synex: annual report 2008
DESCRIPTION
Annual Report 2008TRANSCRIPT
Annual Report 2008
Computer technology business development and all ofcommunication by using merit system, personal developmentand social for the benefit under competitive condition with secu rityfor a long time.
Vision Mission
Vision
1. Focus on approach management serve organization target.2. Expand products in advantage channel and more experiences.3. Increase new potential market.4. Use cost control efficiently, more invest in the good part.5. Implant organizational culture.6. Social responsibility must use IT development
Mission
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Message from the chairman
(Mr.Supant Mongkolsuthree)Chairman and CEO
From the 2008 world economic crisis effect to the entrepreneurs in various countries, specifically the entrepreneursin Thailand. The operation could not serve the target, with layoff employee, decreasing the investment and decreasingof expenses of government and private sectors. The information and communication technology (ICT) of Thailand hasreceived the effects also. In 2008, ICT market got the value of 542,854 million baht, increasing from 2007, 8.3%.The most growth of computer service market was 16.6%, software computer, hardware computer and communicationwere 11.2%, 11.1%, and 6.8%, respectively. The expectation of ICT market in 2009 will grow 5.2%, hardware computerhas no growth, but the computer service will grow 14% (Source: Surveying of ICT market in Thailand of NationalSoftware Industrial Promotion Authority (SIPA) and NECTEC.
Report on operating results in 2008, the company earned the total income 12,022.80 million baht grown fromprevious year, 10.89% by the notebook computer and personal computer has the most growth, 59.0% According tothe company were the representatives in various brand such as HP, Asus, BenQ and Lenovo as well as the personalcomputer under brand product of Lemel which was the house brand of the company. The not profit in 2008 was122.98 million baht which decreased 12% because of the increasing price of oil and the sale promotion activities wasdecreased. From the decreased economic in 2009, the company determine decreasing expenses policy and decreasingthe cost of products by the coordinating to the company, the producers and the customers concerning the marketingdevelopment. This project will extent the market as well as the company adjust the teamwork in order to supportingthe channel of distribution by extension Cnex Shop cover all of target groups, the center of IT Service such HP.Moreover, the company focus on Lemel.
According to the company begin to 20th anniversary, the products has certified quality product or trusted bySYNNEX which accepted in IT market. The company aim to keep the quality and service of products. On behalf ofthe company committee, I would like the thank the shareholders, customers, trade alliances and employees who supportthe company operation. The company will manage under good government and good control which keep the benefit forthe shareholders and the beneficiaries.
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Annual Report 2008
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Mr.Supant MongkolsuthreeChairman and CEO
Board of Directors
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08 09 10
04 05 06 07
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Annual Report 2008
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Mr. Supant MongkolsuthreePresident & CEO
Mr. Tu Shu WuDirector
Mr. Virachai SrikajonDirector
Mr. Huang Chi ChengDirector
Mr. Lee Lee ShenDirector
Mr. Wei HuiDirector
Mr. Tu Shu ChyuanDirector
Mr. Puttipan TayarachkulDirector
Mr. Somchai ApiwattanapronIndependent Director & Chairman of Audit Committee
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Mr. Vissut SethaputIndependent Director & Audit Committee
Mrs. Maleeratna PlumchitchomIndependent Director & Audit Committee
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Executive Committee
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Annual Report 2008
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Mr. Supant MongkolsuthreePresident & CEO
Mr. Puttipan TayarachkulSenior Executive Vice President – Operaions
Mr. Anuchit Boonyalug Senior Executive Vice President – Sales & Marketing
Ms. Suvannee LeeExecutive Vice President – marketing & Marketing Communication
Ms. Kingkaew JutasompakornExecutive Vice President – Logistics & Assembly
11 Mr. Niti PetchanaithamVice President – Modern Trade & CNEX Shop
Ms. Suporn LertteerapanyawongVice President – Finance
Ms. Kamonsri BoonjangVice President – Accounting
Ms. Supen JantawanichkulVice President – Sales Retail
Mr. Boonchai EkapisitVice President – Sales
10 Mr. Chanchai AkaravetwattanaVice President – Marketing
12 Mr. Cherdchai SrikhamroomVice President – Internal Audit Department
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Finance Profile
Total RevenuesGrowth
Process
2551 2550 2549
As of December 31, Unit : Million Baht
Detail
9,694,2953.56%
10,842,52011.84%
12,022,80710.89%
Growth104,019118.25%
139,91234.51%
122,981-12.10%
Total AssetTotal LiabilitiesShareholders’ Equity
Finance Status
2,158,8031,389,282769,521
2,798,4021,877,560920,842
3,165,2131,955,6871,209,525
ROECurrent RatioDept to Equity
Ratio
6.15%1.07%
14.49%1.351.81
6.46%1.29%
16.55%1.352.04
6.38%1.02%
11.55%1.491.62
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Annual Report 2008
Finance Status
Total Revenues
Net Profit
Baht
2,000,000.00
4,000,000.00
2549 2550 2551
0
6,000,000.00
8,000,000.00
10,000,000.00
12,000,000.00
9,694,295
12,022,807
10,842,520
Baht
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
2549 2550 2551
0
140,000.00
160,000.00
104,019
122,981
139,912
Total Asset
2,158,803
2,798,402
3,165,213
2549
2550
2551
254925502551
254925502551
Total Liabilities
1,389,282
1,877,560
1,955,687
Total Shareholders’equity
769,521
920,842
1,209,525
Baht
500,000
1,000,000
2549 2550 2551
0
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
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General Information
Name : SYNNEX (THAILAND) PUBLIC COMPANY LIMITED.Symbol : SYNEXRegistration No. : 0107550000203Registered Capital : 705,000,000 Baht (Seven Hundred Five Million Baht)Paid-Up Capital : 680,000,000 Baht (Six Hundred Eighty Million Baht)Par Value : 1 BahtBusiness Nature : Distributor of computers, computer peripherals, software and IT productsHead Office : 188 M.1 SukontasawatRd., Khwang / Khet Lardprao, Bangkok 10230Telephon : 0-2553-8888Fax : 0-2578-8181Home Page : http://www.synnex.co.th
Annual Report 2008
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Other Information
ReferenceRegistrar : Thailand Securities Depositoty Co.,Ltd. Capital Market Academy Building 2 th F1. 2/7 M.4, (North Park Project) Vibhavadi-Rangsit Road, Tung Song Hong Laksi, Bangkok 10210, ThailandAuditor : Sam Nak - Ngan A.M.C. Co.,Ltd. 4th Unit, 19th Floor, Silom Complex Building, 191 Silom Road, Silom, Bangrak, Bangkok 10500, Thailand Tel. 66 (0) 2231 3980-7 Tel. 66 (0) 2231 3988 Website : www.amc-mri.com
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Business Type
Background and main development
The company has registered in the name Compex (Thailand) on 5th day of April, 1988 with the registrationcapital 1,000,000 baht which was the subcompany of T.K.S. Interprinting Co., Ltd. (Later on T.K.S. Interprintingchange to T.K.S. Enterprise Public Company Limited, in 1997; the company change to T.K.S. Technology PublicCompany Limited, in 2002). In order to conducting import and distribution concerning the computer, extension,software and information system which T.K.S. Technology Public Company Limited has the shareholder 99.99% ofthe payment investment.
The company increased the capital for the expansion continuously, which accumulated to 100,000,000 bahtin 1997. Next, in 1999, Synnex Technology International from Taiwan which was the computer distributor around theworld such as USA, Australia, China, Hong Kong, New Zealand, and India etc. realized in the potential of computerbusiness and information technology in Thailand. They jointed the business by took the shareholder 49% of paymentcapital via King’s Eye Investment Ltd, which conducting the business in Taiwan. All this, Synnex Technology Internationalstarted the computer distribution and information technology in Taiwan from 1988 and entered to Taiwan securitiesand Exchange Commission in 1995.
In 2002, the company changed the name to “Synnex (Thailand) Co., Ltd. And transferred the office andtransport and distribution center at Sukhonsawat Road, on the area of 7 rais, near Ekmai-Ramindra Express Way.The company was trained from Synnex Group of Taiwan with the potential and experiences of both company,therefore the business of computer distribution in Thailand grew rapidly, with the payment capital of 500,000,000 bahtin 2004.
On 30th day of November, 2007, the company changed to public company with the name “Synnex (Thailand)Public Company Limited and added the capital from 500,000,000 baht to 705,000,000 baht issuing the ordinary share205,000,000 shares with value 1 baht/share for the warrant in ordinary share which issued to the committee andemployee in amount at 25,000,000 shares.
Annual Report 2008
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Change and development of the company
Event
1988
1990
1991
1992
1994
1996
1997
1998
1999
Synnex Technology International from Taiwan was the computer distribution and informationtechnology as the giant of the world, has invested in the company 49%. On 2nd day of February,1999, the company increased the capital from 135,000,000 baht to 180,000,000 baht, with thevalue of 100 baht/share.The 22nd day of June, 1999, the company increased the capital of Prism solution Co., Ltd. To8,000,000 bahtThe 27th day of October, 1999, the company increased the capital to 260,000,000 baht, withthe value of 100 baht/share.
The 24th day of June, 1998, the company increased the capital from 100,000,000 baht to135,000,000 baht, with value of 100 baht/share.The company opened the first branch at Khon Kaen Province
The 26th day of March, 1997, the company increased the capital from 50,000,000 baht to100,000,000 baht, with the value of 100 baht/shareThe company was appointed as the representatives concerning Intel products in Thailand.
The 9th day of February, 1996, the company established Prism Solution Co., Ltd. With thecapital 2,000,000 baht, the company has the share 99.95% of the registration capital in orderto conduct the business of setting training and maintaince the higher program.The 3rd day of May, 1996, the company increased the capital from 40,000,000 baht to 50,000,000 baht,with the value of 100 baht/share.
The 21st day of March, 1994, the company increased the capital from 12,000,000 baht to20,000,000 baht, with the value of 100 baht/share, and increased the capital on 2nd day ofAugust, 1994 to 40,000,000 baht, with the value of 100 baht/share.
The 2nd day of April, 1992, the company increased the capital from 8,000,000 baht to 12,000,000 baht,with the value of 100 baht/share
The 16th day of July, 1991, the company increased the capital from 2,000,000 baht to 8,000,000 baht,with the value of 100 baht/share
T.K.S. Technology Public Company Limited, the business company concerned the stationery,papers, equipment and materials of the computer was established Compex (Thailand) CompanyLimited for import and distribution computer, extension equipment software and informationsystem on 5th day of April, 1988 which the payment registration capital 1,000,000 baht dividinginto 10,000 shares with the value of 100 baht/share.
The 4th day of April, 1990, the company increased the capital from 1,000,000 baht to 2,000,000 baht,with the value of 100 baht/share. The company was appointed as the representatives concerning Seagate hard disk in Thailand.
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The 24th day of February, 2004, the company increased the capital from 340,000,000 baht to500,000,000 baht, with the value of 100 baht/shareThe company has received ISO 9001: 2000 from Bureau Veritus Certification for the computerassembly and service after sell.
