Annual Report 2020
Total Page：16
File Type：pdf, Size：1020Kb
Content PART 1 Business Operation Page 1. Policy and the Overall picture of the business operation 1-5 2. Nature of Business 6-21 3. Risk Factors 22 4. Business Asset Structure 23-24 5. Legal Dispute 25 6. General Information and Parties of References 26-27 PART 2 Management and Corporate Governance 28 7. Share Information and Shareholders 29-31 8. Management 32-42 9. Governance 43-53 10. Corporate Social Responsibility 54-59 11. Internal Control and Risk Management 60-61 12. Related Parties and transaction 62-65 PART 3 Financial Status and Operating Result 66 13. Important Financial Information 67-74 14. Analysis and explanations by the management 75-89 FINANCIAL STATEMENT 90-157 Enclosure 1 Details of Directors, Management Team and Company Secretary 1-8 Enclosure 2 Position of Directors in the Company and subsidiaries 1 Enclosure 3 Details about the head of the internal audit and the supervisor of the company's operations (Compliance) 1 Enclosure 4 Details about the property appraisal list 1 Enclosure 5 Other Related Information 1-21 Definition ASIA means Asia Hotel Public Company Limited AP ” Asia Pattaya Hotel Co., Ltd. AA ” Asia Airport Hotel Co., Ltd. ZP ” Zeer Property Public Company Limited ZA ” Zeer Asset Co., Ltd. ZO ” Zeer Oversea LLC. SPA ” Spa Hotel Co., Ltd. ABK ” A.B.K. Enterprise Co., Ltd. DM ” Don Muang Grand Plaza Co., Ltd. Message from Chairman In 2020, the world is facing the challenging pandemic of Coronavirus (COVID-19) which has greatly impacted the tourism sector, together with the economic activities. To prevent and slow down the spread of the COVID-10, the government announced the lockdown restrictions and temporary closure of non-essential businesses during quarter 2. Indeed, the local transmissions and infections had been controlled. However, by the end of 2020, there was a new outbreak again. Asia Hotel Public Company Limited and its subsidiaries have been impacted by the COVID-19 pandemic. Of the eight hotels, seven hotels in Thailand were temporarily closed during April-June 2020, yet, the hotel located in the US was still operating. Zeer Rangsit Shopping Center was temporarily closed at the end of March and was reopened in mid-May 2020. Certainly, for shopping malls, rent collection measures are offered to sustain tenants in this challenging environment. Together, these temporary closures and measures caused a decrease in the group revenue. In July 2020, the six hotels in Thailand were reopened, the management of the Asia Hotel Group has added measures to accommodate and mitigate the impact. Importantly, cost control strategy includes controlling energy costs as well as reducing operating costs to sustain the hotel business. As a result, the Asia Hotel Group has sufficient operating cash flow to cover their expenses and interest on loans. Readily, the revolving credit line is offered from financial institutions for Asia Hotel Group if necessary, to accommodate the impact of this crisis steadily. In 2021, Globally and locally, the government has eagerly prepared various measures to prevent and slow down the spread of COVID-19. The focus includes the speed of production, procurement of the vaccine, and vaccination rollout. Confidently, the tourism sector and economic conditions passed the lowest point and are expected to recover by the end of 2021. On behalf of the Board of Directors and the management of Asia Hotel Group, I would like to sincerely thank you shareholders and all stakeholders who have always support and trust us all along. Piyawudh Senapoopitaksa Chairman PART 1 Business Operation ASIA - 0 - Annual Report 2020 1. Policy and the Overall picture of the business operation The Company: Asia Hotel Public Company Limited (ASIA) Business Type: There are two types of the business including Hotel and restaurant business and Shopping Center business (Rental Area Business). Hotel and Restaurant Business Includes Asia Hotel Public Company Limited that manages “ASIA” located at Phayathai Road, Ratchathevi, Bangkok. Asia Pattaya Hotel Company Limited ( AP), a subsidiary company that manages “AP” located at PhraTamnak Hill, Pattaya, Chonburi. Asia Airport Hotel Company Limited (AA), a subsidiary company that manages 4 hotels “Asia Airport Hotel” located at Zeer Rangsit Building, Phaholyothin Roadside, Lamlukka District, Pathumthani “Asia Cha-am Hotel” located at Cha-am seaside, Petchaburi Province, “The Darley Hotel Chiangmai” located at Chang Moi Ampue Mueang, Chiang Mai and Ratchapruek Lanna Boutique” located Ampue Hang dong, Chiang Mai. Shopping Center Business (Rental Area Business) Includes the Zeer Property Public Company Limited (ZP), a subsidiary company that manages “Zeer Rangsit Shopping Center” located at Phaholyothin Road, LamlukkaDistric, Pathumthani. ZP has other 3 subsidiary companies running real estate business such as 1. Zeer Asset Company Limited (ZA) runs real estate business and rents “Ratchapruek Lanna Boutique Hotel” 2. ZEER OVERSEA LLC (ZO) runs the shopping center business at Los Angeles, USA, and manages hotel business in USA. “Quality Inn Long Beach - Signal Hill” located Signal Hill, CA. USA. 3. Spa Hotel Company Limited. (SPA) is also a real estate business running a shopping mall “Laan Sook Plaza” which the construction improvement project will be completed by quarter 2 of 2020 and “The Darley Hotel Chiangmai” at Chang Moi, Amphoe Mueang, Chiang Mai. Both projects will be completed and beready to open for service in mid - 2021. 