Message from Chairman

Dear Fellow Shareholders,

Our lives and daily activities in 2021 continued to be affected by the pandemic and the Company’s focus remained on supporting our staff, clients and suppliers to prioritize their safety and our shared business continuity.

The Company earned Baht 152.82 million in 2021 on a slightly higher revenue to Baht 385.42 million or a 3% growth YoY. This resulted from an 11% growth in our factoring volume to Baht 29,659 million as the Thai economy recovered from the severe pandemic disruptions of 2020. Interest expenses declined by 10% YoY or around Baht 4 million while operating expenses increased by 7% YoY or around Baht 7 million. Allowance for loan losses dropped by 95% YoY or almost Baht 22 million due to lower NPL level and some recoveries.

In view of the Company’s performance in 2021, the Board is proposing a dividend payment of Baht 0.158 per share or 15.80 Satang per share for the Fiscal Year 2021 totaling Baht 77.97 million or around 51% 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 2022 Annual General Shareholders’ Meeting to be held on 20th April 2022.

We have yet to achieve our pre-pandemic level of activities and while we expect some pandemic-related challenges to persist in 2022, we are cautiously optimistic that an expected recovery across domestic demand, tourism, manufacturing and exports will gain momentum with the phased re-opening and supportive Government measures.

The Company will continue our prudent growth roadmap in our core businesses of factoring and equipment financing but will increasingly focus on penetrating sectors with strong underlying growth potential such as technology infrastructure, SaaS and e-commerce. We also plan to develop our supply chain financing business and will continue to explore new opportunities and ways to better serve our Thai SMEs.

We have committed to investing in technology so that our businesses can grow at scale. We target to digitize our entire factoring operations using our Group’s proprietary cloud-based lending operating system built on Salesforce by 4Q 2022.

The Company will continue to develop a broader Environmental, Social and Governance (ESG) agenda to ensure that the Company’s success is in line with our corporate social responsibility for the long-term benefit of all stakeholders.

On behalf of the Board of Directors, I would like to express my sincere appreciation and gratitude to our shareholders, clients, business partners, bankers, and all our stakeholders for your continuing support. I would also like to thank the management and staff for your commitment to ensure the continued success of our Company.

Yours faithfully,

Randy Sim Cheng Leong
Chairman
22^nd February 2022