The 7th day of June, 1997, the company has certified the system of quality of work life from of Health Promotion Fund
The company started the establishment of CNEX Shop which distributed the products of thecompany, shopping building, decoration, symbolic of trade mark, poster, product packagingincluding the business technics, accounting system and management. The investor ordered theproducts from the company and the company extended to 5 bromches.The 24th day of July, 2007, the company has received the environment certification ISO 14001: 2000from Bureau Veritus CertificationThe 7th day of September, 2007, the company has received the license of Industrial ProductsStandard for personal computer from Office of Industrial Products Standard, Ministry of IndustryThe extra-ordinary meeting, 2nd time/2007 on 29th day of November, 2007 has resolution tochange into public company limited and changed the value of 100 baht / share to 1 baht/share.The company increased the capital 205,000,000 baht by issuing the new ordinary share205,000,000 shares, with the value of 1 baht/share. The ordinary share were 180,000,000 sharesdevided into Pre-emptive Right of T.K.S. Technology Public Company Limited 57,000,000 sharesand for the people 123,000,000 share.The company has registered to Ministry of Commerce as public company Limited on 30th dayof November, 2007 and changed the name from Synnex (Thailand) Company Limited to Synnex(Thailand) company limited to Synnex (Thailand) Public Company Limited.
The company started to use Automatic Storage and Retrieval System (ASRS) which manageinventory automatically by the computer. This system has completed setting in 2007.
Prism Solution Co., Ltd. Sold al of shares of Seanet Com Co., Ltd. Which conduct the softwarebusiness, design and system of computer return to the previous shareholder as the proportionof 25% of the payment capital.
2003
2004
2005
2006
2007
The 28th day of February, 2003, the company increased the capital from 300,000,000 baht to340,000,000 baht, with the value of 100 baht/share.
Change and development of the company
Event
2002
The first day of March, 2002, the company increased the capital from 260,000,000 baht to300,000,000 baht, with the value of 100 baht/shareCompex (Thailand) Co., Ltd. Changed the name to Synnex (Thailand) Co., Ltd. And transferredthe office with the transport and distribution center at Sukhonthasawat Road, near Ekmai-RamindraExpress Way under the distribution technology from Synnex, Taiwan
Annual Report 2008
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The company has registered in Thailand Securities and Exchange Commission on 16th day ofJune, 2008.
2008
Change and development of the company
Event
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Perspective of business nature and subcompany
The company conducted the computer distribution, extension equipment, software, information system, andmaterials of computer. The company distributed many products around the world approximately 50 brand name. Thecustomer data base were the computer entrepreneur both the retailer and wholesaler, the computer producer underown trade mark, including the supermarkets, and stationery shop etc. In 2007, the company has more than 5,000 persons.
Nowadays, the company has main office and branches approximately 22 branches.
SubcompanyPrism Solution Company Limited (subcompany) was established on 9th day of February, 1996, was started
the capital 2,000,000 baht The company has the shares 99.95% in Prism Solution Company Limited for the trainingof computer program and information system application. Later on, 22nd day of June, 1999, the subcompany increasedthe capital 8,000,000 baht and in 2006, the subcompany extended the setting and maintenance of the higher programof computer.
Annual Report 2008
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1. Component Product Group : CPG
Products Brand name Product’s description Note
Provision and business management
From the various products shown the circulation and reliability. Therefore, the business alliances and customersmust selected the product from the company. Nowadays, the company divided the products into 8 groups with thedescription of each group as follows;
Intel : 1 of 3 distributors in Thailand
The equipment of dataprocessing for the computer
IntelCPU
Intel : 1 of 3 distributorsAsustek : 1 of 3 distributorsAsrock : 1 of 3 distributorsGigabyte : 1 of 3 distributorsLemel : house brand of synnex Taiwan
The big circulation equipmentin computer with the plugreceptacle
Intel, Asustek,Asrock, GigabyteLemel
Mother Board /VGA
Samsung : 1 of 3 distributorsAsustek : 1 of 3 distributorsLG : 1 of 2 distributors
The equipment reading the dataand / or record to CD
Samsung,Asustek, LG
CD-ROM, COMBODVD-RW
Kingston : 1 of 4 distributorsMemory of systemKingstonDRAM
Seagate : 1 of 2 distributorsWestern Digital : 1 of 4 distributors
The equipment collected thedata of Fixed disk using withcomputer
Seagate, WesternDigital
Hard Disk Drive
This group of products in the equipment of computerconsist of the main products such as Hard Disk Drive, CPU,Motherboard, DRAM, CD-ROM and DVD-RW etc. This groupof products has proportion 31%, 31% and 21% of the companyincome in 2006, 2007 and 2008, respectively. However, theprice of products groups has deceased then the other productsgroup will be decreased also.
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2. Consumables & supply groups : CSG
Ink cartridgeTonerRibbon
HP, Epson,Canon, Samsung,Fuji Xerox, Brother, Fullmark
Ink cartridgeInk cassetteDust ink cassetteRibbon
HP : 1 of 4 distributorsEPSON : 1 of 3 distributorsCanon : 1 of 3 distributorsSamsung : 1 of 3 distributorsFuji Xerox : 1 of 3 distributorsBrother : 1 of 3 distributorsFullmark : monopoly distributors
TKS : monopoly distributors
Aidata : monopoly distributorsAccessories Aidata Accessories
Media storage Imation Disk Imation : 1 of 4 distributorsPapers Products TKS Paper products
Products Brand name Product’s description Note
The product is the consumable materials whichneed to has replacement consist of the ink cartridge, toner,disk etc. This product must use with the presses in proportionof 23%, 21% and 21% of all income of company in 2006,2007 and 2008, respectively. According to the using of thisproducts group extended in the shopping and the housing.The company will distribute the brand name of Fullmark,Canon, Epson, HP, Fuji Xerox, Samsung and Brother whichthe customers was accepted. Moreover, the company importand distribute the product of Fullmark as monopoly distributors.
This product group has high selling and continuously.According to the ink cartridge has to use with the variouspresses which will grow continuously. Moreover, this productgroup has more benefit then other, and the company has
distribution network, channel of distribution, via the distributors has distribution network, channel of distribution, viathe distributors more than 5,000 persons. Then, the product distribution increase and make income for the company.
Annual Report 2008
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Products Brand name Product’s description Note
3. Image & printing product group : IPG
Printer HP, Canon,Epson, Samsung,Fuji Xerox
The presses shown theperformance from the operationof computer
HP : 1 of 4 distributorsCanon : 1 of 3 distributorsEpson : 1 of 3 distributorsSamsung : 1 of 3 distributorsFuji Xerox : 1 of 3 distributors
Scanner HP, Canon,Epson, Microtek
The equipment for scanning thesigned or the alphabet.
HP : 1 of 4 distributorsCanon : 1 of 3 distributorsEpson : 1 of 3 distributorsMicrotek : 1 of 2 distributors
This product group is the equipment consist of themain products such as Inkjet printer, Laser printer, Printerall in one has the proportion of 11%, 12% and 11% fromthe income of the distribution and all servicing in 2006, 2007and 2008, respectively. The company provide the productsof HP, Canon, Epson, Brother, Samsung and Fuji Xerox.HP was the leader of press market. On the other hand, thescanner provide the products of HP, Canon, Epson andMicrotek.
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Products Brand name Product description Note
This product group is the equipment using in the network of main product such as Switch, UPS, Server,Network Cabling System, Wireless LAN, Hub, and Router etc. which has proportion income 10%, 10% and 8% of theincome of company in 2006, 2007 and 2008, respectively. The company distribute the products of 3 com, Compex,Planet, APC, AMP, ZyXEL, and Cisco which was the leader in network market For UPS, the company distribute theproduct of APC which was the leader of the market too.
4. Network product group : NPG
Cable andConnector
AMP AMP : 1 of 3 distributors
VOIP CiscoCisco : 1 of 3 distributors
Security & VPN CiscoCisco : 1 of 3 distributors
SCSI & RAIDSolutions
AdaptecAdaptec : monopoly distributors
UPS APC, EMPOW APC : 1 of 3 distributorsEMPOW : monopoly distributors
Router Cisco Cisco : 1 of 3 distributors
Wireless LAN 3com, Cisco,Compex, Planet,ZyXEL
3com : 1 of 3 distributorsCisco : 1 of 3 distributorsCompex : monopoly distributorsPlanet : 1 of 2 distributorsZyXEL : 1 of 3 distributors
Switch 3com, Cisco,Compex, Planet,ZyXEL
3com : 1 of 3 distributorsCisco : 1 of 3 distributorsCompex : monopoly distributorsPlanet : 1 of 2 distributorsZyXEL : 1 of 3 distributors
LAN Card Compex, Planet Compex : monopoly distributorsPlanet : 1 of 2 distributors
The cable line and equipmentof connection
The equipment for connectingthe computer as the network
The equipment for distributorsthe signal of computer network
The equipment
The equipment of soundcommunication in computer
The equipment of safety ofnetwork system
The equipment connector asSCSI Interface and RAID
The reserve generator andprotection computer or otherelectronics
The equipment of finding theconnecting guideline ofcomputer network
Annual Report 2008
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Products Brand name Product description Note
Starting the globalization business has high competition.The company attempts to increase the efficiency of the productionand decrease the expenses. Then, the company use morenetwork such as data base of the company assisting theadministration. Moreover, pre-sales engineer will plan thesystem and solving the problem of the network system forthe customer and Prism Solution Co., Ltd. The setting andmaintenance the system was conducted both before andafter selling including on site service.
5. Display product group : DPG
Monitor Samsung, Phillips,BenQ, Viewsonic,EIZO
Samsung : 1 of 3 distributorsPhilips : 1 of 2 distributorsBenQ : 1 of 3 distributorsEIZO : monopoly distributors
Monitor of moderate to higherlevel
This product groups is the equipment consist of mainproducts such as monitor and slide project etc. This productgroup has proportion of income 10%, 9% and 10% of all incomeof the company in 2006, 2007 and 2008, respectively. Thecompany distribute the products of Samsung, Phillips, Viewsonic,BenQ, EIZO which Samsung was the leader. Moreover, thecompany imported and distribute the monitor of EIZO asmonopoly distributors.
This product of company will grow as the replacement,according to the products came from the goodwill company suchas Samsung, Phillips, BenQ, Viewsonic, EIZO etc. The customerand consumer relied in quality of product, channel of distribution via the 5000 distributors all of the country. The companywill expand the area of distribution in the future.
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Products Brand name Product description Note
6. System product group : SPG
Notebook computer Asustek, BenQ,HP, Kohjinsha
Notebook computer Asustek : 1 of 3 distributorsBenQ : 1 of 2 distributorsHP : 1 of 4 distributorsKohjinsha : monopoly distributors
Configuration toorder (CTO)
Lemel CTO computer Lemel : House Brand of Taiwan Synnex.
This product group is the ready assembly or semiready assembly ; such as the notebook computer andconfiguration to order (CTO). The company provide the productunder brand Lemel which was the product of Synnex, Taiwan.The proportion of the income 6%, 7%, and 17% from theincome of the company in 2006, 2007 and 2008, respectively.The company provide the product of Asustek and BenQwhich in 2007 this product grew from 2006, 21% and 2008,this product grew 17.5% because the previous year, thecompany provide HP.
