For Thailand's overall economic situation in 2015, the growth rate was 2.8% which was higher than the growth rate in 2014 at a rate of 0.8% The growth rates of household consumption and total private investment were 2.1% and 4.7% respectively. In the non-agricultural sector, the production's growth rate was 3.6%, while in the agricultural sector, the growth rate decreased by 4.2%. However, the economic stability was favorable. The unemployment rate of the whole year was 0.8%, the inflation rate was -0.9%, and the current account surplus as a percentage of GDP was 8.9%
For an economic tendency for 2016, the growth rate of 2.8% - 3.8% was forecasted and projected to be higher than the growth rate in 2015. Factors to support the economic growth in 2016 were the acceleration of the public expenditure and investment according to a budget framework, more stimulus measures which the government announced from September 2015 to January 2016, a tendency towards depreciation of Baht which helped the export expansion and oil prices expected to be lower than oil prices in 2015 which increased purchasing power, and a continuous expansion of tourism.
For the performance's results of MBK Public Company Limited ("MBK") and its subsidiaries ("the Group") for the year 2015 ended on 31st December 2015, compared with the year 2014, their revenues in total were 12,213 million Baht. They rose by 21% or 2,133 million Baht, compared with the previous year. Net profits on the shareholders' equity were 1,815 million Baht. They rose by 14% or 224 million Baht. Overall, every business of the MBK Group had better business profits, particularly the Real Estate Business which its business profit was much better because the Quinn Condominium project was completed and had revenue recognition when conveyancing had been carried out since August 2015 as a total of 1,856 million Baht. The MBK Group's financial status on 31st December 2015, compared with the year 2014, had major changes. The MBK Group had total assets as a total of 40,549 million Baht. They rose by 7% or 2,640 million Baht. It had total liabilities as a total of 22,609 million Baht. They rose by 7% or 1,577 million Baht. Its total shareholders' equity was 17,490 million Baht. It rose by 6% or 1,063 million Baht.
In 2015, MBK Public Company Limited ("MBK") and its subsidiaries ("the Group") had major operations as follows:
THE SHOPPING CENTER BUSINESS. In 2015, MBK Shopping Center had changes and renovation inside MBK Shopping Center building a sky walk which connects BTS's National Stadium station to MBK Center Building, a project to renovate the 5th floor area (Zone D) to be an outlet in the center of Bangkok, a project to renovate the 6th floor near the food court (Zone A) to be a center of various restaurants in downtown of Bangkok where it is a new meeting point for people in the city, and improvement in landscape architecture for areas around the newly-renovated restaurant zone. Moreover, in accordance with improvement on new areas, a total of 20 restrooms for both men and women on every floor inside MBK Shopping Center are also improved. All mentioned projects were worth approximately 500 million Baht.
For the Shopping Center Business, MBK's investment through Siam Piwat Company Limited, in 2015, Siam Discovery Shopping Center had major improvements which will be finished in Q2 of the year 2016. For the joint-venture project for Charoen Nakorn area with its business alliance, the ICONSIAM Project had positive advancement. Moreover, in 2016, feasibility studies will be conducted for joint ventures in 2 mega-projects.
THE HOTEL AND TOURISM BUSINESS. In 2015, the Hotel and Tourism Business focused on satisfying customers' needs by increasing the efficiency of operations At Pathumwan Princess Hotel in Bangkok, some rooms, mainly ExecuPlus Suites, have been partly sold as timesharing. More rooms in other hotels will be sold in the future. At Layana Resort & Spa in Krabi, 6 rooms were renovated and newly built. From the former 51 rooms, there are 57 rooms in total. Another swimming pool was built and areas around swimming pools were expanded in order to provide the complete wellness service. Furthermore, its brand in Krabi managed under the brand, DUSIT was changed to be DUSIT THANI KRABI BEACH RESORT that aims to help increase marketing potential, which could also develop the MBK's team to be sophisticated in organizing all hotels owned by the MBK in order to improve the hotel business and be able to expand its business in future. This change of the brand could be ensured it will to lead to further and better improvement.
THE GOLF BUSINESS. Nowadays, the Golf Business has provided services with 5 golf clubs which are divided into 2 golf clubs in Phuket the Loch Palm Golf Course and the Red Mountain Golf Course and 3 golf clubs in Pathumthani Riverdale Golf Club and Country Club and Bangkok Golf Club. The Bangkok Golf Club, run by the Company in 2015, has offered a night golf service for the convenience of golfers living in Bangkok and surrounding areas. Moreover, in the previous year, the Company ran one more golf club called Lum Luk Ka Country Club where located in Prathumthani as well a standard golf club with 36 holes which acquired a 45% shareholding. Also, the Company formed a business alliance with leading international golf clubs. As a result, the MBK Group's Golf Business has had a business alliance golf clubs in many countries.
