Asset World Corporation Announces Q2 2020 Financial Results Reflecting Impact from COVID-19 and the Beginning of Recovery in Domestic Tourism Since June

Asset World Corporation or AWC, a leading real estate developer in Thailand focused on comprehensive lifestyle solutions, reported a net loss of 877 million baht for Q2 2020, with total revenue of 775 million baht for the quarter (April - June), a decrease of 75.6% from 3,182 million baht compared to the same period last year. This was due to the impact of the COVID-19 outbreak and lockdown measures imposed by the government from late March to late May. However, some hotels that reopened in late May performed better in June compared to the same month last year, reflecting a rapid recovery in domestic tourism. Nevertheless, the company continues to pursue its development plans for sustainable growth while restructuring its organization alongside strict cost control and efficiency initiatives to enhance operational effectiveness in line with its core business strategy. As a result, total operating expenses for the business group in Q2 2020 decreased by 56.8% compared to the same period last year, laying the foundation for the company to manage operations and expenditures efficiently and sustainably.

Na-Wallapa Traisorat, Chief Executive Officer and Managing Director of Asset World Corporation Public Company Limited (AWC), stated, "The COVID-19 outbreak and government lockdown measures from late March to late May forced the company to temporarily close almost all hotel operations and properties for commercial activities, marking the period of heaviest impact for the company. However, we remain confident in the tourism industry and long-term growth, and are committed to managing cost efficiency and implementing various measures to support tenants, customers, employees, and all stakeholders to sustainably navigate through this situation together. Additionally, AWC continues to benefit from a balanced and diversified investment strategy, particularly in the office sector, which was not directly affected. After the government announced phase 2 of relaxation measures in late May, some hotels under AWC and commercial properties resumed operations, with domestic consumers returning to services continuously, leading to a clear increase in company revenue in June. However, the company reported a net loss of 877 million baht for Q2 2020, despite benefiting from revenue during June, which was a recovery period for domestic purchasing power and stable income from the office sector."

With readiness in health and safety measures and continuous employee care initiatives, the company was able to resume various projects immediately after the government announced phase 2 of relaxation measures in late May. For instance, the hospitality business, including the Hua Hin Marriott Resort & Spa, was the first hotel to reopen after the phase 2 relaxation, achieving an average occupancy rate of 98% during weekends, and overall occupancy rates have continued to rise. Furthermore, AWC has launched the Bangkok Holidays Lifestyle and Gift of Happiness programs with special offers from The Athenee Hotel Bangkok, a Luxury Collection Hotel, and Bangkok Marriott Hotel The Surawongse to stimulate demand from domestic tourists and enhance brand awareness, which has been well received, with an average occupancy rate of 70% during weekends across both hotels. Meanwhile, the retail sector has seen a noticeable recovery in customer traffic, particularly at Lasalle Avenue, which recorded 93% of customer traffic compared to pre-COVID levels in January.

"With AWC's balanced and diversified investment strategy, the office sector continues to generate stable and ongoing cash flow, with operating profits increasing by 1.2% compared to the same period last year, despite the impact of lockdown measures on tenant businesses in office buildings," she added.

Moreover, AWC continues to strictly enhance cost management efficiency, including liquidity management across all company divisions, resulting in total operating expenses for Q2 2020 being 761 million baht, a decrease of 56.8% from 1,761 million baht compared to the same period last year.

Additionally, AWC has initiated leveraging the uniqueness of its diverse portfolio in both business sectors and project locations to respond to the New Normal lifestyle of various customer segments comprehensively, with a new service model called "AWC INFINITE LIFESTYLE" that allows customers to access premium services tailored to all lifestyle needs, both for work and leisure, with customizable packages.

"AWC remains confident in Thailand's tourism business and its globally recognized strength in health standards, which allows the tourism sector to recover quickly and expand its customer base to wellness tourists and long-stay visitors. AWC is committed to advancing its quality project development plans to create resilience and sustainable long-term growth, aiming to build a better future for the company, employees, customers, investors, communities, and stakeholders towards the goal of becoming a progressive and sustainably growing real estate business group," Na-Wallapa concluded.