Board of Directors' Message

DEAR ALL SHAREHOLDER

Despite encouraging indications of a global economic rebound, the year 2022 posed daunting challenges for Ingress Industrial (Thailand) Public Company Limited (“the Company”). Nevertheless, Ingress demonstrated remarkable resilience and agility, successfully overcoming these obstacles to further its mission of driving economic growth with perseverance

Despite the world’s success in combating COVID-19, the aftermath has been complicated by the persistent issue of semiconductor shortage, leading to disruptions in the supply chain of automotive manufacturers. As a result, numerous global OEMs have had to scale down their projected volumes and production by nearly 20%.

The Russia-Ukraine war has led to a rise in production costs due to the surge in global inflation. Consequently, consumers who bear the brunt are becoming more cost-conscious for non-essential items such as motor vehicles.

These aforementioned factors altered the global economic landscape of 2022 particularly on the automotive industry growth. Although the demand for automobiles has not fully returned to pre-Covid-19 levels, both the Company and other automotive players in the operating region are optimistic about a gradual upswing in the automotive economic system.”

Like many other organizations, the Company recognizes the criticality of adopting an agile and robust management strategy to navigate the complex and turbulent economic, socio-political, and technological landscape. The Company remains committed to pursuing its operations with the aim of achieving its business targets as envisioned, while upholding the best interests of all stakeholders, including employees, OEMs, suppliers, and the wider automotive consumer society.”

However, the Company is currently undergoing a technology transformation to keep pace with the evolving automotive industry, as automakers increasingly shift their focus from internal combustion engines (ICE) to electric vehicles (EV). In response, the Company is vigilantly monitoring these changes, proactively acquiring new product technology, optimizing work systems, and preparing its workforce for the transition, thereby establishing a solid foundation for its future business endeavors.

The countries in which the Company operates present a promising outlook, as evidenced by the developing demand for electric vehicles (EVs) in Thailand and the prospect of Indonesia and India emerging as the primary global sources for battery cell raw materials, potentially challenging China from its current dominant position. Such developments offer exciting possibilities for the Company’s operations, underscoring the dynamic and evolving nature of the global automotive industry.

The recent developments offer the Company an opportunity to make sustainable progress by adapting to the emerging trends while ensuring profitability. The Company plans to achieve this by designing innovative products that leverage aluminium and high tensile steel (Ultra HTTS) to achieve a lightweight structure. Additionally, automating the production line will enhance productivity, reduce waste, and decrease costs. Furthermore, investing in employee development programs aimed at boosting skills, competency, participation, and engagement will create a sense of belonging, leading to a more productive and committed workforce.”

The Company concluded the year 2022 with a noteworthy achievement, reporting a group revenue of THB 4.9 billion, marking a substantial increase of THB 2.4 billion compared to the 2021 group revenue of THB 2.6 billion. This impressive growth can be attributed primarily to the expansion of the Company’s manufacturing facilities in Malaysia under Ingress Technologies Sdn. Bhd. (ITSB), which resulted in increased production of automotive parts and components for Proton and Perodua. Moving forward into 2023, the Company anticipates further revenue growth, bolstered by the gradual recovery of the automotive market.

The Company’s success can be attributed to the unwavering commitment and dedication of its employees, who continuously deliver positive results. The Company would like to express its gratitude to all members of the Company family, shareholders, business partners, and customers who have remained steadfast in their support during challenging times. Moving forward, the Company aims to manage its business with sound governance, social responsibility, and humility, recognizing the importance of contributing to the environment and society for sustained growth in the future.