Year 2015, the real estate sector inherits from previous years an easy down state following the recession in domestic economy as a result of export declination, which is the main factor of the economic growth, and fell steadily in the recent years, weakening purchasing power among consumers and drop of overall investment. On the other hand, positive factors were a growth of tourism industry helped stabilize overall domestic economy including an increase of government investments.

Operating results of the Company were as follows.

In 2016, the growth rate of Thai economy, as forecast by relating institutes, may rise approx by 3-4%. The external impacts on Thai economy is the volatility of the “Yuan” - Chinese currency where China is one of the major trading partners of Thailand. Furthermore, the imposing of policy to increase interest rate by US Central Bank affects the economy in domestic and global scale as well. The tourism industry is expected to continue its growth, in which the quality should be enhanced. It is crucial that government undertake measures and invests in mega projects to expand the investment and stimulate the economy.

Normally, the Company’s operating results in the past years were ranged at approx. 2,000 million baht per year, with the low growth rate. It is clear that the growth trend of the Company is unfavorable and it is necessary to re-organize the structure and expand business to stimulate the expansion and competitiveness in real estates market. Thus, the direction for the Company’s business is to focus on development of properties for sales, which is the existing principle. Another factor is that our business strength is focused on low-raised housing where customers always rely on our personnel what is skilled and experienced through decades and what assure customers’ confidence. On the other hand, the Company will implement business expansion plan - real estate for rent as to increase income from rent of property in a long term as well as to stabilize the financial status and to expand business for long term, steady growth efficiently.

However, the strategy plan to move forward still needs to be carefully executed in order to create confidence in its performance, where the profit from real estate business must be correctly maintained with focus on financial discipline where the D/E Ratio should be kept in a reasonable rate. The Company continues to develop the low-raised properties and other products that will meet the market need. The strength of Chuan Chuen brand will be continued while the income from rent of real estate will steadily grow.

In 2016, the Company has set its sale at approximate 2,800 million baht, representing a growth rate of approximate 13% in comparison to year 2015. The main products are single house and town house such as ChuanChuen Grand Ekkachai-Bang Bon, ChuanChuen Grand Ratchapruk-Rama5 and Leon on Sukhumvit 62. In addition, the Company will acquire land in appropriate location to set and develop new project.

In 2016, the products and projects will be adjusted to meet customers’ requirement with concept: “Home is where the heart is” which will promote as well as enhance the Company brand vivid image.

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