Message from the Board of Directors
In 2020, the impacts from slowdown of global economies and trades caused by outbreak of new coronavirus (COVID 2019) and nose-diving prices of crude oil and petrochemical products led to reduction of performance on revenues of UAC Global Public Company Limited (“UAC”) by Baht 1,300 million, when comparing with the year 2019. UAC tried every way to control costs and emphasized all business units to enhance efficiency, combining with Work from Anyway practice and commencement of digital transformation process to apply more in the organization, consequently, total net profit was Baht 259.04 million, an increase by Baht 105.47 million, or representing 68.68 percent, when comparing with 2019. Summary of significant events in 2020 for shareholders and investors’ acknowledgment were as follows:
- UAC marked the 25th anniversary for business operations by having trade and investment in 3 main businesses: Trading business in energy industry; chemical products production business, and energy production business. UAC Group has 7 subsidiaries, 210 employees in total with offices and production plants in many areas of the country and is now developing waste management project in Vientiane, Lao PDR, which is the first project in a foreign country.
- UAC securities moved from the Market for Alternative Investment (mai) to be traded in the Stock Exchange of Thailand (SET) on February 19, 2020, after they have been listed in mai since 2010 to open opportunities to general and institutional investors to see the increased potential of the Company.
- UAC has been selected in the “Thailand Sustainability Investment (THSI)” list from the Stock Exchange of Thailand for 5 consecutive years and has been recognized as ‘Excellence’ level from assessment results in Corporate Governance Report (CGR) for 3 consecutive years.
- UAC has completely and safely arranged the AGM on May 7, 2020 under strict COVID-19 prevention measures and all agenda have been approved by the shareholders, including an approval of the dividend payment from performance in 2019 at the rate of Baht 0.135 per share on April 30, 2020.
- UAC maintained high level of liquidity to support for slowdown of economic conditions and could redeem Baht 400 million debentures on June 12, 2020 including issue debentures amounting to Baht 300 million on June 18, 2020. UAC also received dividend from investment in the joint venture on biodiesel production totaled Baht 143.56 million and has short-term and long-term loans with low interest from domestic financial institutes which were sufficient for business operations.
- UAC paid interim dividend from performance of the first 9-months of the year to the shareholders at the rate of Baht 0.06 per share on December 9, 2020.
- UAC did not receive any compliant on its business operations from any stakeholder and has fully complied with all relevant laws, rules and regulations.
- UAC has complied with human rights principles of the United Nations on employment and nurturing of employees at all levels. Safe workplace has been provided without any severe accident.
With regards to strategies to keep UAC growing steadily, the Board of Directors has arranged the meetings to discuss about future directions jointly with the management and the business operation targets in 2021-2023 have been adjusted to conform to overall economic conditions by moving forward to trading and investment in Circular Economy and Green Chemicals. In addition, UAC will try to maintain adequate liquidity to make total EBITDA higher than 15 percent and to increase ROE to be more than 20 percent, as well as to adhere to corporate governance principles, to operate business with transparency and fairness to all stakeholders with anti-corruption in all forms, to consider of society, environment and enhance the development and progress of employees at all levels to keep UAC moving ahead sustainably.
On behalf of the Board of Directors, we would like to express our gratitude to all shareholders and stakeholders, including the management and the employees of UAC Group for continual support and confidence in UAC. UAC Group will determine to operate and build prosperous businesses sustainably as per aspiration of "25 Years of UAC to Keep Moving Forward to Sustainability"