Mr. Boonsom Lerdhirunwong

Chairman

In 2023, the residential real estate development industry was affected by various factors, including inflation and household debt that remained elevated. The increase in interest rates and the stricter lending criteria for residential mortgages by financial institutions, along with the cancellation of measures to relax the loan to collateral value (LTV) ratio, or measures to relax the minimum down payment, since January 1, 2023.

The aforementioned factors impacted the Company’s operating results. In 2023, the Company and its subsidiaries reported revenue from real estate sales, rental and services totaling 8,968 million baht, a decrease of three percent. Net operating profit decreased by eight percent, while interest-bearing debt to equity ratio was at 0.39 (compared to 0.41 in 2022).

With respect to real estate development, the Company continued its focus on low-rise residential development due to the segment’s strong fundamental housing demand. In 2023, the Company opened six low-rise housing projects in Bangkok and surrounding areas, with a total project value of 8,589 million baht, which is higher than that of 2022. Operating results of the hotel business have improved, helped by the easing of the COVID-19 outbreak that boosted higher foreign tourist arrivals, and the government’s measures to promote domestic tourism through the “We Travel Together” Phase 5 program that led to the continued recovery of domestic tourism.

Regarding sustainable development, the Company continues to operate in accordance with the sustainable development policies and guidelines, which are consistent with the ESG guidelines that cover environmental dimension, social dimension, and corporate governance dimension, under the principles of good corporate governance. Housing development is accomplished through innovation that is environmentally friendly, by selecting construction materials that focus on saving energy, reducing heat and greenhouse gas emissions.

The Company values the importance of conducting business under good corporate governance. In 2023, as part of the corporate governance survey initiative titled Corporate Governance Report of Thai Listed Companies (CGR), the Company was rated “Excellent”, for the eight consecutive year.

The Board of Directors, Quality Houses Public Company Limited would like to extend its gratitude to all customers, shareholders, business partners and all stakeholders for their continued support of the Company, as well as all employees who strived to perform their duties to the best of their ability throughout the past year.

The Company will continue to adhere to sustainable business operations under the principles of good corporate governance to create value for society and for the maximum benefit of the Company and all stakeholders.

(Mr. Boonsom Lerdhirunwong)

Chairman