2017รายงานประจำป 2560 ANNUAL REPORT บรษิ ทั จำกดัั (มหาชน) Thai Rung Union Car Public Company Limited รางวลั นวตั กรรมแหง ชาต ิ 2560 National Innovation Awards 2017 รถยนต์ TR Transformer II ของไทยรุ่งฯ ได้รับ “รางวัลชนะเลิศนวัตกรรมแห่งชาติ ประจ�าปี 2560” จากส�านักงานนวัตกรรมแห่งชาติฯ กระทรวงวิทยาศาสตร์และเทคโนโลยี TR Transformer II has won a “National Innovation Awards 2017“ from the National Innovation Institute of the Ministy of Science and Technology บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำกัด (มหาชน) Thai Rung Union Car Public Company Limited Content Company Background 2 Vision and Mission 3 Summary Financial Information 4 Message from the Chairman 5 Profiles of Directors of the Company 7 General Information 17 Organization Chart 21 Nature of Business 22 Risk Factors 26 Shareholders and Management 30 Corporate Governance 46 Sustainability Report 62 Related Party Transactions 80 Internal Control 83 Report of the Audit and Corporate Governance Committee 85 Report of the Nomination and Remuneration Committee 88 Report of the Risk Management Committee 90 Board of Directors’ Responsibility for Financial Reports 91 Management’s of Discussion and Analysis 92 Independent Auditor’s Report 97 Financial Statement 102 บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำากัด (มหาชน) Thai Rung Union Car Plc., 1 บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำกัด (มหาชน) Thai Rung Union Car Public Company Limited Company Background Company Background Thai Rung Union Car Plc has long been established as a maker of auto body parts and a vehicle assembler. Originally founded as a limited partnership under the name Thai Engineering in 1967 by Mr. Vichien Phaoenchoke, its business success eventually led to its becoming a listed company on the Stock Exchange of Thailand in 1994 under the current name, Thai Rung Union Car Public Company Limited. For 50 years Thai Rung Union Car Plc, a Thai-owned company, has been a fully integrated and highly flexible operator in the automotive industry, quickly meeting customer demands that range from product design and development, through die and jig production and manufacture of metal and plastic auto parts and seats, to contract painting and assembly and the production of modified multi-purpose and special purpose vehicles, all based on the skills and capabilities of its Thai workforce and using advanced technology. At present, adapting its strategy in line with the continuous improvement of the Thai automotive industry, the Company focuses mainly on OEM parts, contract assembly and painting, and on expanding its market for parts and bodies to various regions around the world, as well as seeking alliances to expand its existing business and develop new ones. Furthermore the Company has boosted its potential, both by continuously developing production processes and by applying innovative technology to the production process in order to increase efficiency, reduce costs and increase future profits, as well as developing human resources to cater to the coming into force of the AEC and any other international trade and investment. The Company is confident that, thanks to its all-round production capabilities and flexibility in responding quickly to customer requirements, as well as its close relationships with customers at home and abroad, it will benefit from the many opportunities that lie ahead in the automotive industry. We are thus confident that the Company’s results will grow sustainably along with the Thai automotive industry. รายงานประจำาปี 2560 2 ANNUAL REPORT 2017 บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำกัด (มหาชน) Thai Rung Union Car Public Company Limited Vision and Mission Vision To be at the pinnacle of the Thai auto industry, developing, designing and producing integrated automotive products; with our own brand, to build optimum customer satisfaction through world-class quality and service. Mission 1. To be a leader in the design, development and production of innovative automotive products: multi- purpose and specialty vehicles, parts, dies, jigs and accessories. 2. To maximise customer satisfaction by providing world-class quality, price, delivery and service. 3. To focus on continuous improvement in product and service quality through the efficient use of flexible, speedy production and management processes and up-to-date engineering technology. 4. To build own brand image and loyalty. 5. To establish and expand marketing and sales networks at home and abroad. 6. To pay close attention to the development and welfare of our human resources, so as to enable them to compete at world level and to be happy and proud to work for the organisation. 7. Continuously to enhance the stability of the organisation by making profits and providing fair remuneration for shareholders, business partners and employees. 