COMPUTERNATURE OF BUSINESS OPERATIONElectronicsTypes <strong>of</strong> Products or ServicesManufactures Hard Disk Drives for export under the name <strong>of</strong> <strong>Union</strong> Technology <strong>Co</strong>mpany LimitedPerformances in 2006In 2006, the <strong>Co</strong>mpany has operated its businesses with changes including :ë A slight increase <strong>of</strong> 3% in the manufacturing and exports when compared to that <strong>of</strong> the previous year ;ë Use <strong>of</strong> key performance indicator (KPI) for systematic measurement <strong>of</strong> the performance <strong>of</strong> different units ;ë Introduction <strong>of</strong> L - E - A - N manufacturing system ;ë Use <strong>of</strong> Six Sigma ; training <strong>of</strong> 3 black - belt workers and 3 green - belt workers ;ë 10% Expansion <strong>of</strong> the manufacturing site to meet an increasing quantity <strong>of</strong> production in the future ;<strong>Co</strong>mpetition and marketing condition<strong>The</strong> market <strong>of</strong> Hard Disk Drives for Notebooks, PCs, and <strong>Co</strong>nsumer Electronics continued to grow despite severecompetitions in terms <strong>of</strong> pricing, hand - over, quality, and response to technical and service problems.Operational Plan 2007ë Improve the Evaluation System with Lead/Lag Indicatorsë Improve the Personnel Management System, and consider providing incentivesë Renovate some areas <strong>of</strong> production for platform improvement <strong>of</strong> clean roomë Improve the production process and solve problems according to guidelines <strong>of</strong> L - E - A - N Manufacturing andSix Sigma<strong>Co</strong>mputerNature <strong>of</strong> Business OperationEstablished on November 18 th , 1982, <strong>Co</strong>mputer <strong>Union</strong> <strong>Co</strong>., <strong>Ltd</strong>., was one <strong>of</strong> the pioneer dealers <strong>of</strong> importedpersonal computers in Thailand. In 1983, IBM has started the personal computer business ; and the <strong>Co</strong>mpany has beenan authorized dealer <strong>of</strong> IBM computer since then; and has diversified its products and services to meet the customersûdemand and to keep up with domestic IT business development.38Main Businesses <strong>of</strong> <strong>Co</strong>mputer <strong>Union</strong> <strong>Co</strong>., <strong>Ltd</strong>.ë Dealer <strong>of</strong> IBM computers p - Series, Storage units, S<strong>of</strong>tware, and Printers distributed through over 100representative <strong>of</strong>fices ;ë Distributor <strong>of</strong> computers and accessories <strong>of</strong> leading brands such as IBM, Lenovo, HP, Dell, Acer, Fujitsu,Samsung, Hitachi, etc., to customers including banks, public and private organizations and institutions ;ë Distributor <strong>of</strong> products such as ATM machines, passbook printers, cheque depositors, and peripheralequipment, etc. ;ë Provider <strong>of</strong> integrated IT maintenance and installation services, with 23 service centers nationwide ;ë Distributor/provider <strong>of</strong> computer solution service to organizations (such as Business Intelligence, internalstorage, E - Payment for branches, and Interactive Voting System for meetings ;38 SAHA - UNION Public <strong>Co</strong>mpany Limited
ç<strong>The</strong> IT business in Thailand is still having itsgrowth potential in 2007 ; meanwhile, other businesssectors may be affected by the economic condition ;therefore, it is inevitable to use the computer systemto improve the work performance and efficiency.éë Provider <strong>of</strong> data recovery service (file system from Hard Disk, floppy disk, flash ram, DVD, memory card(digital camera) etc.), with the only clean - room lab in Thailand ;ë Provider <strong>of</strong> planning, consulting, counseling, and networking system services ;Operating Result 2006In 2006, the <strong>Co</strong>mpany has generated its incomes from sales and services, totally 1,900 million Baht,increased by approx. 15% from 1,700 million Baht in the previous year. <strong>The</strong> <strong>Co</strong>mpany has adjusted its proportion<strong>of</strong> sales <strong>of</strong> products and services to meet the customersû demand, with an emphasis on products that are worthinvesting and having the added value, personnel development, and cost management to increase the competitivenessand operational efficiency ; as a result, the overall operating result <strong>of</strong> the <strong>Co</strong>mpany was better than those <strong>of</strong> theprevious year.Tendency <strong>of</strong> the Industry Situation and <strong>Co</strong>mpetition<strong>The</strong> IT business in Thailand is still having its growth potential in 2007 ; meanwhile, other business sectorsmay be affected by the economic condition ; therefore, it is inevitable to use the computer system to improve thework performance and efficiency in order to increase the competitiveness and to reduce the cost <strong>of</strong> productionin the long term.Despite a plenty <strong>of</strong> new IT business operators, with its operational capability, reliability, and 25 - yearexperiences in IT business, <strong>Co</strong>mputer <strong>Union</strong> <strong>Co</strong>., <strong>Ltd</strong>., is entrusted by its customers and business partners. Withits strong determination to successes <strong>of</strong> customers as its alliances, the <strong>Co</strong>mpany has continued to create theadded value through personnel development for pr<strong>of</strong>essionalism, and to expand and diversify its businesses, andto create new and unique products that require special skills or expertise to provide excellent services to itscustomers.4,5004,0003,5003,0002,5002,0001,5001,00050001,700.01,900.02005 2006million BahtIncomes from sales2005 : 1,700.0 million Baht2006 : 1,900.0 million BahtAnnual Report 200639
- Page 5 and 6: MAJOR FINANCIAL RATIOAND INFORMATIO
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CASH FLOW STATEMENTS (Continued)SAH
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Assets as a percentage Revenues as
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asis5.4 InventoriesInventories are
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ConsolidatedTransactions with assoc
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The balances of the accounts as at
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(Unit : Baht)Consolidated The Compa
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9. INVESTMENTS IN SUBSIDIARIES ACCO
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Shareholding Carrying amounts based
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In current year, the Companyûs two
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Union Micronclean Co., Ltd. Manufac
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Shareholding Carrying amounts based
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The Company OnlyShareholding Carryi
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Shareholding Carrying amounts based
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Shareholding Carrying amounts based
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Investment in available - for - sal
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12. PROPERTY, PLANT AND EQUIPMENT(U
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13. BANK OVERDRAFT AND SHORT - TERM
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18. GAINS (LOSSES) ON EXCHANGEConso
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The Company and its subsidiariesû
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25. DIVIDENDS(Unit : Baht)Dividends
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Fixed interest ratesWithinFloating
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27.2 Fair values of financial instr
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THE PRINCIPLES OF CORPORATEGOVERNAN
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OTHER REFERENCESSecurities Registra
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ë Processing Center Co., Ltd.Thai
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6.3 The Company has issued its meas