Since before 2010, Delta Electronics Group and Delta Electronics (Thailand) PCL. followed a solid business plan to grow our business towards the Internet of Things (IoT) global trend. The company has introduced our Power Supplies and DC Fans to IoT related business segments including Data Center, Solar Power and Electrical Vehicles (EV) such as battery and hybrid electric cars. Our products are also part of the IoT infrastructure, i.e. Data Center and Telecommunications, in many regions such as Europe, East Asia, Southeast Asia and Oceania. Ever since we increased our focused on IoT businesses, sales of related products have had very satisfactory growth and they now make up a significant portion of our total sales.
The year 2018 was full of headwinds for many businesses, including ours. Appreciation of the Thai Baht against the US Dollar and shortage of materials had major impacts on both our sales revenue and profit margins. As a result, our customers and business partners in the automotive industry had to change their business strategies. In addition, the US-China trade war and political tensions in foreign countries resulted in changes in the actions and business plans of consumers and producers. Despite the challenges, the company handled each issue throughout the year with minimal adverse impact to our business.
In the end, we still managed to increase our sales revenue in USD compared with last year and although some reduction in profit margin was unavoidable, our total profit increased. Meanwhile, we continued to pursue our planned expansion of production capacities and improve our production facilities with smart manufacturing to increase efficiency and reach our Industry 4.0 targets. In the near future, we will reduce the number of operators in production while improving flexibility in the product types produced on each line. As IoT business segments require more varieties of products with different specifications, we will continue to leverage smart manufacturing to accelerate growth.
In 2019, the company’s business plans will continue expanding in scale. Since last year, we have been improving many production facilities and increasing our production capacities in many countries including two locations in Thailand and other locations in Myanmar, and India. The execution of our expansion plans have faced some delays because we need to first start assembly for other Delta Group companies and promote accelerated IoT integration within the group. During our increased activities, we will also continue to make efforts to secure profits that are in line with our business goals.
As for Delta Thailand’s ODM business, management is confident that we will grow the business. With a strong clientele and business partners in many sectors, we will develop our leading technology to meet both present and future the industry changes and produce products to improve lifestyles, reduce power consumption with efficiency, promote energy recycling and clean energy generation. This will be possible with more environment-friendly products that help reduce CO2 emissions.
Lastly, the company would like to express our sincere gratitude to all our customers, partners, authorities, employees and shareholders for their trust and faith in our management and support of our actions for good business practice and good corporate governance with long-term sustainability over our past 30 years.
|Kong Meng Ng
Chairman of the Board