(Mr. Thongchai Praerangsi)
Chief Executive Officer
In 2016, the company’s performance met with major losses. Income from sales and rental service provision dropped significantly to the point where the company was unable to compensate for machinery depreciation and interest from investment, an impact continuing from 2015. In addition, public sector investment moved much more slowly than goals with additional problems caused by lower crude oil prices affecting oil refinery, petrochemical and other business operations that are main businesses in which the company provided rental services. This has resulted in new constructions and shut-downs to be rescheduled.
To help the company benefit from government projects that are expected to begin to have clear investments in 2017 and disperse business risks by reducing overdependence on income from any single business, the company restructured its business in mid-2016 by adding foundation drilling contracting businesses to support public utility constructions that are expected to begin in late 2016. The customers will be in the same group of contractors as the crane rental service provision business with whom the company already has a good relationship. The company began to accept foundation drilling contracts in November 2016 with good responses from customers. The company is confident that the foundation drilling contracting business will build sustainability for the company. Furthermore, in the area of machine rental service provision, the company cooperated with the Trang Provincial Administrative Organization (Trang PAO) which received a concession to administrate Na Kluea Port, an international port with a future to support logistics businesses on the Andaman Sea coast. This was a cooperation to provide machinery services at the port with sharing of income from machine service provision between Chu Kai Public Limited Company and Trang PAO at a ratio of 80:20.
In 2017, the company will advance more into the foundation drilling contracting business in line with increased business opportunities from investment in communication and transportation infrastructure including double track railway, various lines of electric trains, the Bang Pa-In – Nakhon Ratchasima Motorway, the Bang Yai – Kanchanaburi Motorway, etc. The company will use its experience and expertise in machines to create a competitive advantage. In the area of rental service provision, the company will focus on managing existing machines effectively to be consistent with the ability to gain more income. In the area of machine sales, the company will cooperate with XCMG to outline strategies in pushing large lot sales to contractors in government public utility construction projects in order to allow XCMG products to enter the market and gain greater reliability. The company is confident that this latest business structure will bring the company’s performance to succeed in achieving stability and sustainability growth.