Message from the Chairman

Dear Shareholders,

The situation of the Coronavirus 2019 (COVID-19) pandemic has affected the global economy that is faced with a severe crisis. The Thai economy was also severely affected. Thailand has 13 percent of tourism income of the country’s gross domestic product (GDP), and there is still a negative factor from domestic politics in 2020, thus reducing the country’s GDP by 6.4 percent and having a negative inflation rate of 0.9 percent.

For company business, in addition to the effects of the above, it has also been affected by the LTV (Loan to Value) measure that has had an effect on the real estate business since 2019 and consumers have been affected by income from the termination of employment. Causing consumption to shrink, reduced salary, and some businesses were affected by the COVID-19 situation until finally having to shut down.

Although the government sector has accelerated investment and disbursement of the state budget including the Bank of Thailand has lowered the interest rate policy to the lowest. The economy is still unable to recover, and at the end of the year there are two outbreaks of the COVID-19 virus that it is expected that the Thai economy will begin to recover in 2021 would be difficult and takes a long time to be back normal.

Tourism Foreign tourists dropped from 39.8 million in 2019 to 6.7 million in 2020, or 83.2 percent, affecting the company’s hotel business as well. Baba Beach Club Hua Hin has been shut down since April to May Sri Panwa Phuket Hotel and Baba Beach Club Natai are closed from April to June which make the hotel have no income but at the same time, there are expenses to maintain the hotel in good condition available when the hotel can be opened. The main policy for the solution is to reduce all expenses. To support the business to survive and when the hotel can open the service only for Thai tourists who can travel along with a policy “We travel together” from the government. To help support domestic tourism which helped make our hotel survive. But overall, our income has dropped more than 50% from 2019.

In 2020, the company has total revenue of 1,429 million baht, derived from real estate sales 649 million baht, revenue from operating three hotels 455 million baht, gas station operations 60 million baht, Rental and Seivice income 77million baht. other income 186.24 million baht. The company has expenses 1,572 million baht and has net profit (loss) 387 million baht. The Company has assets held for transfer (backlog) as of December 31, 2020 for 1,208 Million baht and at the end of the year, a new project with special privileges, VVIP Day, named Sasara Hua Hin, which is a luxury condominium project right next to Hua Hin beach Project value 1,509 Million baht. There have only 110 suites, has been accepted at the usable level. In addition, we also have projects under construction, such as Baba Beach Club Hua Hin Phase 2, which is expected to be completed and ready for service in mid-2021, with 47 additional rooms and a large banquet hall with a capacity of 400 people, value 1,500 million baht. Sri Panwa Phuket Hotel is under construction a new phase with 24 Pool Suite rooms and a banquet hall of 400 Sqm. to accommodate weddings, seminars and events project, value 1,000 million baht. This section will be completed around the end of 2022 and The Issara Sathorn Project has received a license from the EIA and started piling in last December.

In this recession, the company has to be more careful. Maintaining liquidity is the most important. The company has to cut costs increasing income by adjusting strategies and organizing various promotions to accelerate sales of products, but the company deems it appropriate to complete the construction. Even in the interruption period, including increasing the efficiency of work personnel development and continued social responsibility.

Thank you, all shareholders, company directors, and all our staff who jointly sacrificed and reduced salaries as well as partners and alliances of the company. Let us all intend to work together to overcome this crisis to pass well.

Srivara Issara
Chairman of the Board