INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd
INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd
24 SAHA-UNION SAHA-UNION PUBLIC COMPANY LIMITED TEXTILE BUSINESS TYPES OF PRODUCTS OR SERVICES Companies in the textile group are engaged in the production of 4 product categories: 1. Garment accessories such as zippers, threads, and buttons. 2. Fabric textile production from the process of yarn spinning to fabric weaving. The products are made of 100% cotton, cotton blended with polyester and/or synthetic fabrics with special qualifications for making work wear and fabrics used in other industries. 3. Garment: fashion apparel and work wear. 4. Clean room garments SUPPLY OF MATERIALS FOR PRODUCTION OR SERVICE The core materials are cotton, mostly imported for the production process, and synthetic fabric, bought from domestic suppliers and imported. The production of garments and clean room garments has fabric and sewing supplies as core production factors. Fabrics with special qualifications are partly imported and partly supplied domestically. PERFORMANCE IN 2011 The production in this group emphasized on technical work wear as appropriate with the capability of the production process. In 2011, sales volume increased from the previous year, due to the price increased in line with the rising costs of raw materials. Fabrics’ sales value also increased from the previous year. 63% of all sales was exported, 97.5% of which to EU countries and the rest to Japan. Domestic sales contributed to 37% of all sales. Garment’s sales volume decreased from the previous year, but sales value increased. 90% of all sales was exported, 88.5% of which to Europe. From such figure, it was inevitable that the EU economic problem significantly brought down the orders of textile industry at the end of last year. As for the market in the first half of the year, since the textile price continuously increased as from 2010, buyers increased more orders as they feared of the increasing price. On the second half, the textile price fell because the economic recession hit Europe and buyers slowed down their orders as they waited for the price to fall, resulting in the smaller demand in the market and severing affecting the competition in terms of price and delivery period. In 2011, the fluctuation of raw material prices especially of cotton was the main problem because cotton was an imported material; thus, there was limitation of material supply in terms of quantity and delivery period, resulting in the loss of opportunity unless it was in sync with the prompt adjustment of price.
SAHA-UNION 25 INDUSTRY TRENDS AND COMPETITION The competition in 2011 was less intense compared to the previous year because the demand during the beginning of the year was high. From the 3 rd quarter onwards, however, the demand started to slow down as a result of the high fluctuation of cotton price at the beginning of the year and dramatic fall at year-end, causing the production cost of fabrics to change. The world’s economic recession also diminished the purchasing power. As for the 2012 trend, it is expected that production and sales will decline because orders will decrease and customers tend to make short-term orders, making the company unable to forecast the demand as earlier. This business group is also at risk because of the raw materials condition, both cotton and polyester, which depends on external factors such as the changing climate and the EU economic condition. Furthermore, the effect from exchange rate variation must be protected and closely monitored because the export value is high, a forward contract is needed. Finally, the minimum wage hike will threaten the competitiveness with the competing countries where dramatic rise in wage is not of concern. The competitive strategy is to respond to the customers’ need in terms of quality, quantity and delivery period and to add more values to the products.
- Page 1 and 2: SAHA-UNION INTEGRITY QUALITY SERVIC
- Page 3 and 4: SAHA-UNION PUBLIC COMPANY LIMITED S
- Page 5 and 6: SAHA-UNION 03 MAJOR FINANCIAL RATIO
- Page 7 and 8: SAHA-UNION 05 12 million bottles/ye
- Page 9 and 10: SAHA-UNION 07 Mr. Yanyong Tangchitk
- Page 11 and 12: SAHA-UNION 09 Miss Sriwarin Jirapak
- Page 13 and 14: SAHA-UNION 11 Mr. Chakchai Panichap
- Page 15 and 16: SAHA-UNION 13 Mr. Aksornprasit Dara
- Page 17 and 18: SAHA-UNION 15 Mr. Nantiya Darakanan
- Page 19 and 20: SAHA-UNION 17 BOARD STRUCTURE AND T
- Page 21 and 22: SAHA-UNION 19 SU Investment at cost
- Page 23 and 24: SAHA-UNION 21 2011 Cost Method 2010
- Page 25: SAHA-UNION 23 INVESTMENT STRUCTURE
- Page 29 and 30: SAHA-UNION 27 INDUSTRY TRENDS AND C
- Page 31 and 32: SAHA-UNION 29 INDUSTRY TRENDS AND C
- Page 33 and 34: SAHA-UNION 31 This year, the Compan
- Page 35 and 36: SAHA-UNION 33 SAHA-UNION PUBLIC COM
- Page 37 and 38: SAHA-UNION 35 CORPORATE SOCIAL RESP
- Page 39 and 40: SAHA-UNION 37 Donated necessities,
- Page 41 and 42: SAHA-UNION 39 SHAREHOLDING STRUCTUR
- Page 43 and 44: SAHA-UNION 41 DIRECTORS’ REMUNERA
- Page 45 and 46: SAHA-UNION 43 6. Determine the auth
- Page 47 and 48: SAHA-UNION 45 The Audit Committee w
- Page 49 and 50: SAHA-UNION 47 CORPORATE GOVERNANCE
- Page 51 and 52: SAHA-UNION 49 • The Company shall
- Page 53 and 54: SAHA-UNION 51 3.12 The Group Compan
- Page 55 and 56: SAHA-UNION 53 5.5 The Board of Dire
- Page 57 and 58: SAHA-UNION 55 the operational staff
- Page 59 and 60: SAHA-UNION 57 INTERNAL CONTROL The
- Page 61 and 62: SAHA-UNION 59 RISK FACTORS The Comp
- Page 63 and 64: SAHA-UNION 61 to invest with cautio
- Page 65 and 66: SAHA-UNION 63 the sale price of ele
- Page 67 and 68: SAHA-UNION 65 manufacturing of elec
- Page 69 and 70: SAHA-UNION 67 220.83 million or 1.6
- Page 71 and 72: SAHA-UNION 69 the finance lease agr
- Page 73 and 74: SAHA-UNION 71 Regarding the interes
- Page 75 and 76: SAHA-UNION 73 RELATED TRANSACTIONS
SAHA-UNION<br />
25<br />
INDUSTRY TRENDS AND COMPETITION<br />
The competition in 2011 was less intense compared to the<br />
previous year because the demand during the beginning of<br />
the year was high. From the 3 rd quarter onwards, however,<br />
the demand started to slow down as a result of the high<br />
fluctuation of cotton price at the beginning of the year and<br />
dramatic fall at year-end, causing the production cost of<br />
fabrics to change. The world’s economic recession also<br />
diminished the purchasing power.<br />
As for the 2012 trend, it is expected that production and sales<br />
will decline because orders will decrease and customers tend<br />
to make short-term orders, making the company unable to<br />
forecast the demand as earlier.<br />
This business group is also at risk because of the raw<br />
materials condition, both cotton and polyester, which<br />
depends on external factors such as the changing climate<br />
and the EU economic condition. Furthermore, the effect<br />
from exchange rate variation must be protected and closely<br />
monitored because the export value is high, a forward<br />
contract is needed. Finally, the minimum wage hike will<br />
threaten the competitiveness with the competing countries<br />
where dramatic rise in wage is not of concern.<br />
The competitive strategy is to respond to the customers’<br />
need in terms of quality, quantity and delivery period and to<br />
add more values to the products.
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