RML reveals the business outlook for Q2/2020, continuing to be impacted by the COVID-19 pandemic, accelerating stock clearance for projects The Lofts Asoke, Diplomat 39, Diplomat Sathorn, The River and Unixx, boosting sales, maintaining cash flow, and enhancing financial liquidity while adjusting strategies to respond to consumer behavior in the New Normal

Mr. Lionel Lee, CEO of Raimon Land Public Company Limited (RML), a leader in luxury real estate development in Thailand, stated that the business outlook for Q2/2020 will continue to be affected compared to Q1/2020 due to the ongoing impact of the COVID-19 pandemic on the real estate sector as a whole. This has caused both Thai and foreign customers to delay their purchasing decisions, especially in April when the government announced lockdown measures that restricted travel in and out of the country, making it difficult for foreign customers to enter Thailand and thus complicating project transfers.

However, the company is preparing its financial position and has plans to maintain cash flow. RML is a real estate operator with relatively low debt and is focused on maintaining strong financial liquidity sufficient for business operations amidst challenging conditions, thereby reducing business risks. This strategy will enable the company to recover after this crisis passes. Currently, cash flow is sufficient to repay maturing debt instruments in July amounting to 712 million baht and in December amounting to 200 million baht without needing assistance from the Bank of Thailand.

For Q2/2020, the company plans to accelerate stock clearance for five projects: The Lofts Asoke, Diplomat 39, Diplomat Sathorn, The River, and Unixx to increase sales (presales) and enhance the company's cash flow. It is anticipated that sales will rebound in the second half of the year following the government's easing of lockdown measures. The company is preparing to open showrooms for customers to visit projects such as The Lofts Silom, Tait12, The Loft Ratathewi, The Estelle Phrom Phong, and The River, with strict preventive measures in place including temperature checks, mandatory masks, social distancing, and controlling the number of visitors. Additionally, an O2O (Online to Offline) strategy will be employed to promote through online channels, allowing customers to view sample rooms virtually before visiting the projects in person. This strategy is expected to stimulate purchasing decisions and create sales opportunities with domestic customers in the New Normal era.

“The real estate business this year is challenging. It is a crucial time to prove our strength in sustaining the business through this crisis and building resilience to face larger problems in the future. The company is preparing to handle risks or opportunities that may arise after we overcome this crisis,” Mr. Lionel stated.

As of 31 March 2020, the company has a backlog of 7,881 million baht across a total of 8 projects, including Tait12 33%, The Lofts Silom 29.5%, The Estelle Phrom Phong 26.3%, The Lofts Ratchathewi 7.4%, The Lofts Asoke 1.6%, and other projects 2.2%, with revenue expected to be recognized gradually starting from 2020.