In 2022, the outbreak of coronavirus (COVID-19) has recovered globally which drives more challenges in the global economy. It was quite a fragile economic recovery at the starting point. Moreover, higher inflation has slower the economic recovery. As a result, central banks in various countries issued the interest rate hike policy accordingly. Fuel prices surged higher due to long Russia - Ukraine war. The controversy between countries also raised the food insecurity problem. Zero Covid measure by the Chinese government has caused the economy to slow down. The crisis in the real estate industry also counted as another factor. According to the 26th UN Climate Change Conference of the Parties (COP26), many countries are actively stating their carbon-neutral mission, including the goal of net zero emission by using clean energies instead of fossil fuels such as coal, oil, and natural gas. The above factors have stipulated uncertainty over society and the economy globally.

In 2022 in Thailand, the intensity of COVID-19 outbreak has decreased according to the global situation. The Thai government announced the cease of the nationwide COVID-19 Emergency Decree and reclassified COVID-19 as a communicable disease under surveillance, which led businesses to resume their operation and business activities almost as usual.

The nationwide COVID-19 restriction has been eased accordingly which enables Thailand to reopen its borders once again. The overall economy started to recover due to the tourism industry, and since then economy have begun to recover respectively.

The Company also relaxed the preventive measures in terms of policy, business operation, working procedure among head office and construction sites. In fact, the Company’s business strategy has been developed constantly in order to be more resilient in uncertain situations. Thanks to the above implementation, the Company’s revenue increased from the previous year and resumed its profitability. However, the delay in handling over the project’s area and the revision on construction drawing have delayed the completion date, which caused the revenue and profit generation to be lower than expected. The Company has been monitoring Thai government’s policies regarding the investment in infrastructure projects such as land, air, and water transportation, including the investment in infrastructure development in Eastern Economic Corridor (EEC). There are some delays due to the time consuming over reviewing process by the government, including the mega projects is now seeking for the Thai Cabinet’s approval before their term ends. On the other hand, the government’s mega projects especially on transportation in which the biddings have already been awarded, for instance, high-speed train, double-track railway, seaport, power plant, and airport are expected to grow higher this year compared with the private sector’s construction. The Company has successfully been awarded in the bidding of many projects that mentioned above.

The construction by private sectors continued to slow down, although it also started to have a good sign and prepared to launch the new construction projects of residential, economic building, and manufacturing industries which will be launched in the next year

The Company still strives “to be a leader in construction business, progress towards valuable future and able to provide benefits to all stakeholders with care and responsibility”. In this year, the Company has successfully been awarded in the bidding of new projects. Thus, the Company was able to maintain the number of backlogs that are close to the number of the year 2021, which its revenue will be continuously recognized in the next three years. Despite the crisis, the Board of Directors commits to creating the growth of the organization continuously and quality by stability in the long-term period, generating satisfactory returns to shareholders, stakeholders, and all related parties, and creating value for the overall economy of the country. The Board is also committed to conducting business in accordance with the guideline of sustainable development in terms of economy, society, and environment under the good corporate governance principle. The Company earned a 4-star Corporate Governance Rating and aimed to achieve a higher rating moving forward.

For the direction of the Company, the Company remains its operation in construction business, focusing on largescale projects of the government which suit the Company’s expertise, and also the projects from the private sector which is now recovering. At the same time, the Company will continue to seek for works from the private sector in neighboring countries, namely Cambodia, Laos, Myanmar, and Vietnam (CLMV), which are enjoying their economic growth. The cost management, monitoring raw materials price and sourcing labor are the factors that will be taken to account in order to align all factors with the demand. Furthermore, the Company has conducted the business of pre-cast concrete products manufactured with the technologies from Europe and is also expanding its manufacturing capacity to meet the increased market demand in the EEC, which will be the hub for the country’s economic growth. For the real estate business, the Company’s strategy will focus on the demand in possible markets with a favorable growth rate. In 2023, the Company will make its pace in becoming an organization that has the potential at the international level to strengthen its foundation, prepare for economic recovery and more intensive competition. In this regard, the Company shall improve its operation in all aspects, managing risks more efficiently and effectively, controlling construction and labor cost together with the quality of materials and equipment, enhancing the efficiency and effectiveness of work execution to acquire the quality and standard that meet the customers’ highest satisfaction. Moreover, the Company shall develop its personnel in both technical and management aspects on a continuous basis which shall include encouraging awareness of social and environmental responsibility, since they are valuable resources and key essentials of sustainable growth.

The Board of Directors, executives, employees and subsidiary companies of Nawarat Patanakarn Public Company Limited would like to show our gratitude to all shareholders, bondholders, business partners, customers, all related parties, public, and society for your support and trust in the Company as always. We do hope that we will continue to receive such honor, trust, and good support. Kindly believe that we will keep on our commitment and dedication to conduct business with prudence, caution, transparency, and in compliance with the principle of good corporate governance, the framework of sustainable development for the utmost benefits of all parties concerned and for becoming an organization with stable and sustainable growth in Thailand as defined in the Company’s vision.

Mr. Prasertphand Pipatanakul

Independent Director, Chairman, Member of the Audit Committee, Chairman of the Corporate Governance Committee, and Chairman of the Code of Conduct Committee