Page 11 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

3. Distributor
TGE is the distributor in charge of Taiwan market, while TYCN is in charge of other
overseas market. TYCN promotes its products by advertising on magazines and
journals, and participating in international exhibitions.

4. Market positioning strategy

A. Wire rod and annealed wire:
The exported wire rods and annealed wired are classified as high-quality and
high-value products such as CHQ and low alloy products which are major
materials used for fasteners and auto parts.

B. Fastener:
TYCN is a professional fastener manufacturer providing a variety of fasteners
and satisfying customers’ need of one-stop purchase.

5.Customer satisfaction
The company evaluates customer satisfaction on each product in the beginning of
each year. In terms of the valuation of customer satisfaction in 2019, the company
set the score of no less than 80 for service quality, product quality, and delivery
process. Overall, every product passed the evaluation.

2.2.2 Market and competition

Dumping and Capacity cut of China

Due to China’s economic slowdown, steel oversupply and subsidies to steel exports,
Chinese steel products have been dumped all around the world.
Although China has cut 150 million tons of capacity with 3 years of effort, reform of supply
side has not been completed. CISA says that China’s target in 2020 is to implement
production curbs and off-peak production and to focus on the prevention of recovery of
resolved capacity as well as new capacity.

Rise in trade protectionism

Thai government imposed provisional anti-dumping tariffs from 15.59% to 33.55% on
imports of Chinese low-carbon wire rods in September of 2015, and then in March of 2016,
the final results of its anti-dumping investigation announced the anti-dumping tariffs from
12.81% to 31.15% for five years, In addition, the Thai government announced the "Anti-
subsidy Act" and "Anti-circumvention and Subsidy Act" on May 22, 2019, in order to
prevent previous attempts to circumvent the anti-dumping law.

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