Ums Case Study

Unique Mining Service (UMS)

Company Background

Unique Mining Services Public Company Limited (hereinafter referred to as ("Company" or "UMS"), established by Unique Gas & Petrochemicals Public Company Limited (hereinafter referred to as "UPG") and Mr. Somboon Siriphaiboonphongs, who holds the shares in percentage of 51 and 49 respectively, has duly been registered as a company on 17 March 1994, with its initial registered capital of 1 million bath. At first, the Company dealt in a business of importing good quality coals from abroad, and selling coals to the domestic industrial factories. It is because the Company's executives have foreseen good chances of and tendencies for coal industry growth, and due to there are many existed supporting factors, such as the coal product, which is a type of low price fuel and there are a lot of coal quantities in reserve. When comparing the coal product with bunker oil and natural gas, together with the past experience of the executives in energy industry, it has caused the executives to be confident that operating this type of business will cause the company to be successful and to continue to grow consistently.

Unique Mining Services Public Company Limited has developed a direct sales system. This will be undertaken by contacting with the Company's customers directly, without going through dealers. The Company can thereby gain access to the real requirements of customers, hence, it will then be helpful to find a proper way to fulfil the customers' requirements. Besides, the Company has well acquired experience in the filed of coal, together with its engineer teams has also well equipped with expertise in the field of fuels.

Unique Mining Services Public Company Limited has been operating the business in accordance with its objectives as follows:-

To select the best coals, in term of quality, quantities, and at reasonable price, to provide to customers, in order to generate dividends to pay to the shareholders in return every year, by expanding markets of target customers to be increased not less than 10% per year.

To commit itself to being unique in marketing leader in fuel and coal, and taking part in providing assistance to community.

Unique Mining Services Public Company Limited is able to import coals and to distribute them to fulfil the increased use of coals in industrial factories, where they are using coals to generate steam, heat or others at all the times. Even though, in 2004, the event of an economic crisis situation came up, causing the Baht value to be depreciated, and the import businesses to be much adversely affected, but the Company has still been able to maintain its import business and continually distributed coals to its customers as usual. However, in this 2004, Thailand economy is expected to be much better, it will then result in increasing more use of coals in the country, because the use of coals as a fuel for generating steam or heat is still cheaper, when comparing with other types of fuels, such as bunker oil, LPG and natural gas, etc. Hence, the Company has planned to expand its markets of both the existing customer groups and new customer groups. The Company is confident to step up to be the coal distributor that can remain well in consumers' favour in both quality and fast delivery service of coals, together with its ongoing product development concept for enhancing the coal efficiency and convenience of customers. In addition, the Company has also arranged a plan to be available for development of the corporate staff at all times, in order to upgrade the staff ability, to be ready to deal with the Company Ð''s growth effectively, and to consistently and continually make profit for the Company, which will result in making the shareholders be proud of and confident in being part of the Company, which can make profit well for them and the company be secure forever.

UMS' Customers

UMS focus on Small to Medium Size customers, such as hospital and hotel, to avoid competing with Banpu, the market leader. UMS' customer proportion is shown below.

UMS's subsidiary (As of Sep 30, 2007)

UMS has three subsidiaries. Each operates different function to support overall business of UMS, the details of which is shown below:

 UMS Coalbriquette (Sale of Coalbriquette)THB 5 mil investment

 UMS Lighter (Boat Conveyance) THB 20 mil investment

 UMS Transportation (Road Transport) THB 1 mil investment

Products & Service

UMS has three main different products & services: Coal, Coal Briquette, and transportation (shipping). Coal business is carried out by UMS. Coal briquette is manufactured and sold by UMS Coalbriquette. UMS lighter will take care of transporting imported coal to keep in UMS' warehouse or shipping coal briquette to customers. UMS transportation will load coal and coal briquette to trucks and deliver straight to customers. UMS future project is Coal Gasification. The project aims to produce gas out of coal, which will be a cheaper alternative source of energy comparing to NGV and LPG. The picture of UMS' products and services is shown below:

Coal

Coal Briquette

Coal Gasification Facility

Company Time Line & Path to MAI

 Mar 17, 1994 Registered as private company with THB 1 mil capital

 Feb 17, 2004 Became public company

 Jul 16, 2004 First Trading day (IPO)

(Par THB 1, Share Registered 70,000,000 shares)

o Auditor: Dharmniti Auditing Company Limited

o Financial Advisor & Underwriter: KGI

o IPO Opening price THB 7.95 (THB 556.5 milTrading Value)/Closing price THB 28.50