ANNUAL REPORT 2017 TCM CORPORATION PLC Global Presence Aesthetic Excellence Business Integrity “TCM Corporation PLC, once a national manufacturer, has expanded into a true global conglomerate becoming industry leaders in Flooring, Living and Automotive business sectors while continuing to grow and explore new opportunities.” TCM Corporation PLC. upholds professional business integrity that builds confidence in our shareholders, business partners, customers, and other stakeholders around the world. We focus on delivering inspirational and high quality products that lead the industry in aesthetic excellence. TCM CORPORATION PLC Global Presence Aesthetic Excellence Business Integrity Chairman’s Statement Recent Major Changes Financial Highlights In 2017, the Company’s leap in On 3 August 2017, the Company’s The sales and profits of automotive growth was due to business merging Board of Director Meeting No. 3/2560 carpet and upholstery sector were strategies carried out by the approved for the Company to invest remarkably higher than the result of Company for the fourth consecutive in the Commercial Carpet Business. year 2016. For the furniture sector, the year. We have changed the logo The Company’s objective was to invest sales were rising higher than the and readjusted our image to appear in businesses with capacity for previous year. Concerning the floor modern and unique as a symbol pride business operations to provide the coverings sector, we have accumulated in making a product in Thailand for Company with good returns from sales from Commercial Carpet Business export to use at important places investment. in the last quarter, so the higher throughout the world. turnover was yielded. Page 16 Page 05 Page 19 CONTENTS Page 1 General Information / Other Reference 02 2 Chairman’s Statement 05 3 Vision, Mission and Corporate Culture 06 4 Business Overview 08 5 Recent Major Changes 16 6 Future Plan 18 7 Financial Highlights 19 8 Information of Securities and Shareholder 20 9 Board of Directors 24 Corporate Social Responsibility 10 Organization Structure 34 The Company is looking forward to operating under corporate social 11 Management Team 39 responsibilities and is determined to benefit the society as a whole and 12 Report from Risk Management Committee 42 enable company’s growth. 13 Risk Factors 43 Page 57 14 Corporate Governance 46 15 Corporate Social Responsibility 57 16 Transaction with Related Parties 63 17 Report of the Board’s Responsibility for 75 Financial Statements 18 Report from Audit Committee 77 19 Financial Status and Performance Analysis 80 20 Auditor’s Report 82 21 Financial Statement 86 01 02 GENERAL INFORMATION / OTHER REFERENCE Company Profile Company Name : TCM Corporation Public Company Limited (“TCMC”) Location : 238 Vipavadee Rangsit Road, Sanambin, Donmuang, Bangkok 10210 Tel. 02-533 6393 to 400 Fax. 02-533 6850 Type of Business : Manufacturer and distributor of carpets to Domestic and International market / Invest in related businesses Company registration number : 0107537001021 Registered Capital : 1,119,343,830.00 Baht Paid-up Share Capital : 839,507,872.50 Baht Per Value per Share : 1.10 Baht Home page : www.tcm-corporation.com Juristic person’s shares of which the company holds more than 10% Company Name : United Carpet Manufacturing Ltd. (“UCM”) Location : 1/4 Moo.3 Ladsawai, Lumlukka, Pathumthani 12150 Type of Business : Manufacturer and distributor of carpets Registered Share Capital : 20,000,000 baht Par Value Per Share : 100 baht Paid-up Share Capital : 20,000,000 baht Number of Share held by The Company : 102,000 shares Percentage Equity Stake : 51% Home page : www.unitedcarpet.co.th Company Name : Royal Thai International Co., Ltd. (“RTI”) Location : 238 Vipavadee Rangsit Road, Sanambin, Donmuang, Bangkok 10210 Tel. 02-533 6393 to 400 Fax. 02-533 6850 Type of Business : Distributor of carpets and flooring covering Registered Share Capital : 1,000,000 baht Par Value Per Share : 100 baht Paid-up Share Capital : 1,000,000 baht Number of Share held by The Company : 9,997 shares Percentage Equity Stake : 100% Company Name : T.C.H. SUMINOE Co., Ltd. (“TCHS”) Location : 157 Moo 16, Bangpa-in Industrial Estate, Bangkrasarn, Bangpa-in, Phranakhonsi-Ayutthaya Type of Business : Manufacturer and distributor of textiles and carpets for use as seat covers and interior for cars and buses. Registered Share Capital : 250,000,000 baht Par Value Per Share : 10 baht Paid-up Share Capital : 250,000,000 baht Number of Share held by The Company : 12,475,000 shares Percentage Equity Stake : 49.90% Home page : www.tsuminoe.com Annual Report 2017 03 Company Name : TCMC Furniture Limited (“TCMF”) Location : Albro Works, Gosbecks Road, Colchester, Essex, United Kingdom, CO2 9JU Type of Business : Investment