President’s Message

President's Message

Mr. Yeap Swee Chuan

President and CEO

AAPICO Hitech Public Company Limited

As mentioned in the previous year’s report, my anticipation was for an upward trend in 2023, but unfortunately faced a gradual slowdown in the latter half of the year. Consequently, our growth for the year was limited to 7% compared to 2022. The revenue for 2023 amounted to 30,389 million THB, which compared to 28,348 million THB in 2022, while the profit in 2023 stood at 1,610 million THB, compared to 1,824 million THB in the previous year due to one-time expenses. If we look at our core profit, core profit in terms of amount improved from 1,704 million THB in 2022 to 1,763 million THB in 2023.

Our primary market, Thailand, did not meet expectations, experiencing a 2% decline in car production in 2023 compared to 2022. However, our operations in Portugal and China showed improvement during the same period. In Malaysia, the car dealership remained stable throughout 2023. Notably, we initiated a joint venture (49:51) with Purem by Eberspächer of Germany to establish a new factory supplying exhaust systems to Proton. Purem holds the majority equity. We also invested 60% equity in a Proton company, renaming it AAPICO AVEE Sdn Bhd. Both companies are set to commence full operations in 2024.

In December 2023, our Board of Directors approved the sale of all shares (77.04%) in Sakthi Auto Component Limited (“SACL”) to our joint venture partner for 82 million USD$. We have already received the first tranche of payment, totaling 72 million USD, at the end of December 2023. The second tranche payment, amounting to 10 million USD, will be disbursed in 8 installments with interest over the course of 4 years. The shares will be transferred upon completion of each installment.

2023 saw a big increase in sale of EV cars from China. Total EV registration was 76,538 units vs 9,617 units
in 2022 a 695.86 (%) percent increase of which more than 80% are Chinese brands. These Chinese brands are setting up plants in Thailand. It will give more opportunity to Aapico to supply parts to these Chinese brands. The growth in the EV car segment will be strong in the near term but will gradually taper off.

Moreover, in 2023, we intensified our efforts in Environmental, Social, and Governance (ESG) initiatives and took actions to support carbon neutrality, which are progressing well. Our objective is to achieve carbon neutrality by the year 2048.

Despite not meeting our budgeted targets due to the market downturn in Thailand, I express my satisfaction with the collective efforts of our associates, leading to a reasonably successful year in 2023. My sincere gratitude goes to all directors, associates, and stakeholders whose support was instrumental in navigating 2023 in a secure manner.

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99 Moo 1 Hitech Industrial Estate, Tambol Ban lane, Amphur Bang Pa-in, Ayuthaya, Thailand 13160

+66 (0) 3535 0880

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