ORN has clarified that it has not been significantly affected by the flooding in Chiang Mai, as insurance coverage is in place. The business and operational performance remain unaffected. The outlook for Q3 2024 is positive, with international sales reaching a New High, contributing to a backlog increase of 1.4 billion baht.

Mr. Akkadech Udomsiri Thamrong, Vice President of Orn Sirin Holding Public Company Limited (ORN), stated that the company has informed the Stock Exchange of Thailand, as well as shareholders, bondholders, and investors, through the SET Link system regarding the impact of the flooding in Chiang Mai on various projects within the group. The details are as follows:

1. The flooding in Chiang Mai since October 3, 2024, was caused by the influence of monsoons and previous storms, along with La Niña conditions, resulting in heavy rainfall along the Ping River. The soil in the area could not absorb the rainwater, leading to a water level at the P.1 measurement point (Nawarat Bridge) reaching 5.30 meters, compared to 4.90 meters in 2011, which was the highest level in nearly 100 years. Consequently, water overflowed into many areas of Chiang Mai city.

2. The group has two condominium projects on Chang Klan Road, designed to withstand flooding up to the level experienced in 2011. However, this year, the water level exceeded the engineered protection level, causing flooding within both condominium project areas. Nevertheless, the group has sufficient insurance coverage to address any potential damages, ensuring that the group will not face negative impacts on its operational performance and financial position.

3. The group is currently constructing the Arise Chareonmueang project, funded by bonds and the group's cash flow. The project is located on Charoenmuang Road, which has been affected by flooding, but its location is far enough from the flooded areas to avoid any impact. The current construction budget for this project remains adequate as it has not faced any negative effects, and the group continues to aim for the transfer of ownership of the units to recognize revenue in Q3 2025 as originally planned.

4. The group is also constructing the Mill Hill International School located in Doi Saket district, which is in one of the three areas not affected by flooding, thus not facing any negative impacts on this project.

Regarding the business outlook for Q3 2024, it appears promising. The company is accelerating its sales strategy in collaboration with sales agents to expand its customer base among foreign clients, particularly from Myanmar. The marketing strategy is being advanced to encourage purchasing decisions among Thai and foreign customers, leading to new high sales and an increase in backlog to approximately 1.4 billion baht, which will gradually be recognized starting in Q3 2024.