Mr. Yeap Swee Chuan
President and CEO
AAPICO Hitech Public Company Limited
2021 is a very much improved year for AAPICO. Profits climbed significantly. We achieved total revenue of THB 20,967 million and a net profit attributable to equity holders of THB 1,024 million. The COVID-19 pandemic was in the air, and we initiated very intense vaccination of all employees. As a result, the impact of labor absenteeism was reduced, and we could achieve to deliver and supply our good quality products on time. Despite all our strong vaccination and protective measure, we had cumulatively over 800 employees affected by COVID-19 in Thailand but luckily all recovered safely. We implemented very strict discipline to reduce the infection rate in the company. By end December, we had almost zero COVID-19 infection due to all the good measures put in place. The same strict control is still in place today.
China forging and machining operations performed well. It was the best year in the history of the Company. The COVID-19 control in China is excellent and the car industry continued to grow.
The casting operations of Portugal did well for the first two quarters but due to the shortage of chips, the second half volume reduced significantly, Portugal operation generated loss for year 2021. The Portuguese operations were greatly affected by the steep reduction of cars assembled in Europe and the sharp increase of steel price. Both these factors affected the sale and the cost of goods. As a result, the expected budget which was a profit spiralled to a loss.
The Malaysian dealerships with two Honda and three Proton showrooms did not perform well due to several months of total shut down. However, Malaysian dealerships can generate some profit for year 2021.
Generally, the Thailand operations was the best performer. Generally, all companies continued to improve, and we are able to meet most of our budget sales and profits. The most serious risk affecting production was the high incidence of COVID-19 affecting manpower. However, with strict discipline and accelerated vaccinations, we were able to overcome these challenges. We opened two new showrooms in the year, one for Mitsubishi and one for MG and converted one of our Mitsubishi showrooms at Navakorn from Mitsubishi to Mazda.
2021 was an eventful and busy year as we were preparing for the launch of one large pickup model in Thailand for the global market and busy combating the rise of COVID-19 in our plants. Overall, I am very satisfied with the strong initiatives by the management and able to achieve the targets to progress the readiness of the new model and keep all infected employees safe at the height of COVID-19 infections.
The indications are the auto industry will continue to grow in Thailand and globally. Hence, we expect the good performance in 2021 to continue to trend upwards into 2022. The forecast revenue is a very strong growth in the car industry globally, and we can expect to see very good performance in 2022.
Finally, I would like to thank all the associates who cooperated, worked hard and helped to deliver the excellent results for 2021 and, also, to all stakeholders, without whose strong support we would not have been able to achieve the budget we set for the year. I would like to assure all stakeholders that I will continue to provide leadership to achieve the budget for the coming year.