AWC Reports a Net Loss of ฿1.8Bn as Covid Outbreak Plunges Half of the Revenue

Asset World Corp Public Company Limited (AWC) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

In 2020, AWC reported a net loss of 1,881 million baht, contrasted to its net profit of 932 million baht in 2019 due to a decrease in revenue, affected by the coronavirus outbreak.

In 2020 and 4Q20, the revenue of AWC was at 6,133 million baht and 1,578 million baht, decreased by 53.7% and 51.5% from the same period of last year, respectively. However, in consideration of the comparison of the revenue between 4Q20 and 3Q20, the revenue has improved and increased by 24.6%, resulting from the benefits of the diversified investment strategy (Balance and Diversified Portfolio), which enabled the company to continuously generate cash flow, particularly from the commercial business, which was not directly affected by the pandemic. Meanwhile, the hospitality and retail business units have started to return in terms of performance, resulting in the increase of the company’s total cash flow over in 2020.

 

Furthermore, AWC stated that the company continued to move forward through establishing Corporate Transformation, together with the Cost Control and Efficiency Initiative which will not affect the company’s performance in the future.

As a result, the operating expense to revenue ratio of the company has declined from 92.8% in 3Q20 to 78.6% in 4Q20, thus reflecting the efficiency of the effective cost control measures of the company while continuing the policy to effectively manage various corporate costs.

 

The Board of Directors resolved the resolution to omit a dividend payment for the operating period of 2020.

 

In addition, AWC added that in transition to 2021, the company still stands beside the mission to ‘Building A Better Future‘ for all stakeholders along with the community, the society and the country in the world of the ‘New Normal’, which saw a significant change in daily lifestyle. AWC planned on operating the business with AWC’s ‘3 key strategies’ in moving towards a better and stronger future, consisting of BETTER PEOPLE – ensuring confidence in the safety and hygiene standards at all AWC affiliated properties, BETTER LIFESTYLE – utilizing the unique characteristics of a diversified portfolio to correspond to the ways of the ‘New Normal’, and BETTER ECONOMY – continuing the develop the business according to the plan as well as developing new quality projects and renovating existing affiliated properties to become tourist destinations. This will be an important factor in installing confidence and reviving the Thai economy back to normal as soon as possible with continued and strong growth.