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Investor Relations > Corporate Information > Message from the Board of Directors

The directors have the pleasure in presenting the Company and its subsidiary's annual report and audited financial statements for the year ended December 31, 2015.

Economy & Industry in 2015

In 2015, Thai economy ended up with a GDP growth of 2.8%, increasing from 0.7% in 2014 due to the drive of public investment, government's stimulus measures in late 2015 and tourism sector. However, slow recovery of the world economy rendered a 5.53% drop of exports from 2014. In addition, lack of consumer confidence decreased domestic spending due to high household debt and depressed agricultural product prices. To stimulate the sluggish economy, the Bank of Thailand exerted the monetary policy to reduce the policy interest rate from 2.00% in 2014 down to 1.50% in 2nd quarter of 2015 which has since been maintained.

For the automobile industry, new car sales in 2015 were 799,632 units, decreasing 9.32% from 881,832 units in 2014 due to the lingering effect of extraordinary first car scheme and also economic slowdown. However, non-one-ton pickup commercial vehicles in 2015 still grew as compared with 2014.

For leasing and factoring industries, the growth was almost flat in 2015 because SMEs delayed the investments in machinery equipment and working capital to reflect the lack of confidence in the future economy.

Performance in 2015

For the results of operations as of December 31, 2015, the Company and its subsidiary recorded total assets of THB 30,249 million, increasing 2.66% from THB 29,465 million at the end of year 2014 due to a portfolio growth from business expansion. Meanwhile, total disbursement in 2015 was THB 20,395 million, increasing 10.50% from THB 18,458 million in 2014 due to business expansion to border gateways.

The total liabilities as of December 31, 2015 were THB 25,902 million, increasing 2.21% from THB 25,343 million at the end of 2014 to support portfolio growth. The shareholders' equity as of December 31, 2015 was THB 4,347 million, increasing 5.44% from THB 4,123 million at the end of 2014 resulting from the Company and its subsidiary's profit increase. The Company has paid up capital at THB 1,759 million with retained earnings of THB 1,868 million.

Total revenues in 2015 amounted to THB 2,722 million, increasing 1.38% from THB 2,685 million in 2014 resulting from the growth of portfolio. The financial costs in 2015 amounted to THB 904 million, decreasing 2.41% from THB 926 million in 2014 due to the drop of loan interest. As a result, the total profit for the year 2015 was recorded at THB 681 million, increasing 1.43% from THB 671 million in 2014.

The total portfolio in 2015 amounted to THB 30,079 million, increasing 3.09% from THB 29,177 million in 2014. The NPLs ratio at the end of 2015 was at 1.70% of the total portfolio and the allowance for doubtful accounts to NPLs ratio stood at 96.84% at the end of 2015, indicating asset quality is still under proper control.

Corporate Governance & Corporate Social Responsibility

The Board of Directors has adhered to corporate governance policy and corporate social responsibility to enhance efficiency, effectiveness, transparency, and assessability of the management for the confidence and long-term benefits to all shareholders, investors, stakeholders, society, and environment.

Also, the Company engaged in the social activities to provide scholarships to students. In 2015, the Company received 98.75 score from the AGM Assessment Program of Listed Companies organized by the "Securities and Exchange Commission" in conjunction with the "Thai Investors Association". In addition, the company received the announcement of the "Very Good" status from the last 4 years for the Corporate Governance Report of Thai Listed Companies 2015 published by the "Thai Institute of Directors Association".

2016 Business Prospect and Strategy

Thai GDP in 2016 is forecasted to grow 3.5%, slightly increasing from that of the previous year. The positive factors to propel the engine are the government investments in the mega infrastructure projects and the growth in tourism sector. Also, energy prices remaining at low level will result in cost reduction for the private sector. Meanwhile, increasing cross-border trades of AEC jumping from Baht 1.4 trillion in 2015 to Baht 1.6 trillion in 2016 are expected to uphold the economic growth.

The domestic new car sales in 2016 are expected to drop to 720,000 units from 2015. However, the government will accelerate to disburse in the mega infrastructure projects. This will support the demand for construction vehicles and equipments which in turn benefits our hire purchase and leasing businesses.

The Company has prepared to grasp the opportunities of AEC commencing from the end of last year. We have conducted the market expansion through opening new branches in gateway cities along the neighboring countries of CLMV to capture the transport link of booming border and transshipment trades.

Finally, the Company's Board of Directors would like to convey heartfelt gratitude to shareholders, customers, creditors, and employees for their support and confidence.

For and on behalf of the Board of Directors.

Dr. Amnuay Viravan
Honorary Chairman

Mr. Lo, Jun-Long
Chairman of the Board of Directors