Message from the chairman
The Thai economy in 2024 grew by about 2.5 percent, increasing from 2023 which was 2.0 percent, mainly because the government investment was higher due to various economic stimulus projects of government, including the exporting value also increased by 5.4 percent. Another important factor was the number of tourists increasing to 35.5 million people, which helped improving the growth rate of the Thai economy in 2024. In terms of steel consumption in Thailand in 2024, it was 16.30 million tons, which decreased by only 0.2 percent from 2023, showing that Thailand has not increased the steel consumption from the manufacturing and construction sectors, which have been affected by the economy that has not yet recovered well.
The performance of CSP Steel Center Public Company Limited in 2024 has a total revenue of approximately 2,518 million baht, increasing from 2023 in the amount of 138 million baht or 5.82%. The main reason was increasing of sales volume by 13.11% when compared with 2023. Meanwhile, average selling price decreased by 6.59% due to the decline in the market price of steel. Such decline price derived from the global economic downturn caused by the war and the problem of production capacity exceeding domestic consumption in the People's Republic of China, has impacted on exporting cheap price of steel, which led to the global steel price declining. The demand for steel in Thailand has been decreasing slightly, resulting in increased competition as well. Moreover, the Bank of Thailand's policy of raising interest rates has caused commercial banks to raise interest rates, so the company had to incur additional expenses in this part, which was the reason why the company was unable to sell products at competitive prices or at prices that can generate profits for the company as usual. The company therefore suffered a loss in 2024 of 106.97 million baht.
As I am the Chairman of the Board of Directors. I am very disappointed that the company's performance had a loss in the year 2024. The management team and I have an urgent policy to reduce inventory level; in order to, reduce the risk from fluctuating steel prices and to reduce the company's financial cost, as well as increase production efficiency and reduce various expenses to make the company's performance return to have net profit in 2025. In this regard, the company has still continued to operate in accordance with the policy, goals and practices for sustainability management in other dimensions, along with taking into account the good relationships with all groups of stakeholders in the value chain of the company, which most of the goals in other dimensions have been achieved at satisfactory levels. Including, conforming the company’s principles of CG Code 2017, policies, plans and practices of other departments relating to the community/social dimension and environment. However, the management team and I will try to manage the company to be able to have net profit in the year 2025 by focusing on developing more efficient work system, and having business ethics along with a good relationship with responding the expectations of all groups of stakeholders to achieve the objectives of the company.
Mr. Supachai Chaisupat
Chairman