Page 11 - Annual report eng 2020

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 2020, 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 over the past five years, reform of
supply side has not been completed. China’s target in 2021 is to implement capacity
curbs and prevention of new capacity so that China can make sure that steel output of
2021 is less than 2020.

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.

Upgrades in infrastructures and industries

In mid 2016, Thai government announced “Thailand 4.0”, an economic development
plan, which is the blueprint of industry upgrades across 20 years from 2017 to 2036. The
plan includes the development of six key area and ten popular industries, and at least
3,000 billion baht in rail way and high way system. The goal of this plan is to make
Thailand more attractive to investors, to develop Eastern Economic Corridor(EEC), and
to strengthen the country’s competitiveness by reducing the transport cost. In order to

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