The directors have the pleasure in presenting the Company and its subsidiaries’ annual report and audited financial statements for the year ended December 31, 2023.

The year 2023 was another challenging year. Even though the effect from COVID-19 pandemic was gradually and the country was re-open, the Thai economic was still not back to the pre-covid level derived by the delay of 2024 government budget and the high level of household debt. Moreover, the global economic still have the impact of monetary tightening by major central banks, weak demand from China, and protracted geopolitical tensions.

For the overall automobile industry, the total domestic new car sales have shrunk due to the overall economic slowdown and low consumer confidence. The car sales in 2023 were 775,780 units, decreased 8.7 percent from 849,388 units in 2022. By the same token, domestic truck sales decreased by 11.4 percent from 31,230 units in 2022 to 27,682 units in 2023 due to a slowdown of demand in transportation of the export sector and logistic business.

The Monetary Policy Committee decided to increase the policy interest rate for 5 times throughout the year 2023 from 1.25 percent to 2.50 percent to normalize the monetary policy stance in a gradual and measured manner toward a level consistent with long-term sustainable growth.

PERFORMANCE IN 2023

Despite various difficulties during the year 2023, the Company total assets at the end of 2023 were THB 77,529 million, increasing by 12.1 percent from 2022.

As of December 31, 2023, total liabilities were THB 66,870 million increasing by 13.5 percent from 2022 to support the portfolio growth. The shareholders’ equity was THB 10,659 million increasing by 3.9 percent from 2022 resulting from the Company’s operating profit. The Company has paid-up capital at THB 2,639 million with the retained earnings of THB 5,179 million.

From the continuing growth of portfolio in 2023, the total revenues were THB 6,499 million, increasing by 15.6 percent from 2022. The total operating expenses were THB 3,060 million increasing by 28.0 percent from 2022 mainly due to an increase in bad debt reserved expenses. Consequently, the total profit for the year 2023 was recorded at THB 1,219 million, decreasing by 19.4 percent from THB 1,512 million in 2022. The total portfolio in 2023 amounted to THB 75,257 million, increasing by 11.3 percent from 2022 mainly due to the growth of hire-purchase disbursement.

According to the Thai economic slowdown, the Company overall asset quality has been dropped. NPLs ratio at the end of 2023 was 4.70 percent of total portfolio, increasing from 3.47 percent in 2022. The allowance for expected credit loss to NPLs stood at 62.32 percent at the end of 2023.

In year 2023, The Company’s strategy was still maintained as one of the market new truck market leaders.

CORPORATE GOVERNANCE & CORPORATE SOCIAL RESPONSIBILITY

The Board of Directors aimed to enhance efficiency, effectiveness and transparency while steadfastly promoting sustainable development. Therefore we are committed to high corporate governance policy, corporate social responsibility, anti-corruption policy and business ethics policy.

The Board of Directors remains committed to upholding rigorous corporate governance standards, corporate social responsibility, anti-corruption measures, and business ethics policies. These efforts are aimed at bolstering efficiency, effectiveness, and transparency while steadfastly promoting sustainable development.

With a dedication to societal and environmental responsibility, the Company provides loans with the aim of fostering enduring financial stability.

Furthermore, the Company actively participates in various social responsibility, such as donating to hospitals, donating to a cleft lip and cleft palate treatment center, attending the “From Hand to Heart - Sewn by hand and passed on from the heart” for breast cancer patient project, providing scholarships to university students, and participation in blood donation at the Thai Red Cross Society. In addition, the Company supports the community by painting the school in Phitsanulok and mangrove planting in Samut Sakhon, releasing aquatic animals back to the nature, and cleaning up the surrounded area in Sang Chan Beach, Rayong.

In 2023, the Company received 98 score of the AGM Assessment Program of Listed Companies conducted by the “Securities and Exchange Commission” in collaboration with the Thai Investors Association. Additionally, the company was upgraded the status to “Excellence” in the Corporate Governance Report of Thai Listed Companies 2023 published by the Thai Institute of Directors Association.

Furthermore, the Company has been granted the 2nd renewal the certified membership approval from Thailand's Private Sector Collective Action Coalition against Corruption (CAC) Council, underscoring its commitment to combatting corruption within the private sector.

BUSINESS PROSPECT AND STRATEGY IN 2024

The Board of Directors has approved the Company's business strategies, objectives, and policies, with a commitment to conduct business in alignment with the principles of sustainability and good corporate governance. This includes ensuring effective risk management and cost control measures which are in place.

The Company forecasts that the 2024 the economy will recover from previous year. The forecasts indicate that the Thai GDP is expected to grow approximately 2.5-3.0 percent from the previous year. This growth will be driven by increased private consumption and domestic demand, and the increase in the number of tourists. Additionally, private investment may have expansion, particularly in the second half of the year, supported by government infrastructure projects and government budgets. However, it's important to note that economic gains could be hindered by factors such as high levels of household debt, geopolitical conflicts, and elevated energy prices.

The domestic new car sales in 2024 are expected to be increased to 800,000 units or growth 3.0 percent along with the economic recovery. The private sector will drive the demand for commercial vehicles.

In 2024, the Company intends to pursue business expansion while maintaining stringent asset quality control measures. As part of our commitment to responsible lending practices, we will offer financial services tailored to support environmentally friendly products, such as solar rooftop installations. Additionally, we will incorporate Environmental, Social, and Governance (ESG) considerations into our credit assessment process, ensuring that we mitigate potential risks and uphold our commitment to safeguard society and the environment from severe adverse impacts.

On behalf of the Board of Directors, I extend our heartfelt gratitude to our shareholders, customers, and business partners for their unwavering trust and support. We are deeply appreciative of the confidence you have placed in us, which has been instrumental in our continued growth and success.

Furthermore, I would like to express our sincere appreciation to our management team and employees for their exceptional dedication and commitment to the Company, particularly during challenging times. Their steadfast resolve and hard work have been invaluable in navigating through adversity and ensuring the resilience of our operations.

Together, with the collective efforts of our stakeholders and the dedication of our team, we look forward to achieving even greater milestones and creating sustainable value for all. Thank you.