THE REAL ESTATE BUSINESS. It has done business about land development for sale, property management, consulting and property assessment, by a team with expertise and skill in the real estate business. For the "Quinn Condo" project the first project of high-rise condominiums of the MBK Group which 2 condominiums are located on Ratchadapiksek Road near MRT's Sutthisan station. In 2015, this project's revenue recognition over 1,800 million Baht was realized. This project was successful both in sales and conveyancing volumes, together with a warm welcome given by customers. Moreover, in 2016, the MBK Group has a plan for 3 more horizontal and vertical development projects in Bangkok and its surrounding areas. These projects are expected to launch for sale from the middle of the year 2016 onwards.
THE FOOD SOLUTION. It has done business about food through expanding investment in the food business continuously. In 2015, the rice business had major development PRG was a rice producer for the Department of Foreign Trade, Ministry of Commerce, which was a representative of the Thai government for negotiations on rice trade on a Government-to-Government basis (G to G). In the previous year, rice was exported to different countries China, Philippines, and Indonesia. In 2016, PRG has still been in operation continuously in order to support aforementioned policy of the government. Moreover, it cooperated with Eureka Agro Machinery Co., Ltd., to develop "an eliminator of moths and their eggs by dielectric heat" which is an innovation revolutionizing the Thai packed rice industry that moths and their eggs are eliminated and this leads to a reduction in chemicals used. For the restaurant business, 3 branches of the "Sukiyaki Number One" restaurant, which offers its original recipe for sukiyaki which has continued for over 50 years, have opened up in order to have more access to customers.
THE FINANCIAL BUSINESS. It has done business about individual loans to buy condominiums and business loans holding real estate which is good value, has a good location, has potential to be commercially developed, and is in the market's demand, as collateral. The Financial Business has also given loans to buy new motorcycles in order to support the expansion of the Financial Business. Furthermore, the Financial Business still focuses on continuously develop products and services in order to enhance potential for more efficient business operations.
For the Financial Business directly run by the MBK Group, the Company has expanded its investment to the banking industry by means of shareholdings in Bangkok Bank Public Co., Ltd., Kasikornbank Public Co., Ltd., and Siam Commercial Bank Co., Ltd. The investment approximately totals 3,600 million Baht. The Company's source of investment funds is the issue of long-term bonds with an interest rate lower than a dividend rate nowadays which can increase the Company's potential to make profits reasonably and regularly every year throughout the time of these shareholdings. These profits are interesting at a certain point.
THE AUTO AUCTION BUSINESS. In 2015, car parks were expanded in provinces in order to support an increase in a number of cars repossessed from sellers of the Finance Business. Nowadays, the car parks cover 13 provinces nationwide. Moreover, a system to check auto prices in order that buyers and sellers can compare the prices with cost estimates has been developing. Fees will be charged for utilizing this system to check information. It is expected that the system will be completely developed by Q2 of the year 2016.
THE SUPPORTING BUSINESS. It has encouraged major development of utilizing technology in the organization in order to increase the organization's potential and competence in supporting activities, reduce costs and improve the Back Office system through management, lay the foundation for being the Shared Services Center to share resources, enhance competitive advantage- to develop and install the IT system for preparing consolidated financial statements, set the same accounting standards for the MBK Group, manage the financial liquidity and increase the efficiency of financial transactions of the MBK Group, prepare a database for Human Resource Information System (HRIS) with the aim of improving the management and developing human resources and human capital sustainably, and provide with e-Procurement focusing on strategic management of the procurement as well as maintaining the quality of products and services provided by sellers.
WITH ALL DETERMINATION, DEDICATION AND COMMITMENT TO CONDUCT BUSINESS OPERATIONS ACCORDING TO GOOD CORPORATE GOVERNANCE AND PARTICIPATION IN THAILAND'S PRIVATE SECTOR COLLECTIVE ACTION COALITION AGAINST CORRUPTION, ON BEHALF OF THE COMPANY'S BOARD OF DIRECTORS, WE WOULD LIKE TO THANK YOU OUR SHAREHOLDERS, CUSTOMERS, BUSINESS ALLIANCES, COMMUNITIES, EXECUTIVES, AND ALL EMPLOYEES, WHO HAVE PARTLY SUPPORTED AND MADE SUCCESSES TOGETHER. THE MBK GROUP IS DETERMINED, DEDICATED, AND COMMITTED TO DEVELOP PRODUCTS AND SERVICES FOR THE SAKE OF HAPPINESS FOR ALL, SUSTAINABLE GROWTH OF THE ORGANIZATION, AND MAKING SECURE RETURNS FOR EVERY SHAREHOLDERS IN THE LONG TERM.
Mr. Banterng Tantivit
Mr. Suphadej Poonpipat
Mr. Suvait Theeravachirakul