2022 is greeted with new challenges. We would have to move ahead and rebuild after being impeded for already two full years.

2021 turned out to be worse in terms of pandemic and number of infected cases. Directly impacted the property development and construction sectors, COVID impact was so intense that the lockdowns had to be imposed on construction sites, directly affecting house deliveries, hindering revenue recognitions. Driven by the uncertainty, furthermore, the negative sentiments obstructed demands and homebuyer’s ability to transfer giventhe post-financingchallenges. As such, wecrouched and stayed focus our strength while reassessing on the efficiency through Balance-sheet Reformation.

Tolerating the Challenges

Strong pressures were experienced starting in 2Q21 following theoutbreakof the Delta variant. Fortunately, transfers of the newly completed condominium units at the MOST Issaraphap had somewhat helped support the shortfalls in 1H21 revenues. Nonetheless, lockdowns were imposed at construction sites throughout the country, while the plan to launch new projects, expected to support the presales and transfers, had to be postponed amid the intensifying COVID situation. Thus, 3Q21 results slipped to a new trough.

Reassessing Efficiency

As part of our strategy to tolerate the challenges, we reassessed on the efficiency of our balance sheet. First and foremost was to focus on sales and transfers of the inventory, and secondly was the landbank management. Some non-productive landbank in medium-term, particularly the one added onto the balance sheet through the M&A activities in the past, were sold to reduce the debt level and interest payments. Another plot was sold for landbank diversi fication purposes generating gains from low acquisition costs in the past. Meanwhile, an other plot was refinanced to achieve proper loan-to-value ratio. Through these Balance-sheet Reform activities, we were able to support the earnings as well as replenishing working capital.

Township Development Strategy

Through the Balance-sheet Reform activities, we can further augment the Krungthep-Kreetha Township. Existing landbank, together with the newly acquired land plots, would allow offerings of new product segments, while some streetfront plot would be designated for commercial developments to provide convenience to our customers as well as creating values for our other projects in the area. As a preliminary step, we have reclassified about 50 rais, previously recognized in the Costs of Property Development, to Investment Property based on the reconsideration of its purpose from holding for sales to holding for earning rentals or for capital appreciation or both.

Beside the Omicron variant, 2022 is greeted with new challenges of sharp rising global inflation worsened by the current geopolitical tension. We would have to move ahead and rebuild after being impeded for already two full years.

On behalf of NVD management team, we would like to express our sincere appreciation and gratitude to shareholders, joint venture partners, business partners, customers, staffs, financial institutions, and all stakeholders for your continued trust and supports.

Mr. Sornsak Somwattana

Chief Executive Officer