Message from CEO

Dear Shareholders:

I’d like to begin by expressing my gratitude to all of you for your continuing loyalty during this challenging time and for believing in Body Glove and the lifestyle we represent. Beginning as a company focused on making quality casual beach lifestyle clothing, Body Glove has become part of the youth culture worldwide. At BGT, we’ve worked hard to achieve this high standard by staying focused on our core customers and by exemplifying California lifestyle and Surf culture heritage. Nevertheless, BGT’s mission is not only to be recognized among our targeted customers but also to provide the absolute best value to our customers and shareholders. The evidence of our commitment has been clearly shown in the company’s performance and strategies.

A commitment to continually increase value and profit for our shareholders

As I am sure you are all aware of, 2008 was a very tough year. The world has been experienced the economy crisis, especially in Thailand that has also been suffered by the national political crisis. It was a very difficult environment in which to operate the business for everyone. Despite it all, BGT’s strong position in the market along with the clear operational strategies have been a shield to prevent our business from experiencing loss like many other companies. We are continually making profit for our shareholders. The company’s total revenue for 2008 is up by 24% from the year prior with the figure of 600 million baht. Net profit positively increased to THB 41.5 million or THB 0.53 per share.

We see the door of opportunity

I would like to point out that although the net profit figure was not dramatically increased from previous year but considering the environment of the business, it could be said that BGT’s performance is solid and steady. We have planned to aggressively invest the profit to expand the Body Glove shops and counters this year. BGT also prepared new 10-15 shops locations to support the new brands that would be introduced into the company in the second quarter of 2009. We are benefiting from the economy slowdown as it opens us the opportunity to reasonably and easily acquire prime store locations. The main focus point for the expanding strategy, both demographically and geographically, is to increase our market share and volume of sales from our targeted market segment. This expanding strategy is considered as a significant counterpart for the growth of the business in which it would better benefit our shareholders in the long run.

Results drive retail strategies

In this 2009, we are adjusting our strategies to cope with present business atmosphere and focused to sustain profit-gaining momentum for years to come. Our objectives for fiscal 2009 are focused and on point. We intend to:

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  • Recruit more brands into company’s roof. BGT is looking to expand our market segmentation to be able to reach to wider range of customers. In 2009, we are expecting to welcome several new international brands from The U.S. and Europe into our BGT’s family.
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  • Follow our shops expanding strategy that has been implemented since 2007. We are planning to open another 80 stores or counters within the next 18 months in order to support our new brands and new ranges of product.
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  • Create the brand awareness and targeting to attract more youth by sponsor sports, especially water sports. We believe that the team or individual athlete that we sponsor would contribute toward broadening the appeal for the sports in which they excel and the healthy lifestyle which we share. Also follow the success of our “Body Glove Rising Star” campaign in 2008, we would continually be using young celebrities to represent the Body Glove lifestyle image in order to entice the youth and benefit from their high spending habit.
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  • Focus on making great products and concentrate on the integrity of the brand that we carry.
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  • Adapt the structure of our organization to the change of economic realities.

Throughout the challenges of the year 2008, I have always been reminded what differentiate BGT from all other companies the essential strength of our core brand-the Body Glove, the loyalty of our customers and the great talent and energy of our people. That being said, I would like to extend my personal gratitude to our employees for their dedication and hard work. We are a strong team and we will make the best of what 2009 has to offer.

Lastly, I would like to thank you all our shareholders for their supports to BGT and I look forward to sharing our achievements with you in the future.

Sincerely,

Goh Kok Cheng, (Dickson)
President / Chief Executive Officer