Page 12 - Microsoft Word - One-Report-Eng 2024 Final.docx

Tycoons Worldwide Group (Thailand) Plc.

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

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 2023, 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 Market and competition
Although the Thai economy has continued to recover in 2023, but it still will be a difficult year
for the steel industry. The main reasons include:
1. Foreign dumping of imported steel products has increased significantly, especially steel
products from China. That's because China's steel mills have increased output to the
highest level in several years eventhough lower demand for steel due to an economic
slowdown.
2. Chinese companies and industries involved in private and government projects in Thailand
usually import steel from China for use instead of using steel produced in Thailand; in
addition, Chinese steel mills that moved their production bases to Thailand also take away
a large number of market share. Currently, the annual steel production capacity of steel
plants moved from China to ASEAN is about 20 million tons

Overall, the unfair competition currently comes from the trade protectionism implemented by
China's big investment, the United States, and developed countries in the European Union,
including substandard and different standards of steel from foreign countries. In addition, there
are structural barriers to energy costs in Thailand, which are higher than in other competing
countries; raw materials for steel production are not guaranteed because Thailand does not
have enough scrap steel and production capacity utilization is also low. Therefore, unit
production costs are higher and product price competitiveness is poor.

(3) Procurement of production/purchase

1. Production capacity
At present, the Company has 17 factories. Located at No.99 Moo1, Nikhom Phatthana,
Nikhom Phatthana, Rayong 21180 Thailand, the Company has been operating machinery for
production since 2000. The company could achieve maximum production capacity of 500,000
tons/year if it were to produce only a single type of wire rod (that used for bar in coils), since it is
less time consuming to make than other types of wire rods. Actual capacity will be lower, at
approximately 360,000 tons/year, if the company produces a combination of mixed product range
with different grades. And the company also could achieve maximum production capacity of
144,000 tons/year if it were to produce only a single process of annealed wire. Actual capacity will
be lower, at approximately 108,000 tons/years, if it were produce over a single process of annealed
wire. The production is carried out according to Thai standards, international standards and
according to the needs of customers.

10