In 2006, the note book computer has improvedefficiency continuously. The trend of decreased price continuously,so, the customer will buy the brand name of product replacingthe no brand name.
The configuration to order, the company provide the assembly lin e of no brand name from 2004. However,the company provide the configuration to order under brand name “Lemel’ from Taiwan Synnex approximated 10,000computers / month. All this, the computer with brand name “Lemel” has received the certification of standard products asISO 9001 : 2000 from Bureau Veritus Certification and trademark of Industrial Product Standard No. 1561-2548, safetystandard and No. 1956-2548 from Office of Industrial product standard, ministry of industry.
Annual Report 2008
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Products Brand name Product description Note
This product group is the electronic equipment usingmultimedia consist of the main product such as USB FlashDrive, Flash Card, MP3, GPS accessory and telephoneGPS+PDA etc. The proportion of income of these products6%, 6% and 8% of all income of company in 2006, 2007and 2008, respectively. The company provide the productof Kingston, Sandisk, Pretec, Lemel and Adata. Kingstonwas the leader of the market and the company importedand distributed the mobile telephone of GPS+PDA asmonopoly distributor. This product group grew from 2006approximately 24% and 2008 this product group grew 38%.The digital camera provide Canon as the leader of the market,in 2007, this product group grew 15% and in 2008, thisproduct group grew 1%.
The product of company has proportion higher income and lower transportation. Moreover, the new softwaresuch as Window Vista, will bring personal computer or notebook computer need the semiconductor concerning thememory unit. Moreover, the company has focused on GPS+PDA telephone market as the navigator for the trip.
7. Multimedia consumer electronic product group : MCE
Pretec, Kingston,Sandisk, Adata
Pretec : monopoly distributorsKingston : 1 of 4 distributorsSandisk : 1 of 3 distributorsAdata : 1 of 2 distributors
Digital camera Canon Canon : 1 of 3 distributorsThe equipment for photographvia computer
Input Device,Keyboard, Mouse
Logitech Logitech : 1 of 3 distributorsThe data processing intocomputer
GPS and GPS+PDA
Mio Mio : monopoly distributors
Flash card USBFlash Drive
The equipment collected datausing with digital camera, andnote book
The mapping guideline for thedriver and PDA
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Products Brand name Product description Note
This product group is the software in the mainproducts such as the operation system software for PC andsoftware for safety system of network computer etc. Theproportion income of this product group were 3%, 4% and4% of all income of company in 2006, 2007 and 2008,respectively. The company provide the product of Autodes,CA, Microsoft, and Trend Micro. Microsoft was the leader ofthe market. For the software of safety system of networkcomputer, the company provide Trend & Micro which wasthe leader of the market too. In 2007, this product grew 70 %and in 2008, this product grew 16%.
Both product group assist the system planning andsolving the problem for the customer. Therefore, the customer applied more network, they need to use such as softwareof safety system of network computer. Moreover, Pre-Sales Engineer will help the software problem for the customerand Prism Solution Co., Ltd. Will set and maintain before and after selling including the on-site-service.
8. Software product group : SWG
Windows, MicrosoftOffifififfiice & WindowsServer Software
Microsoft Microsoft : 1 of 2 distributors for OEM / OS in Thailand
CAD Designing andDrafting ToolsSoftware
Autodesk Software assist design anddraft
Autodesk : 1 of 2 distributors
Security SoftwareSolutions
Trend Micro Software of safety system ofnetwork computer
Trend Micro : 1 of 2 distributors
Data Protection andBackup Software
CA Software for data reserve CA : 1 of 2 distributors
Operation system software forPC. Application software andsoftware for operation systemnetwork computer
Annual Report 2008
10.3%
11.1%
10.1%
6.3% 5.8%
2.7%
0.1%30.8%
22.7%
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Income structure
2550
Value %
2549
Value %
Unit : million baht
Income structure
2551 2550 2549
30.7%21.1%11.5%10.1%9.1%6.8%6.4%4.1%0.1%
99.9%0.1%
100.0%
20.9%20.6%11.3%8.1%9.6%
17.0%8.0%4.3%0.1%
99.9%0.1%
100.0%
2551
Value %
2,4142,3891,312934
1,1161,96992749912
11,57214
11,586
Income from selling1. Component product group2. Consumables & supply group3. Image and printing product group4. Network product group5. Display product group6. System product group7. Multimedia consumer electronic product group8. Software product group9. Others
Total income from selling Income from service
Total income for selling and service Rate of growth
1. Component product group2. Consumables & supply group3. Image and printing product group4. Network product group5. Display product group
6. System product group7. Multimedia consumer electronic product group8. Software product group9. Others
10.4% 11.8% 4.0%
3,2182,2171,2061,057958717671431
810,483
1210,495
2,8922,1321,045965947593543253
99,379
109,389
30.8%22.7%11.1%10.3%10.1%6.3%5.8%2.7%0.1%
99.9%0.1%
100.0%
20.9%0.1%
20.6%
11.3%
8.1%
9.6%
17.0%
8.0%
4.3%
10.1%
10.1%
11.5%
9.1%
6.8%6.4%
4.1%
30.7%
21.1%
0.1%
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Industrial condition and competitive strategies
2007
Value %
2006
Value %
Unit: million baht
Product group
46.9%33.4%8.4%
88.7%
11.3%100.0%
58,19141,43610,403
110,030
13,989124,019
34.1%28.3%10.7%73.1%
26.9%100.0%
68,15956,61621,536
146,311
53,569199,880
33.9%28.2%11.2%73.3%
27.8%100.0%
2008
Value %
75,72062,93724,981
163,638
59,868223,506
1. Hardware computer2. Software computer3. Computer service
Market value(exclude communication equipment)
4. Data communication equipmentMarket value
Industrial perspective
In 2008, from the surveying of NECTEC found that the market value of computer products and informationtechnology 223,506 million baht, growth rate 11.9% from the market value 199,769 million baht in 2007, and expectfor 2009 the market value should be 236,912 million baht at 6.0%
Market value of computer and information technology 2006-2008
Source : SIPA
The expenses of computer and information technology of Thailand from 3 main economic sections. In 2008,the private sector is the expenses in market service which was the maximum 74.1% or 18,511 million baht. From 2007,the government sector is 6,270 million baht (25.1%) When comparision to 2008 and 2007 found that the proportionexpenses to 21.7% and in 2008, the proportion expenses to 25.1%. For the household expenses and SMEs hasproportion 0.8% or 200 million baht.
All this, hardware computer market value, in 2008 was 75,720 million baht. Majority of the distribution wasthe desktop computer, notebook computer and mininotebook computer. In 2008, expectation the hardware computermarket value should be 75,435 million baht the growth rate 0.4. Mostly of income 65& came from the desktop computer.Hardware computer market value, 2006-2008
Total
Value %
Unit: million baht
Economic sections
20.8%47.4%31.6%
100.0%
34,16277,60451,872
163,638
GovernmentPrivateHousehold and SMEsTotal
Service
Value %
25.1%74.1%
0.8100.0%
6,27018,511
20024,981
Software
Value %
29.8%57.2%13.0%
100.0%
18,77835,9998,160
62,937
Hardware
Value %
12.0%30.5%57.5%
100.0%
9,11423,094
43,51275,720
Expenses of computer and information technology 2008classify by economics section
Source : SIPA
Annual Report 2008
29
(unit : million baht)
»ÃÐàÀ·
5,38860,56037,78420,52115,0002,2642,950700
2,2504,741754
26861,3013,4671,7171,750
11,61773
8,0003,544
65,947
n/an/a
1,6311,10050031
500200300
1,10752
850205n/a744n/a97420
800154n/a
8,91659,24340,36921,00019,250
1191,504168
1,3364,991938
2,7101,3433,2751,4651,8109,105120
8,92560
68,159
n/an/a
1,9801,20077010
254.552.5212
1,35975
1,050234n/an/an/a88024
8506
n/a
8,66067,06049,85021,45027,600
8001,274
741,2003,931620
1,9671,3443,3601,4601,9008,645105
8,50040
75,720
2008
Value %
2007
Value %
2006
Value %
n/an/a
2,5801,3001,200
80325.525.5300
1,35562
1,043250.5
n/an/an/a
1,01915
1,0004
n/a
1. System2. Computer and equipment2.1 Computer- desktop computer- notebook computer- Server2.2 Monitor- CRT- LCD2.3 Press- Impacted- Inkjet- Laser2.4 Data storage- Hard disk- Enterprise storage2.5 other equipment- Scanner- Digital camera- PDATotal
Hardware Computer Market Value Year 2006-2008
Source : SIPA
The software computer market value, in 2008, with the value of 62,937 million baht and growth rate 11.2%.Enterprise software has maximum proportion 55,547 million baht, that was 10.1% of total market value. Mobile Applicationhas value of 2,640 million baht, extended 23.8%. Embedded has value of 2,359 million baht, extended 21.8%, Themaximum value was 57,550 million baht, extend 3.6% from 2008, the rest were Mobile Application has value of3,192 million baht, extend 20.9% and Embedded has value of 2,725 million baht, extend 16.5%
30
(unit : million baht)
Type
83.5%2.1%7.5%2.5%3.1%1.2%
100.0%
10,670265959325402150
12,770
51.5%3.3%
11.5%4.7%6.4%7.0%
15.3%100%
11,036709
2,4821,0071,3901,5103,291
21,425
51.5%3.4%
10.4%4.9%6.0%7.2%
16.3%100%
2008
Value %
2007
Value %
2006
Value %
12,872865
2,6121,2281,5011,8234,080
24,981
1. System Integrator : SI & Network Services2. Software and Data Maintenance Services3. Hardware Maintenance Services4. Data Center and Disaster Recovery Center5. IT related Training & Education6. IT Consulting7. IT OutsourcingTotal
Computer service market value, 2006-2008
Source : SIPA
Nowadays, there are various factors effecting computer market and information technology such as the pricecompetition effected to the decreased price of the products. The development of efficiency technology of hardware willbe higher such as CPU development from dual core of evaluation to core 2 dual and the new operation of WindowsVista.
(unit : million baht)
Type
83.6%3.1%2.8%5.1%5.3%
100.0%
44,1221,6521,4752,6992,815
52,763
89.1%3.8%3.4%
-3.7%100%
50,4702,1331,937
-2,075
56,616
1. Enterprise Software2. Mobile Application3. Embedded Software4. Animation5. OthersTotal
Software computer market value, 2006-2008
Source : SIPA
The computer service market value, in 2008 the total value was 24,981 million baht, increasing from 2007,16.6%. The comparision of the growth from that in 2007 has grew higher than others. IT. Outsourcing was the maximumgrowth, 24.0% or the value of 4,080 million baht. According to the political problem and decreasing economic conditionboth domestic and international. The private sector has a caution the expenses which using IT outsourcing for controlthe expenses, decreased cost and increase the potential of competition and application efficiency, including the ITfoundation project. The IT outsourcing growth as the second was software and data maintenance service, extend 22.0%or the value of 865 million baht, the third was data center and disaster recovery center, extend 21.9% or the value of1,228 million baht. In 2008, SI and Network Service has maximum proportion 51.5% or the value of 12,872 million baht,the second was IT Outsourcing, 16.3%. or the value of 4,080 million baht and SW&HW Maintenance, 14.0 or the valueof 3,477 million, baht by SW MA has 865 million baht or 3.5% and HW MA has market value of 2,612 million bahtor 10.5%
88.3%4.2%3.7%
-3.8%100%
2008
Value %
2007
Value %
2006
Value %
55,5472,6402,359
-2,391
62,937
Annual Report 2008
31
The need of computer application for the education of people in the provinces. The expiry of application incomputer and accessories. The higher competition for the development of information technology, banking and financial,PDA phone as new technology, the development of digital camera, exhibition of computer and technology etc. In 2008, Thailand encountered the fluctuation situation, even, the conflict of political aspects which increase inthe end of the year adding the economic crisis as the conflict p roblems, then the decreased expenses was conducteffecting the ICT.
