Dr. Vichian Patthayanun, Chief Executive Officer of Chao Phraya Mahakhan Public Company Limited (CMC) announced that CMC is pleased to report significant progress from its revenue diversification strategy through new business lines, achieving a remarkable 142% growth in new business revenue in Q1 of 2022 compared to the same period last year. Notably, the healthcare sector, which imports and sells medical equipment, generated 15 million baht, accounting for 6% of total revenue. The service sector, including hotels, rental services, and cleaning services, contributed 36 million baht, or 14% of total revenue, while the construction business brought in 44 million baht, representing 17% of total revenue. The real estate sector remained stable due to the impact of COVID-19, generating 166 million baht, which is 63% of total revenue. Overall, total revenue reached 261 million baht, with the restructuring plan showing significant growth in new business revenue proportions. This aligns with the strategy to reduce the contribution of core real estate revenue from 80% to 60% in 2022 while increasing the share from new businesses from 20% to 40%. We expect to see a more comprehensive growth picture for the group in 2023-2024.

In the real estate sector, Q2 will see an aggressive push with accelerated construction of condominium projects, anticipating revenue recognition from inventory of over 1.4 billion baht by the end of this year. The company plans to gradually launch four horizontal projects and high-rise projects worth over 7 billion baht in prime future locations such as Suksawat, Rangsit, Rama 2, Pak Nam-Samut Prakan, Nawamin, and Pinklao. Additionally, a proactive marketing strategy will be implemented to stimulate sales among both existing and new customers. We expect the real estate market to recover significantly in the second half of the year due to positive factors from the easing COVID-19 situation and consumers adapting to a safer lifestyle. Furthermore, the government is accelerating plans to revive the Thai economy by lifting the Test & Go system for foreign tourists, which is expected to boost consumer confidence and willingness to invest in the latter half of the year.

Confident Outlook for the Second Half - CMC Set to Launch First Project of 2022 with Horizontal Development, which will enable the company to recognize revenue more quickly. This project features two-story townhomes with a width design, valued at over 500 million baht, located in the northern area of Ban Kluai-Sai Noi, near the Kanchanaphisek Ring Road and Bang Yai Intersection, close to the Purple Line extension at Khlong Bang Phai and near Central Westgate shopping mall and Kasemrad Hospital. Priced in the low two million baht range on a 20-square-wah plot, these homes offer increased usable space for various activities, catering to the lifestyle needs of the new generation, particularly Gen Y and Millennials looking to start families, including both salaried workers and freelancers. The project will incorporate new functions and technological innovations that align with changing consumer behaviors due to COVID-19, enhancing the living experience and encouraging consumer decision-making based on location and price. Additionally, high-rise condominium projects are set to launch in Suksawat, Nawamin, Pinklao, and Pak Nam-Samut Prakan, with a total value exceeding 5.4 billion baht, with pre-sales coming soon.

While the new businesses are strengthening the company's revenue base, the real estate sector remains the core focus of the group, with ongoing plans for new project developments. The new businesses are strategically aligned to complement and build upon the real estate sector, particularly in healthcare and medical services, which will clearly enhance residential development.

This integrated approach involves incorporating health and medical innovations to provide a better quality of life for residents compared to other real estate offerings, in line with the vision of becoming an “Excellent LIVING Development Provider”. CMC is confident that its strategic plans for both core and new businesses are interconnected, further supporting the stability and continuous growth of the CMC group's performance.