∑å: +66 (0) 2233-0055 ‚∑√ “√: +66 (0) 2233-0097 Company : Sino-Thai Engineering & Construction Public Company Limited Nature of Business : Construction Registration Number : 0107536001001 (Bor Mor Jor 174) Address : 32/59-60, 29th-30th Floor, Sino-Thai Tower, Asoke Road, Klongtoey-Nua, Wattana, Bangkok 10110 Tel: +66 (0) 2260-1321 Fax: +66 (0) 2260-1339 www.stecon.co.th Registered Capital : 1,350,250,000 Baht Issued and Paid-up Capital : 1,024,482,589 Baht (as at December 31st,2005) Listed Securities : Common Share (STEC) 1,024,482,589 shares Warrant (STEC-W) 168,117,650 units Warrant 2 (STEC-W2) 6,371,539 units Other References Security Registrar : Thailand Securities Depository Co.,Ltd. 62 The Stock Exchange of Thailand Building, 4,6-7th Floor, Rachadapisek Road, Klongtoey, Bangkok 10110 Tel: +66 (0) 2359-1200-1 Fax: +66 (0) 2359-1259 Auditor : Ernst & Young Office Limited 33 Fl., Lake Rachada Building, 193/136-137 New Rachadapisek Road, Bangkok10110 Tel: +66 (0) 2264-0777 Fax: +66 (0) 2264-0790 Legal Advisor : DEJ-UDOM & Associates Ltd. 9th Floor, Charn Issara Tower, 942/142-3 Rama IV Rd., Bangkok 10500 Tel: +66 (0) 2233-0055 Fax: +66 (0) 2233-0097 2 ANNUAL REPORT 2005 STECON'S PROJECTS 3 √ÿª¢âÕ¡Ÿ≈∑“ß°“√‡ß‘π (Àπ૬ : ≈â“π∫“∑) (Unit : Million Baht) 2548/2005 2547/2004 2546/2003 ß∫¥ÿ≈ Balance Sheet ‘π∑√—æ¬åÀ¡ÿπ‡«’¬π Current Assets 7,938.69 5,139.12 4,226.30 ‘π∑√—æ¬å√«¡ Total Assets 12,513.40 8,009.41 6,132.64 Àπ’È ‘πÀ¡ÿπ‡«’¬π Current Liabilities 7,198.96 4,418.47 2,367.72 Àπ’È ‘π√«¡ Total Liabilities 8,393.11 4,824.37 2,907.90 à«π¢ÕߺŸâ∂◊ÕÀÿâπ Shareholders' Equity 4,120.30 3,185.05 3,224.74 ß∫°”‰√¢“¥∑ÿπ Income Statement √“¬‰¥â®“°°“√°àÕ √â“ß Revenue from Construction 13,111.18 8,274.48 5,316.05 √“¬‰¥â√«¡ Total Revenue 13,208.96 8,322.75 5,519.79 μâπ∑ÿπ°“√°àÕ √“ßâ Cost of Construction 12,361.92 7,924.52 4,595.79 §à“„™â®à“¬„π°“√¢“¬·≈–∫√‘À“√ Selling & Administrative Expense 294.70 239.94 297.50 ¥Õ°‡∫’Ȭ®à“¬ Interest Expense 72.16 32.01 15.01 °”‰√¢—Èπμâπ Gross Profit 749.26 349.95 720.26 °”‰√ ÿ∑∏‘ Net Profit 472.76 123.59 603.89 Õ—μ√“ à«π∑“ß°“√‡ß‘π Financial Ratio