Message from the Chairman

Dear Shareholders,

In 2024, although the Thai economy expanded from 1.90% to 2.70%, it is considered that the economy is still slowing down and growing mainly from the recovery of the tourism sector. The past year was a continuous tough year for the real estate sector. In addition to the decline in consumer purchasing power, the problem of household debt that has not been resolved has caused financial institutions to be very strict in approving loans. The rejection rate is very high, resulting in buyers being unable to transfer ownership. The total number of real estate ownership transfers in Thailand in 2024 was only 320,000 units, a decrease of 15 percent, the lowest transfer rate in the past 8 years. Even if there are products ready for sale, they still cannot be sold or transferred and because the supply in the market is high, it is a buyer's market. Therefore, sellers must sell at prices which is lower than the set target. In 2025, this situation is likely to continue. Many real estate developers have therefore delayed the implementation of projects or postponed the launch of projects.

In 2024, our company lost 280 million baht from real estate of 68 million baht, a 58% decrease from the previous year because we had 1,705 million baht in transfers, an increase of 114% from condominiums and houses in Sasara Hua Hin, The Issara Sathorn and Baan Issara Bangna projects. The hotel business had a loss of 221 million baht, an increase of 75 million baht from the previous year. Most potential Thai customers prefer to travel abroad. In addition, the inconvenient and dangerous transportation has resulted in a significant decrease in revenue for the hotel business in the Cha-am-Hua Hin area. In Phuket, despite the increase in foreign tourists, the revenue of Sri Panwa Hotel is still lower than the target, while there is a burden of paying fixed rent to the trust fund. In addition, the current global situation and the economic situation in the country have prevented us from selling a major project, the Baba Beach Club Hotel in both Phang Nga and Cha-am, to the fund. However, I am confident in the quality and value of all the company's assets that will be able to generate appropriate income for the company in the appropriate time in the future. In terms of hotel management, our staffs are doing their best to increase revenue from various events such as weddings, banquets, and seminars. We have also collaborated with BDMS Group to increase Wellness services at Sri Panwa to become “Wellcation”, which will start in March this year.

Good news in latest December, we were able to convert Bangkok Mutual Fund (BKKCP), a Property Fund, into a REIT called Issara Part 1 Business Operations and Performance 1 Trust (ISSARA REIT), with a transfer fee exemption of over 100 million baht, and will be able to grow this trust for the better benefit of unitholders. This year, we will bring 100% leasehold assets worth 177 million baht into this trust.

To continue growing, Charn Issara Group has invested in 6 new projects with a combined value of approximately 16 billion baht in Bangkok, Phuket, and Hua Hin. We intend to create every project with meticulousness, durability, and strength, and apply new innovations to develop good quality of living, creating value for customers, and maintaining the company’s goal of “Live Excellence”.

Sriwara Issara
Chairman of the Board