(Mr. Panote Sirivadhanabhakdi)
Chairman of Executive Committee
I am pleased that Golden Land Property Development PLC has continued to progress forward significantly on the back of an exceptional breadth of vision in business planning, a sound decision-making process and all-encompassing strategies towards driving greater profitability and desirable business outcomes. Despite becoming a multibillion property developer; yet, the Company remains pressing onward to achieve a sustainable growth rate amid challenging conditions and a rapidly changing economic landscape. I would like to express my genuine appreciation for invaluable contributions and devotion of all management and employees to the phenomenal business success.
In striving for its ambitious goal of becoming a leading player in Thailand’s property market in a sustainable manner, one of the Company’s key missions is to leverage the Company on par with international standards and reinforce the strength of Golden Land brand. To this end, at the beginning of 2018, the Company forged strategic alliances with Frasers Centrepoint Limited, the Singapore-based property developer, for mutual exchange and transfer of business know-how and innovations that are integrated into the future development of the Company’s projects.
As a result of strong capital structure together with business support from Frasers Centrepoint Limited to elevate the Company on an international practice, the Company was assigned BBB+ rating by TRIS Rating Co., Ltd., for the second consecutive year, coupled with a decreased level of finance costs, against a background of rising interest rates in the market.
The Company’s core revenues are derived from two businesses; i.e. the development of both residential and commercial projects with a ratio of revenue contribution at 85:15. Although residential sales remain a major revenue driver, the Company’s policy is to shift its focus to rental income from commercial properties to diversify risks and sustain its revenue growth.
Going forward in 2019, the property development industry is likely exposed to tougher challenges, ranging from a possible hike in interest rates to the Bank of Thailand (BoT)’s concern over cumulative risks in mortgage lending. In order to mitigate the risks, the central bank pushes forward tight regulatory frameworks on home loans and urges commercial banks to impose more stringent conditions on mortgage lending, e.g. a reduction in loanto- value (LTV) ratio to discourage unhealthy practices of lending for speculative purchases in the property market. However, such conditions do not have heavy impact on developers engaging in developing horizontal residential projects because their target clients are genuine homebuyers rather than speculators. The Company commits to move forward in a more vigilant approach that will entrust our shareholders with a continuity of strong financial status and delivering sustainable quality growth of business.