History and Significant Developments
The Company registered its establishment on 12 October 1999 with the initial registered capital of 6,000,000 Baht (Six Million Baht Only), in the beginning of its establishment, the objective is to operate business as a manufacturer and distributor of self-assembled particle board furniture under the management of the group of Thai businessmen led by Mr.Wanlop Suksawad, as the current major shareholder, and the Suksawad family, who are the founder and pioneer of furniture manufacturing and distribution business since 1992.
In 1992, the management team or the Suksawad family have established East Coast IndustryCo., Ltd. (ECI) to operate the business of sawmill and wood drying factory for processed rubber wood as well as manufacturing and distributing rubber wood. In 1996, East Coast Design Co., Ltd. (ECD) was established to operate main business as the manufacturer and distributor of furniture both domestically and internationally and importing or exporting all types of furniture including related materials and equipment. ECI moved its production base from the manufacturer and distributor of rubber wood furniture from ECI to ECD. As a result, ECI changed its main business model to be the sole distributor of furniture by taking care of marketing and being responsible for branches and showrooms for exhibitions and distribution of products under the brand "ELEGA" which is the brand for rubber wood furniture and furniture ordered from both domestic and overseas. Later, in 1999, the Company established East Coast Furnitech Co., Ltd. (ECF) to operate business as a manufacturer and distributor of self-assembled particle board furniture. At that time, the popularity of furniture in particle board furniture was dramatically increasing. After that, in 2002, two companies were established, one company was V-Chats Decor Co., Ltd (VCD) which operate its business as a manufacturer and distributor of foil paper and in providing service of edge cutting ZPVC) for selling to general furniture factories. Another company is V-Chats Industry Co., Ltd (VCI) which operates business as a manufacturer and distributor of dried rubber wood and moved the production base from ECD to VCI.
At the time, the shareholding structure of East Coast Industry Company Limited (ECI), East Coast Design Company Limited (ECD), East Coast Furnitech Company Limited (ECF), V-Chats Decor Company Limited (VCD) and V-Chats Industry Company Limited (VCI), consisting of Suksawad family as the shareholders of 99.99% of shares and as directors, executives and persons authorizing and controlling the Company.
The reason of establishing many companies in such manner is for the benefit of Board of Investment (BOI) promotion. The establishment of this group of companies, collectively known as the East Coast Group, can be summarized of the nature of the business operation prior to the restructuring of the Group during 2010 as follows:
Type of Business
1. East Coast Furnitech Co., Ltd. (ECF)
Manufacture and Distribute Particle Board Furniture
2. East Coast Design Co., Ltd. (ECD)
Manufacture and Distribute Rubber Wood Furniture
3. East Coast Industry Co., Ltd. (ECI)
Trading Business of Rubber Wood Furniture manufactured by the Company and Real Wood Furniture purchased from domestic and imported from overseas; and sold via showrooms which are rented by the Company.
4. V-Chats Decor Co., Ltd. (VCD)
Manufacture and Distribute Foil Paper and Give Servie of Edge Cutting (PVC) to be used in furniture assembly.
5. V-Chats Industry Co., Ltd. (VCI)
Manufacture and Distribute Dried Rubber Wood
Later in 2010, the management of the East Coast Group had planned to prepare the Company to be transformed into listed company in the Market for Alternative Investment (MAI), the Company has restructured its business and financial operations within the new East Coast Group. Four companies (ECD, ECI, VCD and VCI) are under the control of the Company through the acquisition of assets used in the business of each company to gather at East Coast Furnitec (ECF) Company Limited only, at the purchase price for buildings and machineries based on the valuation methodology proceeded by the asset appraisal company approved by the Office of the Securities and Exchange Commission (SEC Office) to be an appraisal company for public purposes and the purchase price refers to the appraised price that is lower. At that time, such restructure was proceeded by taking into account the benefit being a listed company in the MAI Securities Market, the removal of connected transaction issues, the conflict of interest issues and the utmost effective business operation. Maximum performance is important. Also, ther reason to choose East Coast Furnitech Co., Ltd. as the main company to prepare to become a listed company at that time is because the main business model is being a manufacturer and distributor of particle board furniture which had the continuous growth of sales revenue, the highest revenue from sales and better performance than other companies in the group. Moreover, there are BOI privileges remained while other companies already exercised their rights fully according to the promotion period.
