AP Thailand: Three Decades of Progressive Growth <\/strong><\/span><\/p>

Leading into 2021 with Three Strategies for the New Global Rules <\/strong><\/span><\/p>

Reflecting True Identity in the Industry <\/strong><\/span><\/p>

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  • Defying the Crisis: In 2020, total revenue reached 46.13 billion baht, with a net debt-to-equity ratio of just 0.71 and a net profit of 4.225 billion baht.<\/strong><\/span><\/li>
  • Prepared for Changing Global Rules with Three Strategies: Create Independent Leaders, Enhance Competitive Opportunities – Foster a Culture of Innovative Thinking – Transform Business with Full Digital Integration. <\/strong><\/span><\/li>
  • Building on Success in 2021 with a target of launching 147 projects nationwide, valued at over 121.89 billion baht, with revenue recognition target of 43.1 billion baht and sales target of 35.5 billion baht.<\/strong><\/span><\/li>

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Bangkok<\/span> (February 24, 2021) – <\/span>Mr. Anuphong Assavabhokhin, CEO of AP Thailand Public Company Limited, <\/strong><\/span>AP Thailand<\/a><\/strong> announced that today, AP Thailand <\/strong><\/a> is entering its 30th year of business, with EMPOWER LIVING as a core commitment that has guided AP Thailand from the past, through the present, and into the future. This commitment plays a crucial role in creating and providing products or services that enable customers and stakeholders to choose to live a better life on their own terms. Today, the vision of EMPOWER LIVING has become the foundation for the company's strength, as 2020 was a year that proved our authenticity in the real estate industry.<\/strong>

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AP has experienced unprecedented growth beyond expectations, with total revenue from horizontal products, condominium projects (100% JV), and other businesses reaching 46.13 billion baht, a growth of over 42% from the previous year, and a net profit at the end of 2020 of 4.225 billion baht, <\/u><\/strong>an increase of over 38%. The debt-to-equity ratio remains very low at just 0.71.<\/u><\/strong> This reflects our internal management capabilities, alongside effective product portfolio management and cash flow management amidst the ongoing crisis.<\/strong>

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Mr. Anuphong Assavabhokhin, CEO of AP Thailand Public Company Limited, stated, “The COVID-19 crisis is just one example of the ongoing challenges we face. No one can predict when it will end or when new crises will arise and how severe the damage will be. The business landscape is becoming increasingly challenging, leading to new forms of competition. The traditional business model is no longer the answer for survival in the future. Therefore, moving forward, AP Thailand will not stop strengthening from within to adapt to the changing global rules, guided by three key strategies that will drive the organization to become number one in the Thai real estate development industry.<\/u><\/strong>”

The three key strategies are as follows:<\/strong><\/span>

1. Create Independent Responsible Leaders <\/u><\/strong>(CREATE INDEPENDENT RESPONSIBLE LEADERS)<\/u><\/strong> <\/strong>

Organizations must be highly flexible in abnormal conditions to gain a competitive advantage. Therefore, the company is moving forward to create the role of leaders in the new era to be <\/span>“leaders with the independence to make decisions” under the framework of responsibility to themselves, customers, partners, and colleagues, focusing on “customer needs” over “company requirements” or “organizational limitations.” It is believed that empowering employees who are close to customers with decision-making authority will enable the organization to respond to customer needs in a rapidly changing world more effectively than if decision-making power rests with just a few individuals in the organization.<\/u>

2. Foster an Organizational Culture that Encourages Innovation <\/u><\/strong> <\/u>(INNOVATIVE CULTURE)<\/u><\/strong> <\/span>

For all AP employees to create and provide products or services that support people in society to choose to live life on their own terms, every member of the organization, regardless of their role or responsibilities, must be part of driving innovation. The company thus emphasizes creating an organizational culture that fosters innovation by instilling a design thinking mindset in all employees, focusing on identifying the unmet needs of customers. This approach should be a foundational principle for all departments to collaborate and develop new solutions together.<\/span>

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Today, innovation is not just about “dreaming of something new and great”; the most valuable innovations are those that can address the unmet needs or hidden desires of customers, even if they are small.<\/span>

3. Transform Business with Full Digital Integration <\/u><\/strong> (EVERYTHING DIGITAL)<\/u><\/em><\/strong>          <\/strong>

Another strategy for driving the organization is to integrate all operational dimensions into a holistic digital management system, encompassing customers, partners working with AP, and employees. This will support the two aforementioned strategies. Quick decision-making to respond to customers and create innovations requires fast and accurate data to analyze and identify the unmet needs of customers precisely, in order to deliver a ‘life experience’ through convenient and swift products and services to customers.<\/span>

These three strategies will serve as a crucial foundation for preparing the organization, especially in the real estate development business, which is expected to expand aggressively. In 2021, AP Thailand will have up to 147 real estate projects under development nationwide, valued at over 121.89 billion baht, with 34 new projects launching this year valued at approximately 43 billion baht.<\/span>

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This includes 30 horizontal projects valued at approximately 28.8 billion baht and four condominium projects expected to launch in the second half of the year, valued at approximately 14.2 billion baht. Additionally, there are 113 projects currently for sale across various locations in Bangkok and other provinces, with a total product value ready for sale of approximately 78.89 billion baht. In 2021, the company aims to recognize revenue (including 100% JV) of 43.1 billion baht and a sales target of 35.5 billion baht.<\/span>

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“The arrival of vaccines brings hope, but the journey to that light of hope is still long. What we all need to be most cautious about now is the ‘Ripple Effect’ or the phenomenon of waves, centered around the economic damage caused by COVID-19, which will extend the recovery time over several years. The forecast for the recovery of the Thai economy is merely a numerical rebound.<\/span>

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However, the hidden fear is that all the methods we have used and learned will change and continue to change. This means that for many years to come, we will still face new challenges arising from this global crisis. If the over 2,000 employees of the AP group can operate under these three strategies with understanding, AP will be able to create and provide products or services that support customers and stakeholders to choose to live a better life on their own terms, in line with the EMPOWER LIVING commitment established,” Mr. Anuphong added.

Additionally, according to an analysis by securities analysts, AP is described as “AP Thailand is a hero even in times of crisis” and a new market leader, with strong sales and new project launches, particularly in horizontal sales, and the transfer of newly completed condominiums, highlighting “AP as a company with strong performance amidst difficult conditions.” [Source: *MAYBANK KIM ENG RESEARCH, October 2020]<\/em>

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