AWC Announces Q2 Financial Results for 2021

Emphasizing Financial Strength Management Strategy and Expanding Investments to Enhance Business Value

 

Bangkok, August 10, 2021 - Asset World Corp Public Company Limited (AWC), a leading real estate developer in Thailand focused on comprehensive lifestyle solutions, has revealed its Q2 2021 financial results, which continue to be impacted by the ongoing COVID-19 situation. The company is confident that by the end of the year, the tourism industry and the Thai economy will recover. AWC is accelerating its proactive plans to manage costs effectively while moving forward with investments in businesses that create revenue opportunities, targeting new customer segments to generate profits and cash flow from operations.

 

Nawallapa Traisorat, CEO and Managing Director of Asset World Corp Public Company Limited, shared the Q2 2021 financial results, noting that the company has changed its accounting policy for valuing investment properties to a fair value method to better reflect true value. In Q2, the company reported total revenue of 1,546 million baht, an increase of 94.6% compared to the same period last year, with a loss of 198 million baht. This increase in revenue was due to the government's allowance for travel during the Songkran festival, contrasting with the previous year's travel restrictions.

 

In the first half of the year, the hospitality and hotel business was directly affected by the inability of foreign tourists to travel to the country. However, the company managed to maintain a satisfactory occupancy rate of 15.91% in Q2 2021, higher than the 5.71% in Q2 2020. The average revenue per available room (RGI index) was 125.3, exceeding the market average for the same period. Notably, hotels such as Le Méridien Bangkok had an RGI of 322.4, Le Méridien Chiang Mai at 249.6, Banyan Tree Krabi at 217.3, and Bangkok Marriott The Surawongse at 216.3. Meanwhile, the commercial real estate business, which includes retail and office buildings, maintained a high occupancy rate for Grade A office buildings, resulting in an EBITDA of 1,094 million baht for the Retail & Commercial segment in Q2 2021, a 101.5% increase compared to Q2 2020. This allowed the company to create opportunities and maintain stable EBITDA growth, reinforcing its strategy of diversifying asset portfolios to reduce income volatility. Additionally, the company focuses on enhancing asset value and developing standards while emphasizing "financial strength and investment," including securing sufficient credit facilities for investments and liquidity.

 

The company has a clear investment discipline, focusing on businesses and assets that can generate cash flow quickly and meet investment return criteria, as well as policies for wealth preservation to maximize asset value effectively and efficiently.

 

"We believe that tourism and the real estate business in Thailand will begin to recover by the end of the year when the vaccination rollout is widespread across the country and the infection rates decrease. This period presents an opportunity for the company to strengthen all aspects in preparation for when the situation returns to normal, allowing AWC to achieve significant growth," Nawallapa stated.

 

In Q2, the company did not remain idle but continued to invest and seek new business opportunities to enhance standards and create long-term brand value. This includes signing agreements with IHG, a global hotel partner, to jointly manage hotels and resorts, collaborating with Nobu Hospitality, a luxury lifestyle brand, forming partnerships with couture fashion brands, and integrating diverse business plans to generate revenue from new customer segments. The company is also developing the AWC Connext application to serve as a platform for seamless spending and lifestyle through the AWC Infinite Lifestyle program, making it more convenient for everyone.

 

Nawallapa also addressed a key challenge this year, stating that in addition to strengthening the business, the company is focused on "sustainable development." In May, AWC was invited to participate in the evaluation of the Sustainable Stock Index (SET THSI) for 2021 in the real estate and construction industry, gathering data, processes, and operational efficiency in sustainability across three dimensions: economic, environmental, and social, through 20 questions from the Stock Exchange of Thailand. The company also assesses risks comprehensively across all crises while developing good governance plans to maintain its leadership as a real estate developer in Thailand and expand internationally.

 

"Operating a business during the COVID-19 era is the greatest challenge. We must focus on both short-term profitability and cash flow while creating business value for sustainable long-term growth, benefiting the company, employees, and all investors," Nawallapa concluded.