MESSAGE FROM CHIEF EXECUTIVE OFFICER

KST MFC

Dear Shareholders

             Leo Global Logistics Public Company Limited is an End-to-End Logistics Service Provider of Thai origin who has been standing in the Logistics Service Provider Industry for over 31 years with a team of professional Executives together with more than three decades of cultivated experiences and expertise.

          Over the period of 31 years, the Company has committed to continual service development and expansion. Even if the year 2021 saw ever-changing situations in which the COVID-19 outbreak had come with lots of Freight-Forwarding challenges and limitations, be it limited shipping space or the increasing of freight charges, LEO was, however, using the strength derived from its strong relationships with business alliances to allocate the shipping space and timely tackle the customers’ problems. In other words, the Company has the ability to manage the Customers’ requirements well in times of transportation crisis due to limited shipping space and increasing freight charges, for example. This is by taking the role of a Solution Provider who gives advices on and plans for the Customers’ Import and Export to overcome the challenges in the New Normal approach to Freight Forwarding at global level, thus making the Company’s new customer base expand up to 42% compared with that of 2020 given the bigger number of containers in every trade lanes, with the import and export balance rising up to 74,490 TEUS, total revenue amounting to 3,369.7 million baht, a total growth of 199% equaling a net profit of 198.8 million baht, which is a higher growth rate of 250% compared with that of 2020 and is considered an all-time high since the establishment of LEO and a creation of net profits from continuous growth for four consecutive years.

          The Company still counts this year of 2022 as a favorable time for international Freight Forwarding and Logistics businesses including LEO’s. According to the data from SCFI (Shanghai Containerized Freight Index) as well as some professional Analysts specializing in containerized transportation, the year 2022 will be another challenging year for the Importers and Exporters across the globe, and the shortages of containers will still exist or probably increase, making the Freight Rates remain high until at least the third quarter or throughout 2022. In this, the Company has been on high alert in providing services to the Customers. Our staff are supposed to seek for useful information and new solutions to offer the Customers the best and most appropriate option for their goods transportation; this includes sharing of information within the Company and looking for more business alliances. As a result, we have been able to maintain our strong relationship with Customers given that more than 90% of major customers in 2020 continued to use the Company’s services in 2021; this is with the customer satisfaction score rising up to 92% (from the expected target of 89%). In addition, the Company has also implemented the Sales Force - Customer Relationship Management (CRM) Programs, the top rated and best CRM software in the world, to support the Customer Relationship Management and Sales Team Management. The Company, therefore, is able to make use of the information and various reports from the programs by analyzing and then making customer-service plans including plans to offer activities to the Customers to make impressions and build a strong relationship continuously.

          In 2022, the Company is still reinforcing its business section of End-to-End services as evidenced by the opening of LEO Self-Storage#2 ‘ China Town’ located at Talat Noi Subdistrict, Chareonkrung Road, adjacent to Yaowarat area. This Branch No.2 is 2,000 square-meter larger in area, offering both normal and air-conditioned rooms fully equipped with facilities, with 24 hours security. The Company intends to make LEO Self-Storage#2 the Flagship Store of LEO Self Storage aiming to provide services that serve the lifestyles of those living in the urban areas. In addition to this, there is also the project called YJCD’s Storage Yard#2, located on Bangna-Trad Road, km 21, currently in process of land improvement and will be ready for services during the second quarter of 2022. And still another one is the Project of China-Laos High-Speed Railway with China Post, a Chinese State Enterprise Company and one of the five representatives running the Freight Forwarding through Lao-China-Europe high-speed trains. This further forwards a good results to LEO since it is the only Exclusive Partner of China Post in Thailand. Through shaking hands with China Post who provide services by way of China-Laos High-Speed Railway trains, LEO take the role as a agent for exporting products from Thailand to China and also importing products from China to Thailand. Moreover, there is still a plan to make Thailand as a logistic hub for E-Commerce in ASEAN, with a support of warehouses to deliver and distribute commodities. It is expected that this Project will help support the continuous growth in LEO’s Logistics Business in 2022.

          The Company has prepared to create its business growth through agreements for Merger and Acquisition (M&A). One of them is with World Air Logistics Company Limited (WA) with the notification submitted to the Stock Exchange of Thailand on January 24, 2022. The M&A agreement made with World Air Logistics Company Limited will help expand LEO’s Air Freight Business in a rapid manner. The Company will likely expand the scope of its business alliances since WA has been in the Logistics Business for more than 18 years, thus making it possess experiences and expertise in the Freight Forwarding Business and have connections with more than 50 famous and reliable airlines. The benefit from such a network of airlines WA has will also result in LEO’s more airline alliances promoting the ability to generate incomes and reduce costs. Also, being a business alliance with Freight Forwarders who are the main Customers of WA will further make the Company become a Logistics Operator with more various customer basis. The Company expects to recognize the revenue from the M&A agreement within the second quarter of 2022. In addition to WA, LEO still has more plans to M&A Logistics Business Operators in Asia such as Vietnam and Indonesia which are enjoying their continuous growth according to the working plan we once informed the Investors and to our intention to create a rapid and sustainable growth for LEO.

         In 2022, the Company has still committed to maintains international service quality standards and uses the Open for Continuous Learning and Improvement principles, which are LEO's core values to further expand the service effectiveness. Also, the Executives and Employees are committed to push for LEO’s continual and sustainable growth abiding by and conducting the business according to the principle of Good Corporate Governance, giving importance to all Interested Parties, combating corruptions and taking social responsibilities.

         Finally, on behalf of Leo Global Logistics Public Company Limited, I would like to sincerely thank all Investors, Customers, Business Partners and all Supporters for the trust and confidence you have kindly and constantly provided to LEO. And I would also like to thank all of the LEO’s Executives and Employees to have helped in struggling with plenty of challenges and favorably passed through them and to have helped manage to drive LEO to stand as a reliable Company and to grow by leaps and bounds in every year. The Company will still commit to become a leading organization in the business of Logistics Service Provider in conformity with the Company’s Vision that reflects LEO’s commitment to be Thailand’s leading End-to-End global logistics service provider with sustainable growth and the first company of choice in customer and employee’s mind.

 

Sincerely, 
Mr. Kettivit Sittisoontornwong
Chief Executive Officer

 

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