After restructuring the new business, the Company has following business characteristics:
- Manufacturer and distributor of dried rubber wood which are mostly used as raw materials in the production of rubber wood furniture and some parts are sold to outsiders.
- Manufacturer and distributor of rubber wood furniture.
- Manufacturer and distributor of particle board
- Distributor of furniture (Trading) for rubber wood furniture manufactured by the Company including real wood furniture ordered in domestic and imported from overseas.
- Manufacturers of furniture accessories such as foil paper, and service provider of edge cutting (PVC) to use as a raw material for the manufacture of particle board furniture and to sell to outsiders.
1992 : - The first company under the East Coast Group, namely, East Coast Industry Company Limited (ECI) was established to operate business of sawmill, drying wood factory, as well as manufacturing and distributing of rubber wood furniture at Ban Bung-Klaeng Road, Thang Kwian Subdistrict, Klaeng District, Rayong Province.
1996 : - East Coast Group expanded its business to be a manufacturer of rubber wood furniture and particle board furniture by establishing East Coast Design Company Limited (ECD) as the second company of the group to operate such business by moving production base of the rubber wood furniture from ECI to ECD.
- In the same year, the East Coast Group began to export its products to overseas markets such as Japan, the United States of America and countries in Western Europe.
1998 : - The East Coast Group has expanded its furniture business to the domestic market by establishing the brand "ELEGA" to be the brand for rubber wood furniture manufactured by the Company and real wood furniture ordered from domestic and imported from overseas. The brand "Leaf" is also established to use as a brand for manufacturing and distributing to Home Pro at the same time to respond to government policies under the campaign of Thai product promotion at that time.
1999 : - ECD has been selected by the Department of Export Promotion to use the "Thailand's Brand" logo to represent high quality export products.
- ECI was awarded of the "Prime Minister Award" from the Ministry of Commerce. This is an award given to exporters with excellent performance and excellent product quality.
- 12 October: the East Coast Group expanded its business by establishing East Coast Furnitech Co., Ltd. (ECF) as the third company of the group with the initial registered capital of 6,000,000 Baht (Six Million Baht Only), divided into 60,000 ordinary shares with a par value of Baht 100 each, fully paid-up.
- In the same year, in order to operate business as a factory manufacturing and distributing furniture made of particle board, the Company expanded more capacity than ever to support the number of wooden furniture sale which is continuously increased. In addition, the Company also used as reference to request the Board of Investment (BOI) privileges and ECF was granted by BOI for the manufacture of particle board / wooden sheet furniture.
2000 : - 16 March: ECF increased its registered capital from 6,000,000 Baht to 13,080,000 Baht (Thirteen Million and Eighty Thousand Baht Only), divided into 130,080 ordinary shares with a par value of Baht 100 each, fully paid-up, to use as working capital of the company.
- 24 March: ECF was promoted by Board of Investment (BOI) for the manufacture of furniture by being granted of the exemption of corporate income tax for the net profit derived from promoted businesses for a period of 8 years and the reduction of income tax, juristic person for the net profit derived from promoted businesses at the rate of 50% for a period of 5
2001 : - ECD has been certified of ISO 9001 Quality Management Standard from the United Kingdom Accreditation Service (UKAS) for the manufacture of wooden furniture.
- ECF has been certified of ISO 9001 Quality Management Standard from URS (United Registrar of Systems (Thailand) Ltd.) for wood furniture manufacturer.
- 13 December: ECF increased its registered capital from 13,080,000 Baht to 25,000,000 Baht (Twenty-Five Million Baht Only), divided into 250,000 ordinary shares with a par value of Baht 100 each, fully paid-up, to use as working capital of the Company.
2002 : - The East Coast Group has expanded its production capacity and increased the quality of production by investing in hi-technology machinery, which used a large amount of investment in order to buy such machines, i.e Horizontal Sparing Machine, Vertical Spraying Robot Machine, etc.