8. To ensure that products, production and work processes all take due account of our responsibilities towards environment, community and society through principles of good corporate governance. บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำากัด (มหาชน) Thai Rung Union Car Plc., 3 บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำกัด (มหาชน) Thai Rung Union Car Public Company Limited Summary Financial Information (unit : Million Baht) Consolidated, as at 31stDecember 2017 2016 2015 (Restate) Operating Performance Sales and Service Income 2,055.02 1,782.99 2,042.39 Total Revenues 2,100.88 1,855.00 2,132.46 Total Expenes 2,004.74 1,784.69 1,995.57 Earning (loss) before financing cost and income tax 96.14 70.31 136.89 Net Earnings (loss) attributable to equity holders of the parent 83.02 65.19 125.63 Financial Position Current Assets 1,261.71 1,054.94 983.11 Total Assets 3,651.85 3,567.23 3,618.68 Total Liabilities 403.85 348.80 371.71 Shareholder’s Equity 3,248.00 3,218.42 3,246.97 Per Share Data (Unit : Baht) Earning (loss) per Share (EPS) 0.14 0.11 0.21 Divdend per Share * 0.14 0.09 0.15 Book Value per Share 5.36 5.31 5.33 Financial Rations Gross margin (%) 15.83% 15.27% 16.27% Net Earnings margin(%) 3.95% 3.51% 5.89% Return on Equity (ROE) (%) 2.63% 2.07% 4.01% Return on Asset (ROA) (%) 2.66% 1.96% 3.77% Current ratio (Times) 3.67 3.63 3.17 Dedt Equity ratio (Times) 0.13 0.11 0.12 Remark * Payment of the dividend payment is subject to approval by the 2018 Annual General Shareholder’ Meeting Total Revenues Net Earnings (loss) attributable to equity Total Assets กำไรกำไรholders (ขาดทุน)กำไร (ขาดทุน) of (ขาดทุน)the สุทธิ parent สุทธิ สุทธิ รายไดรวมรายไดรวมรายไดรวม สินทรัพยรวมสินทรัพยรวมสินทรัพยรวม (unit : Million Baht) สวนที่เปนของผูถือหุนใหญสวนที่เปนของผูถือหุนใหญสวนที่เปนของผูถือหุนใหญ 2,1322,1322,132 3,6193,6193,619 3,6523,6523,652 1,8551,8551,8552,1012,1012,101 3,5673,5673,567 126126126 83 83 83 65 65 65 255825582558255925592559256025602560 255825582558255925592559256025602560 255825582558255925592559256025602560 (ปรับปรุงใหม)(ปรับปรุงใหม)(ปรับปรุงใหม) (ปรับปรุงใหม)(ปรับปรุงใหม)(ปรับปรุงใหม) (ปรับปรุงใหม)(ปรับปรุงใหม)(ปรับปรุงใหม) (Restate) (Restate) (Restate) รายงานประจำาปี 2560 4 ANNUAL REPORT 2017 บริษัท ไทยรุ่งยูเนี่ยนคาร์ จำกัด (มหาชน) Thai Rung Union Car Public Company Limited Message from the Chairman Message from the Chairman Thailand’s total vehicle production in 2017 was 1.99 million units, up by 2% on the previous year. Of this total, 1.14 million units were exported, down by 4%, while domestic sales, at 0.87 million units, were up by 13% on the previous year. For 2018, The Federation of Thai Industries expects the Thai automotive industry to produce 2 million units, of which 0.9 million for the domestic market and 1.1 million for export, supporting factors being recovery in the domestic economy, improving consumer confidence, increased tourist arrivals, new models of both sedans and pick- ups launched or planned by the various brands, and the end of the five-year holding period of cars bought under the government’s “first car” programme leaving owner free to change car. Apart from this, government policy in helping low-income groups and the various economic stimulus measures will have the effect of increasing disposable income. In any case the Thai automotive industry will continue to stand out as the main production base in ASEAN. As for the results of the Thai Rung group of companies in 2017, total consolidated revenues were Bt.2,101 million, up by 13% on the previous year, and net income was Bt.83 million, up by 27% on the previous year, basically due to increased sales of auto parts and dies and TR Transformer vehicles, plus cost controls, efficient management and risk diversification to customer groups beyond the automotive sector such as backhoes, construction machinery and agricultural vehicles and machinery. 2017 marked Thai Rung’s fiftieth year in business. These long years of experience in the automotive industry are reflected in the Company’s expertise and capabilities in continually developing innovative vehicles. The latest example is Thai Rung’s TR Transformer II, which won the “National Innovation Award 2018” from the Ministry of Science and Technology’s National Innovation Agency, reflecting the Company’s potential for developing various vehicles in the future such as special purpose vehicles, electric vehicles, minibuses and electric buses, carrying out R&D for new high added value products and using the latest technology in line with future trends in vehicle development. The Company’s strategy for 2018 places stress on boosting revenues from sales of the TR Transformer II and the launch of the new minibus. • New product launch: seven metre long minibus seating 20 aimed at the switch บริษัทfrom ไทยรุ่งยูเนี่ยนคาร์ passenger จำากัด (มหาชน)vans to Thai Rung Union Car Plc., minibuses in accordance with government policy and demand from the growing tourist industry 5 • Start production in free zone benefiting from the associated advantages in terms of import duties, the first products being the minibus, for sale both in the domestic market and for export, and backhoe cabins. In the future we will produce bodies and take on contract assembly work for various kinds of vehicles for new foreign brands. Message from the Chairman Thailand’s total vehicle production in 2017 was 1.99 million units, up by 2% on the previous year.