In 2008, Thailand has expenses of product and service in ICT as the value of 542,854, increasing from 2007just 8.3% which less than 1.3% of the expectation. The majority of expenses was in the communication market, therest were hardware computer market expenses, software computer market expenses and computer service marketexpenses. In 2008, the expectation will grow with decreasing rate around 5.2%, however, the maximum growth marketof 2008 were the market of computer service, the market of communication, card software computer market as wellas hardware computer expected there was no growth.
32
Competitive strategies
The company provide inventory management and distribution which transfer the technology from TaiwanSynnex. The channel of distribution and data base of customer coverage all of the country including the service afterselling. Now we provide the strategies as follows;
1. Maintenance market share focused on main products such as component product group, image and printingproduct group, consumables and supply group by customer data base concerning the area coverage and response theprovinces such as networking product, software product. The company invest the personal as sale engineer for supportingthe customer in this group. Computer and system product is the brand of product as HP, PC and Notebook both theorganization and general user.
2. Branching expension is the sale officer, service center and i nventory to the provinces. Now, the companyprovide 22 branches serve the selling and repair the products.
3. Channel of distribution pass 5,000 distributors all of the country. Therefore, the product distribution providein the large channel such as big retailer, IT product group will produce the distribution.
4. Product positioning set on the moderate and the higher, because, the company product has higher qualitycapable to produce benefit per unit higher than the lower market .
5. Policy company focused on the higher rate of return by investing in all aspects for the development channelof distribution, including the cooperation between the producer and the company for the development of channel ofdistribution and adding the selling products.
6. Product quality has reability because the company has test before launch on the market. The product hasthe insurance from the producer, moreover, “Trusted by Synnex” is the symbol of 3 aspects such as product quality,quality before and after selling, and channel of distribution all of the country.
7. CNEX shop establishment provide under chic, choice, companion and convenience. The company hasestablished CNEX shop 14 branches and will expand 200 branches in 5 years. The company will give the right ofdistribution for the investor and the investor must order the product from the company. 8. Service after selling efficiency the company has maintain 2 types 1. The unrepair product will change the new one 2. The repair product will repair 3-7 days 9. Insurance system of repairing of main brand such as Intel, Seagate, Kingston, Western Digital, Lemel forthe customer satisfaction. Now, this system has proportion of success more than 95%.
10. Management system as global system received from Taiwan Synnex able to connect via the real timeon time compute for the inspection serve the transport efficiency. Approximately, the product 99% sent to receiver halfday after order in Bangkok Metropolis, and the product 95% sent to receiver only 1 day after order in the provinces.Moreover, management system able to computer inventory sales out ratio for every products in the warehouse.
11. The investment of management system concerning the storage and distribution of product by distributioncenter and warehouse at Sukhon Thasawat Road, near Ekmai-Ramindra Express Way. The company apply AutomaticStorage and Retrieval System (ASRS) which apply the robot arm and the transport belt with control by computer. 12. Computer journal named “Synnex (Thailand) Pricelist” , annual journal distribute to distributors, customersand IT shop for the public relation, the price examination or connect to www.synnex.co.th/dealer/
Annual Report 2008
33
13. Journal Production for the retailer named “Synnextra” every 45 days journal for the customer coverageall of the country. The journal consist of product description concerning information technology and price of product.
14. Product rotation and price protection provide the risk factors concerning the storage and technologicalchange.
15. PC selling use the brand name of Taiwan Synnex under trademark “Lemel”. The company focused theselecting of the customer, by using channel via the supermarket for the increasing selling which enhance the reliabilityof products.
16. Efficient market structure start from the product consultant for the customer, the promotion up to serviceafter selling.
17. Seminar preparation and road show operation serve the need of customer in new products. Selling teammade public relation and communication with other group enhancing the products, management, activities concerningthe selling, market and social.
18. Technical products must apply Pre-Sale Engineer and Project Engineer consist of the engineer andtechnical group instruct the specification of products to custom er correctly.
19. The orientation of new products enter to the market consistently and quickly, according to the companyhas good relationship both domestic and international.
20. The company has received quality certification in ISO 9001:2 000 from Bureau Veritus Certification andIndustrial Product Standard from Office of Industrial Product St andard, Ministry of Industry.
34
Provision of products or service
All products of company were in ready made, the company buy the product via main channel was the producer.Majority of the main producer in the world were. Intel, Seagate, Kingston Samsung, Phillips, WD, Canon, 3 com, Ciscoand HP etc. The company will import and distribute the product to the producer. The proportion of product from thedomestic 40-50% and from international 50-60%. The company will buy as product movement in 2 types the currencyproduct will order ordinary, the product manage will provide the purchasing plan. The company has the duration ofpayment from the producer approximated 30-60 days for the domestic and 30-45 for the international. The extensionof the contract use the automatic extension.
Business targets
The company has the target for the leader in distribution of the company extension, software, and consumablematerial as one stop shopping. The market share extend to 1st rank of 3 distributors in Thailand. All this, the companyhas committed as good business alliance with the producer. Moreover, the company focused to development andmanagement of efficient channel of distribution serve the maximu m satisfaction.
Annual Report 2008
35
Main activities for social and environment
To present the car
Princess Phratheprattana Ratsuda invited the executive board of Synnex (Thailand) Public Company Limitedpresented Toyota car for Thai Red Cross.
36
1.3 Synnex donate 30 computers to the school in 3southern provinces for the instruction
1.2 Synnex donate computer to Srisamrong chanupatham,Sukhothai Province and IT establishment.
A. Corporate social responsibility
Synnex attempts of force the employee corporate social responsibility and promote the management byusing CRS.
The two way communication needs to practice with stakeholders as well as the information technology shouldbe support. We will focus CSR to do and improve continuously.
1. Education project
1.4 Synnex cooperate to Pokadi Association 35 donatecomputer for instruction at Ratchaburi Province.
1.1 Donation notebook computer to Police Academy,Samphran, Nakhon Pathom
Annual Report 2008
37
2. Open house and capable skill developmentproject
1.5 Synnex cooperate to Internet for School andCommunity Association provide the training program, suggestionnew technology serve school requirement.
2.1 Synnex opened the company for Thailand IndustrialCouncil for fieldtrip, warehouse study, and ASRS.
2.2 Synnex provide the basic computer applicationtraining course for policeman of Wang Thong Lang Police Station.
2.3 Synnex provide the computer training course forthe youth, student and people.
2.4 Synnex provide basic computer training course forThai Chamber of Commerce University.
38
3.2 Synnex cooperate for the robes present to the monkfor improvement the temple Kangkachan District, Phetchaburiprovince.
3.1 Synnex donated materials, clothes and fund assistingthe education management of Ban Rung Charoen Child CareCenter. Hillsmen School, Chiang Rai Province
3.3 Synnex gave the souvenirs and sports equipmentfor Loi Sai Anusorn School on children day.
3. Ethical promotion project
3.4 Synnex cooperate with IT center, Phanthip Plazesupport Phanthip Assist Children Project donated the mediainstruction and IT for youth and school.
Annual Report 2008
39
4. Valuation for social/environment/safetyproject
5. Health and sport project
4.1 Synnex cooperate with Thai Red Cross in donationtheir blood for the patients.
4.2 Synnex support the project concerning the environmentfriendly, therefore MDP1 plant the forest at Mahachai NaturalResource Conservation, Village 3 Khokkham, Muang, SautSakhon Province.
4.3 Synnex cooperate with Diaster Mitigation DepartmentSamut Prakan Province provide the training course for sukhonthasawat community.
5.1 Synnex cooperate with business alliances providethe sports for health serve the unit of employee and customer.
40
5.2 Synnex cooperate to network of company providethe friendship sport for the good relationship.
As 20 anniversity Synnex attempt to establish Synnex-e-libruary Project
The provision of libruary searching for Thai IT for educational development as CSR policy. All of employeeparticipate for social benefit. They devided into 20 teams serve this project. The company provide the project increasingthe educational development, IT searching system, and extension of online libruary.
“ T E A M W O R K “ Target
Excellent Service
Ability to Change
Moral Leadership
Work as a Team
Ownership
Respect Discipline
Knowledge
B. Management development
The organization has successes in business continuously. According to the good officers ready to drive theculture with certained personality. The organizational culture extended to the topping the knowledge and extension andframe of organization or outline to practice in organization. This effect the organization consist of organizationaladvancement, employee and unit.
In addition, the cooperated framework bring about the organizational culture as the happiness in working, workin same direction, entertainment and education in work continuously. We loved in the organization which promote anddevelop the personal of company efficiently.
Annual Report 2008
41
All of this, for the improvement our organization increasing the business by apply the new management.The new dimension will increase the knowledge, skill and attitude for the higher responsibility.
Management Development Program (MDP1)
Development group project for operationalofficer (DG)
“Moderate Level Manager” will support and make thepotential for the organization. The company provide in variousaspects as follows; Accounting, finance, market and human resource Law, management and production Skill in planning and measurement Technology
The company provide the employee Took a field trip atSingapore.
The development of potential and learning for theemployee improve and develop innovation serve the higherposition. This project was the continuous project which enhancethe experiences and bring the creative thinking for the development.
42
1.1 Synnex opened navigator “Mio” The executiveparticipate the navigator Mio from Taiwan. To secure for thecustomer “Explore more program” if the customer dissatisfied, thecompany turn back the product which 10 days.
C. Marketing activities
1. The product opening and trust of brandname
1.4 The opening 14 branch Cnex Shop was the new ITshop under 4C such as Chic, Choice, Companion and convenience.
1.3 Synnex was appointed from Lenovo (Thailand) Co., Ltd.As distributors, Lenovo product in relationship business productsconsist of PC, Notebook and Workstation under CNEX shop.
1.5 The coordination of HP opening the AuthorizedService Center as HP Authorized Service Center, using HPNotebook for Fast Track in SYNNEX Service Center coverage5 supermarkets such as Phanthip Plaza, Zear Rangsit, IT mall,Zcon square, IT the mall Bangkhae.
1.2 Synnex opened Kohijinsha UMPC, 1st brand of Japanby the new business including ultramobile, PC, and function ofnotebook, DVD drive and tough screen.
Annual Report 2008
43
2. Synnex promote the activities and developchannel of distribution
2.2 Synnex provide campaign in “Celebration for PublicCompany Limited” The company distribute the golden rewardmore than 4 million baht. We celebrate all of employee anddealer.
