To All Shareholders
From the COVID-19 pandemic situation which has still continued over 2 years until now, the government of each country has essentially obligated to impose both monetary and fiscal policy to stimulate the economy. However, the global economic situations still experience severe recession as many businesses were closed leading to an inevitable sharp increase in the unemployment rate. These consequences resulted from the lockdown policy being imposed by all countries to prevent the disease outbreak. In addition, economic activities in each country have been tremendously stopped following the declaration of the government on mandatory measures and public cooperation including avoid crowded places, maintain social distancing and work from home.
The jewelry industry was severely affected due to the limited consumers’ purchasing power as well as by the high price of gold. As a result, more jewelry manufacturers continued to cease business operations from previous year as volume of purchase orders were not covered to the operation costs.
As Pranda Jewelry Public Company Limited well recognizes the risks of this situation, the COVID-19 Management Committee comprising of the top executives has then been established. The roles and responsibilities of the Committee are to manage the process of monitoring, preventing and controlling the pandemic, establish the preventive and control measures of the outbreak and strictly carry out preventive actions following the established measures. In 2021, the Committee achieved its goals even though the highest percentage of infection was 5% of total employees. The Company was able to promptly respond and control the spread leading to no impacts onto the operations of the Company’s production base. Furthermore, as the Company has managed to locate the factory layout into each function clearly and separately, we are able to accomplish social distancing measure by efficiently preventing the transmission of the disease
As the Company has started adjusting its business strategy since 2018 by focusing on the downsize of overseas distribution base following the changing market conditions and to stop loss, the Company has thus referred potential customers to be directly under the production base to create competitive advantage. Such strategy is resulted from the Group’s business restructuring in 2021. The Company has adjusted the group structure from previous 4 business units consisting of Production Base, Distribution Base, Retail Base and Support into 3 new business units namely Production Base, Omnichannel Distribution Base and Support. The new structure aims to align the Company’s present and future business operations with the highly dynamic digital market structure. Brief details of each core business unit are described as follows:
• Production Base – Focus on manufacturing products for 15 key potential customers and other general customers.
• Omnichannel Distribution Base – Focus on Omnichannel selling of Owned Brand product line with new service features to facilitate more convenience to the customers.
For the performance of year 2021, the Company had its turnover of THB 2,900.54 million, increased by THB 438.24 million compared to the same period of the previous year at THB 2,462.30 million or equivalent to increasing rate of 17.80 percent. Gross margin was at 23.69 percent greater than the previous year with operating profits at THB 96.32 million or equivalent to growth rate of 176.21 percent. Upon the depreciation of Thai Bath currency compared to the same period of the previous year, the Company earned a gain from the exchange rate of THB 77.16 million. As a result, the Company had profits attributable to equity holders of the Company at THB 138.17 million, increased from THB 233.27 million or equivalent to 245.26 percent compared to the previous year.
The Company still has a stable financial position considering from the Debt to Equity at 0.77 The debt payments successively settled could also result in a decrease in financial cost. The Company is also able to maintain its financial liquidity considering from the Current Ratio up to 1.82 with the operating cash flow THB 300.84 million, net cash flow THB 45.66 million and remaining cash balance for the business THB 397.82 million.
The year 2022 is another challenging year given the continuous outbreak of the Coronavirus 2019 (COVID-19) which still continues to threaten the global economy. As the Company is consciously aware of these existing risk factors, the restructuring of the Group’s management has been adjusted to be run under the management of the Group Executive Committee. The Committee comprises of Managing Director of each function who are qualified with expertise to systematically and cooperatively work towards ‘New Normal’ directions which have transformed consumer behavior towards social network of E-Commerce and Social Commerce. In addition, the Company also starts to work on planning to respond to the 5th Industrial Revolution (METAVERSE) at a certain level.
Goals of Production Base and Omnichannel Distribution Base in 2022 are as follows:
• Production Base – Build strategic customer base to achieve regular and continuous purchase orders, provide 100% on-time delivery to build customer confidence, pay high attention to every relationship and increase engagement within the organization.
• Omnichannel Distribution Base – Become fine jewelry retailers based in the Southeast Asia and South Asia focusing on consumer-centric approach as well as expansion of distribution channels to online channels to directly reach consumers all over the world.
For the sustainability goals, the Company aims to enhance growth, stability, sustainability covering the principles of Environmental, Social and Governance (ESG). More information of “Sustainability Report” is available on the Company’s website, www.pranda.com. Accordingly, the Core Values and Corporate Sustainability Committee has been assigned to take responsibilities for overseeing the corporate sustainability matters.
Finally, on behalf of the Board of Directors of Pranda Jewelry PCL., we would like to express our appreciation to the shareholders and all stakeholders who always trust, understand and support the Company. The Board of Directors, the Committee, the Executives and employees are still dedicated to performing own duties in accordance with international principles of UN Global Compact, business ethics, code of conducts and anti-corruption in all forms by being committed towards the highest benefits mutually shared among all stakeholders.
Founder & Chairman of Advisory Board
Mrs. Pranee Khunprasert
Director / Chairman of Group Executive Committee / Finance & Risk Management Director
Mrs. Surat Sirijansawang
Independent Director / Director of the Audit Committee / Nomination and Remuneration Director
Prof. Dr. Channarong Pornrungroj
Chairman of Core Values & Corporate Sustainability Committee / Group Executive Director
Mr. Pramote Tiasuwan
Managing Director – Production (Acting)
Managing Director – Product Development & Prototypes (Acting)
Ms. Pittaya Tiasuwan
Managing Director – Supply Chain and Gemstones
Mr. Decha Nuntanajaroenkul
Managing Director – Marketing
Managing Director – Finance & Risk Management
Managing Director – Corporate Sustainable Growth
Mr. Pitipong Tiasuwan
Managing Director – Omnichannel Retailing
Primagold International Co., Ltd.
Mr. Santiparp Riyai
Pranda Vietnam Co., Ltd.
Pranda Jewelry Private Limited
Managing Director (Acting)
Pranda UK Limited
Pranda Lodging Co., Ltd.
KZ-Pranda Co., Ltd.