CPL : Creative performance leather
CPL : Creative performance leather
Message from the Chairman
Dear shareholders and all stakeholders,

Although the overall economy this past year was in the doldrums due to the slowdown in the global economy with consumer goods spending at a low, we are glad to inform that with great determination and efforts from the management, 2018 was a growth year for our company. Our operations returned a net profit of 12 million baht, an increase of 115 million baht from the same period last year, which had a net loss of 103 million baht.

The past year is not a good year for the tanning industry in general and we anticipated this trend in advance and took steps to prepare and cope with the global slowdown of our industry. Key causes of the return to profit again in 2018, are due to our focus on investment in both factory improvements; Increase in machine efficiency and improvement of production quality, including expanding production capacity. Especially in the production of finished leather, this finished leather capacity increased from previous average highs of 1.8 million square feet to an average of 2.1 million square feet per month. We will seek to continue improving the efficiency of our product and deliveries, including strengthening the marketing team.

In our tanning business we have invested in new machineries to expand our production capacity starting from the second quarter of 2018 to the level of satisfying the production capacity that we expected for the tanning of cow leather and pig skin. The business of personal protective equipment or safety products under the brand "Pangolin" in the past year has continuously reported increased revenue. In addition to increased production and sales revenues from safety shoes and protective equipment, we also received additional income from renting safety equipment.

Going forward we will continue to invest in our industry in order to prepare for future opportunities. We are sure that the leather industry raw material prices will stabilize and that leather is still needed globally. The leather industry will continue to grow,especially when the global economy starts to recover from the economic stimulus and measures taken by many countries around the world. In anticipating the challenges of trade and economic volatility, every investment decision taken will be carefully screened to ensure the best returns from such investments, ensuring that it will be worthwhile and will progressive contribute to the potential and growth of the company.

On behalf of executives and employees of CPL Group Public Company Limited, I would like to thank the shareholders, our stakeholders, business partners and trusted customers, in being ready to grow together and move forward with us.

Yours sincerely
Chairman of the Board
CPL : Creative performance leather