2.3 Synnex Road Map. Synnex provide the strengthenof employee and dealer serve the regional requirement. Synnexfocused on distribution computer, extension, software, informationtechnology system and consumable suing in the computer.Moreover, the company distribute the 50 brand name around theworld. Seminar on information technology was conducted Roadmap in main provinces in the North, Northern east and the southwill be provide.
2.1 Synnex provide campaign in “Trusted by Synnex”this campaign use for stimulate the selling, focused on the qualityof products and service after sell. This campaign provide 555rewards the big reward was Toyota Yaris.
44
2.4 Synnex provide the sportsmanship “Synnex GolfFriendship Celebrate Public Company” for the celebration of rapidgrowth will all of dealer.
2.5 Synnex cooperate the market activities such as Bangkok Com Mark, Chiang Mai Com and Digital for theemphasizing the reliability of company by Trusted by Synnex Program and public relation of House Brand and monopolydistributors.
Annual Report 2008
45
2.6 Synnex designed computer safe the energy “Lemel Green PC”
Synnex (Thailand) Public Company Limited, the producer and the distributer computer LEMEL PC as monopolydistributors with top of IT innovation “LEMEL Green PC”. The computer used minimum energy, the assemble andequipment safe energy, with high efficiency, eliminated dangerou s substance, protect the user health.
The guarantee of efficiency and quality of product LEMEL BTO PC via Industrial product Standard, ofIndustrial Product Standard, Ministry of Industry.
The company has a proud behavior for the implant natural loving, decrease earth warm by provision variousactivities serve the need of society.
46
3.1 First Trading Day, the company ready to transactionin the Stock Exchange of Thailand, therefore, on 16th day ofJune, 2008 was the first trading day.
3. Synnex supports business, enhance potentialof product and capability of service
3.2 Set in the City 2008. Synnex as the company inthe Stock Exchange of Thailand has built the reliability andtrusted for the shareholder and investors.
Annual Report 2008
47
3.4 Synnex (Thailand) Public Company Limited thedistributor of Lemel by Mr. Puttipan Tayarachkul, Senior ExecutiveVice President-Operations receiving the good quality computerreward in seminar “Determination of Computer Purchasing ForGovernment” by Ministry of Information and CommunicationTechnology.
3.3 Synnex develop the product and received theindustrial product standard from Office of Industrial Product Standard,Ministry of Industry. Synnex has Mor Or Kor.1956-2548 DisturbanceSignal limitation Standard. These certificate used as FCC.ULaround the world. According to the quality product extension policy
3.5 Synnex cooperate to NECTEC supporting softwareopen source under Lemel serve Mr. Anuchit Boonyalug policy,Senior Executive Vice President- Sales & Marketing. Synnex(Thailand) Public Company Limited signed the cooperation projectwith NECTEC, serving NECTEC policy and solving the problemsof software development.
48
Focus to computer production, configuration to order and proud of reward
Synnex (Thailand) Public Company Limited has a system for quality product as Lemel belong to SystemProduct Group serve need of market requirement. The company aims to extend brand name, data base of customerand produce CTO on the new image focus on the independent of selection for the increasing on the standard equipmentsuch as Asus, Intel, Kingston, Seagate The customer able to control the expenses by experts and ISO 9001 includingthe service after sell.
Now, the company able to construct CTO approximate 10,000 computer/month for the modern trade. Moreover,the receiving the certificate of Mor.Or.Kor. No. 1561-2548, safety standard, and Mor.Or.Kor. No. 1956-2548 disturbancesigned limitation standard, Office of Industrial Product Standard, Ministry of Industry. In 2008, NECTEC. Mark was theproduct CTO of Lemel has received the international quality certificate.
Proud of Reward
49
ÃÒ§ҹ»ÃШӻ‚ 2551
Risk factors
Risk factors is not all of risks which may effect to the ordinary share of the company, therefore, the
nonreceiving risk factors may be the effect to the company operation. The risk factors were as follows;
1.1 The risk from the technological change and product developmentThe company was the distributor of computer and information technology. The technological development
of product and produce the new product. The company must monitor the changing continuously, educated the need
of the market, including the inventory control and appropriated purchasing. According to the inventory will not up to
date the technological change. The company exchange the data and technological transfer from the shareholder
was Taiwan Synnex which completed the distribution business concerning the computer and information technology
including the expert of market need, with the inventory management by assistant of computer. Then the company
received the technological change efficiently. The company delegate to manager of production line, including the
controller of inventory. The purchasing of inventory has moved fastly. The Glogal System of the company has the
value of inventory control average 27-29 days.
Moreover, the company distribute the computer as the big company then, the discount condition was
accepted. In addition, the company use the product rotation policy and compensation provide price protection from
the distributors and the big producers will decrease the problem. All this, the company has a decrease value policy.
The product did not move from 90 days and did not move from 360 days and the products wait for the outmoded
product.
1.2 The risk from the trade debtorsNow, the company has the credit approximately 95% Therefore, the quality control of the trade debtors
which is the main factor in company operation. According to the trade debtors change to nonperforming may effect
the liquidity, the currency circulation or the result of the operation. However, the company has new customer must
buy in cash before to build the credit. The analysis of the customer’s financial situation from the liquidity
and financial security of the customer before approval.
All this, the company divide the functions serve the customer clearly. The finance division serve the
customer for the risk control. Each of customer will receive the credit differently, depend on the financial
and realiability. The company will monitor the payment of the customer closely.
The company set the bad debt and doubtful accounts. Moreover, the company operate to buy for
warranty via the producer. In 2007, the company will connect directly for the transaction and protection of
the trade debtors. All this, the company will not buy for warranty depend on financial background such as the big
supermarket etc.
50
1.3 The risk from the currency exchange rate for the foreigner.The company import the product from foreign country using the US dollar the products will distribute in
the country. The company order the product from foreign country 50-60%. However, the company protect the
international currency exchange by making the forward contract. The company will protect the risk from currency
exchange 70-80%. Moreover, the company has no policy to set the benefit from the currency exchange. The
forward contract of international currency exchange in advance. The executives of company will monitor the
changing of international currency exchange. All this, from 3 years ago has no loss from currency exchange.
1.4 The risk from the circulationThe company has increase amount of selling every year therefore, the company use the increase
circulation in order to the trade debtors management and inventory. The company provide the circulation as the
short-term loaning from various financial institution, which connecting the company for liquidity.
The company bring the Automatic Storage and Retrieval System (ASRS) assist the decrease of duration
for storage, age of products, warehouse management, the correct system for checking cooperate to Global System
in 2007. The company develop the circulation currency for customer, the duration of payment approximately 19-21
days. Because the company has the cash payment with discount from the producer.
From the business of the company has to provide the circulation finance for the operation. Nowadays, the
company apply the loan from commercial bank in various bank serve the activities of the company. The company
has no liquidity problem. The total income of company increase as significance. However, the company connect
and make friend with various commercial bank. The company able to negotiate for the loan and the interest.
Therefore, the company has more strengthen in circulation and good in rate of the debt per the capital.
52
Shareholder
10 Major shareholders of company at 6th day of January, 2009
Major Shareholders No. of shares % of shares
capital
1. T.K.S. technology Public Company Limited 269,715,600 39.66
2. King’s Eye Investments Ltd. 245,000,000 36.03
3. BNP Paribas Private Bank, Hong Kong Branch 21,846,300 3.21
4. AIA 20,000,000 2.94
5. Mr. Detkhachon Thirawichanyankun 12,700,000 1.87
6. Nortrust Nominees Limited-Northern Trust Guernsey Clients 11,805,900 1.74
7. Thailand Securities Depository Co., Ltd. 7,008,300 1.03
8. Albouys Nominees Limited 6,894,100 1.01
9. Mr. Puttipan Tayarachkul 5,000,000 0.74
10. Mr. Suraphan Phatnaphithon 4,225,548 0.62
Dividend payment policy
The company and subcompany has the policy for dividend payment not less than 40% of net income
after taxation, reserve and other reserves. Each year has net income from the operation. However, the dividend
payment may be change, depend on the investment plan, need and appropriated project in the future under the
consideration of the committee.
53
ÃÒ§ҹ»ÃШӻ‚ 2551
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54
Management structure
The structure of the company committee consist of 2 committee such as board of directors and auditing
committee with description as follows;
Board of directors The board of directors of the company at 31st December, 2008 consist of 11 persons as follows.
No. Name Position
1 Mr. Supant Mongkolsuthree Chairman
2 Mr. Tu Shu Wu Director
3 Mr. Virachai Srikajon Director
4 Mr. Huang Chi Cheng Director
5 Mr. Lee Lee Shen Director
6 Mr. Wei Hui Director
7 Mr. Tu Shu Chyuan Director
8 Mr. Puttipan Tayarachkul Director and secretary to the board
9 Mr. Somchai Apiwattanapron Independent Director / Chairman of Audit Committee
10 Mr. Vissut Sethaput Independent Director / Committee Member
11 Mrs. Maleeratna Plumchitchom Independent Director / Committee Member
Function and responsibility of board of directors1. Provide the shareholder meeting as the ordinary meeting within 4 months
2. Provide the board of director meeting at least 3 month/time.
3. Provide the balance sheet and statement of income of the company at the end of fiscal year via the
auditors and bring into the shareholder meeting for approval.
4. The board of directors may authorized to one or more than one directors or other person for the
operation replacement under the board of directors or authorized to some one has function within the time which board
of director may cancel or change.
5. The target, quidline, policy, plan and budget determination of the company, the control and manage
board of director serve the policy exception, same topic board of directors has approved before operation such as
the law determination i.e. increase the capital, decrease the capital, issuing the bond, sell or transfer activities of
company, correction the memorandum of regulation etc.
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ÃÒ§ҹ»ÃШӻ‚ 2551
6. Consider the administrative structure, appoint the executives board, managing director and other
committee.
7. Monitor the operation as the plan and budget continuously.
8. Committee will not make the same business as the company or competition with company, entering in
partnership limited or partnership nonlimited or committee of private company, or the same exception the committee
inform the meeting before appointment.
9. Committee must inform the company rapidly in case of there was the interest directly or indirectly.
Qualification of independent directorThe independent director is the important component in the control and supervision or call “Good
government” Therefore, the qualification of independent director consist of.
1. Hold the share not more than 1% of company, subcompany, associated company, joint company or
related company.
2. No participate in the management of company, subcompany, associated company, joint company,
related company or major shareholders and no work as employee or consultant from company, subcompany
associated company, joint company, related company or major shareholder.
3. No benefit both direct or indirect concerning the financial and administration in the company,
subcompany, associated company, joint company or related company including the benefit before 2 years of the
independent director will be appointed.
4. No relation as the kinship of the administrators or major shareholders.
5. No appointment as the representative maintain the benefit of board of director, major shareholder or
shareholder related to major shareholders.
6. Able to function and give the opinion or report the operation as duty from the committee of company
by there is no control of administrator or major shareholder.
7. If the director was the independent director in other company, the director must open the data and the
remuneration.
8. No committee in other company.
All this, the independent director must pass the consideration of board of directors.
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Auditing committeeThe auditing committee of company as at 31st day of December, 2008 consist of 3 committee as follows:
No. Name Position
1 Mr. Somchai Apiwattanapron Chairman of audit committee
2 Mr. Vissut Sethaput Committee member
3 Mrs. Maleeratna Plumchitchom Committee member
Function and responsibility of auditing committee1. Check the finance report of company correctly and sufficiently.