Õ—μ√“ à«π∑ÿπÀ¡ÿπ‡«’¬π (‡∑à“) Current Ratio (Times) 1.10 1.16 1.78 Õ—μ√“°“√À¡ÿπ‡«’¬π¢Õß ‘π∑√—æ¬å (‡∑à“) Total Assets Turnover (Times) 1.29 1.18 1.03 Õ—μ√“ à«πÀπ’È ‘πμàÕ à«π¢ÕߺŸâ∂◊ÕÀÿâπ (‡∑à“) Debt to Equity Ratio (Times) 2.04 1.51 0.90 Õ—μ√“ à«π°”‰√¢—Èπμâπ (%) Gross Profit Margin (%) 5.71% 4.23% 13.55% Õ—μ√“ à«π°”‰√ ∑∏ÿ‘ (%) Net Profit Margin (%) 3.58% 1.48% 10.94% Õ—μ√“º≈μÕ∫·∑πμàÕºŸâ∂◊ÕÀÿâπ (%) Return on Equities (%) 13.42% 4.01% 22.09% ¡Ÿ≈§à“μ“¡∫—≠™’μàÕÀÿâπ (∫“∑) Book Value per Share (Baht) 3.90 3.00 3.09 °”‰√ ÿ∑∏‘μàÕÀÿâπ (ª√—∫≈¥) (∫“∑) Earning per Share (Fully diluted) (Baht) 0.45 0.12 0.64 4 ANNUAL REPORT 2005 Financial Highlight 5 “√®“°ºŸâ°àÕμ—Èß ∫√‘…—∑ ´‘‚π-‰∑¬ ‡ÕÁπ®’‡π’¬√‘Ëß ·Õπ¥å §Õπ μ√—§™—Ëπ ®”°—¥ (¡À“™π) °àÕμ—Èߢ÷Èπ‡¡◊ËÕªï æ.».2505 „™â™◊ËÕ«à“ "Àâ“ßÀÿâπ à«π®”°—¥ ´‘‚π-‰∑¬ ‡ÕÁπ®’‡π’¬√‘Ëß" ¡’∑ÿπ®¥∑–‡∫’¬π 500,000 ∫“∑ ‰¥â‡√‘Ë¡∏ÿ√°‘®®“°ß“π¥â“π‡§√◊ËÕß°≈·≈– Õÿμ “À°√√¡·ª√√Ÿª‚§√ß √â“߇À≈Á° μàÕ¡“„πªï æ.».2513 ∫√‘…—∑œ ‰¥â‡ª≈’ˬπ™◊ËÕ‡ªìπ ∫√‘…—∑ ´‘‚π-‰∑¬ ‡ÕÁπ®’‡π’¬√‘Ëß ·Õπ¥å §Õπ μ√—§™—Ëπ ®”°—¥ ‚¥¬‡æ‘Ë¡∑ÿπ®¥∑–‡∫’¬π‡ªìπ 2,000,000 ∫“∑ ·≈–‰¥â¢¬“¬∏ÿ√°‘®„À⇪ìπ∑’Ë√Ÿâ®—°„π«ß°«â“ߥ⫬°“√√—∫ß“π °àÕ √â“ß∑—Ë«‰ª ∑”„À∫√â ‘…—∑œ ‡ªìπ∑’Ë√Ÿâ®—°·≈–‰¥â√—∫°“√¬Õ¡√—∫¡“°¢÷Èπ μ≈Õ¥√–¬–‡«≈“¢Õß°“√¥”‡π‘π∏ÿ√°‘®°àÕ √â“ß ≥ ‡«≈“π—Èπ ∫√‘…—∑œ ‰¥â √â“ß ™◊ËÕ‡ ’¬ß„À⇪ìπ∑’ˬա√—∫ ¥â«¬ª√—™≠“„π°“√ªØ‘∫—μ‘ß“π∑’Ë«à“ "√—∫‡©æ“–ß“π∑’Ë ‡√“ “¡“√∂∑”„Àâ ”‡√Á®‰¥â¥â«¬§«“¡√—∫º‘¥™Õ∫Õ¬à“߇μÁ¡°”≈—ߧ«“¡ “¡“√∂" ´÷Ëß∑”„Àâ∏ÿ√°‘®¢Õß∫√‘…—∑œ¥”‡π‘π‰ª‰¥â¥â«¬¥’ ¥â«¬°“√¥”‡π‘π∏ÿ√°‘®μ“¡ª√—™≠“°“√∑”ß“π¢â“ßμâπÕ¬à“ß ¡Ë”‡ ¡Õ ∑” „Àâ∏ÿ√°‘®¢Õß∫√‘…—∑œ ‡®√‘≠‡μ‘∫‚μ¢÷ÈπÕ¬à“ß¡—Ëπ§ß·≈–·¢Áß·°√àß ®π°√–∑—Ëß ‡¡ËÕª◊ ï æ.». 2536 ∫√‘…—∑œ ‡ªìπ∫√‘…—∑√—∫‡À¡“°àÕ √â“ß·Ààß·√°∑’Ë®¥∑–‡∫’¬π „πμ≈“¥À≈—°∑√—æ¬å·Ààߪ√–‡∑»‰∑¬ àߺ≈„Àâ¡’°“√‡ª≈’ˬπ™◊ËÕ‡ªìπ "∫√‘…—∑ ´‘‚π-‰∑¬ ‡ÕÁπ®’‡π’¬√‘Ëß ·Õπ¥å §Õπ μ√—§™—Ëπ ®”°—¥ (¡À“™π)" „πªí®®ÿ∫—π „π∞“π–ºŸâ°àÕμ—Èß º¡¡’§«“¡¿“§¿Ÿ¡‘„®∑’Ë∫√‘…—∑œ ‡®√‘≠‡μ‘∫‚쉥âÕ¬à“ß¡—Ëπ§ß¡“®π∂÷ß∑ÿ°«—ππ’È ´÷Ëßªí®®ÿ∫—π∏ÿ√°‘®¡’§«“¡·¢Áß·°√àß ¡—Ëπ§ß ®π∂◊Õ‡ªìπ∫√‘…—∑√—∫‡À¡“°àÕ √â“ß¢π“¥„À≠à 1 „π 3 ¢Õߪ√–‡∑»‰∑¬ ∫√‘…—∑œ √—∫ß“π°àÕ √â“ߥâ“π√–∫∫ “∏“√≥Ÿª‚¿§æ◊Èπ∞“π´÷Ë߇ªìπ‚§√ß°“√ ¢Õß√—∞∫“≈Õ¬à“ßμàÕ‡π◊ËÕß ‡™àπ °“√°àÕ √â“ß∂ππ·≈–∑“ßÀ≈«ß, –æ“π, √–∫∫¢π àß¡«≈™π, √–∫∫∫”∫—¥πÈ”‡ ’¬, √–∫∫‚∑√§¡π“§¡ ‡ªìπμπâ πÕ°®“°π’È∫√‘…—∑œ‰¥â√à«¡‡ªìπ à«πÀπ÷ËߢÕß°“√æ—≤π“„π¿“§Õÿμ “À°√√¡Õ¬à“ßμàÕ‡π◊ËÕß ¥â«¬ª√– ∫°“√≥å∑’ˇ™’ˬ«™“≠∑“ߥâ“π°“√°àÕ √â“ß‚√ß ‰øøÑ“ ·≈– ‚√ßß“πÕÿμ “À°√√¡¢π“¥„À≠à ‡™àπ ‚√ß°≈—ËππÈ”¡—π ‚√ßß“πªî‚μ√‡§¡’ ‚√ßß“π‡§¡’¿—≥±å μ≈Õ¥®πß“π„π¿“§‡Õ°™π ‡™àπ °“√°àÕ √â“ߧÕπ‚¥¡’‡π’¬¡ ·≈–∑’ËÕ¬ŸàÕ“»—¬ ‡ªìπμâπ §μ‘ª√–®”„®¢Õߺ¡∑’Ë„À≫Ⱇ∫∫√‘…—∑œ ¡“μ≈Õ¥·≈–μ√“∫®π∂÷ß∑ÿ°«—ππ’ȧ◊Õ "¿Ÿ¡‘„®∑’ˉ¥â∫√‘°“√" ™«√—μπå ™“≠«’√°Ÿ≈ ºŸâ°àÕμ—Èß 6 ANNUAL REPORT 2005 Message from the Founder Sino-Thai Engineering & Construction Public Company Limited, was founded and established in 1962 as "Sino-Thai Engineering Limited Partnership", with a registered capital of Baht 500,000 Initially, the company concentrated on mechanical contracting and general steel fabrication. In 1970 the name of the company was changed to "Sino-Thai Engineering & Construction Company Limited" with an increased capital of Baht 2,000,000 and the broader operational focus of general contracting. It was during these early years that Sino-Thai established its long standing Corporate Philosophy to "Only undertake work that we know how to do and to do what has been undertaken, to the best of our ability" Steadfast adherence to this simple, yet practical, philosophy carried us forward and in 1993 the Company was the first construction company to list on the Stock Exchange of Thailand, resulting in our final name change to "Sino-Thai Engineering & Construction Public Company Limited" or STECON. As the founder, I take personal pride in the steady growth of Sino-Thai, which is now firmly established as one of the three largest construction firms in Thailand. While the company is actively involved in Government Infrastructure Projects such as, Highways, Mass Transit, Hydro & Thermal Electric Generation, Water & Waste Systems, Tele-communications, Road & Bridges etc., we continue to grow in the Industrial Sector with a large portfolio of Power Plants, Oil Refineries and their associated downstream Petrochemical Facilities, Chemical Plants, Condominiums & Housing, etc. My personal motto for the Company has always been and still is, "PASSION TO SERVE".