Introduction_Hwa Fong Rubber Thailand Public Company Limited

Hwa Fong Rubber Thailand Public Company Limited

Hwa Fong Rubber (Thailand) Public Company Limited (“HFT”) was established in 1987 currently registered and paid up share capital of 658,434,300 Baht and 658,434,300 Baht respectively. HFT's principal business is to manufacture and distribute tires and tubes for bicycles, motorcycles, small logistic vehicles such as trolleys, forklift, golf cart, and all-terrain vehicles under more than 31 years with recognizable worldwide trademark named "DURO", “Q-UICK”, and "DUNLOP" possessed by Sumitomo Rubber, Japan with DURO stemmed from the technology and marketing support of Hwa Fong Rubber Industries company limited (hereinafter called "HFR"), majority shareholder who has been listed in the Taiwanese Stock Market for more than 23 years. The HFR's nature of business is to manufacturing bicycle, motorcycle, and industrial vehicle tires and tubes. Moreover, HFT was also certified to the ISO 9001-2008 for its internationally excellent product quality.

HFT's sales portion is classified by the local and international sales in the percentage of 37.23% and 62.77% respectively. In domestic sales, HFT distributes its products to the leading bicycle's Original Equipment Manufacturer (OEM) such as LA BICYCLE, TURBO BICYCLE under the brand name "DURO" and motorcycle manufacturers i.e. HONDA, KAWASAKI including genuine parts to be distributed amongst licensed distributors under "DUNLOP" brand. In addition, HFT began selling tires under “DURO” to the golf cart manufacturers (OEM) for operating the golf cart with YAMAHA. On top of OEM business, HFT has also concentrated under the brand name "DUNLOP", “DURO”, “Q-UICK” and PREMIUM HFT in distribution on the Replacement Equipment Market (REP) business via Borneo Technical (Thailand) Co., Ltd. and P.V. Motor Co., Ltd. In the international sales, HFT distribute products via the network of HFT, HFK, HFR and HFA, which are among group companies to market in USA, Europe, Asia, Africa, Australia and Middle East.

For overall performance, HFT reported its revenue from sales up to 2,535 Million Baht in 2016 and 2,731 Million Baht in 2017 increase to 196 Million Baht or 7.73%, In recent years, the company has sale increase in bicycle tires in the amount of 102.81 Million Baht or 12.55%, and motorcycle tires in the amount of 91.13 Million Baht or 6.16% due to the incresing demand in both domestic and international consumption in line with the expansion in global economy. Also, HFT always supports sale marketing and promotion with customers. As a result, our brands are widely recognized and able to reach more target customers.

Meanwhile the cost of production was increase 24.38% due to cost of raw materials and labors in 2017. In that year, the company net profit was 255.65 Million Baht with earning per share 0.39 Baht, decreasing 82.11 Million Baht or 24.31% from year 2016 that had net profit 337.76 Million Baht.