2. Check the internal control and internal audit appropriately and efficiently. Consider the independent of
internal audit unit, the transfer, and cancel the chief of internal audit unit or related unit.
3. Check the legal performance concerning the Securities and Exchange Commission and the legal
related to business of company.
4. Consider, select present the personal as independent for the company auditor with renumeration,
including the meeting with the auditor at least 1 time/year.
5. Consider the associated items or the conflict items concerning Securities and Exchange Commission
for the secure mentioned item as reasonable with maximum benefit.
6. Provide the report of auditing committee in annual report which signed by chairman of audit committee
and consist of
A. Opinion of correct and realiability of financial report.
B. Opinion of sufficiency of internal audit.
C. Opinion of legal practice concerning securities and Exchange Commission and the regulation or
business law.
D. Opinion of the appropriated of auditor.
E. Opinion of the conflict interest item.
F. Amount of auditing committee meeting and the attendance of each committee member.
G. Opinion or note of the audit committee which practice as charter.
H. Other item show that shareholder and investor should receive under function and responsibility of
the company.
7. Practice as the board of director delegate and approval by the audit committee.
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Investment committeeAs the resolution of board of director meeting 1st time/2008 on 15th day of February, 2008 has appointed
the investment committee 2 persons as follows:
No. Name Position
1 Mr. Supant Mongkolsuthree Chairman of investment committee
2 Mr. Tu Shu Wu Committee member
Function and responsibility of investment committeeThe investment committee of the company has scope, function and responsibility and report to the board
of directors as follows;
1. Determine the policy and principle for the investment including the determine of limitation and scope
of investment.
2. Approval the new project for investment including the limitation for the investment.
3. Approval the change of custodian.
4. Provide the meeting of investment committee 3 month/time for the operation examination as the
company determination
Executive committeeAs at 31st day of December, 2008, the company has 7 executive committees.
No. Name Position
1 Mr. Supant Mongkolsuthree President & Chief Executive Officer
2 Mr. Puttipan Tayarachkul Senior Executive Vice President - Operations
3 Mr. Anuchit Boonyalug Senior Executive Vice President - Sales & Marketing
4 Ms. Suvannee Executive Vice President - Marketing & Marketing Communication
5 Ms. Kingkaew Jutasompakorn Executive Vice President – Logistics & Assembly
6 Ms. Suporn Lertteerapanyawong Vice President - Finance
7 Ms. Kamonsri Boonjang Vice President - Accounting
58
Function and responsibility of executive committee1. Control and operate activities and/or daily working of company.
2. Operate or practice as the policy, plan and budget which committee will be approved.
3. The authorized person concerns the administration of company as the objective, regulation, policy,
rule, provision, order and resolution of the meeting.
4. Determination business plan and budget for the committee approval and the expenses in the
operation of the company.
5. Approve the expenses for investment in budget plan related to the company committee which has
approved for the principle.
6. Borrowing determination, providing credits or issue the letter of credit, including the security, warranty
the credit or credit request for approval by the committee.
7. Determine mission, objective, guideline, policy and the directing and the controlling.
8. Give the authority for subauthority and/or deligate to other practice by subauthority and/or the
authorized under he scope of authorization and/or as the regulation, provision or order of committee company. The
authorization must be 2 executive committees of 3 executive committees signed the name with company seal
affixed.
9. Monitor and evaluate the operation of company for protection from risk in and out company.
10.Consider the contract of company business and various contract, which is the benefit, the step of
implementation, and provision of contract. In order to the signed contract and the document must be 2 executive
committees of 3 executive committee signed the name with company seal affixed.
11.Consider and allocate the pension, reward or remuneration for the employee or officer of the
company.
12.Consider the employment of officer, appointed and transfer or the retirement. The wage rate,
remuneration, bonus and welfare were conducted.
13.he authority of order, rule, notify and memo serve the policy and benefit of company.
14.The other practice as the deligation from the company committee.
All this, the authority or the authorization concerns the case of conflict of interest or conflict with the
company as the rule of the Stock Exchange of Thailand. This case must present to executive committee for the
approval.
For the circular of approve the budget depend on the committee meeting 1st time/2007 on 11th day of
December, 2007 has resoluted the authority to the executive committee as the following description:
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ÃÒ§ҹ»ÃШӻ‚ 2551
Circulation approve Condition of signature in bank cheque
Not more than 20,000,000 baht Chairman of executive committee or vice chairman of directing executive committee
or director of finance 2 persons of 3 persons signed the name with company
seal affixed.
More than 20,000,000 baht Chairmn of executive committee signed the name with vice chairman of
directing executive committee or director of finance, 2 persons of 3 persons
signed the name with company seal affixed.
The selection of committee and directors
The company has no selection committee, the person who was appointed as the director and the
committee must quality as Section 68 of Public Company Limited Act B.E. 2535 and company regulation and has no
character as securities and Exchange Commission Announcement No. Kor.Chor.12/2543 Re: The submission and
License for new share on 22nd day of March, 2000.
The component and appointment board of directorsThe component, selection, appointment, removal or retirement from committee has determined in the
company regulation as follows;
1. The board of directors consist of at least 5 directors and the committee not less than half of the total
which lived in Thailand.
2. The selection of director must approve from the general meeting with the criteria and procedure
as follows;
1) A shareholder has a vote as the amount of share.
2) Each shareholder use a vote for a committee or the committees.
3) The highest score of the vote will be the committee equal the amount of the committee. In case of
the rest has the equal score, the chairman will decide as adjudicate.
3. The ordinary meeting, the committee must leave at least 1 of 3 persons. In case the committee could
not divide into 3 parts, using the related by the committee must leave in first year and second year using the lot.
Next, the long duration in position must leave, the committee leave out, may be come back again.
60
4. A committee resign from the position, must submit the leave.
5. In case of the committee leave, the committee may select somebody which has no character
concerning the code of Public Company Limited exception the duration of committee less than 2 months. The
resolution of the committee must be at least 3 of 4 of the rest committee.
6. The shareholder meeting may resolute some committee to resign from the company by 3 of 4 of
shareholders.
Component and appointment of auditing committeeThe board of directors has submitted the auditing committee in the general meeting which has character as the
regulation of Securities and Exchange Commission, including the announcement, regulation or the rule of Securities and
Exchange Commission not less than 3 persons with 2 years of position. At least the auditing committee have knowledge
and experience in account and finance.
Component and appointment of directorsThe board of directors and/or the person has deligated from the committee will consider from the
experiences and knowledge personal in administration.
Remuneration of directorsRemuneration as cash
Directors
In 2006, 2007 and 2008, the company paid in cash such as the meeting remuneration for directors
60,000 baht, 271,000 baht and 654,000 baht, respectively. The description attend the meeting with the
remuneration as follows;
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Salary, bonus, allowance reserve 5 7.84 5 9.91 5 10.88
Total 5 7.84 5 9.91 5 10.88
Source: Company
Source: Company
The extra ordinary meeting of shareholder 2nd times/2007 on 27th day of November, 2007 has approved
the remuneration for directors and auditors 18,000 baht/times for the chairman and 15,000 baht/time for directors
and auditors.
Executive Committee
Name of directors/auditors
Type of remuneration
2006
2006
2008
2008
2007
2007
Times of meeting Times of meeting Times of meetingCash Cash Cash
Director Director Director
Person(head)
Person(head)
Person(head)
Auditor Auditor Auditor
Cash(mission baht)
Cash(mission baht)
Cash(mission baht)
1 Mr. Supant Mongkolsuthree 4/4 - 20,000 6/6 - 38,000 4/4 - 72,000
2 Mr.Virachai Srikajon 4/4 - 20,000 6/6 - 35,000 4/4 - 60,000
3 Mr. Puttipan Tayarachkul 4/4 - 20,000 5/5 - 20,000 1/1 - 15,000
4 Mr. Tu Shu Wu 4/4 - - 6/6 - 25,000 4/4 - 60,000
5 Mr. Hu Jia Lung 4/4 - - 6/6 - 25,000 0/3 - -
6 Mr. Huang Chi Cheng 4/4 - - 5/6 - 20,000 2/4 - 30,000
7 Mr. Lee Lee Shen - - - 1/1 - 15,000 3/4 - 45,000
8 Mr. Somchai Apiwattanapron - - - 1/1 1/1 33,000 4/4 4/4 132,000
9 Mr. Vissut Sethaput - - - 1/1 1/1 30,000 4/4 4/4 120,000
10 Mrs.Maleeratna Plumchitchom - - - 1/1 1/1 30,000 4/4 4/4 120,000
Total - - 60,000 - - 271,000 - - 654,000
Other remuneration
The extra ordinary meeting of shareholder 2nd times/2007 on 27th day of November, 2007 has approved
the warrant for buying the ordinary chare to the employee 25,000,000 unit (3.35%) After the presentation of selling
ordinary share for the people and deliver the warrant to directors
62
and employees for the incentive and entrance moral for the operation, the participation during the previous
implementation serve the maximum benefit of company (The description of warrant will buy in article No. 8.2
concerning the property transaction for directors and employee) The committee serve the employee will select the
maximum benefit. All this, no committee and employee received the income more than 1,250,000 shares or more
than 5% of the warrant. The board of directors allocated the warrant 3,730,000 unit to the board of directors and
5,850,000 unit to executive committee (14.92% and 23.40%)
The warrant of board of directors received as follows
Name Amount of warrant from Proportion of allocation
allocation (Unit) Compare to warrant allocation
Board of directors
1. Mr. Supant Mongkolsuthree 1,250,000 5.00%
2. Mr. Virachai Srikajon 400,000 1.60%
3. Mr. Tu Shu Wu 400,000 1.60%
4. Mr. Hu Jia Lung 400,000 1.60%
5. Mr. Huang Chi Cheng 400,000 1.60%
6. Mr. Lee Lee Shen 220,000 0.88%
7. Mr. Somchai Apiwattanapron 220,000 0.88%
8. Mr. Vissut Sethaput 220,000 0.88%
9. Mrs. Maleeratna Plumchitchom 220,000 0.88%
Total 3,730,000 14.92%
Executive committee
1. Mr. Puttipan Tayarachkul 1,250,000 5.00%
2. Mr. Anuchit Boonyalug 1,200,000 4.80%
3. Ms. Suvannee Lee 1,000,000 4.00%
4. Ms. Kingkaew Jutasompakorn 1,000,000 4.00%
5. Ms. Suporn Lertteerapanyawong 600,000 2.40%
6. Ms. Kamonsri Boonjang 800,000 3.20%
Total 5,850,000 23.40%
Grand Total 9,580,000 38.32%
Source: Company
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Remuneration as cashIn 2006, 2007 and 2008, the company paid the remuneration to the employee as the salary, commission,
bonus and welfare as follows
Type of remunerationRemuneration of employee (mission baht)
2006 2007 2008
Salary and bunus 111.80 112.64 162.86
Reserve 1.05 1.61 2.20
Commission 33.52 35.77 28.19
Welfare 6.14 11.88 12.13
Total 152.51 161.90 205.38
Source: Company
Other remunerationThe extra ordinary shareholder meeting 2nd time/2007 on 29th day of November, 2007 has approved the
warrant for buying the ordinary share to the committee of company 25,000,000 unit (3.55%) after the presentation
of new shares to the people and deliver the warrant to committee and the employee in order to enhancement the
morale of committee and employee in implementation serve the maximum benefit of the company.
