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Chairman Message
Mr. Mitsuji Konoshita Chairman of
the Board

The year 2016 marks many positive historical high records of our group of companies such as highest annual profit ever, about 1062 million baht, highest quarterly profit ever 4 times in a year, largest portfolio ever, more than 10 billion baht, highest annual revenue, about 2.9 billion, and so on.

These are the results of our creative business model, ‘Digital Finance Platform,’ which proved its potential of fast and certain growth as shown by our company’s performance in Cambodia. Also, because of the business model, our company can keep OPEX and investments costs low, so that profitability of the business will be remarkably higher and expansion of the business can be extremely fast, especially because the new business model is planned and integrated to fit to the rural areas of ASEAN where the emerging volume zone population is located.

The Digital Finance Platform is a unique business model that makes the group of companies different from others. The first difference is “Digital”, the second difference is “Global” and the third difference is “Rural”. The group’s operations are based on Points Of Sales (POS) which only require an investment of USD 400 each and only 2-3 staff members without the need for branches, which could require an investment up to 40,000 USD each not including the required staff of 20-30 employees.

- Normally, consumer finance companies and micro finance companies are highly labor intensive with many physical documents, but the “Digital Finance Platform” allows the group of companies to have less staff and require less physical documents.

- Normally, consumer finance companies and micro finance companies are homeland oriented companies. But since the “Digital Finance Platform “ is a proper screening system for any country; a system that is easy to adjust locally to specific cultures and requires significantly lower investments, the company’s expansion is of lower risk and it is easy to expand ‘Globally’ compared to traditional finance companies.

- Normally, consumer finance companies and micro finance companies are city oriented companies. Our POS are easily economical in rural towns that are close to the customers in the villages and the staff can go to see the customers to get ‘valuable information that would not appear on a traditional credit score. This uniqueness makes the group of companies able to get into the ‘Rural’ area market, where the competition is less developed.

All over the world economic expansion is going on, especially in emerging countries. In emerging countries, the most significant growth going forward is in the grass roots economy which spreads in rural areas, specifically including people who do not have traditional documents and bank accounts. The Digital Finance Platform is the one and only platform, which allows us to provide service in these grass roots economy everywhere globally!

In my message in last year’s annual report, I had committed to all shareholders 3 results:

“First, we will start our business to Indonesia;
Second, we will keep strong growth in Cambodia and Laos;
Third, we keep our Thailand operation and increase profitability with proper control of the portfolio quality”.

All these came true. The Indonesian business was launched and is rapidly expanding, Cambodia and Laos realized 2.5 times profit and the Thailand NPL ratio went down significantly, decreasing group credit cost by more than 30%.

Additionally, we have recently expanded our operations to Myanmar and Sri Lanka. Now, we have a presence in 6 countries with full operations in multi-financing, including microfinancing, and hire purchase financing fields. The result of 2016 was more than expected.

Finally, I’d like to take this opportunity to thank all our stake-holders, our business partners, our clients, our management and staffs – for their supports all along, which have been crucial for our success so far. I trust all of you will continue to provide your full supports and cooperation so that we can achieve much bigger things together in the years ahead.