Dear Fellow Shareholders,

2020 will be remembered as the year of an unprecedented public health crisis with the outbreak of COVID-19 worldwide. The impact from the lives lost and social as well as economic disruptions worldwide will be felt for years to come.

The Thai economy contracted by as much as 6.1% as a result of the pandemic and our business was adversely affected as well. Our factoring volume decreased by around 15% from Baht 31,482 million in 2019 to Baht 26,624 million in 2020, and our loan volume (Leasing/Hire Purchase and Inventory Finance) contracted by 25% from Baht 1,099 million in 2019 to Baht 825 million in 2020. As a result, total revenue decreased by around Baht 82 million in 2020 (excluding one-off items last year) compared to 2019, and the Company closed the year with a net profit after tax of Baht 133.62 million, a decrease of 24% (excluding one-off items last year).

Despite the difficult environment that we faced in 2020, the Board is proposing a dividend payment of Baht 0.14 per share or 14 Satang per share for the Fiscal Year 2020 totaling Baht 69.09 million or 51.71% of the net profit. This is in accordance with the dividend policy of the Company of not less than 50% of the net profit after provision for legal reserve, and subject to the approval of the 2021 Annual General Shareholders’ Meeting to be held on 20th April 2021.

Business Strategy

2021 will be another challenging year for the Company as the pandemic is still here with us. Although the Thai economy is projected to recover to a growth of between 2.5% - 3.5% in 2021 underpinned by a recovery in domestic demand, supportive fiscal policy measures and a recovery of exports, there are still uncertainties from both external and domestic fronts. COVID-19 is yet to be brought under control (although the arrival of vaccines should help to keep it in check), trade tensions between the major world economies and other geo-political risks still remain.

Nevertheless, the Company will continue to grow our core businesses of factoring and equipment financing in 2021 with a focus on sectors with strong growth potential, such as the Technology and Government sectors, and exercise continued discipline in risk management. We intend to remain a leader in the Factoring Industry of Thailand and will strive to explore new business opportunities to better serve our local SMEs.

We recognize the need to leverage technology so that our businesses can grow at scale and also to facilitate safe and efficient remote work arrangements. We will embark on a project to digitize our entire operations in 2021.

Corporate Social Responsibility

The impact of the COVID-19 pandemic will continue to be felt for years to come. This intensifies the need for a broader Environmental, Social and Governance (ESG) agenda to ensure the Company’s future sustainability.

In 2020, we implemented i) revised credit exposure guidelines based on the Company’s annual profits and shareholders’ funds with the key principle of managing risks and to grow in a sustainable way; ii) updated Business Continuity Plan to deal with the pandemic with the key objective of keeping our staff safe, preserving jobs and ensuring that we continue to support our clients without interruptions by setting up an alternative operating site at Bangna and splitting into 2 teams as well as allowing some staff to operate from home iii) renewal of the certification of the Private Sector Collective Action Coalition against Corruption (CAC) for another 3 years till 2023, and iv) assistance to our community by delivering healthcare supplies to hospitals during the beginning of pandemic when they were in short supply.

Appreciation

On behalf of the Board of Directors, I would like to record our appreciation to Mr. Eugene Tan Hai Leng, who stepped down as the director and Chairman of the Board of Directors in September 2020, for his valuable contributions to the Company over the past 5 years.

My sincere appreciation also to our shareholders, clients, business partners, bankers and all other stakeholders for their continuing support. Last but not least, I would also like to thank the management and staff for their commitment and support to ensure the continued success of the Company.

Yours faithfully,

Randy Sim Cheng Leong
       Chairman
   5th March 2021