Business Groups

Policy and Overview of Business


Furniture Business

East Coast Furnitech Public Company Limited (“ECF” or “the Company”) defines target and strategy for business operation with the commitment to dominate market shares in the leading  rank of furniture business in Thailand. At present, the Company is able to continuously maintain its sales growth rate in the furniture segment. The growth rate for the year 2017 was approximately 4.69%, even if the growth was not in line with the target. Because in 2017, the overall export of wooden furniture of Thailand with the comparison to the US dollar has slowed down when compared to its result of 2016 or it was negative of 7.82% when compared to the difference between 2015 and 2016 which was negative rate at 4.53% due to uncertain global economic factors. However, if considering only the domestic sales in 2017, the Company's revenue from domestic sales was 16.74%, while the export revenue was decreased by 3.13%, the main factor of this revenue decrease was from export arisen during 2017 that the Baht value was strengthened when comparing to its value in 2016.

For 2017, the Company exported products for distribution in more than 10 countries such as Japan, Middle East, India, England, USA, Chile, Taiwan, China, as well as the countries in AEC Group such as Malaysia, Philippines. If considering on individual country, it was found that the growth rate of sales volume in some countries continuously increased. The purchase ordering result for export of products for distribution in new countries shall be continuingly monitored whether distribution channels to those countries can be added more.

However, the overall picture of such sale increase has been affected by the Company’s adjustment on competitive strategy, focusing on penetration of nationwide retail store and wholesale store under Costa brand, in accompanying with reinforcement of more marketing and sales teams. This caused the Company able to significantly generate more revenues from sales of furniture for this distribution channel by 180.40% for previous year. However, since it has been in the beginning period, sales volume has still been low when compared with revenues from export and distribution via the Company’s own brand under distribution via modern trade store-type. The proportion of revenue from distribution via wholesale shops and retails shop was equal to 7.51% when comparing to total revenue of furniture sale.

If considering from distribution channel of furniture products via modern trade-type customer group which is order placement using the Company’s brand. In 2017, it was found that the Company could also generate continuous growth rate of sales volume by product distribution to modern retail stores under different brands such as house brand of Tesco Lotus for distribution to Tesco Lotus Brand, Leaf for distribution to HomePro, Fur Direct Brand for distribution to Big C, a7 Brand for distribution to Mega Home, HASTA Brand for distribution to Thai Watsadu, and manufacture of products for distribution to Winner Brand. The growth rate of 4.87% for modern trade retail store group could be generated.

For distribution channel via ELEGA Showroom which is the product distribution channel for middle to upper customer groups, the non-consumption confidence atmosphere and domestic spending resulted in the decrease in approximate growth rate of 9.31% of revenues from distribution via such channels. However, if the domestic economic confidence condition and spending atmosphere recovers again, product distribution channel via ELEGA showroom shall be normally generated continuous growth rate.

In addition to the business overview in terms of sale revenue which was from the production and distribution of furniture, the Company generated its revenue from selling the foil paper including dried rubber wood which both were used as raw material for furniture production In 2017, the Company could increase the growth sale rate from selling foil paper and dried rubber wood for 11.87 and 43.18%, respectively, resulting in the increase of growth rate for furniture and raw materials used for furniture production by 5.49% or 1,429.87 Million Baht of sale revenue value, which was increased from 2016 that was 74.41 Million Baht.


Retail business

In addition to the business overview of ECF Holdings Company Limited (“ECFH” or “subsidiary company”) as a subsidiary by the Company’s shareholding as of 31 December 2017 of 75%. The retail business (“Can Do”) is currently implementing:

Can Do is a store selling all products at one price (100 yen). It originated in Japan, established by Can Do Co., Ltd., a registered company listed in Tokyo Stock Exchange. Its Headquarter is located Shinjuku, Tokyo. The latest information as of 30 November 2017, over 994 branches of Can Do are opened in Japan and abroad with minimum income of 68,829.45 Million Yen. 

The company represented by Mr. Arak Suksawad, Managing Director, was interested in such retail store (100 yen for all products) in Japan. He starts a survey in all stores of this kind and was impressed by Can Do. Therefore, he is interested in buying franchise to perform the business in Thailand so as to provide good products under Japanese brand to Thai people. With affordable price for all products, he decided to contact the Headquarter of Can Do. Then, the joint venture is made.

The concept of Can Do shop in Thailand is to provide good quality of products imported from Japan and sell them at only one price (60 baht), and over 10,000 product types such as home devices, beauty products, food container, cleaning tools, stationery, handicraft, electronic tools, boxes, baskets, festive products, etc. The first branch of Can Do is located at Future Park Rangsit which was opened on 19 December 2015.

