Mr. Lionel Lee, Chief Executive Officer of Raimon Land Public Company Limited or RML, a leader in luxury real estate development in Thailand, announced the company's financial results for the year 2019, reporting a net profit of 59.9 million baht, an increase of 1,896.6% from the previous year, with total revenue of 3,624.2 million baht, up 8.9% from last year. The company has a backlog of sales waiting for transfer valued at 8,010.5 million baht as of December 31, 2019. Additionally, the board of directors has proposed a dividend payment of 0.015 baht per share on May 29, 2020.

The company recognized revenue of 3,624.2 million baht, an increase of 8.9% from 2018, which had total revenue of 3,326.9 million baht, and a net profit of 59.9 million baht, up 1,896.6% from the previous year's net profit of 3 million baht.

The revenue growth was driven by the transfer of condominium projects, including The Lofts Asoke, The Diplomat 39, and the recently completed The Lofts Silom, which was ready for transfer in December. In total, there were 9 projects contributing to this growth. Furthermore, the company also generated income from recurring revenue businesses, including food and beverage operations amounting to 45.1 million baht, and other income of 320.1 million baht, which includes rental and service fees, marketing fees, project management fees, guarantee fees, and interest.

For the fourth quarter of 2019, the company reported total revenue of 557.5 million baht, primarily from The Lofts Asoke, The Diplomat Sathorn, and The Lofts Silom. The decrease in revenue during this quarter was anticipated by the company, as significant new projects like The Lofts Silom began recognizing revenue in December 2019, with most revenue from this project expected to be recognized in 2020. The gross profit margin for Q4 2019 increased to 29.4% from 25.4% in the same quarter of the previous year. However, the company reported a net loss of 129.0 million baht in this quarter due to ongoing business expansion, which incurred selling and administrative expenses for the continuous study of new projects.

The gross profit and gross profit margin in 2019 improved compared to 2018, as in 2018, 43.1% of total revenue came from sales of projects that offered special discounts and projects with lower gross margins, such as the Unix South Pattaya project, which was an older project completed and ready for transfer since 2015. Additionally, projects like The Diplomat 39 and The Diplomat Sathorn had lower gross margins because they were purchased for immediate sale and revenue recognition, thus avoiding construction risk.

As of December 31, 2019, the company had a total backlog of sales valued at 8,010.5 million baht from 7 projects, including the Tet Twelve project, The Lofts Silom project, The Estelle Phrom Phong project, The Lofts Ratchathewi project, The Lofts Asoke project, The Diplomat 39 project, and the Unix South Pattaya project.

Moreover, the board of directors approved the proposal to pay dividends from retained earnings not yet allocated at a rate of 0.015 baht per share for the fiscal year ending December 31, 2019, amounting to 62.6 million baht. The dividend will be paid to shareholders listed in the shareholder register entitled to receive dividends (Record Date) on May 13, 2020, with payment scheduled for May 29, 2020, pending approval from the annual general meeting of shareholders on April 30, 2020.

The volatility of the macroeconomic environment throughout 2019 continues to impact 2020. Although the trade war between the United States and China has begun to ease, the global population now faces a new challenge: the threat of the COVID-19 pandemic, which poses risks to health, trade, and international relations. The company is closely monitoring the situation to prepare and adjust operational plans to mitigate the impacts of COVID-19.

Additionally, after the Monetary Policy Committee of the Bank of Thailand announced a reduction in the policy interest rate three times since August 2019, from 1.75% per annum to 1.00% per annum in February 2020, marking the lowest policy interest rate in history, the company views the lower interest rates as beneficial for the real estate business in terms of reduced costs for project developers and purchasing customers.

Despite the overall economic slowdown, the company maintains a positive outlook and believes that the residential project market can still attract demand from target customers looking to purchase projects for their own residence and as long-term investment assets. Furthermore, the company continues to execute its strategic risk diversification plan by creating businesses that generate recurring income to ensure stable and continuous revenue.