| Obstacles and uncontrollable external factors such as outbreak of bird flu in several countries around the world (which caused drastic reduction in price and consumption of chicken), higher production cost, and appreciation of the Thai currency had all impacted on our profitability. Net profit for 2006 is THB 2,510 million and is below the target set. |
|
| |
| On expansion front, in 2006 we had increased our investment in aquaculture business in Malaysia plus setting up subsidiaries in Russia and Laos for feedmill and animal farming operations. On divestment of non-core assets, in 2006 we had sold off our investment in retailing/supercenters and beer manufacturing in China. |
| |
| All of the aforementioned actions were in line with the Company policy announced in 1999 on restructuring of our business and our vision to become “Kitchen of the World.” The main committment is to maintain our leading position in the agro-industry business and to become a leader in food business with creation of quality food products to satisfy consumers. It is also our policy to miniminze the holding of our non-core assets. |
| |
| In addition to implementing strategies that would yield appropriate return to our shareholders, the Company has set up various programs to promote understanding and cooperation among management and staff for better corporate governance. On February 9, 2006, the Company had set up the Remuneration and Nominating Committee. |
| |
 |
| The Company is well aware that obstacles and uncontrollable factors are major challenges. However, we steadfastly believe that every crisis poses an opportunity. The Company should have to seize that opportunity to bring about success with three main factors; having the proper vision, applying appropriate technology, and employing qualified personnel with proper expertise. |
| |
| Our next important strategy is human resources development. Personnel are the material element that has contributed to our strength and growth and to overcome the numerous crises. They are a major force in shaping the Company to become one of the leading companies in the world. |
| |
The Company has set forth 6 principles which are incorporated into “CPF Way.” These are the basic qualities that we wish to instill in our personnel and to strive to bring the organization to achieve the targeted goals. They are:
|
| 1. receptive to change |
| 2. personal mastery and share learning |
| 3. innovation |
| 4. integrity and honesty |
| 5. achievement orientated |
| 6. earth-mother |
| In order to gauge our performance, the Company has target setting based on five criteria, namely, financialresult, customer satisfaction, increased productivity, human resources development, and sustainability of the organization. |
| |
| On strategic front, the Company will conduct vertically integrated business operation with direct link to our business partners and employ contract farming and outsourcing. We will continue to invest in brand building. Improved efficiency in various support functions and investment in countries with high potential should bring about lower production cost and risk distribution. With concerted efforts and results of all these actions, the Company should be able to provide a reasonable return to our shareholders. This will also prove Thailand’s readiness to compete in the international food arena. |
| |
| Despite the external factors of lower meat consumption and higher production cost affecting the agroindustry and food business in 2007, the Company assures that management and staffs are determined and dedicated to attain the objective of providing appropriate and reasonable return to our shareholders. We also aim to provide maximum benefits to our business partners and financial institutions for the continued support. We will strive to excel and make our Company stronger and to achieve our vision of becoming “Kitchen of the World.” |
