AWC Reports Annual Loss of 1.881 Billion Baht

Due to the Impact of the COVID-19 Pandemic

 

However, in the 4th Quarter of 2020, the financial performance improved continuously from the 2nd Quarter of 2020, which was the lowest point.

Along with the stable performance of the office building business, the company's net cash flow remains positive.

Maintaining Strength and Continuing Sustainable Growth Plans

Asset World Corporation or AWC a leading real estate developer in Thailand focused on comprehensive lifestyle solutions, announced its financial results for the year 2020 and the 4th Quarter of 2020, reporting total operating revenue of 6.133 billion baht and 1.578 billion baht respectively. When comparing the total revenue of the 4th Quarter of 2020 to the 3rd Quarter of 2020, total revenue increased by 24.60%, marking a continuous upward trend since the 2nd Quarter. This was supported by a balanced and diversified investment strategy, allowing the company to generate stable and continuous cash flow, especially from the office building sector, which was not directly affected by the crisis, while the hotel and shopping center businesses began to show improvement, resulting in a positive cash flow for the company over the past year, reflecting the continuity of operations. This ongoing improvement also indicates recovery and a positive trend in domestic business. Additionally, the company effectively controlled expenses, with the operating expense ratio to operating revenue in the 4th Quarter of 2020 decreasing by 13.6% from the 3rd Quarter of 2020, due to organizational restructuring plans alongside cost control and efficiency initiatives, which provide a strong foundation for management and sustainable expense management for long-term business growth.


Ms. Wallapa Traisorat, CEO and Managing Director of Asset World Corporation Public Company Limited (AWC), stated:
"We are confident in the long-term strength of the Thai tourism industry. AWC is committed to creating a phenomenon by launching new landmark projects to enhance the reputation of the country and the Thai tourism industry. We have implemented plans for maximum efficiency and effectiveness. In the past, we have achieved our business plan goals by acquiring three properties and launching projects such as the Melia Koh Samui Hotel, Banyan Tree Krabi, Sirimahannop Boat, and Lasalle Avenue Phase 2. These actions have strengthened AWC's asset portfolio, resulting in total assets increasing to 125.696 billion baht at the end of 2020, up from 99.549 billion baht in 2019, a growth of 26%. Furthermore, the company continues to implement improvement plans, including Tawanna Bangkapi 2 and Courtyard by Marriott Phuket Town. However, the business continues to be affected by the COVID-19 pandemic, which has prevented international tourists from traveling. The company also has a policy to reduce rent for retail tenants to help them navigate through this crisis as best as possible, resulting in a net loss of 492 million baht in the 4th Quarter of 2020, a decrease of 20.6% from the 3rd Quarter of 2020. Nevertheless, the company has been able to generate stable cash flow due to the continuation of its balanced and diversified investment strategy, allowing the business to move forward and grow sustainably."

For the company's hospitality business, it continues to be affected by the overall international tourism situation, which directly impacts the revenue of the hotel and service sector. However, AWC has continuously participated in domestic tourism promotion programs, such as the Workation Thailand project, which allows working while traveling, and the "We Travel Together" project. Additionally, the company plans the AWC INFINITE LIFESTYLE: INFINITE POINT OF HAPPINESS project to align with government tourism policies and promote the tourism industry and the Thai economy to recover and move forward strongly. The revenue of the hotel and service sector significantly increased from 470 million baht in the 3rd Quarter of 2020 to 773 million baht in the 4th Quarter of 2020, an increase of over 64.6%, while the revenue from retail and commercial real estate rose from 836 million baht in the 3rd Quarter of 2020 to 872 million baht in the 4th Quarter of 2020, an increase of 4.3%, due to the recovery of the retail real estate business, which has seen a continuous increase in customer traffic. If there had not been a new wave of COVID-19 outbreaks, it is expected that the performance of the hotel and service sector, as well as the retail and commercial real estate sector, would have improved beyond current figures.

 

The company continues to advance its corporate transformation plan alongside cost control and efficiency initiatives without impacting the company's operational capabilities in the future. The operating expense ratio to operating revenue decreased from 92.8% in the 3rd Quarter of 2020 to 78.6% in the 4th Quarter of 2020, demonstrating the company's effective expense control. Additionally, the company is moving forward with organizational cost management measures to reduce expenses in various areas.

 

"As we enter 2021, we remain committed to our mission of "Building A Better Future" for all stakeholders, as well as for communities, society, and the nation in a world that is moving forward with new lifestyle standards (New Normal), where people's behaviors and daily lives have changed, by conducting business to be "better" in three areas: BETTER PEOPLE ensuring full hygiene and safety in all AWC projects, BETTER LIFESTYLE leveraging the diversity of our portfolio to meet New Normal lifestyles through new service formats, and BETTER ECONOMY advancing business development according to plans, including the development of new quality projects and the improvement of existing projects to become major tourism destinations, instilling confidence that this will be a crucial part of the Thai economy's swift return to normalcy and strong growth," Ms. Wallapa concluded.