CMC Reports 2020 Financial Results with Net Profit Growth of 1.46 Times!!!

Reflecting Strength for Sustainable Growth Ahead

Dr. Wichian Patthanun, CEO of Chao Phraya Mahakhan Public Company Limited (CMC), a leader in real estate development, revealed that the financial results for 2020 showed a net profit of 59.57 million baht, growing from 35.44 million baht in 2019, representing a growth of 146.72% or 1.46 times. This was driven by revenue from real estate sales and construction totaling 1,164.74 million baht, despite a decrease from 1,383.18 million baht in 2019, a decline of 15.79%. The primary reason for this decline was the ongoing slowdown in the real estate market since 2020, compounded by the impact of the COVID-19 pandemic which began at the start of 2020, affecting property purchasing decisions. Although revenue recognition did not meet targets, CMC managed to achieve a net profit growth of 1.46 times due to effective management, which reduced selling and administrative expenses by 24%, mainly due to increased property sales from completed condominium projects ready for transfer in the last quarter, such as the Bangkok Horizon LITE @ Phetkasem 48 Station project.

CMC has adjusted its strategy to turn the crisis into an opportunity for those seeking affordable housing by launching promotional campaigns tailored to customer needs, focusing on clearing ready-to-move-in inventory. For pre-sale projects, campaigns have been introduced to assist with payments, easing the burden on consumers during COVID-19. The company has reduced offline media expenses and increased online marketing efforts, enhancing its website and application to provide customers with access to CMC news and promotions at all times, catering to the New Normal lifestyle. Additionally, CMC has expanded online sales channels to facilitate customer decision-making before visiting actual projects. Beyond real estate development, CMC is also exploring new business development opportunities to ensure continuous revenue growth. Nevertheless, 2020 was a challenging year facing significant changes in business operations. CMC has successfully navigated these obstacles, reflecting its strength to support sustainable growth.

  

In 2021, CMC plans to revisit three delayed projects from the previous year, valued at approximately 2.8 billion baht, pending the resolution of the COVID-19 situation. Currently, the Cuvee Tiwanon project is ready for ownership transfer and is expected to start recognizing revenue in the second quarter. This is an "Affordable Luxury" condominium targeting high-end customers seeking luxury condos near the BTS at an accessible price. CMC also plans to launch new projects in areas where it has expertise and market share, including Chateau In Town Ratchayothin, a low-rise condominium catering to the "Urban Lifestyle" of the new generation in a central city location near the BTS Ratchayothin station, priced at an average of 85,000 baht per square meter. Additionally, ongoing construction includes The Clev Riverline Chaophraya – Wongsawang, which had its groundbreaking ceremony in February, a high-rise condominium designed for modern lifestyle customers with a focus on value investment, convenience in transportation, and complete facilities. Furthermore, CMC has townhome projects in the Sathorn – Kalapapruek area, an extension of previous projects, which continue to attract customer interest. The company is also strengthening its management by restructuring and recruiting experienced real estate professionals to enhance service efficiency and modernize after-sales services.

“Currently, CMC has 29 active projects with a total value of approximately 6 billion baht and is preparing for significant changes as we enter our 27th year sustainably. Importantly, we would like to thank all our customers for their trust and confidence in the quality of our products and services over the past 26 years. CMC is committed to excellence in residential development according to our established vision,” Dr. Wichian stated.