Dear all Shareholders,

2023 was the year in which Thailand’s economy continued to face global economic volatility. The international political instability, especially the prolonged Russian-Ukrainian conflict that had been going on since 2022, followed by the political conflict and war between Israel and Hamas in the second half of 2023, put pressure on the economy that was about to recover from the 2022 recession. Consequently, the global economy in 2023 grew 2.6%, declining from 3.2% in 2022, according to the World Bank report. It directly affected Thailand’s export sector and tourism sector, the main propellers of the economy. In addition, the delay in the Thai government formation which occurred in September 2023, long after the general election in May 2023, caused a slowdown in government spending in the second half of 2023 which led to a delay in the 2024 annual budget preparation. As a result of the aforementioned factors, Thai economic growth in 2023 was 1.8%, lower than the growth rate of 3-3.5% predicted by the Bank of Thailand and the Office of the National Economic and Social Development Council.

In 2023, real estate market faced various constraints including the lower-than-expected economic growth rate that caused a decline in purchasing power; the end of the Loan to Value (LTV) relaxation starting from 1 January 2023 as the Bank of Thailand declined to renew it; the rise of the household debt to 90% of the Gross Domestic Products (GDP); the rises of interest rates, land prices and labor costs. Consequently, financial institutions were strict and cautious in approving both project loans and mortgage loans, causing the residential transfer values in 2023 (Amornsak Noparumpa) Chairman of the Board to remain stable. It was estimated that the total values of residential transfers throughout the country would be 1.07 trillion baht, equivalent to the 2002 residential transfer values of 1.06 trillion baht.

Under such circumstances, LPN has adjusted its business strategy to prepare the organization to move forward and suffer the least impact. LPN has improved the internal working process, reduced expenses, eliminated steps and enhanced work efficiency. Business strategies have been adjusted to correspond with incurring changes through development of living units that respond to needs of all levels of buyers under the “Living Livable” concept. New projects have been designed, considering comfort as well as Smart & Wellbeing under the brand “168”.

2023 was another year that demonstrates organizational competency and collaboration of every team member to drive the organization through hurdles of economic volatility. I would like to express my thanks to the dedication of all executive members, staff members and business partners in the past year. Thanks also go for the confidence and trust of all the shareholders. Every support is a great encouragement for LPN to never stop developing best products and services under the aspiration of building quality “Homes” that deliver true happiness of living to all Thai people and of creating sustainable growth for the organization and all groups of stakeholders.

Amornsak Noparumpa
Chairman of the Board