The target customers cover teenagers, students, housewives, working age groups.

As of 31 December 2017, Can Do has totally 4 branches as follows:

  1. Future Park Rangsit (175 m.)
  2. Seacon Square (120 m.)
  3. Patio Park Kanchanapisek (130 m.)
  4. Home Pro Rattanathibet (140 m.)

Additionally, ECFH also operated the energy business in short period during 2015-2016 by investing in the alternative energy of solar power plant project of ECF Tornado Energy Godo Kaisha (“ECF Tornado”), to support the investment expansion in Japan for solar farm project with 1.5 MW of approximate installed production capacity. The Project is located at No. 1737, Kaminoyama, Kamiya, Tokotomi-Cho, Himeiji City, Hyogo, Japan. ECFH held 51% of total shares or invested value in the Project and its commercial operation date of this solar farm project has been started since 21 December 2015.  Later, in September 2016, ECF Holding Co., Ltd. decided to sell invested asset in ECF Tornado in the proportion of 51% to Capital Inc. Capital Inc. is the juristic person which has been registered for incorporation since 1983 to operate real estate business, solar energy and other energy business in Japan. Sales Contract of Asset was entered on 19 August 2016. The sold asset’s selling price from related tax was Baht 82.19 million as the selling price under best condition when compared with total of other five proposers for sales; or as approximately 43.94% of profit when compared with investment cost. The cause of decision making for sales of the said asset was due to the consideration from profit that will be gained when compared with approximately 8% per annum of return on investment from project operation for 20 years of the project operation duration. After completion of the return of investment and profit from sales of asset to shareholders on 29 September 2016, ECF Tornado has currently completed the procedure of winding up registration since last 22 February 2017. Therefore, presently, ECFH does not operate the energy business anyhow.


Alternative Energy Business

With the aim to expand the business to the alternative energy business and to restructure the business structure of the company group as well as make clearer view of investment in energy business, The Board of Director Meeting No. 1/2017 on 12 January 2017 approved the establishment of one additional subsidiary, namely, ECF Power Co., Ltd. (“ECF-P) as an investor in all types of renewable energy business such as biomass power plant, solar power plant, and others. The Company registered the establishment of ECF Power Company Limited on 16 January 2017. East Coast Furnitech Public Co., Ltd. is holding 99.99% of total shares, the initial registered capital was Baht 1.00 Million and presently, its registered capital is Baht 522,652,500 divided into 52,265,250 shares with a par value of Baht 10.00 each. The paid-up capital is 454,252,500 Baht


  • Biomass Power Plant

In 2017, the Company significantly expanded its investment in the renewable energy business. Later, ECF-P joined the investment in SAFE Energy Holdings Company Limited ("SAFE") in the proportion of 33.37%. Presently, SAFE has a registered capital of Baht 426,000,000, divided into 4,260,000 ordinary shares with a par value of Baht 100 per share, fully paid-up. SAFE was registered and established on 7 February, 2017 with the objective to invest in a biomass power plant.

Presently, SAFE is investing in many companies related to biomass power plant as following details:

  1. Prize of Wood Green Energy Co., Ltd. (“PWGE”) : SAFE has acquired 99.99% of the total issued share capital of PWGE, it currently operates a biomass power plant with the capacity of 7.5 megawatts, located at Waeng District, Narathiwat Province. PWGE power plant project has generated revenue from the sale of electricity since June 27, 2017.

At present, PWGE has a registered share capital of Baht 85,000,000 divided into 8,500,000 ordinary shares with a par value of Baht 10 each, fully paid up.

  1. SAFE Biomass Co., Ltd. (“SAFE-B): SAFE is holding 99% of total registered capital of SAFE-B, at present, it operates wood chopping plant business to supply as material such as Wood Chip to PWGE power plant for using as raw material in power generation.

Presently SAFE-B has registered capital at 100,000,000 Baht, divided into 10,000,000 ordinary shares at par value of 10 Baht each, fully paid-up.

  1. Bina Puri Power (Thailand) Co., Ltd. (“BINA): SAFE holds share for 49 % of total registered capital in BINA, presently, it operates biomass power plant business with gasification system for 2-megawatt capacity, its business consists of 2 projects, 1 megawatt each. One project is located in Long District, Phrae Province and another project is located in Sung Men District, Phrae Province. It is expected to start commercial power supply in the 1st quarter of 2018 for the first project at Long District.

Presently, BINA has registered capital of 55,000,000 Baht, divided into 5,500,000 ordinary shares at par value of 10 Baht each, fully paid-up.


