Message from Chairman | IFS Capital (Thailand)

Dear Fellow Shareholders,

Despite a challenging economic environment, and headwinds in the form of soaring energy prices, rising inflation, geopolitical conflicts and continuing supply chain constraints from COVID-19, our company delivered a set of credible results in 2022.

Our factoring volume grew by around 9% to Baht 32,206 million, and our loan volume (leasing/hire purchase and inventory financing) increased by approximately 25% to Baht 1,000 million. As a result, our total revenue increased by 9% to Baht 421 million in 2022. After accounting for an increase in interest expense of Baht 3 million, an increase in operating expense of Baht 7 million due mainly to technology investments and an increase in allowance for expected credit loss of Baht 22 million, our net profit after tax grew by around 3% to Baht 156.91 million, and we closed the year with a net comprehensive income of Baht 161.10 million.

Randy Sim Cheng Leong

We are pleased to announce that the Board is proposing a dividend payment of Baht 0.1633 (or 16.33 Satang) per share for the Fiscal Year 2022, totalling Baht 80.59 million or 51.36% 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 2023 Annual General Shareholders’ Meeting to be held on 18th April 2023.

Looking ahead to 2023, we expect continued challenges from global economic uncertainties such as fears of global recession, elevated inflation, energy prices, interest rates, and ongoing trade tensions between major world economies. These risks are somewhat mitigated by a projected recovery of Thai economic growth to between 3.0 to 4.0% on the back of a tourism rebound, an increase in public and private investments and the continued expansion of domestic demand. We remain cautiously optimistic about the growth prospects for our business, and we plan to continue investing in new technology and growing our core businesses of factoring and equipment finance with a prudent credit risk management approach. We also aim to develop our supply chain financing business and expand our international factoring business while exploring new opportunities to better serve and support local SMEs.

At IFS, we remain committed to delivering long-term sustainable growth for our shareholders and stakeholders through our Environmental, Social and Governance (ESG) agenda. In 2022, we completed the Carbon Footprint for Organization (CFO) report and will be implementing plans to improve our organizational readiness. We are also preparing to renew our commitment to the Private Sector Collective Action Coalition against Corruption (CAC). We aim to be a force for good in our communities and to support those in our society who need help.

On behalf of the Board of Directors, I would like to record our sincere appreciation to Khun Singha Nikornpun, who had stepped down as our Chairman of the Audit Committee and independent director in May 2022, for his valuable contributions to the Board for over 9 years. I would also like to take this opportunity to welcome Khun Sutee Losoponkul to the Board.

We would like to thank our shareholders, clients, business partners, bankers, and all other stakeholders for their continued support, and also our management and staff for their steadfast commitment to the Company. We look forward to updating you on our progress in the coming year.

Yours faithfully,

Randy Sim Cheng Leong

Randy Sim Cheng Leong
   17th February 2023