Message from the Board of Directors

The real estate industry in 2024 remained under negative factors beyond the Company’s control. The domestic economic growth stayed as low as 2.6%, though slightly increasing from 1.9% in the previous year. Consumer purchasing power was under the pressure of high interest rates and household debts. Access to finance was limited as commercial banks tightened lending rules. The loan rejection rate, particularly for housing units in the lower middle market, spiked despite real demand. Moreover, there was an absence of attractive stimulus measures. Due to these factors, the Company could not achieve the sales and property transfer targets. However, the hotel and service businesses showed an improvement following an increase in tourist arrivals thanks to the government’s package to boost the tourism industry. The consolidated financial position started to improve, with a decrease in the interest-bearing liabilities by Bt6,117 million on year. The interest-bearing liabilities to equity ratio eased to 1.41x from 1.54x in 2023.

Due to the sluggishness in the real estate industry, the consolidated sales revenue dropped by 18% on year to Bt8,917 million. Of total, the property development business generated Bt5,011 million, down by 30% (23% for low-rise development and 51% for high-rise development) while the hotel business contributed Bt2,530 million, up by 5%. The Group also received Bt502 million from the rental and service business, a 3% increase on year; and Bt874 million from land disposal. In the year, only 1 new project was launched with the value of Bt2,140 million. The owner’s equity of the parent company showed a loss of Bt1,010 million.

The aforementioned risk factors persist in 2025. The Board of Directors gives a priority to liquidity management and strengthening of the Company’s financial position, to pursue continuous and sustainable revenue growth while reducing liabilities through asset disposal.

In this year, the Group plans to launch 7 projects with combined value of Bt9,600 million. Some are the extended parts of existing projects and others were postponed from 2024. The development activities will take place in the areas that the Group are familiar with and has received warm responses. The new projects will be entirely low-rise, targeting the upper middle market. The construction cost control will be in focus, to maintain the profit margin and competitive pricing.

The Company also plans to diversify into the home-building service, leveraging our expertise in the development of housing units priced Bt5 million or more. The business targets the wealthy in Bangkok and peripheral provinces as well as the provinces in the Eastern Economic Corridor (EEC) zone, thanks to the high growth potential. The diversification provides an opportunity to generate additional revenue as the home building industry reaped Bt211,000 million in the previous year. It will also broaden the Company’s product portfolio to cover the housing units in property projects as well as houses on customers’ land.

Meanwhile, the hotel business under Grande Asset Hotels and Property Public Company Limited should benefit from the tourism recovery, as tourist arrivals are expected to reach 40 million. Moreover, a villa project in Rayong will replenish the revenue, following the disposal of Hyatt Regency Bangkok Sukhumvit in mid-2024.

In driving business along this path, the Board of Directors upholds the good governance best practices and sustainability principles that encompass the accountability for society, community and the environment.

On behalf of the Board of Directors, I would like to thank all shareholders, customers, supporters, investors, suppliers, partners and financial institutions for the continuous supports as well as the Management and employees for the patience and dedication throughout the past year.