Cal Comp Electronics Thailand : 2023 Annual Report/ F56-1 One report

Attachment 5 : The Audit Committee Report 226

CONTENTS

Financial Highlights 001

2023 Message from the Board of Directors 002

Part 1 : Business Operation and Performance

1. Organizational structure and operation 009 of the Company

2. Risk management 035

3. Business sustainability development 037

4. Management discussion and analysis (MD&A) 056

5. General information and other material facts 061

Part 2 : Corporate Governance

6. Corporate governance policy 065

7. Corporate governance structure and important 070 information concerningthe board, subcommittees, executives, employees and others

8. Report on important operational results 081 of the corporate governance

9. Internal control and related party transactions 082

Part 3 : Financial Statements 098

Attachments

Attachment 1 : Details of Management team 207and controlling person of the Company

Attachment 2 : Details of the directors of subsidiaries 223

Attachment 3 : Details of the Heads of the Internal Audit 225 and Compliance Units

Attachment 4 : Assets for business undertaking 225 and details of asset appraisal

FINANCIAL HIGHLIGHTS

BALANCE SHEET SUMMARY

Cash and cash equivalents

2023

2022

2021

10,085,293,230

7,004,346,617

6,332,053,314

Trade and other receivables

30,983,522,216

35,969,693,554

21,572,580,675

Inventories

15,290,283,476

22,117,526,068

26,684,762,522

Total current assets

64,308,423,147

74,245,271,007

60,236,772,973

Investment

2,126,105,948

1,998,284,016

1,822,685,820

Property, plant and equipment

17,638,114,895

18,650,030,995

16,636,613,639

Total assets

85,837,771,536

96,543,206,615

80,849,563,213

Short-term loan from financial institutions

12,566,484,533

24,188,802,485

21,164,107,150

Trade and other payables

30,292,760,634

34,962,899,379

31,622,857,402

Total current liabilities

44,393,929,234

61,871,779,680

54,154,143,685

Non-current liabilities

15,217,531,106

16,006,527,904

8,699,428,128

Total liabilities

59,611,460,340

77,878,307,584

62,853,571,813

Registered capital

10,450,002,831

5,625,920,928

5,177,872,247

Paid-up capital

10,450,002,831

5,386,344,480

4,959,735,333

Retained earnings

11,562,119,280

11,041,858,773

10,721,357,464

Total shareholders' equity

PROFIT & LOSS STATEMENT SUMMARY

26,226,311,196

2023

Sales

150,207,115,563

18,664,899,031

17,995,991,400

2022

2021

171,491,773,771

126,246,379,643

Total revenues

150,812,724,912

172,364,585,434

126,894,793,412

Cost of sales

142,564,649,952

163,724,749,092

119,847,491,229

Selling and administrative expenses

4,468,198,214

5,249,323,303

5,155,117,479

Total expense

147,554,078,559

169,959,944,433

125,336,570,111

Net profit

KEY FINANCIAL RATIOS

Liquidity Ratios

Current Ratio (times)

1,107,209,543

2023

785,454,474

361,628,007

2022

2021

Quick ratio (times)

Collection period (days)

Inventory turnover (days)

Payment period (days)

Cash cycle (days)

Profitability Ratios

Gross profit margin (%)

Operating profit margin (%)

Net profit margin (%)

Return on equity (%)

Efficiency Ratios

Return on total assets (%)

Return on fixed assets (%)

Total assets turnover (times)

Leverage Ratios

Total liabilities / Total equity

Interest coverage Ratio (times)

Information on Shares (Baht)

Book value per share

Earnings per share

Dividend per share

* Subject to shareholder meeting approval

1.45	1.20	1.11
1.09	0.81	0.61
81	61	63
48	54	64
84	74	88
46	41	39
5.09	4.53	5.07
2.11	1.47	0.99
0.74	0.46	0.29
4.93	4.28	2.12
1.21	0.89	0.50
22.13	19.97	17.34
1.65	1.93	1.74
2.27	4.17	3.49
1.77	1.87	2.92
2.51	3.47	3.63
0.17	0.15	0.05
0.12*	0.11	0.11

2023 MESSAGE FROM THE BOARD OF DIRECTORS

MR. HSU, SHENG-HSIUNG

Chairman

According to the IMF's report in latest October World Economic Outlook, the global growth is expected to decelerate from 3.5 in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, which still be expecting to below the historical average of 3.8 percent. In viewing of emerging market and developing economies, both are projected to have a modest decline in growth from 4.1 percent in 2022 to 4.0 percent in both 2023 and 2024 as the tightened monetary policies are taken into effect.

Nonetheless, the global inflation is showing a good sign to slower down and is forecast to gradual decline from 6.9 percent in 2023 to 5.8 percent in 2024 and is expecting to achieve the target rate with a soft landing scenario by 2025 for most cases. In view of Thailand's economic growth, the World Bank has projected to pick-up from 2.5% in 2023 to 3.2% in 2024 which supported by a recovery in tourism and goods exports and sustained private consumption after the global pandemic period.

Look through year 2023, despite the continued global economics downside and ongoing tightened monetary policy as well as impacts derived from the geopolitics in some regions, the Company has managed to achieve sales revenue of 4.2

Billion US dollars and has successfully launched mass production for several new customers and new products during the year.

During the year, the Company has successfully fund-raised the cash capital through Right Offering during fourth quarter in aiming to support the factory expansion plan for future business expansion. Currently, the Company has 12 factories in operation and 4 new factories are under constructions in Thailand which are expecting to complete by first half of year 2024.

Furthermore, the raised capital shall be able to timely reduce the burden in finance cost which driven by the tightened monetary policy worldwide since year 2022. In view of market sectors, the demand for electronics products was still seen be dragging down by uncertainties of global monetary issues and weak market demand. However, the newly acquired sales contributions coming from the SSD products, smart wearable devices, POS machines, EV charge station and else has make up the overall sales revenue and minimized the impacts driven by the weaken demand in computer and peripherals sector and telecommunication sector during the year as compared to previous year.

MR. HSU, CHIEH-LI

Vice Chairman

In view of 2024, asides from continuously exploring in aforementioned new higher-end technologies products, there are 3 newly constructed factories shall be ready for operation and ready to launch the productions from 2nd or 3rd quarter of year 2024 onward which shall be expecting to generate more performance for the Company in the following years.

On the other hand, the Company does has continuous plan to expand its automated production systems by implement 2,000 more automatic robot arm stations in aiming to enhance its production efficiency and boost its capabilities to reduce overall fixed cost for an overall higher return and be able to maintain its competitiveness among its competitors.

The Board has firm believes that the Company has continuously positioned a strong foundation in the industry and has firmly seeing an upscale performance benefit from the global market reshuffle over the ongoing trade wars. Furthermore, the Company has confident that the efforts put through the organization restructurings internally over the past years and the strategies for the Company group's financial restructuring externally back in 2023 will be able to robust the Company's overall performance in the upcoming years. On behalf of the Board, we would like to show our deepest gratitude to the management team and all of our staffs for their hard works even during the rough timing. The Board would also like to extend our highest appreciation to our valuable customers, suppliers, partners, banks, government authorities and shareholders for their continue support and confidence to the Company all these years, and that we are honored to serve as the Board of the Company together with our continual firm commitments to bring the Company to an upscaled realms of glory!