Message from Chairman

The year of 2018 was the challenging year for the operations of Malee Group Public Company Limited. The Company had to face some risks in dealing with external factors that could not be avoided. Such factors are the overall economic condition of the country that continuously grew less than expected, the diminishing confidence and purchasing power of the people, the unfavorable atmosphere for private consumption and expenditure, and the fluctuation of the baht rate that has been much more appreciated than the previous year. Moreover, the revenue of some contract manufacturing businesses decreased more and faster than expected; while new businesses of some start-up brands, created for increasing variety of businesses and distributing risks in the future, was unable to compensate for the existing businesses that has deteriorated in the short term. Due to these factors, the Company's operating performance did not meet the target, both in terms of revenue and operating result, which led to the negative operating performance for the first time in more than ten years.

Nevertheless, the Company has been operating for forty years, having experienced many good and difficult times. As for the negative operating performance, the Company had also experienced it before. But thanks to the effort and dedication of the management and staff, the Company was able to overcome the crisis quickly and strongly every time. In this occasion, the Company, including our management and staff, is confident that this crisis can be resolved as quickly and strongly as before. Short-term supporting plans has been implemented to increase revenue and control costs for the Company to turn back to profit soon. But more importantly, we has been pursuing the long-term goal that will allow the Company to grow steadily and sustainably in the years to come.

The Company has focused on different changes in the long term. The changes have been carried out in many aspects, simultaneously and continuously in the past three years, to create readiness for changes and future competition. The result of these changes will be gradually seen in the future. These changes include the investment to reorganize the production infrastructure and the management structure. The Company has not only invested in tangible assets, but also in information technology system, research and development, creation of a new corporate culture, and personnel development both in training and potential development. Capable personnel have been recruited enough for the future growth plans, while business expansion has been proceeded with many domestic and international partners. All these changes will be an important part in laying a strong foundation for the Company to be able to drive sustainable future growth. Another important issue this year is the human resource management. The Company has appointed new senior executives: Mrs. Chintana Boonyarat as Chairman of the Board of Directors, and Ms. Roongchat Boonyarat as Chief Executive Officer, both were directors and executives of the Company who has been closely involved in the formulation of policies and management of the Company for a long time. Moreover, they are so knowledgeable and proficient that they have always been recognized among the Board of Directors and staff in the organization.

As for our rewards and pride in 2018, the Company was approved to join “Collective Action Coalition Against Corruption” (CAC) for the first time. It is a collective action between the public and private sectors in Thailand, with the Thai Institute of Directors Association (IOD) serving as its secretariat. The Company also attained the CG score of “4 stars” (Very Good) from the Thai Institute of Directors Association (IOD) for the third consecutive year.

Finally, on behalf of the Board of Directors, management and all employees, the Company would like to thank all shareholders, trade alliances, trade partners, consumers and all other parties relating persons for your favorable contribution and support to our business. Please rest assured that the Company is committed to operating our business and driving forward to the greater step while adhering to the good corporate governance, transparency, all forms of anti-corruptions, coupled with corporate social and environmental responsibility activities as to take care of our stakeholders in a long term

Finally, on behalf of the Board of Directors, Management and all employees, the Company would like to thank all shareholders, trade alliances, trade partners, consumers and all of other parties relating persons for your favorable contribution and support to our business. The Company is committed to operating our business and driving forward to the greater step while adhering to the good corporate governance, transparency,all forms of anti-corruptions , coupled with corporate social and environmental responsibility activities as to take care of our stakeholders in a long term.