- In that year, the East Coast Group established two more companies: V-Chats Decor Co., Ltd. (VCD), the fourth company of the group to produce foil paper because ECF produces a number of particle board furniture and needs to import foil paper, then VCD was established to produce foil paper in order to control the quality of production by itself and produce foil paper to sell to ECF and general furniture manufacturing factories. Additionally, in the same year, the East Coast Group established V-Chats Industry Co., Ltd. (VCI) as the fifth company of the group to operate a saw mill, drying factory for rubber wood instead of ECI operation and ECI changed its business operations to be a trading of rubber wood furniture manufactured by the Company and real wood furniture ordered from domestic and imported from overseas. Both VCD and VCI expanded their investment to new land and plant construction. The area more than 54 Rais in Soi Chongko – Chumnumnai, Wang Chan Subdistrict, Wang Chan District, Rayong Province. Later, in 2012, it was registered as the first branch of the company.
2003 : - ECI has expanded its distribution market by continuously establishing showrooms in the large-scaled retail shop. In 2003, the company expanded its showrooms to Index Living Mall and Home Pro.
2004 : - ECD was awarded of the Outstanding Exporter of Products and Services of the Year 2004 for Thai Owned Design from the Ministry of Commerce.
- ECF has been upgraded to the ISO 9001: 2000 Quality Standard from URS (United Registrar of Systems (Thailand) Ltd.) for wood furniture manufacturer.
2010 : - 1 October: the East Coast Group started to restructure its operations from all five companies within the group to remain only one company which is ECF. The restructure of the Group started with the purchase of all lands used in the business that was owned by the Company’s directors to be owned by ECF, transfer of production line and finished goods, goods in process, raw materials, supplies, some machineries and equipment from 4 companies to be owned by ECF, including negotiation to reduce the amount of credit of companies in the group with the financial institution and transfer to increase the credit line of ECF as the repayment of debts within companies in the group to eliminate the problem of connected transactions and conflict of interest.
- 26 October: the Company increased its registered capital from Baht 25,000,000 to Baht 90,000,000 (Ninety Million Baht Only), divided into 900,000 ordinary shares with a par value of Baht 100 each, fully paid-up, to expand the investment and to use as working capital of the Company.
2011 : - 9 February: the company was granted of Board of Investment (BOI) privileges in the manufacture of furniture by being exempted from corporate income tax for the net profit derived from promoted businesses for a period of 3 years.
- 10 February: the Company was granted of Board of Investment (BOI) privileges in the manufacture of foil paper by being exempted from corporate income tax for the net profit derived from promoted businesses for a period of 3 years.
- 11 May: The Company established VV Décor Co., Ltd. (V V-Décor) as a subsidiary and the Company holds 99.95% of shares with registered capital of 1,000,000 Baht (One Million Baht Only), divided into 10,000 ordinary shares with a par value of Baht 100 each by calling fully paid-up. VV Décor was established to be a trading company for ECF as a supplier of foil paper to some of the Company’s clients.
- The East Coast Group continued its restructuring, during 2011, the Company additionally carried out the transfer of remaining buildings, machineries and equipment and other fixed assets, transferred of credit limit with financial institutions which the outstanding debt was remained to ECF including the transfer of employees from 4 companies to be employees of ECF. As of 30 June, the East Coast Group has restructured its business operations by remaining only ECF to solely operate business and prepared itself to transform into a public company.
- 4 November: the Company increased its registered capital from Baht 90,000,000 to Baht 100,000,000 (One Hundred Million Baht Only), divided into 1,000,000 ordinary shares with a par value of Baht 100 each, to use as working capital of the Company.
2012 : - In July, the company began to expand its distribution channels to retail shops (Dealer) to help strengthen sales growth under the brand "Costa".
- 11 October, 2012: the Extraordinary General Meeting of Shareholders No. 12/2012 resolved to approve the change of the par value of the Company's shares from the par value of Baht 100 per share to the par value of Baht 0.25 per share and the change of the number of shares with the registered capital of Baht 100,000,000, divided into 400,000,000 ordinary shares with a par value of Baht 0.25 each. In addition, the Company has approved the increase of the Company's registered capital from Baht 100,000,000 to be Baht 130,000,000 (One Hundred and Thirty Million Baht Only), divided into 520,000,000 ordinary shares with a par value of Baht 0.25 per share, there were 120,000,000 ordianry shares to be allocated to offer to the public.
- 18 October 2012: the Company has registered to transform its status from a limited company to be a public limited company and changed its name to be East Coast Furnitech Public Company Limited (ECF).
2013 : - 26 March: the Company began trading in MAI securities market as First Trading Day.
