Message from Chairman | IFS Capital (Thailand)

Dear Stakeholders,

As we close another year, we are grateful that despite going through a time of global economic uncertainty and geopolitical challenges, our team not only maintained our position as the leading factoring house in Thailand but also delivered results that reinforced our commitment to long-term value creation.

We achieved a total factoring volume of Baht 30,612 million and loan volume (leasing/hire purchase and inventory financing) of Baht 996 million in 2023. Although the business volume was slightly lower as compared to 2022, efficiency in cost management as well as portfolio management enabled us to close the year with a net profit after tax of Baht 158 million, a slight growth of 0.95% from 2022. We maintained a healthy financial position with equity growing 4.5%, ensuring financial stability and the ability to support future growth initiatives.

Randy Sim Cheng Leong

In 2023, we continued to focus on serving our clients better, launching a new core lending operating system that enhances our connectivity with partners, streamlines our operations, and elevates our data analytics and risk management capabilities. This is not just an upgrade over our old system but a fundamental shift in how we operate, giving us the infrastructure to move to the forefront of our industry.

We are pleased to announce that the Board is proposing a dividend payment of Baht 0.168 (or 16.80 Satang) per share for 2023, totalling Baht 82.91 million or 52.34% of the net profit, in line with the Company’s dividend policy to distribute not less than 50% of the net profit after provision for legal reserves. This will be subject to the approval of the 2024 Annual General Shareholders’ Meeting to be held on 22nd April 2024.

We approach 2024 with a sense of cautious optimism. In a rapidly changing world, it is not only important to keep up with changes but just as important to know what will likely stay the same.

We are confident that our diverse client base, strong financial position, and commitment to innovation will enable us to navigate headwinds and seize new opportunities. Our focus this year will be to develop the supply chain financing business, expand our international factoring volume, and find new ways to support local SMEs. We will also explore strategic partnerships that can strengthen our relevance and impact in Thailand.

At IFS, sustainability represents both a form of responsibility, as well as an opportunity. In 2023, we completed the Carbon Footprint for Organization (CFO) report and implemented our plans for sustainable growth. We also renewed our commitment to the Thai Private Sector Collective Action Against Corruption (CAC).

On behalf of the Board of Directors, I would like to express our appreciation to Khun Chayut Vishchuprapha for his invaluable service as he stepped down from our Board in 2023. At the same time, I would also like to welcome Khun Taveesak Saengthong to the Board and I look forward to his contributions as we embark on our next phase of growth.

A heartfelt thank you to our shareholders, clients, business partners, bankers, and all other stakeholders for your continued support. To our management and staff, your dedication is the engine of our success. With your continued commitment, I am confident that we will continue to innovate, grow, and deliver value for many years to come.

Yours faithfully,

Randy Sim Cheng Leong

Randy Sim Cheng Leong
  21st February 2024