CEO's Message

Anuphong Assavabhokhin
Chief Executive Officer

The passing of His Majesty the King Bhumibol Adulyadej on 13th October 2016 was a great loss to Thailand and all the Thai people. We, the management and employees of AP (Thailand) Public Company Limited, are deeply saddened. His Majesty the King will forever live in our hearts.

Last year, domestic and external factors affecting the real estate industry challenged the way we think about our work. If you ask me about the industry trend on whether Thailand's real estate sector today is similar to or different from 25 years ago, one thing remains the same: real estate changes in response to the country's overall economy. The same is true for consumer confidence.

However, the real estate industry today is at a crossroad as competition becomes more intense and fierce among major operators with the same capabilities. Consumer behavior also changes in response to global developments. These are key factors driving everyone at AP to change our working approach to quickly cope with the changes based on our corporate mission to continue to make a difference and make the most important dream of all human beings a reality, that is, to own a place they can call “home” where every square inch matters.

Our goal of making a difference through our products and services is imperative if we are to move forward. But to reach that goal we need more than a sharp vision. We cannot succeed without “people” as the core asset. Last year, to ensure that we deliver quality products to all our customers, we attached great importance to developing the potential of AP people through various courses under AP Academy, the first institution in Thailand designed for comprehensive real estate learning.

Last year we worked very hard to ensure continued growth and our business partner Mitsubishi Estate Group was no exception. The year 2016 marked the third year of our joint venture. We signed joint venture agreements to develop eight projects worth over Bht 26,700 million. In 2016, we also saw the completion of four of our joint venture projects which were ready for occupancy. The four projects are: RHYTHM Asoke II, RHYTHM Sukhumvit 36-38, ASPIRE Ratchada-Wongsawang and ASPIRE Sathorn-Thapra. All of them received positive consumer response.

In addition to integrating fresh knowledge into our joint venture projects in 2016 we and the Mitsubishi Estate Group also looked to developing a process by which we work closer together with more efficiency. That's why Mitsubishi Estate Group posted their professionals to AP's headquarters so we can work together on our joint venture projects with greater convenience and speed under Premium Residence Limited, the principal company in charge of all our joint ventures from now on.

While the Thai economy was challenged by many developments that greatly affected consumer confidence, our AP team continued to deliver satisfactory results. We recorded Bht 22,365 million in sales, of which Bht 12,330 million from horizontal properties were less affected than condominiums. Since the market in the fourth quarter of 2016 was not favourable to new condominiums launches, we decided to postpone our launch dates to 2017 as we wait for the right timing and for the market to be ready.

In 2016 we realised revenues of Bht 20,255 million, down 8% on the previous year. Our net profit was Bht 2,705 million. Our net profit margin per revenue increased from 11.8% to 13.3% thanks to efficient management and control of sales and operating expenses as well as transfer of ownership for joint venture projects. Last year our share of profits from joint venture projects was Bht 371 million.

For 2017 we will continue to make a difference to our products and services that will be of high quality as always. We will continue to develop ‘quality people' as our core asset. We want our people to be knowledgeable in theory as well as in practice as we lay down a systematic work process under efficient cost management. Over the past 25 years we have developed more than 200 projects in the categories of single detached homes, townhomes and condominiums. As we enter our 26th year, we have a commitment to remain innovative in our design so that every square inch of our properties are truly the best places to live for city residents.

On behalf of AP (Thailand) Public Company Limited, I would like to thank our shareholders, including holders of our debentures as well as all our partners for their continued support. I sincerely hope that each and every one of you will walk on this path to success with us for years to come.