- In October, the Company began to expand its distribution channels to Mega Home which is the home and building material distribution center for both retail and wholesale in order to help increase sales growth under the brand "a7".
- 31 December: the Company had rental space to be used as showrooms and exhibitions in Index Living Mall, totally 11 branches and showrooms inside Home Pro, totally 3 branches.
2014 : - The Extraordinary General Meeting of Shareholders No. 1/2014 held on July 18, 2014 resolved to approve the increase of the registered capital from Baht 130,000,000 to be Baht 195,000,000 with a par value of Baht 0.25 per share, and the amendment of Clause 4 of the Memorandum of Association to be complied with the increase of the Company's registered capital to the Public Limited Company Registrar, Department of Business Development, Ministry of Commerce. It was completed on August 8, 2557. Therefore, the Company has a registered capital of Baht 195,000,000, divided into 780,000,000 ordinary shares with a par value of Baht 0.25 per share. The registered and fully paid-up capital is Baht 130,000,000 divided into 520,000,000 ordinary shares with a par value of Baht 0.25 per share. The paid-up capital is Baht 65,000,000 divided into 260,000,000 shares with a par value of 0.25 Baht each. This allocation is to support the exercise of warrants No. 1 (ECF-W1).
- 18 August: The Stock Exchange of Thailand was notified of the Warrant No. 1 to be registered securities and the first trading day was on same day.
- 18 September: the Company affixed the signature in Memorandum of Understanding (“MOU”) for joint business operation of PV Solar Rooftop Power Plant with Gunkul Engineering Public Company Limited (“GUNKUL”). The Company and GUNKUL will jointly incorporate joint venture to support project development in the proportion of 74.99 : 25.01%, respectively. The Company shall be responsible for supply of leasehold and/or right to use roof area for installation of solar cells as submission support as the proposer of power for sales, management and supply of capital source, and GUNKUL shall be responsible for service of supply of equipment, procurement and construction for PV Solar Rooftop Power Generation Project so that the project can be implemented according to Power Purchase Agreement (PPA) and being the service provider of management and maintenance under the operation. Both parties have duty to apply for license of the proposer for sales of power with the Provincial Electricity Authority (PEA) or the Metropolitan Electricity Authority (MEA) as the case may be.
- In October, the Company started to sell its products to Thai Wasadu to expand its distribution channels under the brand "HASTA"
- The Board of Director Meeting No. 6/2014 held on November 8, 2014 approved the Company to invest in the establishment of six new subsidiaries to operate Solar PV Rooftop power generation). The objective of the establishment of subsidiaries is to prepare for the bid for the purchase of electricity from PV Solar Rooftop Power Plant as announced by the Energy Regulatory Commission on the purchase of electricity from PV solar rooftop power generation, currently, it is waiting for the policy from government regarding the bidding period for the sale of electricity.
2015 : - 23 February: the Company established ECF Holdings Company Limited to operate the business of holding company. Presently, the Company has a registered capital of 10,000,000 Baht (Ten Million Baht Only), divided into 100,000 ordinary shares (Ten Thousand Shares) with a par value of Baht 100 each (One Hundred Baht).
- 27 February: the Board of Director Meeting No. 2/2015 resolved to approve the establishment of a new indirect subsidiary in Japan, namely, ECF Tornado Energy Godo Kaisha, to support the expansion of investment in Japan. The Solar Power Plant has the installed production capacity approximately 1.5 megawatts and it is located at 1737 Kodani, Toyotomi-cho, Himeji city, Hyogo, Japan, with a registered capital of 100,000 yen and ECFH holds shares of 51%, at present, the Company has already sold this project to other investors.
