AAPICO Hitech Public Co., Ltd. Business Report FY ended Dec. 2019
Financial Overview |
(in million THB) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of change (%) | Factors | |
| Sales | 19,304 | 17,737 | 8.8 | 1) |
| Net Profit | (181) | 1,299 | N/A | 2) |
Factors
1) Sales
-The Company’s sales for the fiscal year ended December 31, 2019 increased by 8.8% over the previous year to THB 19,304 million, driven by higher sales from the automotive parts segment and sale contribution of AAPICO Maia which the company acquired in Q4 2019.
2) Net loss
-The Company’s net loss is THB 181 million in the fiscal year ended December 31, 2019, largely due to the short-term accounting expenses from its expansion, including a considerable portion of non-cash expenses.
New Company
-The Company has signed a Memorandum of Understanding with Hyojin Autotech Co.,Ltd (Hyojin) from Korea and Triumphant Project Management Sdn. Bhd. (TPMSB) from Malaysia to invest in a new company to be formed under the laws of Thailand, namely "AAPICO Hyojin Autotech Co., Ltd.”. The establishment of this automotive assembly jigs design and manufacturing in Thailand is to provide competitive advantage to the Company for its current and new products. Notwithstanding, the new company will expand into EEC to focus on R&D development on robotic implementation in line with Thailand 4.0, and enhance assembly jigs quality, cost and delivery to carmakers in South East Asia. The jigs manufacturing capacity is capable to reach 500 jigs/year in combination of main jigs and sub-assembly jigs. The investment capital plan of THB 30 million by the Company, Hyojin, and TPMSB will hold 55%, 30%, and 15% equity respectively. The initial operation started from October 1, 2019 with the Company providing land, factory building and machinery for effective start-up with 14 designers/engineers and 45 technicians. Hyojin will provide technology transfer on jigs design and manufacturing know-how and operations standards, while TPMSB will provide BIW integration engineering expertise and project management resource experience. (From a press release on December 13, 2019)