This printed article is located at https://investor.mbkgroup.co.th/chairman_message.html

Message from the Board of Directors

The economic situation in 2023, in which economy-driving factors helped businesses in Thailand and other countries to gradually recover to normal conditions, has resulted in consumers beginning to spend more money. However, the overall global economic situation remained affected by various factors such as energy costs, the inflation rate, legal requirements for more measures to control business operations, technology disruption, the conflict between Russia and Ukraine, Israel and Palestine, and natural disasters. These factors continued to influence the Company’s business operations. Nevertheless, the determination and commitment shown by all involved parties to adapt strategies and management styles—aligning with changing trends and coping with different situations as a result of such challenges— led the Company’s overall performance to gradually recover. An overview of 2023, which ended on 31st December 2023, compared with an overview of 2022, is as follows:

The revenue generated from the performance was 12,100 million Baht, an increase of 2,648 million Baht or 28 percent and the net profit made from the performance was 1,567 million Baht, an increase of 1,235 million Baht or 372 percent. This was due to the situation of the COVID-19 epidemic easing off continuously, resulting in better operating results for the Company’s business groups, including the Shopping Center Business, the Hotel & Tourism Business, and the Golf Business. Moreover, the Company invested more in Thanachart Capital Public Company Limited (TCAP) in succession until the Company’s holding ratio met the criteria for an associated company on 20th April 2023 and its operating result was recognized in the form of a share of profit based on the equity method (from 20th April to 31st December 2023) for 922 million Baht (net of deferred tax of 738 million Baht). The investment in shares of TCAP— whose growth and financial position are stable— led the Company Group to gain good returns and helped strengthen its operating results.

The MBK GROUP’s financial position as of 31st December 2023, compared with 2022, had significant changes, with total assets of 60,471 million Baht and total liabilities of 38,087 million Baht. These total liabilities comprised interest-bearing debt of 20,737 million Baht, non-interest-bearing debt of 17,350 million Baht, and total equities of 22,384 million Baht.

The 8 Business Groups of the MBK GROUP—the Shopping Center Business, the Hotel & Tourism Business, the Golf Business, the Real Estate Business, the Food Solution Business, the Financial Business, the Auction Business, and the Corporate Supporting Center— changed strategies in order to cope with different challenging situations as well as opening up new business opportunities from consumer behavior and changing situations in all businesses such as:

The Shopping Center Business: Shopping Centers in the MBK GROUP, as well as businesses of Siam Piwat Company Limited (SPW) (as an associate company), adapted to diversify their income and customer bases. Particularly, MBK Shopping Center and Paradise Park renovated rental and central areas in order to cope with changing situations by refurbishing them in various dimensions and increasing the variety of stores and products to better satisfy both Thai and foreign customers. Also, a greater number of foreign customers returned for services. MBK Shopping Center’s improvements were carried out by the use of technologies and innovations to help support its business operations, providing services and modern facilities, promoting marketing events, and creating a customer base through the MBK Plus Application system to meet the needs and ensure satisfaction for a diverse clientele. Also, Paradise Park offered service-oriented areas such as a one-stop-service center providing holistic health services—encompassing curative, rehabilitative, promotive, and preventive care.

The Hotel & Tourism Business: More foreign tourists began to travel continuously. As a result, the Hotel & Tourism Business had its better operating result, particularly, Pathumwan Princess Hotel, Dusit Thani Krabi Beach Resort, and Layana Resort and Spa. More than 80 percent of the Hotel & Tourism Business’s main guests were foreigners. Moreover, a new hotel named Tinidee Trendy Bangkok Khaosan opened in order to expand the business and its customer base.

The Golf Business: It has a constantly better operating result from Loch Palm Golf Club, Red Mountain Golf Course in Phuket, Riverdale Golf Club, and Bangkok Golf Club in Pathum Thani. It was an honor for the Company that the Company’s golf courses were selected for international tournaments. For example, in 2023, Riverdale Golf Club and Bangkok Golf Club were selected to be golf tournament courses for “Thailand Open 2023”, and in 2024, it is an honor for Red Mountain Golf Course to be selected as a tournament course for “Asian Development Tour” which will be held in May, 2024.

In 2023, the Golf Business run by MBK Resort Public Company Limited donated 36 rai of land, a value of 460 million Baht, to Prince of Songkla University (PSU) to construct Songklanagarind Hospital, Phuket Campus, which is part of Andaman International Health Center. The Company contributes to improve public health, raising standards of health services and health tourism, and encouraging Phuket to become a world-class health city. These efforts serve the public interest. Such contributions to society are a cornerstone of the Company’s business operations, fostering sustainable growth alongside the development of society and communities.

The Financial Business: The hire purchase venture, T Leasing Company Limited (TLS), has been managed under challenges of fierce competition and notification of measures to control interest ceiling issued by the Office of the Consumer Protection Board (OCPB). TLS created opportunities based on such challenges, resulting in a credit development plan for new products in order to expand its business, as well as improving a technology system and providing services in order to satisfy various needs of current and future customers.

The MBK GROUP stands firmly for sustainable business operations, wherein stakeholders and the impacts on a business chain are given due consideration. Also, the Company’s expertise and resources have been utilized in order to create values to the organization and the society consciously and simultaneously through ongoing projects and activities, such as waste emission reduction, resources usage minimization, energy conservation, and the use of alternative energy. These efforts aim to mitigate and prevent environmental problems, ensuring sustainability in every dimension. Further details are disclosed in this 56-1 One Report and the Company’s Sustainability Report.

On behalf of the Board of Directors, we would like to express gratitude to our shareholders, customers, business partners, all stakeholders, executives, and employees—whose unwavering trust and support have been instrumental to the business operations of the MBK GROUP. We are confident that the organization will grow to achieve its goals significantly, continuously, and sustainably. The MBK GROUP is committed to operating its businesses according to the principles of the Good Corporate Governance, with responsibility for society and the environment. The Company aims to maximize value for its shareholders, customers, employees, stakeholders, and the Thai society.

 

Mr. Banterng Tantivit
Chairman

Mr. Suphadej Poonpipat
Chairman of the Executive Committee

Mr. Wichak Praditavanij
President and CEO


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