Message from the chairman
In the year 2015, the country's overall economic growth rate increased slightly compared to the prior year, which could be seen from the annual GDP of 2.8 percent (increased from 0.8 percent in 2014). The real estate sector was stable in the first three quarters of the year 2015. However, in the 4th quarter, the political situation was moving in a positive direction that considerably affected the consumer decisions to purchase more dwellings than the first three quarters but there was also a major negative impact of loan policies from commercial banks.
In 2015, the company recorded total sales of 4,444 million baht, better than those in 2014, which comprised 87 percent from low-rise projects and 13 percent from high-rise projects. This made the company's total backlog reach 2,161 million baht at the end of 2015. Considering the corporate performance in the year 2015, the company had revenue from sales and other income of 5,428 million baht, a 112 percent increase compared to the prior year, and reported net profit of 217 million baht, an increase of 425 percent over the prior year. In the year 2015, the company has completed two condominium projects, which the Company will recognize revenue in the year 2016 and will also be delivered consistently every year. Meanwhile, market of townhouse, twin house and single detached house is real demand. Moreover, Consumers have been urged by the government to effect growth of townhouses revenue approximately 53 percent compared to the year 2014. Meanwhile, the company will be launched the four new projects which the political situation was stable and also the overall situation was better, affecting to the purchasing demand in the near future before government support measures will expire in April 2016.
It can be seen that even in the period of political and economic contraction, the company could grow and achieve approximately 121 percent increase in revenue from sale of real estate. While the revenue from condominium projects was still unrecognized according to accounting standard that would recognized the revenue only after the transferring process was completed in the ended of year.
In the last three years, the company has spent time and other factors for improvement Internal Restructure and work flow system to reduce occurred risk in accordance with planned strategies that is improvement construction system, budget system and sale system in the year 2013 and 2014, respectively. Moreover, the company has operated condominium projects to continuously conduct revenue recognition. In the year 2015, the company focused increasing of sales and revenue recognition to be sustained growth and continuity as results mentioned above as well as continued development personnel continued to support expansion in the upcoming in the year 2016 onwards. In 2015, the company has target to growth of revenue and net profit margin by launched 11 townhouse projects, project value of 20,035 million baht and recognize revenue from condominium with three locations although the company will require more effort than normal in the current economic climate.
Lastly, the company's success can never be possible without generous support from every party involved. On behalf of Areeya Property Public Company Limited, we would like to thank all of our shareholders, customers, financial supporters, business partners, and staff members for their great support throughout the year. This helps encourage the company to succeed even in the uncertain situation and continue to grow stably and sustainably. The company commits to operate our business to ensure the maximum benefit of all stakeholders and continue to comply with the principles of good corporate governance while creating products that meet the diverse needs of our customers. We hope to always receive continued support from all of you in the years to come.