- 30 June: the Company entered into Memorandum of Understanding (MOU) for cooperation in the business of biomass power generation. The joint venture will be established under the joint shareholding with other shareholders, including Fortune Parts Industry Public Company Limited (FPI), Wit Industry Company Limited, and other operators of wood plant or sawmills in the area located of each power plant project. Subsequently, 20 November, 2015, the Board of Director Meeting No. 7/2015 resolved to approve ECF Holdings Co., Ltd. on behalf of a subsidiary to invest in the Biomass Power Plant by becoming a shareholder in 5 new joint ventures to participate in the auction, selection and authorizing the sale of electricity to acquire Purchase Power Agreement (PPA) with the Provincial Electricity Authority (PEA) or the Electricity Generating Authority of Thailand (EGAT). Thailand (EGAT), as the case may be, in accordance with the Notification of the Energy Regulatory Commission (ERC) on the criteria for the purchase of electricity from renewable energy manufacturers, the company is currently in the process of waiting for the government's policy to open the bidding for power offering. All 5 joint ventures consist of SAFE Energy Group (Narathiwat 1) Co., Ltd., SAFE Energy Group (Narathiwat 2) Co., Ltd., SAFE Energy Group (Yala 1) Co., Ltd., SAFE Energy Group (Pattani) Co., Ltd., and SAFE Energy Group (Songkhla) Co., Ltd. Presently, the liquidation of these four companies has been completed because it is failure to pass an auction to obtain a power purchase agreement from the government.
- In October, the Company began to distribute its products to retailers such as Do Home under the brand “My Fur”.
- 9 December: ECFH, as a subsidiary, entered into a franchise agreement with Can Do Company Limited ("Can Do"), Japan. ECFH will be permitted to use the trade mark, store format, shop and order management system from Can Do, Japan. The objective is to operate domestic business in the form of one-price shop (100 yen stores originating in Japan) with a term of contract for 5 years.
- 19 December: the Company arranged the Official Grand Opening for the first branch of Can Do shop at Future Park Rangsit, with an area of 175 square meters.
2016 :- 11 December: the Board of Director Meeting No. 9/2016 approved following major resolution:
- Approval of ECF Holdings Co., Ltd. as a subsidiary to invest in a new joint venture that will be incorporated to invest in the biomass power plant business under the name of a new joint venture which is SAFE Energy Holdings Company Limited ("SAFE") with the initial registered capital of Baht 1,000,000 (One Million Baht Only), divided into 10,000 ordinary shares with a par value of Baht 100 each. The Company will hold 49.98% of total shares and this joint venture was registered and established on 7 February 2017.
2017 : - 12 January: The Board of Directors Meeting No. 1/2017 approved the restructuring of East Coast Furnitech Group of companies and approved to established additional 1 subsidiary which is ECF Power Co., Ltd. to invest in energy business instead of ECF Holdings Co., Ltd. with the initial registered capital of 1,000,000 Baht (One Million Baht Only), divided into 100,000 ordianry shares at a par value of 10 Baht each, the Company will hold 99.99% of shares. Subsequently, it was incorporated on January 16, 2017, the Company has set ECFH business policy to invest in and operate the retail business such as Can Do Shop, the shop selling products at a single price or any other business that may happen in the future excluding the energy business.
- 13 February: The Board of Directors Meeting No. 2/2017 had a resolution to approve the investment in biomass power plant project of Prize of Wood Green Energy Co., Ltd. (“Project” or “PWGE”), located at No. 149 Moo 3, Kayu Khla Subdistrict, Waeng District, Narathiwat Province, with the installed production capacity of 7.5 megawatts, through SAFE Energy Holdings Co., Ltd. (“SAFE”) which is the joint venture of the Company (ECF Power Co., Ltd. (“ECF-P”) which is the subsidiary of the Company holds shares in SAFE, currently holding in the proportion of 33.37%, such proportion is decreased from 49.98% due to selling shares to new investor group who invests in SAFE, namely, Prize of Wood Green Energy Co., Ltd. (PWGE). PWGE, the existing shareholder of PWGE power plant project, holds 33.26% of SAFE shares), to buy ordinary shares from the project’s shareholder (99.99%), total value of investment for the whole project is not over than 425,000,000 Baht (The investment of ECF-P equals to 141,652,500 Baht). At present, ECF-P has registered capital of 522,652,500 Baht, divided into 52,265,250 shares at a par value of 10.00 Baht each and has paid-up registered capital of 454,252,500 Baht while SAFE has registered capital of 426,000,000 Baht, divided into 4,260,000 ordinary shares at a par value of 100 Baht each, fully paid-up.
- 3 April: The Board of Directors Meeting No. 6/2017 had a resolution to approve the investment in solar power plant with the total installed capacity at 220 MW of Green Earth Power (Thailand) Co., Ltd. ("Minbu Power Plant Project" or "GEP") located in Minbu City, Magwe District, Republic of the Union of Myanmar ("Myanmar"). ECF Power Co., Ltd. ("ECF-P"), a 99.99% subsidiary of the Company, invested to buy shares of this project in the portion of 20%, later in the extraordinary meeting of shareholders No. 1/2017 on 31 May 2017 had a resolution to approve the purchase of GEP’s ordinary shares.
