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Message from the Board of Directors

Thanks to the easing of the COVID-19 pandemic and full-scale Thailand reopening in mid-2022, the domestic economy recovered and the positive spill-over effects were felt by the property development business as seen through the 16% increase in the Company’s sales revenue. Attributable to the tourism recovery, the Company’s revenue from the hotel business also jumped 124%. The improvement was a sign of gradual business recovery.

Nevertheless, the labor market was hit by the COVID-19 pandemic, leading to delays in house delivery. In 2022, the Company’s transfers reduced by 2% from 2021. The Board of Directors is aware of this issue and is scrambling for solutions.

The Company’s consolidated revenue in 2022 went up by 7.8% to Bt10,362 million. Of total, Bt7,885 million was contributed by the property development business which was down by 3.4% on year: while the revenue from low-rise projects dropped 3.4%, that of condominium projects rose 3.6%. The rest was generated by the hotel business, Bt1,559 million or an increase of 123.9% on year; rent and service fees, Bt369 million or an increase of 35.9%; and land sale revenue, Bt549 million. In the year, 10 low-rise projects were launched with combined value of Bt17,795 million. Eight of them, worth Bt7,620 million, belonged to the Company and two to joint ventures worth Bt10,175 million. The Company booked Bt25 million as the share of profit from these ventures. The Company’s debt to equity dropped to 1.3x from 1.6x in 2021.

For 2023, the Board of Directors plans proactive strategies, to cash in on the economic recovery. This is in spite of persistent risks concerning inflation, interest rates and construction costs following the Russia-Ukraine War that may continue.

The Company plans to launch 14 property projects worth totally Bt17,700 million: 12 low-rise projects targeting upper middle-income earners; 1 condominium project worth Bt15,500 million which doubles the 2021 value; and 1 project from a joint venture worth Bt2,200 million. Construction cost control will be emphasized to maintain the profitability and prices at competitive levels. The Company expects an increase in the share of profit from joint ventures with Bt6,400 million in revenue forecast.

In the hotel business, Grande Asset Hotels & Property Public Company Limited’s hotels are expected to show a strong recovery on the back of tourist arrival forecasts of 30 million. The performance of hotels in Bangkok could be as good as in 2019, prior to the COVID-19 outbreak. A very good news is Property Perfect and Jodd Fairs have reached a deal to developed a mixed-use project on Ratchadaphisek Road. The project, with an office building and retail space, will boost the Company’s revenue stream in the long term. Amid these business plans, the Board of Directors ensure the Company’s adherence to good governance and sustainability principles, to reflect its responsibility towards society, community and the environment.

Lastly, on behalf of the Board of Directors, I would like to thank all shareholders, customers, investors, suppliers, business partners and financial institutions for their continuous supports. My thanks also go to the Management and all employees for their dedication throughout the past year.


Dr. Thanong Bidaya
Chairman

Mr. Sanith Adhyanasakul
Chief Executive Officer