Message from the Chairman

Dear Shareholders,

Last year, the world and Thailand were still severely affected due to the coronavirus disease 2019 (Covid-19) pandemic. Thailand tourism revenue has dropped 21% from 2020 and reduced to 50% from 2019. The uncertainty of this epidemic situation still exists. It is resulting in a slowdown in the economy and production chain disruption, although GDP improved to 1.6% from the negative in 2019 as exports and consumer sectors improved. The average inflation rate is 1.2 percent and in 2022 is likely to increase from energy, higher commodity and service prices.

Tourism is the main income of the country which has not returned to normal because we still have measures to limit travel into the country. At present, the number of routes and airplane flight has greatly decreased due to the crisis. Chinese tourists are still strictly regulated when traveling abroad. Therefore, the hotel business was greatly affected. Chances of a recovery in 2022 could be at the end of the year, if the epidemic situation improves. But there is another factor that affects the economy and tourism which is the national conflict between the superpowers countries that will reinforce the economic weakness even more.

This year’s performance in the hotel segment was severely affected but it was considered by the trustee and the REIT manager of Sripanwa Investment Trust in accordance with the terms of the lease that can assist the reduce and waive some rent payments which has recorded the waiver of rent in the budget of 2021. If looking at the total operating results of all types of businesses, we have total revenue of 2,299 million baht, which is income from real estate sales 1,451 million baht, hotel revenue 337 million baht, rental revenue 69 million baht, oil business income 60 million baht, the rest are other income and have a net profit (loss). 44 million baht, has assets pending for the ownership transfer (Backlog) as of December 31, 2021, valued at 5,400 million baht. At the end of 2021 Baba Beach Club Hotel Phase 2 which we call Habita Seaview, has 47 rooms, small medium and large banquet rooms for seminars weddings and various events, has been completed and ready to open for service. Sri Panwa Hotel, the extension we call Yaya & Convention, is currently under construction. Completion is expected in the second quarter of 2022, and newly launched projects, The Issara Sathorn and Sasara Hua Hin, have sold nearly 50% of both projects. Projects that are very popular in 2021, 2 more projects are detached houses in the middle of the city, The Issara Residence Rama 9, with only 20 units, currently only 2 units are available for customers to purchase. Baan Issara Bangna is another project that has received a good response in the past year.

Although the situation of the country and the world has not improved from the epidemic, the interest rates tend to rise. Household and business debt rose. It decreased ability to pay debt. Tourism conditions are still not normal. There are international conflicts that can lead to the war but we must adapt to survive and maintain the liquidity of the company. In 2022, we still have a policy to reduce expenses of the company, accelerate and increase sales strategies to achieve sales targets of the company. We also have the quality control of construction in terms of time and quality of work. It also attaches importance to continuous human resource development.

On this occasion, thank you to all the shareholder, company director, our management team, and our staff as well as partners and alliances who have worked together through the crisis over two years. Together we will overcome all obstacles for our future success.

Srivara Issara
Chairman of the Board