Company's Business

KCE Electronics Public Company Limited (KCE) was established on Nov. 5, 1982 with an initial registered capital of Bt12 million. The Company’s core business is the production and distribution of printed circuit boards (PCBs), under the “KCE” trademark.

The Company listed on the Stock Exchange of Thailand in August 1988, and converted its status from a limited company to a limited public company in December 1992. As of Dec.31, 2018, the Company’s registered capital was Bt586,396,798, with paid-up capital of Bt586,396,798.

PCB Product

Printed circuit boards are an essential part of a wide range of electronic products. PCBs are the foundation component of electronic circuits, and almost all electronic devices used in everyday life contain one or more of them. The boards have a copper track printed onto them that acts as a pathway for electrical signals. The boards’ main function is to mechanically support electronic components and electrically connect the circuit, and are used instead of the more complicated wiring method.

PCBs consist of two main parts: the base, or substrate, and the conductor. The base is a thin layer of non-conductive board that acts as a platform for the components mounted onto it, while the copper conductor connects the different components on the PCB. The base material is made from epoxy fiberglass, which consists of a woven glass epoxy and a coat of epoxy resin, and can be used with many different types of products due to its good performance amid high humidity, its high temperature resistance, and its rigidity (it doesn’t bend easily). The base is usually made in a green or blue color.

PCBs can be single or double sided, and in cases where the circuit is thick and very complex, a multilayer PCB can be configured depending on the board designer's requirements.

The main types are:

  1. Single-sided PCBs: The circuit line for the electrical signal connection is printed on one side of the copper layer.
  2. Double-sided plated-through-hole PCBs: the circuit line that carries the electrical signal is printed on both sides of the copper layer. The board is drilled to make holes for leaded components; copper is then plated through holes called vias, so that the electrical signal on both sides of the board can be connected.
  3. Multilayer PCBs: the circuit lines are on different copper layers: the inner and the outer layers, which are connected with plated-through holes.

The PCB products that the Company produces are as follows:

  1. Double-sided plated-through hole PCBs
  2. Multilayer PCBs (4-24 layers), which area more complex, higher technology board.

Both types of PCBs are used in many industries, i.e. the automotive industry, industrial equipment industry, telecommunications industry, as well as for medical equipment, mobile phones and computer equipment. Due to the fact that the production of PCBs requires modern technology, special techniques and must comply with accepted industry standards, the Company has continuously focused on improving quality control, the production technology and the skill level of operators. The Company has repeatedly expand its production capacity and appointed several sales representatives in overseas countries in order to tap the growing demand for PCBs in the global electronics industry.

Manufacturing facilities

The Company and its subsidiaries have factories and offices for manufacturing as follows:

  Raw material / Product
Thai Laminate Manufacturer Co., Ltd. (subsidiary)
Located at 70, 70/1 Lat Krabang Industrial Estate
Soi Chalongkrung 31, Kwang Lumplatew, Lat Krabang, Bangkok
Laminate, Prepreg
KCE Electronics Public Company Limited
Located at 72-72/1-3 Lat Krabang Industrial Estate
Soi Chalongkrung 31, Kwang Lumplatew, Lat Krabang, Bangkok
PCB
K.C.E. International Co., Ltd. (subsidiary)
Located at 677 Moo 4 Sukhumvit Road
Bangpoo Industrial Estate, Tambol Prangasa
Ampur Muang, Samutprakarn province
PCB
KCE Technology Co., Ltd (subsidiary)
Located at 117, 118 Moo 1 Hi-Tech Industrial Estate
Asia Road, Banlain, Bang Pa-In, Ayutthaya province
PCB
Chemtronic Technology (Thailand) Co., Ltd (subsidiary)
Located at 1/28 Moo 5 Tambol karnharm
Amphur Uthai, Ayutthaya province
Chemical Product
Chemtronic Products Co., Ltd (subsidiary)
Located at 1/97 Moo 5 Tambol karnharm
Amphur Uthai, Ayutthaya province
Chemical Product

