Message from Chairman

Dear Shareholders,

During the previous year, the economy of the country has begun to slowly recover. As for the real estate sector, the government measures are the driving force that helps generate demand in the market. However, the biggest obstacles to the growth of the Company are internal and external factors, severe household debt problem and strict loan approval criteria of financial institutions. The Company has thus been unable to achieve the income target in 2016, which is the ending year of the vision cycle 2014-2016, and is likely to fall into recession.

In order to be prepared for the above situation and improve business continuity, the Company has declared 2017, the starting year of the new vision cycle, the “Year of Shift”. There will be changes in terms of business operation direction of the whole organization regarding the vision, operational policy of the Company and subsidiary companies as well as operational process. The vision in 2017-2019 is “Strike a balance in and enhance the efficiency of real estate business operation and residential development in terms of profit and responsibility towards all stakeholders to achieve sustainable development”.

The operational policy of the Company and associated companies has been changed to be in accordance with the new vision and the companies are categorized into two business groups, namely, real estate development business and service business. With regards to real estate development business, L.P.N. Development Public Co., Ltd. has identified the target group of new projects developed to include not only middle to lower-middle income earners but also middle to upper-middle group. It will affect the location for project development as well as marketing strategy of the Company. More importantly, the brand image will be improved to be consistent with the above target group. As for Pornsanti Co., Ltd., the projects developed are horizontal ones and the focus will be on generating additional income to compensate the loss of income from residential condominium development. The construction process will also be developed to complete the project in a more timely fashion.

As for service business, Lumpini Property Service and Care Co.,Ltd. will continue operating as a social enterprise but will expand its business to provide services to external organizations in order to provide assistance to a larger number of underprivileged women. At the same time, the community management strategy of Lumpini Property Management Co., Ltd. will be developed from “Vibrant Community” to “Vibrant Community For All” strategy. Community management services will also be provided to other organizations. Last but not least, Lumpini Property Management Service Co.,Ltd. will provide professional and comprehensive construction consultancy services to external organizations to add values to the Company.

The Company is taking a bold step and I would like to thank the executives, staff and LPN Team for your collaborative effort in making the new history. I would also like to extend my gratitude to the government and private sectors, financial institutions and the media for your support all through the year as well as to all shareholders for your trust and confidence in the Company. The Company strongly believes that the “Year of Shift” can be achieved based on governance principles and prudent, transparent and auditable operation. It will be our next step towards sustainable growth in the future. “Lumpini” will be a great “home”, a “Vibrant Community For All” and a “real pleasure of living” for years to come.

Amornsuk Noparumpa