Message from the Board of Directors

Greetings to all shareholders. 2020 has proven to be an exceptional year in the history of mankind, with Covid-19 taking the world by surprise and putting many economies across the globe at a standstill.

The Board of Directors
KARMARTS PUBLIC COMPANY LIMITED

The pandemic resulted in a global GDP contraction and placed thousands of enterprises across the globe out of businesses, as multiple waves of lockdown hit the United States of America, Europe as well as Asia, Thailand was not spared too, and we saw a significant decline of 6.1% in GDP for the year. Malls were closed for prolonged periods of time and airports were shut down to curb influx of infections. The latter dealt an especially severe blow to Thailand as the country has a long-standing presence and an economy which is by large skewed towards that of a tourism hub. Along with that came the drastic and disastrous impacts to the hotel industry, followed by, inevitably, the beauty industry, as expenses in this aspect of daily lives are generally deemed by consumers as non-necessities during times of recessions.

Beyond the global situation, political instability continued to add fuel to the fire in 2020. Protests along with demonstrations were participated by thousands of students and young people. Associated with unprecedented demands for reforms, these events started in February and continued in July, thereafter leading to a declaration on a state of emergency in October.

Through it all, KARMART stood firm on our guiding principles and braved through the turbulent waters in 2020. The company attained total Operating Revenue of THB 1,326 million for the past fiscal year, which represents a decline of 12.98% from the year before. Net Profit makes up 10.26% or THB 132 million, representing a decrease of 49.43% from the prior year, and total dividends paid out/declared was THB 0.14 per share. Return-on-Equity Ratio was concluded as 13.19% whereas Return-on-Asset ratio stood at 8.55%. Retained Earnings show a healthy level of THB 243 million at the end of 2020, making KARMART a preferred choice on the Stock Exchange of Thailand which is equipped with resources required to take on a long-term battle during extended economic downturns.

On behalf of the Board of Directors, we like to reaffirm our dedication to strive for the better in 2021 to all stakeholders. We assure that all of us here at KARMRT will relentlessly give our all to steer through difficult times ahead. Once again, special thanks certainly have to be accorded to all employees, business partners and shareholders who have stood by us and will continue to place faith in us in the coming year and beyond. Regardless of how Covid-19 shall continue to impact the world economy in the times ahead, we are confident that KARMART will continue to advance towards our vision of becoming one of the leading branded beauty providers for everyone worldwide.