During the end of the year 2016, when our beloved King passed away, the undeniable deep grievance has been spreading over the country. We, on behalf of executives and employees of M.K. Real Estate Development Public Company Limited do pay our profoundly respect and royalty to the greatest King who always gives the peacefulness to all Thais and also brings about the country development in all areas for 70 years. Although your Majesty the King passed away, he will be always memorable remained in all Thai hearts. Please allow us to take one of his observation royal speeches on “an effort” to be our guideline in business operation for life:

“A right, fair and desirable effort is the effort to eliminate all deterioration and prevent it from its rebirth, one thing and is the effort to create righteousness and maintain it not to be disintegrated, another thing. These both “effort” meanings are the essential patronage for oneself behavior and working performance. If everyone in the nation has been persevere in such effort, benefits and pleasure will immediate definitely rise both to oneself and community at large. (The royal observation royal speech in The Fiftieth Anniversary (Golden Jubilee) Celebrations of His Majesty’s Accession to the Throne, B.E. 2539)

In 2016, real estate business overview starts to adjust the development of housing project to focus more on consumer demand regarding for living than for investment or profit. As a result, horizontal real estate i.e., single family house, twin house and town home is gradually in progress and also because of the low risk under the current economic fluctuation. Various business entrepreneurs vigorously keep an eye on this business due to its ready for sale and transfer. In addition, governmental supportive measures specifically in transfer and mortgage fee reduction is the main factor encouraging the substantial increase of house sales figure especially housing in Bangkok metropolitan region. Other positive economic factors are also significant means to move forward the real estate business, e.g., hi-growth of tourism industry, investment policy in country’s transportation and new sky train line building.

In 2017, growth ratio of Thai economy should be closed to 2016 ratio and to forecast, it will be gradually flourished for the year 2017 - 2019 around 2.5 - 4.0% with a support from the country’s expenditure recovery and the continuous progress of tourism cluster. Furthermore, governmental support on budget deficit policy of 2.6% GDP is urging the economy including pushing in infrastructure investment project to be in concrete whereas the Monetary Policy Committee (MPC) should freeze the interest policy until next year from the slow economy expanding ratio.

The company’s action plan has been changing its structure and the business is cumulative for more growth and to be well competitive in real estate market in all negative facing factors. Our main product shall still be the horizontal housing, our expertise and reliability our clients rest in us for over 60 years for worthy to the desire and need to all Bangkok metropolitan area for the price of 2 - 10 million baht; single family house, twin house and town home, i.e., Chuan Chuen Town, Kaewin - Bangyai, Chuan Chuen Prime Bangkok - Pathumthani, Chuan Chuen Park On-nut - Circle. The company shall continue invest for new land for developing more new projects in the future.

In the meantime, new business plan is “real estate for rent” in order to increase income proportion and create a long term financial stability which is at Park Court, Suthumvit 77 and T77 Park.

On behalf of the Board of Directors, I would like to convey my appreciation to all the parties for your continued participation and support. We will move the Company through issues and obstacles and reach the great success in the future.

Suthep Wongvorazathe