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Good governance
The board of directors practice as the principle or the rule of company committee associated to code
of best practice for director of listed company as the Stock Exchange of Thailand. There were 5 good
governances as follows;
1. Right of shareholders
The previous year, the company provided the ordinary meeting and the extra-ordinary meeting. The
company invite the shareholder before the meeting as the duration of the determination. Moreover,
the company bring the invitation letter via website www.synnex.co.th with the shareholder meeting
report an the extra-ordinary meeting report.
2. Equality practices of shareholders
The shareholder meeting, the company attach the authorization letter for the shareholder will authorize
to other for the meeting.
3. Role of interested person
The shareholder received equal remuneration including the right of vote or discussion in the meeting.
The company distribute the satisfaction surveying for the company improvement. The company
provided the general meeting continuously every year. Moreover, the opened opportunity for question-
answer-suggestion for the personal has ISO9001, the quality control and ISO14001, the
environmental protection.
4. Data disclosure and transparency
The board of directors, executive committee and auditors of company entering in general meeting
for the question-answer as disclosure and transparently.
5. Responsibility of board of directors
The board of directors consist of 11 persons and 3 independent directors and auditor directors at least
1 person.
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Internal information application
The company has policy and procedure for the bringing the internal information to individual benefit for
transaction of the property as follows:
• The company determine the protection of internal information application by the organization
receive the disclosure data to other organization deem as the violent offence and may be receive
the discipline punishment.
• The policy of company did not allow the directors and executive committee using the internal
information via the committee, executive and the employee which avoid or cancel to buy the properties
of the company during 1 month before data disclosure.
• The company give the knowledge to directors and executives concerning the function of reporting the
securities as Section 59 and Section 275 of Securities and Exchange Commission Act B.E. 2535 and
Regulation of Securities and Exchange Commission of Thailand, including the shanging by the spouse
and the minor children. All this, the directors and executives must deliver the report copy to the
company as the same day of submitting to Securities and Exchange Commission within 3 days.
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Internal auditing
The board of directors meeting 1st time/2008 on 16th day of February, 2008 with 3 auditing committees
cooperate in the meeting. The board of directors has evaluated the internal auditing in various aspects such as
organization and environment, risk management, operation control of executives, information system and
communication and monitoring system. The board of directors thought that the company has internal auditing
concerning the business with major shareholder, directors, executives or the related person and able to protection
the properties. However, the company, increase the caution for the business.
The account internal auditing, office of AMC Co., Ltd. Has studied and evaluated the efficient internal
auditing serve the checking accounting in 2008. Office of AMC Co., Ltd. Has opined the financial statement as
unconditional which did not found the fault. However, the auditor inform the notation and the suggestion from
financial auditing in 2008. The company worked as the suggestion of the auditors.
Moreover, the company established the control and internal auditing check the internal auditing system
continuously as the company determination efficiently, and compliance control. The coordination with the auditor
and the executive concerning the correct financial statement was conducted. There were the open information with
sufficiency and realiability in order to the internal auditing has independent in working. The auditing committee
determine the control and examine present the annual plan including the report and monitoring management
directly every 3 months. In 2008, the internal auditing did not find the mistake in the company.
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Connected transaction
The character of connected transaction
The company has connected transaction according to the business against other may be the conflict. In
2008, the company summarized the character and value of connected transaction as follows;
T.K.S.
Technology
Public Company
Limited
Prism Solution
Company
Limited
T.K.S. Siam
Press
Management
Co., Ltd
Major Company
Subcompany
Related
Company
Sell products
Trade account
Buy products
Account payable
Note payable
Other payable
Dividen
Sell products
Sell properties
Trade account
Service
Other payable
Loans
Interest payable
Sell products
Trade account
Service
Other payable
Note payable
7,342,236.96
1,258,664.54
154,019,362.75
7,188,663.61
7,740,457.94
837,529.67
164,999,736.00
2,001,535.16
436,085.00
1,377.03
14,403,641.28
1,039,321.74
13,000,000.00
586,602.43
3,742,886.90
598,105.39
12,422,282.20
2,313,112.30
976,762.80
- Sell computer and
parts inkjet and ribbon
- Buy paper assurance
and ribbon
- Sell product and
service
- Pay technical of
sell promotion
(before & after)
with products of
company)
- Sell computer inkjet
and network system
- Buy journal folder for
sale promotion
- Price is the market price normal condition
able to compare to other which higher than
the cost and normal condition
- Company buy for use or distribution in
agreement compare to other this item was
normal condition
From reason above, the mentioned item
serve the benefit of company and
reasonableness.
- Price is higher than the cost, normal
condition able to compare to other
From reason above, the mentioned item
serve the benefit of company and
reasonableness
- Price is the market price, normal condition,
able to compare to other.
- Rate of printing is the market price, normal
condition able to compare to other.
From reason above, the mentioned item
serve the benefit of company and
reasonableness.
Related company Relationship Value (baht) Character Opinion of auditing committee
68
Smart
Communication
and Technology
Co., Ltd.
King’s Eye
Investments Ltd.
Synnex Global Ltd.
Synnex Australia
Pty, Ltd.
Related
company
Related
company
Related
company
Related
company
Sell products/
Service
Dividen
Service
Other payable
Buy properties
10,000.00
161,700,000.00
7,671,821.87
5,993,287.07
313,922.00
- Sell computer
and parts
- Service for the
consult and service
for support and
maintenance
- Buy properties
- Price is the market price, normal
condition, able to compare to other
From reason above, the mentioned
item serve the benefit company and
reasonableness.
- This item is necessary for the benefit
of company and reasonableness.
- This item is necessary for the benefit
of company and reasonableness.
- This item is necessary for the benefit
of company and reasonableness.
Measure or step of connected transaction approval
Step of connected transaction approval must submit to board of directors meeting for the consideration with
auditing committee and give the opinion and reasonableness of those item. All this, the step of connected transaction
approval was conducted as the law of Securities and Exchange Commission, regulation, announcement, order or
provision which the committee as the interested person has no vote in the consideration. Moreover, the disposure of
connected transaction shown in notes to financial statement of the company and subcompany.
Related company Relationship Value (baht) Character Opinion of auditing committee
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ÃÒ§ҹ»ÃШӻ‚ 2551
Trend and policy of connected transaction with conflict person
• The normal business item and the support item as the condition in trade such as the transaction product and service etc. The company determine the policy of connected transaction as the normal trade in market price and practice as the agreement seriously. The determination of price and condition must be clear and equally. The account unit provide the connected transaction as well as the control and check unit will check the information and present to the auditing committee which focused on the appropriate, and reasonable items shown every 3 months.
• The normal business items and the support item as the unconditional in trade. The company determine to submit the board of directors for the consideration with the auditing committee and give the opinion of item and reasonableness. All this, the company practice as Securities and Exchange Commission, regulation announcement, order or the provision of Securities and Exchange Commission of Thailand. The company provide the independent expert given the opinion concerning connected transaction for the consideration of board of directors or shareholder. All this the committee which was the interested person will not vote for the approval.
• The normal business support items as unconditional in trade with Taiwan, Synnex as the contract of Global Enterprise application and trademark application Contract on 11th day of December, 2007. Taiwan, Synnex got the shares of company not less than 20% of capital. All this, the payment of Global Enterprise application will be as the contract seriously.
The connected transaction in the future, the committee practice as the regulation and the committee will not approve the items, including there was no authorized to other person in the conflict item and must opened this item to the board of directors and/or the subcompany. The trend of connected transaction in the future depend on the normal business item of the company implemented as transparency and connected transaction correspondence to regulation of securities and exchange commission and other organization. Moreover, the company expected the connected transaction with Synnex Global Ltd. For the value of warehouse management system which connected to ASRS with Global Software administration approximately 10 million baht. The mentioned item is the expenses from the fee of project development and/or new program as the estimation of item using in system development.
70
Explanation and analysis of financial and operational result
Operational result
The company and subcompany has total income 9,694.30 million baht, 10,842.52 million baht and
12,022.80 million baht in 2006, 2007, and 2008, respectively. The total income has expansion rate in 2006,
2007 and 2008 equal 3.56%, 11.84% and 10.89, respectively.
Total income of company consist of income from sell computer and accessories, income from service,
discount income, other income, benefit portion. The main income are income from sell computer and income
from accessories of computer. The income of sell computer and accessories of computer 9,378.98 million baht,
10,483.03 million baht, and 11,572.30 million baht, in 2006, 2007 and 2008, respectively. The rate of growth in
2006, 2007 and 2008 were 4.04%, 11.77% and 10.39%, respectively. This growth related to the growth rate of
industrial sector.
In 2008, the income from sell computer and service of company has expanded from 2007, 10.41% by
consumables and supply group, component product group and system product group has proportion as 1st,
2nd and 3rd rank which were 21.89%, 20.95%, and 16.50%, respectively.
Moreover, the company has income from the discount income which was the extra discount when the
company buy the computer and accessories from the producer directly and large amount. All this, the discount
condition depend on each producer. This income shown in statement as the discount income were 226.58
million baht, 295.79 million baht, and 384.17 million baht, in 2006, 2007 and 2008, respectively.
The income from the service were 10.15 million baht, 11.53 million baht and 14.37 million baht, in
2006, 2007 and 2008, respectively. All this, the income from the service consist of income from service after
sell, the income from software service training, setting and maintenance system before and after sell, including
on site service of subcompany and income from maintenance products and service as the distributors.
The net income of company were 104.02 million baht, and 139.91 million baht, in 2006 and 2007.
The growth rate were 118.25% and 34.51% in 2006 and 2007, respectively. In 2008, the net income of
company was 112.98 million baht, the decreased rate 12.10% All this, the company has net income 1.07%,
1.29% and 1.02% in 2006, 2007 and 2008, respectively.
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Financial status
AssetsAs at 31st day of December, 2007, the company and subcompany has the assets 2,798.40 million
baht compare to 2,158.80 million baht at 31st day of December, 2006 consist of current assets 1,840.54 million
baht and 2,392.91 million baht, 85.26% and 85.51% of total assets of company in 2006 and 2007, respectively;
noncurrent assets 318.26 million baht and 405.50 million baht, 14.74% and 14.49% of total assets of company
in 2006 and 2007, respectively.
As at 31st day of December, 2008, the company and subcompany has the assets 3,165.21 million
baht consist of current assets 2,769.29 million baht, 87.49% of total assets of company and non current assets
395.92 million baht, 12.51% of total assets of company. All this, major assets of company was current assets
which consist of trade account and note receivable and inventories.
As at 31st day of December, 2007, the current assets of company consist of trade account and note
receivable 1,199.48 million baht, 42.86% of the total assets increasing from 958.71 million baht, 44.41% in
2006. For 2007, the company has trade account and note receivable, 1,211.27 million baht, 38.27 of the total
assets.
