Message from the Board

Dear Valued Shareholders

In 2023, Thailand entered a new normal phase following the COVID-19 pandemic outbreak, which is believed to be a foundational year for SiS Distribution (Thailand) Public Company Limited (the Company). The Company reported a total revenue of 27,710 million Baht, decreasing by 4.7%, and a net profit of 645.6 million Baht, decreasing by 6.2% compared to the previous year. This decline was due to the market contraction of personal computers (PCs) globally, which decreased by 14.8%, and smartphones, which declined by 7.4%.*

PCs and smartphones are the main products of the Consumer and Phone Business Units. This decline in sales was a result of reduced household purchasing power, leading to an 18.7% decrease in total sales and a 21.3% decrease in gross profit compared to the previous year.

The business from the Value-Added and Other Business Units experienced growth in line with the expanding market. Total revenue of these 2 business units increased by 16.1%, with a gross profit growth of 25.3%. However, due to the significantly larger size of the Consumer and Phone Business units, total revenue and net profit decreased as previously mentioned.

The Company prioritized expanding its distribution channels nationwide. In 2023, the Company has an increase in the number of customers to 10,197, a rise of 504 customers (5.2%). This expansion of the customer base helped the Company maintain stable sales, reduce reliance on specific customer groups, and efficiently introduce new products to existing customers.

Mr.Lim Kiah Meng Chairman	Mr.Somchai Sittichaisrichart Managing Director

For new technology products, the Company has been investing in Cloud systems under the name SiS Cloud since 2018. Additionally, the Company was appointed as a distributor for Amazon AWS in 2022 and Microsoft Azure in 2023, respectively. These 2 companies are global leaders in the Cloud business, ranking 1st and 2nd worldwide, respectively. This positions our Cloud business for further growth. In 2023, the Cloud Business Unit has a sales increase of 48% and a profit increase of 66%. The Company has consistently invested in Cloud personnel, despite increased expenses, believing that this investment will benefit the Company in the long run, as Cloud business is a recurring business.

Aside from expanding the business, the Company is committed to ensuring good corporate governance in line with the guidelines of the Organization for Economic Cooperation and Development (OECD) and sustainable growth. Consequently, the Company has consistently received an excellent rating in Corporate Governance Reporting assessment, maintaining its highest level of excellence from previous years.

On behalf of the Company, we express our sincere gratitude to our partners, financial institutions, customers, as well as the entire Management and employees for their continuous support. We remain steadfast in conducting business in line with sustainable development principles under the banner of good corporate governance, aimed at promoting the use of technology in Thailand, in line with our ongoing vision.