Major changes and developments in the past 5 years

March 2014 Appointed the Risk Management Committee.
April 2014 The Shareholders' Meeting No. 31/2014 approved the following:
  • The Company’s financial statements for the year ended Dec. 31, 2013
  • A dividend payment in respect of the Company's operating results of 2013
  • Appointment of Mr. Pitharn Ongkosit as a company director
  • A reduction in its registered capital from Bt578,421,582 to Bt557,426,511 based on 557,426,511 shares with a par value of Bt1 each
  • The issuance and offering of warrants (ESOP-W5) to purchase ordinary shares of the Company to directors, management and employees of the Company and/or its subsidiaries in an amount not exceeding 10,000,000 units.
  • An increase in its registered capital from Bt577,426,511 to Bt587,426,511 by issuing 10,000,000 new ordinary shares at a par value of Bt1 per share to accommodate the exercise of ESOP-W5.
  • An allocation not exceeding 10,000,000 new ordinary shares at a par value of Bt1 per share to accommodate the exercise of ESOP-W5
May 2014 Payment of a dividend in respect of the Company's operating results for 2013 at Bt0.50 per share for 549,017,741 shares totaling Bt274,508,871.
September 2014 Payment of an interim dividend in respect of the Company’s operating results for the first half of 2014 at Bt0.40 per share for 557,911,031 shares totaling Bt223,164,412.
November 2014 The Company acquired a further 51% of the shares of KCE Singapore PTE. LTD., resulting in its shareholding increasing from 24.5% to 75.5% and the Group's total shareholding rising to 100%. As a result, KCE Singapore’s status changed to that of Company subsidiary.
November 2014 The Company scored a “Very Good” rating on the Corporate Governance survey for Thai listed companies in 2014.
April 2015 KCE was certified the member of the Private Sector Collective Action Coalition Against Corruption (CAC Member # 103 ).
April 2015 The Shareholders' Meeting No. 32/2015 approved the following:
  • The Company’s financial statements for the year ended Dec. 31, 2014
  • A dividend payment in respect of the Company's operating results of 2014
May 2015 Payment of a dividend in respect of the Company's operating results for 2014 at Bt0.70 per share for 568,693,319 shares totaling Bt398,085,323.
September 2015 Payment of an interim dividend in respect of the Company’s operating results for the first half of 2015 at Bt0.50 per share for 570,144,941 shares totaling Bt285,072,470.
October 2015 The Company attained the CG scoring of “Excellent” for 2015 in the annual surveys of CG of Thai Listed Companies. In addition, the Company is categorized the Top Quartile in the Market Capitalize of greater than Bt10,000 million.
November 2015 2015 SET Awards jointly organized by the Stock Exchange of Thailand and the Money and Banking magazine, awarded KCE in 2 categories; the Outstanding CEO Award and the Outstanding Company's Performance Award, under the group of companies with the Market Capitalization of Bt10,000 - 30,000 million.
April 2016 The Shareholders' Meeting No. 33/2016 approved the following:
  • The Company’s financial statements for the year ended Dec. 31, 2015
  • A dividend payment in respect of the Company's operating results of 2015
May 2016 Payment of a dividend in respect of the Company's operating results for 2015 at Bt1.00 per share for 576,244,203 shares totaling Bt576,244,203
May 2016 The Board approved the Employee Joint Investment Program "KCE EJIP No.1" for the employees and management executives of KCE Electronics PCL and its subsidiaries.
June 2016 The office of the Securities and Exchange Commission (SEC) endorsed the Company's Employee Joint Investment Program.
June 2016 Announced June 17, 2016, being the last exercise date of the Warrant KCE-W2
July 2016 KCE was listed in SET50 for the period of July 1 - 31 December 2016
July 2016 The Board approved the acquisition of asset transactions:
  • Established a new subsidiary company (Chemtronic Products Co., Ltd.)
  • Investment in capacity expansion in a subsidiary (KCE Technology Co., Ltd.)
September 2016 Payment of an interim dividend in respect of the Company’s operating results for the first half of 2016 at Bt1.00 per share for 586,010,798 shares totaling Bt586,010,798
October 2016 The Company achieved an "Excellent" corporate governance in the 2016 Annual survey for the second consecutive year.
October 2016 The Board passed a resolution approving the purchase of asset, which is the Land and an Office Building in Japan to support the future business expansion in Japan.
October 2016 The Board approved an establishment of the Enterprise Risk Policy Committee. The Committee's responsibilities are to stipulate the risk management policy at corporate level and provide support to the Risk Management Committee.
Announced
Feb. 2, 2017
SET Awards 2016 jointly organized by the Stock Exchange of Thailand and the Money and Banking magazine, awarded KCE; the "Best Company Performance", under the group of companies with the Market Capitalization of Bt30,000 - 100,000 million, and awarded KCE's CEO the "Outstanding CEO" and the "Young Rising Star CEO" in 2016.
February 2017 The Board approved an additional investment in share capital in in Chemtronic Products Co., Ltd. with the same shareholding percentage (94.96 %) of 227,900 ordinary shares, totaling Baht 22.8 million.
April 2017 The Shareholders’ Meeting No. 34/2017 approved the following:
  • The Company’s financial statements for the year ended Dec. 31, 2016
  • A dividend payment in respect of the Company's operating results in 2016
  • A reduction in the Company’s registered capital from Bt587,426,511 to Bt586,396,798, based on 586,396,798 shares at a par value of Bt1 per share.
May 2017 Payment of a dividend in respect of the Company's operating results for 2016 at Bt1.10 per share for 586,396,798 shares totaling Bt645,010,050
July 2017 Started the 2nd year of the Employee Joint Investment Program "KCE EJIP No.1" for the employees and management executives of KCE Electronics PCL and its subsidiaries
September 2017 Payment of an interim dividend in respect of the Company’s operating results for the first half of 2017 at Bt1.10 per share for 586,396,798 shares totaling Bt645,015,990.
October 2017 The Company achieved an "Excellent" corporate governance in the 2017 Annual survey for the third consecutive year. The Company is categorized the Top Quartile under the group of companies with the Market Capitalize of greater than Bt10,000 million.
December 2017 The Company filed the recertification of Thailand’s private sector Collective Action Coalition (CAC) membership.
December 2017 The Board passed a resolution approving the acquisition of ordinary shares of KCE America, Inc., an associate company, from its existing shareholders of 22,500 shares, representing a proportion of 45% of total shares, resulting in its shareholding increasing from 50% to 95%.Transaction date is within January 1, 2018.
January 2018 The Group obtained control of an associate, KCE America, Inc., which engages in the business of sales agent in foreign countries. It has a subsidiary, KCE America Partners LLC, whose business entails the rental of buildings. Control was achieved by acquiring additional ordinary shares of KCE America, Inc. in the proportion of 45%, amounting to USD 4.95 million, or equivalent to Baht 160.7 million, resulting in the Group's total controlling interest in KCE America, Inc. increasing from 50% to 95%, and its indirect controlling interest in KCE America Partners LLC being 95%. On such date, KCE America, Inc. changed its status from an associate to direct subsidiary, and KCE America Partners LLC became an indirect subsidiary of the Group.
February 2018 The Company submitted the recertification of Thailand’s private sector Collective Action Coalition (CAC) membership on December 15, 2017, which the CAC already approved the extension of the certification on Feb 12, 2018.
April 2018 The Board of Directors approved the appointment of Mr. Pitharn Ongkosit, 1st Vice Chairman and Panja Senadisai, Ph.D. 2nd Vice Chairman.
April 2018 The Shareholders’ Meeting No. 35/2018 approved the following:
  • The Company’s financial statements for the year ended Dec. 31, 2017
  • A dividend payment in respect of the Company's operating results in 2017
  • A change in par value of the Company’s shares from 1 Baht per share for 586,396,798 shares to 0.50 Baht per share for 1,172,793,596 shares
May 2018 Payment of a dividend in respect of the Company's operating results for 2017 at Bt1.10 per share for 586,396,798 shares totaling Bt645,036,478.
July 2018 Started the 3rd year of the Employee Joint Investment Program "KCE EJIP No.1" for the employees and management executives of KCE Electronics PCL and its subsidiaries.
July 2018 The Board of Directors of the Company approved the disposal of ordinary shares of KCE Singapore Pte., Ltd. of 2,500 shares with a par value of US 1 dollar at price of US 12.55 dollar per share to K.C.E. International Co., Ltd, a subsidiary, totalling US 0.03 million dollar or equivalent to Baht 1.04 million which represented 0.50% of total issued and paid-up ordinary shares, resulted in decreasing the Company's ownership from 75.50% to 75.00%.
September 2018 The Board passed a resolution approving the purchase of asset, a land, 2 rai, 2 ngan and 52 square wah, totaling Baht 36,820,000, by Thai Laminate Manufacturer Co., Ltd., the company’s subsidiary to build a warehouse.
September 2018 Payment of an interim dividend in respect of the Company’s operating results for the first half of 2018 at Bt0.55 per share for 1,172,793,596 shares totaling Bt645,036,478.
October 2018 The Company achieved an "Excellent" corporate governance in the 2018 Annual survey for the fourth consecutive year. The Company is categorized the Top Quartile under the group of companies with the Market Capitalize of greater than Bt10,000 million.
December 2018 The Board approved an additional investment in share capital in Chemtronic Products Co., Ltd. with the same shareholding percentage (94.96%) of 303,880 ordinary shares, at a par value of Baht 100 per share, totaling Baht 30.39 million for the investment in Tin Ingot Project.

