Perfect Masterpiece
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02 ANNUAL REPORT 2015 MESSAGE FROM THE BOARD OF DIRECTORS 2015 marked another challenging year to property developers. The residential property market did not recover as expected as the impacts from DR.TAWATCHAI NAKHATA economic slowdown and high household debt CHAIRMAN lingered. Financial institutions remained cautious in lending and the rejection rate stayed at 20-30%. Consumer confidence further slid, resulting in delays in decision making. Meanwhile, land prices escalated. As a result, the number of new projects launched in Bangkok and peripheral provinces in 2015 - low-rise and high-rise - decreased by 10% gain worth Bt530 million from the below-fair price from the previous year. Low-rise development acquisition of shares in Thai Property Public Company showed an improvement late last year thanks to Limited (TPROP). The net profit margin ratio slightly stimulus measures to spur residential demand as decreased from 3.2% in 2014 to 3% in 2015. well as the urbanization of suburban areas and greater transport convenience. The Board of Directors had embarked on activities to strengthen the Company. A major milestone involved The aforementioned reasons led to the the acquisition of Thai Property and Grande Asset postponements of some new projects. All projects Hotels and Property Public Company Limited, which launched in the year were low-rise, numbering 14 would enhance the Company’s financial strength.The with combined value of Bt14,765 million. Most of transaction would increase the stable income from them were the extended parts of existing projects rental office and hotel business, lessening reliance on located along electric-train routes. The fewer a particular business. The Company’s assets and number of new projects resulted in an 8% decrease revenue would also be more diversified, as the in sale revenue to Bt11,000 million. Of total sale organization’s business involves low-rise and high-rise revenue, single detached houses and townhouses property development, rental office and hotels. contributed 65% and condominiums 35%. The Concerning products, 12 new house designs were combined revenue from single detached houses, launched to capture all segments with the price tags townhouses and condominiums declined by 11% on from Bt3.39 million to Bt60 million. These designs are year to Bt10,285 million: the revenue from single for various brands – from Perfect Masterpiece, Perfect detached houses and townhouses increased by 5.6% Place and Perfect Park, sufficiently responding to new to Bt6,624 million while that of condominiums generation’s drive for convenience of life. The decreased by 13.8% to Bt3,160 million. In the year, Company also became stronger with collaboration with the Company also reaped Bt501 million from land business partners like Advanced Info Services (AIS) sale and Bt1,524 million from hotel business. In which jointly provide the fiber-optic Internet network total, the Company’s total revenue stood at for “Perfect Digital Village” project or Siam Cement Bt12,034 million or an increase by 3 %from the Group (SCG) which introduced “SCG Active Airflow” previousyear. The Company also reaped a one-time innovation in new development projects. For Kiroro 03 senior citizens, as well as time-sharing properties. To facilitate hotel investment, there is a plan to MR.CHAINID ADHYANASAKUL establish a real estate investment trust (REIT). There CHIEF EXECUTIVE OFFICER is also a plan to improve funding cost management, for better performance and hence higher corporate credit rating. The Board of Directors wishes to thank shareholders, valued customers, investors, business Resort, the ski resort in Japan, it would be rebranded partners, alliances and financial institutions for their as a Sheraton property under the management of long-standing supports to the Company., as well as Starwood Hotels and Resorts. Sheraton Hokkaido the management and all employees for their patient Kiroro Resort was launched. ” and dedicated performance in the past year. In 2016, the Board of Directors maintains the policy to continually grow revenue and profitability. In property development business, sale revenue is set to reach Bt16,000 million; Bt9,000 million from low-rise projects and Bt7,000 million from condominium projects. A number of 17 projects will be launched with combined value of Bt24,041 million. Of total, 12 projects will be single detached houses and townhouses with combined value of Bt16,814 million. Five projects will be condominiums worth Bt7,200 million. New partners (Dr.Tawatchai Nakata) Chairman will be secured for new businesses which include the “Too Fast to Sleep” coffee shop at “iCondo Salaya The Campus” project, to satisfy the lifestyle of students and young adults in Salaya. The hotel business