  • Solar Power Plant

During 2017, the Company expanded its investment in solar power plants with the total installed capacity at 220 MW and has a capacity of 170 MW for 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%.

The Company purchased the existing ordinary shares of GEP for 51,512 shares or representing 20% of GEP's total paid-up shares, as approved by the Extraordinary General Meeting of Shareholders No. 1/2017 held on 31 May 2016, with value of USD 9 Million. The total value of the Minbu power plant project is USD 292.62 Million, with a debt to equity ratio of 65: 35. Therefore, ECF-P has the obligation to increase its capital in accordance with the shareholding proportion at 20% or USD 20.22 Million.

Presently, GEP has registered capital of 125,755,800 Baht, divided into 1,257,558 shares at a par value of 100 Baht per share and the paid-up registerd capital is equal to 62,755,800 Baht, its project is under construction of solar power plant at Magwe District, Minbu City, Myanmar with the installed production capacity of 220 Megawatts. It is expected to start generating revenue from commercial electricity for 50 megawatts, which is the first phase within the third quarter of 2018, from all four phases which will be gradually constructed over a period not exceeding 4 years or by 2021.

GEP has one subsidiary, namely, GEP (Myanmar) Co., Ltd. ("GEP-Myanmar"), which is a sole investment in GEP-Myanmar. GEP-Myanmar was incorporated as a national company of Myanmar with a registered capital of USD 500 Million. These shares are divided into 500,000,000 ordinary shares with a par value of USD 1 each. Its paid-up capital is USD 5.398 Million, or approximately Baht 176.29 Million in accordance with the exchange rate announced by the Bank of Thailand as of December 29, 2017. GEP has a 100% shareholding in GEP-Myanmar or 100.00% of total paid-up registered capital. The objective is to operate business in developing and managing Solar power plant project In Myanmar, the total installed capacity is 220 MW and the production capacity is 170 MW.

GEP-Myanmar entered into the Power Purchase Agreement (PPA) with Electric Power Generation Enterprise (“EPGE”) (previously, Myanmar Electric Power Enterprise) which is an organization under the Ministry of Electricity and Energy of Myanmar. Main content of agreement is to develop, construct, seek for fund source, manage and administer, maintain and transfer of business, EPGE will purcahse electricity from the solar power plant project with install production capacity of 220 MW or the ratio of maximum power purchase at 170 MW, the plant is located in Minbu City, Magwe District, Myanmar, for 30 years from the Commercial Operation Date (“COD”) of the Phase 1 project from total 4 phases. The rate of power price is fixed at 0.1275 USD per unit throughout the term of PPA including the renewal of PPA which may be occurred. The power generation will be divided into 4 phases based on the maximum ratio of power geenration which will be generated in each phase as follows:

Phase 1 Maximum trading ratio: 40 MW from installed production capacity of 50 MW.

Phase 2 Maximum trading ratio: 80 MW from installed production capacity of 100 MW.

Phase 3 Maximum trading ratio: 120 MW from installed production capacity of 150 MW.

Phase 4 Maximum trading ratio: 170 MW from installed production capacity of 220 MW.

After the first phase started COD, following phases are expected of their COD by 360 days.

For the investment in the solar power plant business for other additional projects, the resolution of 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.

The Company will review the status of the Company for 60 days from the date that the Company received the complete information from CRS, such as financial statements, power purchase agreements and licenses, and will conduct a feasibility study and decide on the investment in such solar power plant projects as following stages. The Company will enter into the Takeover Agreement within 3 months from the date of signing the memorandum of understanding signed between the Company and CRS on December 22, 2017.

For the investment in renewable energy business, presently, the Company is considering the possibility of investment in both biomass power plant project and several solar power projects, and it has not yet been concluded.


  • Wood-Based Panel Business which is under consideration of feasibility study for investment

The Board of Directors Meeting No. 13/2017 held on 27 October 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 50,000,000 divided into 10,000,000 ordinary shares with a par value of Baht 5.00 per share and its paid-up capital is Baht 12,500,000 divided into 10,000,000 ordinary shares with a par value of Baht 1.25 each. The objective is to establish a wood-based panel business such as MDF Board and Partition Board. Its production capacity is expected to reach 600-800 cubic meters per day and as for the establishment of the company for the investment as objectives set out above, the Company is still in the process of feasibility study including benefits to the Company and the Company’s shareholders. If the Company has any progress or any additional information about the investment in Planet Board Co., Ltd., the Company will report the progress or additional information to the Stock Exchange of Thailand and disseminate the information to shareholders and investors as well as comply with the rules relating to the entering into the transaction.










24 May 2018

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