- 15 June: The Board of Directors Meeting No. 8/2017 had an important resolution for the transaction of asset acquisition consisting of totally 2 projects, the meeting considered and approved to invest in many companies through ECF Power Co., Ltd. as a subsidiary which the Company holds 99.99% of total shares, and SAFE Energy Holdings Co., Ltd. (SAFE) as the joint venture which the subsidiary holds 33.37% of shares in the total investment value of 50.62 Million Baht such as the investment in buying shares of SAFE Biomass Co., Ltd. in the proportion of 100% and SAFE on behalf of joint venture invests in the operation of wood chopping plant, located in Waeng District, Narathiwat Province with the investment value of 33.37 Million Baht from total investment value of 100 Million; and invested in buying shares of Bina Puri Power (Thailand) Co., Ltd. in the proportion of 49%, SAFE, on behalf of joint venture, invests in operating business of biomass power plant with Gasification tecnology sized 2 megawatts, 1 megawatt per each project, one project is located in Long District, Phrae Province and another project is located in Sung Men District, Phrae Province. The investment value is 17.25 Million Baht from total investment value of 105.495 Million Baht.
- 27 June: The biomass power plant project of Prize of Wood Green Energy Co., Ltd. (“Project” or “PWGE”), Narathiwat Province, with the capacity of 7.5 megawatts had started to realize the commercial power distribution by investing in PWGE. It is the investment through ECF Power Co., Ltd. on behalf of subsidiary which the Company holds 99.99% of shares and SAFE Energy Holdings Co., Ltd. (SAFE) on behalf of subsidiary which the Company holds 33.37 % of shares, and SAFE had started to realize profit share from investment since 1 July 2017.
- 27 October: The Board of Directors Meeting No. 13/2017 had a resolution to approve the establishment of one additional subsidiary which the Company shall hold 99.99% of total shares, namely, Planet Board Company Limited. Its registered capital is Baht 50.00 Million divided into 10,000,000 ordinary shares with a par value of Baht 5.00 per share and its paid-up capital is Baht 12.50 Million. The objective is to establish a wood-based panel business such as MDF Board and Partition Board, it is under feasibility study.
- 18 December: the Board of Director Meeting No. 15/2017 on 18 December 2017 approved the feasibility study on the investment of solar power plant project of CR Solar Co., Ltd. (“CRS”) with capacity of 1 megawatt, located in Thoen District, Lampang Province instead of the investment in biomass power plant project of True Energy Power Lopburi Co., Ltd. (“TRUE-P”). The Company had made the feasibility study but it is impossible to make a deal of investment. CRS shares has been holding by Inter Far East Energy Corporation Public Company Limited (“IFEC”) with the proportion of 99.99% while the Company is studying and verifying the project value, return of investment ratio, risks, and other information related to the project and other matters related to the project acquisition as well as the competency of seller in entering the project selling transaction and delivery of traded assets including complying with conditions in trading agreement.
2018 : - The Board of Directors’ Meeting No. 7/2561 held on 27 June resolved to approve Planet Board Company Limited ("Planet"), the Company’s subsidiary which the Company acquired 5,700,000 ordinary shares of Planet or 57.00% of the total issued shares of Planet, to invest in the construction of a factory manufacturing and distributing Medium Density Fiber Board or MDF Board, located in Narathiwat Province. It is expected that Planet will sign relevant agreements and pay for all related assets to relevant parties within Q4 of 2019, Planet will spend the initial investment in the project totaling 1,456.31 million baht.
- On 1 August, Bina Puri Power (Thailand) Co., Ltd., Project 1, located in Long District, ("Project" or "BINA 1"), Phrae Province, with the capacity of 1 Megawatt had started to realize the commercial power distribution. It is the investment through ECF Power Co., Ltd. on behalf of subsidiary which the Company holds 99.99% of shares and SAFE Energy Holdings Co., Ltd. (SAFE) on behalf of subsidiary which the Company holds 33.37 % of shares, and SAFE had started to realize profit share from investment since 1 August 2018.