The inventories of company were 745.79 million baht, 978.53 million baht and 1,107.36 million
baht, 34.55%, 34.97% and 34.99% of the total assets of company, in 2006, 2007 and 2008, respectively. All
this, the increasing of inventories in 2008, because the company buy the products for the retailer for
organization in 2008, and some products was increased for discount.
In 2005, the company constructed new distribution center in the area of main office using Automatic
Storage and Retrieval System (ASRS) which received the storage of product in large amount serve the market
share plan. The new distribution center has completely constructed on April, 2007 in value of 170 million baht.
All this, the investment serve the permanent assets. In 2006 and 2007, the company has the land, building and
equipment 275.15 million baht and 338.55 million baht or increasing 69.18 million baht and 63.40 million baht.
All this, the company record the depreciation of ASRS in 2007 as at 31st day of December, 2008, the company
has the land, building and equipment 331.85 million baht.
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Assets quality(A) Trade account and note receivable – net
unit: million baht
2006 2007 2008
Trade account and note receivable-net 958.71 1,199.48 1,211.27
average collecting money (day) 40 38 41
Trade account and note receivable of the company and subcompany were 958.71 million baht,
1,199.48 million baht and 1,211.27 million baht, in 2006, 2007 and 2008, respectively. In 2008, there was trade
account and note receivable increasing from 2007, 0.98% but in 2008, increasing from 2007, 10.89%, there
was average collecting money in 2008, 41 days increasing from 2007 because the selling of retailer for
organization able to sell in government official which pay money slower than other group.
(B) Inventories
unit:million baht
2006 2007 2008
Inventories-net 745.79 978.53 1,107.36
average sell product (day) 27 27 30
The inventories of company and subcompany were 745.78 million baht, 978.53 million baht and 1,107.36
million baht, in 2006, 2007 and 2008, respectively. In 2008, there was average sell product 30 days increasing
from 2006-2007 which there were average sell product 27-28 days. All this, the increasing of inventories as at
31st day of December, 2008 occur from the purchasing the new products and the company was the HP
distributors concerning Notebook computer.
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Liquidity
unit: million baht
31 Dec.2006 31 Dec.2007 31 Dec.2008
Net income before income tax 143,447.32 199,992.21 168,913.79
Adjustment to reconcile net income 100,424.88 105,236.39 122,119.28
Net income from operating activities before changes 243,872.20 305,228.60 291,033.07
in operating assets and liabilities
Changes in operating assets 126,919.90 (510,739.02) (241,388.21)
Changes in operating liabilities (140,061.44) 39,840.85 (212,437.89)
Cash flow from operating activities 230,730.66 (165,669.57) (162,793.03)
Cash flow from investment activities (88,892.38) (109,788.41) (26,361.73)
Cash flow from financing activities (113,367.31) 337,601.73 358,889.95
Increase in cash and cash equivalents 28,470.97 62,143.76 169,735.19
Beginning cash and cash equivalents 37,159.88 65,630.85 127,774.60
Ending cash and cash equivalents 65,630.85 127,774.60 297,509.79
The company increase the selling every year, therefore, the company use the current cash for the
management of trade account and inventories. The company provide the current cash from loaning the bank.
All this, from the character of business, the cash flow from operating activities shown positive or negative
alternative. When the company collect the trade account, the cash flow shown positive. On the other hand,
when the company paid the product, the cash flow shown negative. All this, the company found that ratio of
trade discount more than interest of the loan from financial institution. Now, the company used various
commercial bank for business, therefore, the company has no problems of liquidity.
The cash from the investment activities was 88.89 million baht and 109.79 million baht in 2006 and 2007
because, the company invest in ASRS in 2006 and completed project in 2007. In 2008, the company has the cash
flow from investment activities 26.36 million baht because, there was no investment expenses.
In 2007, the company has liquidity ratio at 1.35 and fast liquidity ratio at 0.75. In 2008, the company
has liquidity ratio at 1.49 and fast liquidity ratio at 0.81, because the company has short-term loan.
74
LiabilitiesThe company has the liabilities 1,389.28 million baht, 1,877.56 million baht at 2006 and 2007,
respectively. However, in 2007 the total liabilities was increased, because there was overdraw and short-term
loan to 956.32 million baht, the total account payable and note payable increased to 610.67 million baht. As at
the end of 2007, the total long-term loan increased 96.74 million baht according to the construction new
warehouse using ASRS.
As at 31st day of December, 2008, the total liabilities of company was 1,955.69 million baht was the
growth rate 4.16%. The increasing of total liabilities depended on total short-term loan use as the current cash
in the product provider and reserve for the extension of trade account which increased to 1,163.90 million baht,
and the long-term loan decreased to 82.70 million baht.
Shareholder’s equityAs at 31st day of December, 2007, the shareholder’s equity was 920.84 million baht with retained
earnings 402.79 million baht. The increasing of retained earnings came from the good government of the
company. The company has increased retained earnings continuously, because the good operation result, then
the shareholder’s equity grown continuously. However, the dividen of 2007 for shareholders was 0.26 baht/
share in the total was 130 million baht.
As at 31st day of December, 2008, the shareholder’s equity was 830.18 million baht with retained
earning 312.86 million baht. The meeting of board of director 2nd times/2551 on 5 May, 2008 the resolution for
the dividen of 2008 for shareholder was 0.40 baht/share in the total of 200 million baht. In addition, company
reserve 10 million baht and the shareholders received 630.18 million baht.
As the resolution of board of directors meeting 4th times/2551 on 10 November, 2008 need to buy the
share back for financial management according to over liquidity. Therefore, the company bought 60.38 million
shares, the maximum not more than 71.25 million baht. The criteria use he agreement of securities and
exchange commission of Thailand.
The ordinary share buy back as at 31st day of December, 2008 as follows
The value of ordinary share buy back (baht) 6,881,968.18
The amount of ordinary share (share) 6,923,800
The price of ordinary share (baht) 0.99
The percentage of ordinary share 1.02
75
ÃÒ§ҹ»ÃШӻ‚ 2551
As at 31st day of December, 2008, the shareholder’s equity has the value of 1,209.53 million baht with
retained earnings 178.89 million baht and appropriated retained earnings 17.41 million baht with reserve buy
back 6.88 million baht.
Remuneration of auditor
The remuneration and other service from auditingThe company agreed to pay the remuneration as follows;
Item Company / Subcompany Auditor Remuneration
1 Synnex (Thailand) Public Company Limited Miss Praphasri Lilasupha 640,000.00
76
Report of the auditing committee, 2008
The auditing committee of Synnex (Thailand) Public Company Limited consist of independent directors 3
persons i.e. Mr. Somchai Aphiwatphon, Chairman of audit committee and committee members 2 persons i.e. Mrs.
Malirat Plermchitchom and Mr. Witsut Setthabut. Every auditing committee was not the executives or employee of
company.
In 2008, the auditing committee conducted the meeting 4 times for checking financial report and
internal auditing. Every meeting the committee invited internal auditing join the meeting in order to serve the
information to the auditing committee. Moreover, the auditing committee invited the auditor join the meeting for
the checking the financial statement at the end of 31st December, 2008 on 3 February, 2009. In short, the
auditor opined the suggestion of financial statement at the end of 31st day of December, 2008 as the
unconditional. On the other hand, the checking other items of financial statement, the auditor did not find the
fault in accordance with generally accepted auditing standards, and disclosures. The resolution of the auditing
committee agreed to financial statement, 2008 and should be submitted to the board of directors for the
consideration before submit to general meeting.
The auditing committee was approved and improved the regulation for governance, principle, scope,
duties and responsibility of the auditing committee.
The auditing committee has considered and given the suggestion including the approval of operational
plan of internal auditing, 2009. The monitoring risk factors, report of internal auditing, report of monitoring the
correction including the control of internal auditing serve the professional standards were conducted. The security of
reasonable concern the internal auditing able to serve the target efficiently.
The auditing committee evaluated the auditor’s working concerning the readiness of practice in auditing
standards, report of the auditor, which selected from office AMC Co., Ltd. And determined the remuneration as the
previous year. Therefore, the committee submitted to board of directors appointed the company auditor in 2009 and
submit to general meeting.
Signed: Illegible
(Mr. Somchai Apiwattanapron)
Chairman of audit committee
on behalf of the auditing committee
77
ÃÒ§ҹ»ÃШӻ‚ 2551
Report of board of directors responsibility to financial report
The board of directors, Synnex (Thailand) Public Company Limited focused on the duties and
responsibility of good government, provide management by objectives and regulation of company, emphasize in
benefit of company and shareholders, direct the financial report correctly, and reflect financial status and actual
result.
The board of directors was appointed the auditing committee which consist of export independent
directors serve qualification of Securities and Exchange Commission of Thailand. This committee check financial
report correctly including the disposers the connected items or the conflict of interest completely as Securities and
Exchange Commission Regulation of Thailand and related rule and regulations.
The board of directors suggested that financial statement of company and subcompany, 2008 which the
auditing committee checked with the executives committee and the auditor consideration shown financial status, the
operational result of company and subcompany correctly as the substantial as generally accepted auditing standards.
Signed: Illegible
(Mr. Supant Mongkolsuthree)
Chairman of the board of directors
on behalf of board of directors
78
Des
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ersity
-B.
A. (E
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mics
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mmas
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1978
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Netba
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irk U
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Consolidated Financial StatementsDecember 31, 2008
86
87
Annual Report 2008
BALANCE SHEETS SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
As of December 31, 2008 and 2007
88
BALANCE SHEETS SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
As of December 31, 2008 and 2007
89
Annual Report 2008
BALANCE SHEETS SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
As of December 31, 2008 and 2007
90
INCOME STATEMENTS SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
For the years ended December 31, 2008 and 2007
91
Annual Report 2008
STATEM
ENTS O
F CHANGES IN
SHAREHOLD
ERS’ EQUIT
Y
Con
solid
ated
Finan
cial S
tate
men
ts
SYNNEX (THAILAND) PUBLIC C
OM
PANY L
IMITED A
ND IT
S S
UBSID
IARY C
OM
PANY
For
the
year
s en
ded
Dec
embe
r 31, 2008 a
nd 2
007
92
STATEM
ENTS O
F CHANGES IN
SHAREHOLD
ERS’ EQUIT
Y
Sep
arat
e Fina
ncial S
tate
men
ts
SYNNEX (THAILAND) PUBLIC C
OM
PANY L
IMITED A
ND IT
S S
UBSID
IARY C
OM
PANY
For
the
year
s en
ded
Dec
embe
r 31, 2008 a
nd 2
007
93
Annual Report 2008
STATEMENTS OF CASH FLOWS For the years ended December 31, 2008 and 2007
SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
94
SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
STATEMENTS OF CASH FLOWS For the years ended December 31, 2008 and 2007
95
Annual Report 2008
NOTES TO FINANCIAL STATEMENTS As of December 31, 2008 and 2007
SYNNEX (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
96
97
Annual Report 2008
98
99
Annual Report 2008
100
101
Annual Report 2008
102
103
Annual Report 2008
104
105
Annual Report 2008
106
107
Annual Report 2008
108
109
Annual Report 2008
110
111
Annual Report 2008
112
113
Annual Report 2008
114
115
Annual Report 2008
116
117
Annual Report 2008
118
119
Annual Report 2008
120
121
Annual Report 2008
122