In 2023, the economy in both the public and private sectors began to show signs of recovery following a gradual improvement in the COVID-19 situation. However, new factors in politics, geopolitics, and the implementation of financial policies of various countries simultaneously led to volatility in the global economy, raising energy prices and inflation rates. Nevertheless, Gunkul Engineering Public Company Limited and its affiliated companies continue to grow. This was achieved through the strong performance of the Company, which employs sustainable energy without relying on volatile fossil fuel sources. This is a testament to the success of the Company that has a vision to focus on investing in clean and environmentally friendly renewable energy. As a result, the Company was able to achieve solid performance despite the context of fluctuating energy prices.

With the goal of growth in investment and development of clean energy to lay the groundwork for energy security, both domestic and abroad, the issue of sustainability has thus been defined as a main mission and corporate culture which have been relentlessly pursued. GUNKUL aims to be one of the producers of electricity from renewable energy with the cumulative number of megawatts increasing to 2,000 megawatts in 5 years, with a total investment budget of 45,000 Million Baht, and has a reduced corporate carbon footprint in order to achieve the goal of net zero greenhouse gas emissions by 2050.

GUNKUL received the results of corporate governance assessment of Thai listed companies for the year 2023 in 5-star level or “Excellent” (Excellent CG Scoring) for the seventh consecutive year, which reinforces that the Company has continued excellent corporate governance and is transparent in disclosing information. Along with conducting business for the organization to grow sustainably.

Moreover, the Stock Exchange of Thailand (SET) announced the list of sustainable stocks of the year 2023 or SET ESG Ratings, changed the name from 'THSI Sustainable Stocks (Thailand Sustainability Investment) to Sustainable Stocks SET ESG Ratings’ for the first year. GUNKUL has been selected as one of the sustainable stocks for the third consecutive year and has been assessed SET ESG Ratings at the AA level from the sustainability assessment covering economic, social, and environmental dimensions. This represents a significant development in ESG disclosure, with an emphasis on balancing environmental conservation, social responsibility, and management according to the principles of corporate governance (ESG), ready to deal with the changing factors in both society and environment. Including focusing on engaging and responding to the expectations of all groups of stakeholders for sustainable growth together.

All of these remarkable achievements mark another milestone that emphasizes the importance of driving the organization towards stable and sustainable growth. Therefore, it can be said that in the previous year, the Company was assuredly able to achieve its goals and make progress in significant strategic dimensions in terms of growth, profitability and sustainability, all of which have enhanced the confidence of investors and stakeholders of all sectors in the long run.

Under the vision of being a leader in renewable energy business, integrated electrical equipment and system with cutting-edge technology and innovation to develop a strong and sustainable infrastructure based on GUNKUL’s philosophy, operating results in 2023 are considered a period in which the Company has made important developments in every dimension.

Throughout 2023, the success that has been achieved is a testament to the Company's commitment to being a Thai company that brings clean energy technology to benefit the country, raise the quality of life of people in the community by creating sustainable value, and maintain competitiveness by evolving along with the ever-changing world. Along with participating in the development of society, community and environment to jointly push every sector to grow together stably and sustainably.

On behalf of the Company, I would like to thank you the Board of Directors, executives, staffs, customers, partners, alliances, shareholders, financial institutions, government agencies, community enterprises, as well as relevant stakeholders who have an important role in creating success and great pride for the Company.

Dr. Gunkul Dhumrongpiyawut

Chairman of the Board of Directors

Gunkul Engineering Public Company Limited, as one of the leading companies in the renewable energy business and equipment and integrated electrical systems with the most advanced technology and innovation, has adapted its business strategy to these energy trends by continuing to invest in clean energy businesses in both the public and private sectors. Last year, the Company successfully achieved the goal of increasing its power generation capacity to 1,000 megawatts within 2023 by being selected to procure electricity from renewable energy in the form of Feed-in Tariff (FiT), a total of 17 projects with a combined power generation capacity of 832.4 megawatts, which is considered as an extension of the Company’s growth over the next 3-7 years. At present, the Company has already signed 25-year Power Purchase Agreements (PPA) with the Electricity Generating Authority of Thailand for 8 solar farm projects with a total contracted power generation capacity of 429.6 megawatts, which are scheduled to commence commercial operation between 2026 and 2030. The new projects will increase Gunkul’s contracted power generation capacity from 615.55 megawatts to 1,045.15 megawatts, an increase of 70%. This project development as mentioned above, is in line with the Company’s plan to focus on increasing renewable power generation capacity for further expansion. As a result, the Company had a net profit of 1,576.18 million Baht in 2023, an increase of 36.08%, with total revenue of 7,737.12 million Baht due to the business profit of wind power plant and solar power plant, the increase of production and electrical equipment sales, including the EPC business, which has been auctioned and gradually recognized as revenue from both the public and private sectors continuously.

In 2024, the Company aims to achieve revenue and profit growth in every business group. In order to make the Company grow and develop steadily by implementing strategies in line with the changing direction of global energy and government support, by expanding investment and preparing to continuously bid for new renewable energy projects, both solar power plants and wind power plants. Together with joint ventures and partners both domestically and abroad, this is seen as an important opportunity for the renewable energy power plant business and other business affiliates, which will receive advantages and benefits in generating income from the global energy transition and renewable energy power plant projects in the country, which is expanding more and starting to procure contractors to build power plants and stations and order more electrical system equipment according to the schedule of commercial operations in the next 3-7 years. At present, the Company has construction projects for a large private power plant, submarine cable, underground cable system, and signal towers. The total order backlog is more than 6,000 million Baht. Meanwhile, the Company continues to expand its solar panel installation business for factory operators and medium-sized industries in the form of private PPA and rooftop solar installation services. Continuously targeting residential customers to seek new energy innovations so that everyone can access and benefit from clean energy more comprehensively in the future. The Company has set a target of 2,000 MW in 2026.

In addition to our commitment to manage our business to become a leader in the energy industry, the Company also places great emphasis on sustainable growth. By seriously taking into account the stakeholders, environmental, social, and governance : ESG, the Company is ready to move toward a low-carbon society and become a carbon-neutral organization with net-zero greenhouse gas emissions by 2065. The Company has received many awards and certifications, such as ISO 14064-1:2018 certification, the standards for reporting the results of emissions and reduction of greenhouse gases at the corporate level continuously for 2 years, including being selected as one of the listed sustainable stocks (SET ESG Ratings), a rating in the AA level, as well as receiving the Human Rights Awards 2023 in the outstanding level, etc. It reflects the Company’s consideration of all stakeholders, which has always included economic, social and environmental dimensions, following the concept “not only the energy, we care”.

On behalf of the Board of Directors, executives and employees of Gunkul Engineering Public Company Limited, I would like to thank you, shareholders, customers, business partners, financial institutions, government agencies, along with all stakeholders who play an important role in creating success and pride for the Company, and who have given your trust, confidence and support to the Company’s operations as always. Please be assured that all of us will work together to operate and develop the Company to create sustainable growth to continue to achieve the Company’s goals.

Dr. Somboon Aueatchasai

Chief Executive Officer