Page 5 - Annual Report English 2018
P. 5
Tycoons Worldwide Group (Thailand) Plc.
company policy, management and operation of TGE and TYCN are clearly separated,
and the two management teams are independent each other, in order that each company
is acting in its own best interests.
TY Steel Co., Ltd. (hereinafter called “TY”) was established on September 14,
2011. TY is 69.43% owned by TGI and 30.57% owned by TYCN separately which
was incorporated in Thailand. TY had a registered capital of 2,390,000,000 baht and
paid up capital of 2,390,000,000 baht. TY’s principal business is to produce and sell
both billets and deformed bars.
1.4 Relationship with the business group of major shareholder
Currently, TYCN’s largest customer for sales of merchandise, including wire rod
and annealed wire, is Tycoons Group Enterprise (TGE), TYCN’s indirect majority
shareholder via Tycoons Group International Co., Ltd.(TGI), (TGE holds a stake of up to
100% in TGI and TYCN is a 72.91% owned subsidiary of TGI). TYCN’s sales to TGE
accounted for 16.66% of TYCN’s total sales in 2018, mainly due to the fact that TGE is
TYCN’s agent who is in charge of business development and marketing in Taiwan, which
allows TYCN to rapidly react to the demand and prices in Taiwan market. Therefore, the
business relationship between TGE and TYCN will be able to stay mutually beneficial.
In accordance with company policy, management and operation of TGE and TYCN
are clearly separated, and the two management teams are independent each other, in order
that each company is acting in its own best interests.
2. Nature of the business
Revenue structure
Product 2018 2017 2016
MB % MB % MB %
Domestic Sales
1. Wire rod (including reinforcing bar) 4,669.63 45.09 3,161.08 42.06 2,273.13 36.65
2. Annealed wire 82.15 0.79 96.56 1.29 102.34 1.65
3. Screw 7.71 0.07 8.44 0.11 5.02 0.08
4. Bolt - 0.00 0.26 0.00 0.06 0.00
5. Reinforcing bar 1,001.81 9.67
1.76
67.12
132.25
1.08
1.28
132.35
6. Others 5,893.55 56.91 3,398.69 45.22 2,447.67 39.46
Total domestic Sales
International Sales
1. Wire rod (including reinforcing bar) 1,124.41 10.86 953.17 12.68 745.84 12.03
2. Annealed wire 1,118.70 10.80 1,117.69 14.87 1,258.44 20.29
3. Screw 625.92 6.04 790.06 10.51 509.81 8.22
4. Bolt 1,593.53 15.39 1,257.03 16.72 1,240.51 20.00
5 Others - - - - - -
Total International Sales 4,462.55 43.09 4,117.95 54.78 3,754.60 60.54
Total Sale 10,356.10 100 7,516.64 100 6,202.27 100
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