1.1 Vision The Company Policy on the hotel and restaurant business is to maintain the standard of a four star level, emphasize on providing the impressive service to every level of clients with the social and environmental responsibility, continuously improve and develop knowledge and give precedence to all stakeholder groups for sustainable business success. Hotel and Restaurant Business: the objective is to support targeted clients at business location of each hotel including: Asia Hotel, Rajathevee: it was established in 1966. It is well known and popular for several years because it is located near high-end shopping centers such as Siam Paragon, Siam Center, Siam Discovery and Marboonkrong Shopping Center where you will find various stores for wholesale or retail, IT products at high price or second hand price. The Hotel building is also connected to the BTS at “Ratchathevi Station” making it most convenient and safe for tourist who traveling alone or with tourist group, clients who join catering and seminar or get dining service at the restaurant in the hotel. Asia Airport Hotel: It is located at Zeer Rangsit Shopping Center, Pathumthani. It has catering, seminar and hotel rooms for tourists who use Donmuang Airport and support client groups locating at the northern area of Bangkok and all neighboring Provinces with continuously high economic growth. Asia Pattaya Hotel: It is located at PhraTamnak Hill with more than 44 Rai of the land. Its environment is peace and adjacent to beautiful seaside and beach making guests feel relaxed. It has meeting rooms for seminar market which are pleasing both foreign and Thai clients. Asia Cha-am Hotel: It is located near Cha-am Beach, Petchburi Province. It supports Foreign and Thai clients who want relaxation. It is convenient, rustic and not far away from Hua Hin, a new tourist attraction opened nearby. It has meeting rooms for seminar market which are pleasing both foreign and Thai clients. The Darley Hotel Chiangmai: It is located in the heart of city which is near to Waroros market. It supports Foreign and Thai clients who want convenient and modern styles such as internet booking and check-in system online. ASIA - 1 - Annual Report 2020 Ratchapruek Lanna Boutique Hotel: It is located in Ampue Hang dong Chiang Mai, near Suan Luang Rachapruek. It supports Foreign and Thai clients, middle to high class who like natural and peace including service package, accommodation - travel - health care. Shopping Center Business (Rental Area Business): the objective is to develop communities locating at the northern area of Bangkok and all neighboring Provinces. It has facilities such as a large shopping center located on of more than 88 Rai of the land. Currently, it is promoted to be IT Shopping Center under the name of “Zeer Rangsit Shopping Center” and there are two extension projects of Zeer Rangsit, one is “The Hub Shopping Center”. The concept of ‘The Hub Shopping Center’ is to be the wholesale and retail cloths destination for customers in the north and northeast of Thailand, which conected to Zeer Rangsit building. The other project is “AA-Town Apartment”, a residential project becomes apartments for worker groups at neighboring area are able to rent a room at reasonable price and occupancy almost 90%. The subsidiary company, “Spa Hotel Co., Ltd.” also invested in property which is located in the heart of the Chiang Mai in order to develop a shopping mall “Laan Sook Plaza”and a hotel “Darley Hotel Chiengmai”. In 2018, The other subsidiary company, “Zeer Asset Co., Ltd.”, invested a Project “Pratch Rajapruek Resort” located on 2-0-31 rais Tumbon Nongkwai, Aumpur Handong, Chieng Mai Province, named “ Project: Ratchapruke Lanna Boutique” Moreover, the subsidiary company, “Zeer Oversea LLC”, has expanded its business to Los Angeles, California, U.S.A. Last, In November 2018, the subsidiary company invested at Long Beach U.S.A., the Franchise Hotel “Quality Inn of Choice Internation Hotels” named “Quality Inn Long Beach-Signal Hill ” it is far from the airport about 40 minutes, now it is opened. 1.2 Important Changes and Developments Company’s History Asia Hotel Public Company Limited (ASIA) established in 1966 by Techaruvichit Group with the register capital 17 million Baht. This Hotel is located at Phayathai Road which there area is 2 Rai and 9 level high of the building. In 1972, ASIA had cooperated investment in Asia Pattaya Hotel Company Limited (AP) as 35% of registered capital as 12 million Baht.