plan is clearly mapped out. In Japan, Kiroro Tribute Portfolio will be opened, to be managed by Starwood Hotels (Mr.Chainid Adhyanasakul) and Resorts. There is a clear plan for hotel investment Chief Executive Officer under the “GRAND” brand. The goal is to become a leading hotel company and this will be supported by new investment to boost the number of hotels and rooms. There are also plans to develop new business projects such as mixed-use residential, hotel (or resort) projects, residential projects that cover hotels and braded residences, residential projects for foreign 04 ANNUAL REPORT 2015 FINANCIAL INFORMATION Property Perfect Public Company Limited (Unit : Million Baht) 2013 2014 2015 Financial Position Total Assets 30,668 31,406 43,277 Project Development Cost and Land for Development 16,927 17,525 21,659 Inventories 34 35 42 Total Liabilities 22,022 22,434 29,614 Shareholders’ Equity 8,646 8,972 13,663 Operation Results Revenue from land and house sale, hotel and rental & service business 11,011 12,444 12,033 Total Revenue 11,229 12,785 12,905 Gross Margin 3,646 3,915 3,655 Net Income 41 403 267 Financial Ratio Net Profit (%) 0.37 3.15 2.07 Return on Equity (%) 0.48 4.56 2.17 Return on Total Asset (%) 0.15 1.3 2.86 Debt to Equity Ratio 2.55 2.47 2.17 Current Ratio 2.11 1.55 2.14 Per Share Data Net Income per Share (Baht) -0.02 0.06 0.047 Dividend (Baht) - 0.044 0.030 Book value (Baht) 1.49 1.54 1.43 05 COMPANY AND SUBSIDIARIES INFORMATION Company Information Name : Property Perfect Public Company Limited Type of Business : Real Estate Development Head Office : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310. Business Registration : 0107536001231 Number Home Page : www.pf.co.th Telephone Number : 0-2245-6640-8, 02-247-7500-4 Fax : 0-2247-3328 No. of Paid-up Share : 7,667,826,432 Shares Par Value : Baht 1 Paid-up Capital : Baht 7,667,826,432 06 ANNUAL REPORT 2015 Legal Entity, The company hold 10% up - The Company and Subsidiaries , Directly Owned Name : Estate Perfect Company Limited Type of Business : Real Estate Development Address : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2245-6640-8, 02-247-7500-4 Fax : 0-2246-0733 No. of Paid-up Share : 120,000,000 Shares Par Value : Baht 10 Paid-up Capital : Baht 1,200,000,000 Percentage of Investment : 100 % Name : Bright Development Bangkok Company Limited Type of Business : Real Estate Development Address : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2245-6640-8, 02-247-7500-4 Fax : 0-2246-0733 No. of Paid-up Share : 10,000,000 Shares Par Value : Baht 100 Paid-up Capital : Baht 1,000,000,000 Percentage of Investment : 100 % Name : Residence Number Nine Company Limited Type of Business : Real Estate Development Address : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2245-6640-8, 02-247-7500-4 Fax : 0-2246-0733 No. of Paid-up Share : 10,000,000 Shares Par Value : Baht 100 Paid-up Capital : Baht 1,000,000,000 Percentage of Investment : 100 % Name : Chiangmai Development Company Limited Type of Business : Real Estate Development Address : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2245-6640-8, 02-247-7500-4 Fax : 0-2246-0733 No. of Paid-up Share : 2,000,000 Shares Par Value : Baht 100 Paid-up Capital : Baht 200,000,000 Percentage of Investment : 100 % 07 Name : We Retail Public Company Limited Type of Business : Real Estate Development - Shopping Center and Commercial Area Address : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2245-6640-8, 02-247-7500-4 Fax : 0-2645-0024 No. of Paid-up Share : 2,490,585,084 Shares Par Value : Baht 1.05 Paid-up Capital : Baht 2,615,114,338.20 Percentage of Investment : 94.98 % Name : Property Perfect International Pte.Ltd. Type of Business : Investment and Oversea Real Estate Development Address : 1 Raffles Place, #28-02 One Raffles Place, Singapore 048616 No. of Paid-up Share : 1 Share Par Value : 1 SGD$ Paid-up Capital : 1 SGD$ Percentage of Investment : 100 % Name : Perfect Sport Club Company Limited Type of Business : Clubhouse Management Address : 19th Flr., Vongvanich B Bldg., 100/52 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2245-6640-8, 02-274-7500-4 Fax : 0-2645-1409 No. of Paid-up Share : 500,000 Shares Par Value : Baht 100 Paid-up Capital : Baht 50,000,000 Percentage of Investment : 100 % Name : U & I Construction Bangkok Company Limited Type of Business : Construction Address : 27th Flr., Vongvanich B Bldg., 100/89 Rama IX Road, Huaykwang, Bangkok 10310. Telephone Number : 0-2246-2093-6 Fax : 0-2246-2020 No. of Paid-up Share : 1,000,000 Shares Par Value : Baht 100 Paid-up Capital : Baht 100,000,000 Percentage of Investment : 100 % 08 ANNUAL REPORT 2015 Name : Uniloft Service (Thailand) Company Limited Type of Business : Service Apartment Address : 17th Flr., Vorasombat Bldg., 100/1 Rama IX Road, Huaykwang, Bangkok 10310.