in other companies (Alstons Upholstery Limited) Registered Share Capital : 1,000,000 pound Par Value Per Share : 1.00 pound Paid-up Share Capital : 1,000,000 pound Number of Share held by The Company : 760,000 shares Percentage Equity Stake : 76% Home page : www.alstons.co.uk Company Name : Manor (2016) Holdings Limited (“Manor”) Location : The Octagon Suite E, 2nd Floor, Middleborough, Colchester, Essex, England CO1 1TG Type of Business : Investment in other companies (DM Midlands Holdings Limited) Registered Share Capital : 6,250,000 pound Par Value Per Share : 0.10 pound Paid-up Share Capital : 6,250,000 pound Number of Share held by The Company : 62,500,000 shares Percentage Equity Stake : 100 % Company Name : DM Midlands Holdings Limited (“DMMH”) Location : Unit 1 Woodside Industrial Estate, Pedmore Road, Dudley, West Midlands, United Kingdom, DY2 0RL Type of Business : Manufacturer and distributor of Furniture Registered Share Capital : 1,000,000 pound Par Value Per Share : 0.10 pound Paid-up Share Capital : 1,000,000 pound Number of Share held by The Company : 10,000,000 shares Percentage Equity Stake : 75% Home page : www.ashleymanor.co.uk, www.amx-design.co.uk www.alexanderandjamessofas.co.uk Company Name : Vechachai Company Limited (“VC”) Location : 2054 Phetchaburi-Tadmai Rd., Bangkapi, Huaikwang Bangkok 10310 Type of Business : Investment in other companies (Carpets International Thailand Plc.) Registered Share Capital : 1,000,000 baht Par Value Per Share : 10 baht Paid-up Share Capital : 1,000,000 baht Number of Share held by The Company : 100,000 shares Percentage Equity Stake : 100 % Company Name : Carpets International Thailand Plc. (“CIT”) Location : 2054 Phetchaburi-Tadmai Rd., Bangkapi, Huaykwang Bangkok 10310 Type of Business : Manufacturer and distributor of carpets and floor coverings Registered Share Capital : 100,000,000 baht Par Value Per Share : 10 baht Paid-up Share Capital : 100,000,000 baht Number of Share held by The Company : 10,000,000 shares Percentage Equity Stake : 99.305 % TCM CORPORATION PLC. 04 Company Name : TCMC Furniture Limited (“TCMF”) Company Name : TCMC HK (2017) Limited (“TCMC HK”) Location : Albro Works, Gosbecks Road, Colchester, Essex, Location : Room 302, 3/F, Malaysia Bldg., 47-50 Gloucester Road, United Kingdom, CO2 9JU Hong Kong Type of Business : Investment in other companies (Alstons Upholstery Type of Business : Investment in other companies (Royal Thai overseas office) Limited) Registered Share Capital : 690,000,000 HKD Registered Share Capital : 1,000,000 pound Par Value Per Share : 1 HKD Par Value Per Share : 1.00 pound Paid-up Share Capital : 690,000,000 HKD Paid-up Share Capital : 1,000,000 pound Number of Share held by The Company : 690,000,000 shares Number of Share held by The Company : 760,000 shares Percentage Equity Stake : 100 % Percentage Equity Stake : 76% Home page : www.alstons.co.uk Others Reference Company Name : Manor (2016) Holdings Limited (“Manor”) Share Register : Thailand Securities Depository Co., Ltd. Location : The Octagon Suite E, 2nd Floor, Middleborough, 4th Floor, The Stock Exchange of Thailand Building, Colchester, Essex, England CO1 1TG 62 Ratchadapisek Road, Klongtoey, Bangkok 10110 Type of Business : Investment in other companies (DM Midlands Holdings Tel: 02-229-2888 Limited) Registered Share Capital : 6,250,000 pound Auditor : Miss Sulalit Ardsawang Par Value Per Share : 0.10 pound Certified Public Accountant Registration No. 7517 Paid-up Share Capital : 6,250,000 pound DHARMNITI AUDITING Co., Ltd. Number of Share held by The Company : 62,500,000 shares 178 Dharmniti Building 6-7th Floor, Soi Permsap Percentage Equity Stake : 100 % (Pracha Chuen 20), Pracha Chuen Rd., Bangsue, Bangkok, 10800 Tel: 02-555-0651 Company Name : DM Midlands Holdings Limited (“DMMH”) Location : Unit 1 Woodside Industrial Estate, Pedmore Road, Dudley, Accounting Period : January 1st to December 31st West Midlands, United Kingdom, DY2 0RL Type of Business : Manufacturer and distributor of Furniture Legal Councilor : Bunchong and Vidhya Law Office Limited Registered Share Capital : 1,000,000 pound Wall Street Tower Bldg., 9th Fl., 33/35, 33/39-40 Par Value Per Share : 0.10 pound Surawongse Rd., Suriyawongse, Bangrak, Bangkok 10500 Paid-up Share Capital : 1,000,000 pound Tel: 02-233-1666 Number of Share held by The Company : 10,000,000 shares Percentage Equity Stake : 75% CMT Counsellor Company Limited Home page : www.ashleymanor.co.uk, 75 Soi Puengmee11, Sukhumvit Rd., Bangchak, www.amx-design.co.uk Prakanong Bangkok 10260 Tel: 081-836-7236 www.alexanderandjamessofas.co.uk Financial Advisory : None Company Name : Vechachai Company Limited (“VC”) Location : 2054 Phetchaburi-Tadmai Rd., Bangkapi, Huaikwang Bangkok 10310 Type of Business : Investment