1. What does FORTH do?
|1. What does FORTH do?|
|Forth Corporation Public Company Limited (FORTH) was established in 1989 with registered capital amounting to Baht 1 million. The company purposed to manufacture Private Branch Exchange (PBX) under the trademark of FORTH including Printed Circuit Board Assembly (PCBA) and electronic equipment manufacturer. Then, the company expanded into related-business and had been listed in the Stock Exchange of Thailand in 2006.
Nowadays, the company has 4 business units which are
1) EMS Business (Electronics Manufacturing Service business)
Manufacture and distribution of electronic equipment under trademark of "FORTH" and under the customer brand
2) Telecommunication business
Manufacture, distribution and installation telecommunication equipment as well as integration telecommunication solutions
3) Related technology business
Manufacture, distribution and installation technological equipment such as LED lighting, traffic light system, closed-circuit television (CCTV), enterprise resource planning (ERP), digital electric meter, global positioning system (GPS) etc.
4) Retail business
Service provider for mobile top-up and online payments via “automatic payment machine” under the trademark of “Boonterm”
2. What are the proportion of revenues and business trends?
|2. What are the proportion of revenues and business trends?|
|In 2016, retail business provided the company the highest revenue compared to other main business or 44% of total revenue resulting from constant growth of Boonterm business. EMS business which is electronic components manufacturing and distribution service still grew resulting from increased sales from the new and regular customers. The proportion of revenue in the year of 2016 was 32% of total revenue of main business. However, the company had constantly to manage on cost of electronics manufacturing according to the clients’ needs. This could result in slight income. Therefore, the company managed this situation by concurrently manufacturing products for its subsidiaries. The main revenue of telecommunication business and related technology business came from the bidding projects for the government. In 2016, the revenue of telecommunication business and related technology business decreased which was 5% and 19%, respectively, of total revenue of main businesses. In 2017, the company expected that the revenue would more come from bidding projects because there were not the bidding projects of government last year.|
3. How are the revenue and profit of FSMART recognized by FORTH
|3. How are the revenue and profit of FSMART recognized by FORTH|
|The company consolidates FSMART’s financial statements into FORTH’s consolidated financial statements by recognizing FSMART’s revenue and profit and deducted from connected transaction (if there are purchase of goods and service or intercompany service.).|
4. What is the investment plan in the future?
|4. What is the investment plan in the future?|
|The company aims to invest in business that the company specializes in such as technology and telecommunication business by designing products to meet market demand and supporting technology trends in the short run e.g. by developing Electric Vehicle Charging Station, Electric Vehicle Supply Equipment and Electronic Monitoring. About retail business, the company aims to expand automatic payment machine or online top-up machine business to other countries especially developing countries such as Indonesia and Myanmar etc. In the country, the company expands into vending machine business under the operation of Forth Vending Company Limited, FORTH’s subsidiary, cooperating with the Sigha Corporation Group and SNC Former Public Company Limited.|
5. What is FORTH’s dividend policy?
|5. What is FORTH’s dividend policy?|
|FORTH’s dividend policy is not less than 40% of the net profit after corporate income tax, accumulated loss brought forward (if any) and appropriation of statutory reserve in accordance with the Company’s separate financial statements. However, the Board of Directors may set the rate of dividend less than the one mentioned above depending on the operating results, financial situation, liquidity and the necessity to expand the operation as well as the reserve on circulating capital of the operating of the organization. A subsidiary’s dividend policy is not less than 20% of the net profit after corporate income tax in accordance with the subsidiary’s financial statement depending on the investment plan and the expanding of the business of the subsidiaries well as other necessity and propriety.|