Policy and Overview of the Company

KCE Electronics PCL and its subsidiaries are involved in the manufacturing and distributing of printed circuit boards (PCBs), which are the foundation component for a wide range of electronic devices. Its key customer base includes manufacturers of automotive electronic equipment, telecommunication devices, computer networks, industrial equipment, medical equipment and consumer product. Almost all of the Company's production is for exporting worldwide; Europe, United States of America and Asia.

The Group's operational policy is mainly committed to achieving the excellent in manufacturing capability, by initiating various strategies to obtain a better quality product, at a lower cost. The Company continues to seek opportunity to increase profit, by introducing new technologies in production and fully utilize current assets to its utmost benefits, which will be resulted in reaching the maximum efficiency level. Another important policy is the commitment in keeping a long term relationship with its customers by providing the most valuable service- the reputation of quality product, that gain trust from customers ever since. In addition, the Company place an importance on stakeholders and social responsibility by developing "Green technology".

Regarding the management of operations, the Board is responsible for the determination of strategies and key policies. In the early of January 2018, a meeting was organized for CEO and Management, for the purpose of communicating such strategies and setting up the operational objectives (KPI) for the factory as well as for each section of operation. Management of each section then continued to arrange separate meetings to further communicate the strategies and targets down to employee level. During the year, the targets were seriously monitored by comparing actual results with the planned KPI. Managements also regularly reported the operation results to the CEO in the monthly Management meeting. CEO then summarized the operation results for the strategies and reported to the Board in each quarter.

Shareholding Structure of KCE Electronics PCL and Subsidiaries / Associates