Message from the Board of Directors

Dear Shareholders,

In 2024, the Thai economy experienced modest growth compared to the previous year, with the overall situation returning to normal, primarily driven by the recovery of the tourism sector. The number of foreign tourists continued to rise, supported by the Visa-Free policy. Domestic spending also showed steady growth, in line with the expansion of private consumption. However, despite signs of economic improvement, Grand Canal Land Public Company Limited (“the Company”) continued to face challenges from external uncertainties that directly and indirectly impacted its business operations. These included risks associated with volatility in the global economic and financial systems, high levels of household and business debt, which required careful spending, and fluctuating agricultural yields and prices due to unstable weather conditions, such as droughts and floods.

Thailand’s office building sector continued to face challenges from the increasing supply in the office building market and the intense competition from the increasing supply. Additionally, the Hybrid Workplace policy of many organizations and the use of Co-Working Space were key factors contributing to a decline in demand for traditional office space rentals. These trends presented ongoing challenges to the Company’s core business of developing and enhancing office buildings to meet the evolving needs of tenants and service users. The Company has explored development strategies and service upgrades for both its office building and retail businesses, aiming to create synergies that enhance competitiveness amid a market environment of rising supply. The goal was to ensure that the Company’s office buildings remained the preferred choice for tenants and service users. At the same time, the Company remained focused on optimizing cost management to maximize operational efficiency and continued to implement a cautious and prudent management approach across all its business segments.

In 2024, the Company recorded a total revenue of 1,747 million baht, a 5% increase from the previous year, driven primarily by the rental and service business, which is the Company’s core business. Despite a challenging office market situation that led to a decline in office building occupancy rates, the Company successfully maintained steady rental rate increases, performing slightly better than the market average. For the real estate business, the number of ownership transfers for the Nirati Don Mueang project remained similar to the previous year, while revenue slightly increased due to a higher average selling price. Administrative costs and expenses totaled 750 million baht, a 5% increase from the previous year. This rise was attributed to higher costs related to the Nirati Don Mueang project, in line with the increased revenue from project transfers, as well as elevated administrative expenses driven by inflation and rising energy costs. The Company was able to maintain a gross profit margin comparable to the previous year and effectively control administrative expenses, resulting in an operating profit margin that remained close to the previous year’s level and in line with the Company’s targets.

The Company remained committed to sustaining and fostering strong, continuous business growth while prioritizing the interests of all stakeholders. At the same time, the Company adhered to the principles of good governance and consistently emphasized good corporate governance practices. These principles were regularly communicated to both the Company’s directors and employees, encouraging them to operate with dedication and integrate these values into their routines.

In addition to upholding good corporate governance, the Company placed strong emphasis on sustainable development, striving to instill and raise awareness of its importance among both internal and external stakeholders. Internally, the Company has implemented measures to reduce energy consumption and promote energy reuse to maximize efficiency while minimizing resource usage. These efforts aligned with the Company’s commitment to achieving Net Zero Emissions. Initiatives included setting targets to reduce energy consumption in air conditioning systems and common areas, regularly reviewing and enhancing energy-saving measures, and improving various operational processes, such as implementing more efficient waste management practices. Externally, the Company actively promoted sustainable development by organizing a variety of community-focused activities, such as:

1. Serving as a blood donation center to encourage the spirit of giving by coordinating with the Thai Red Cross Society to collect blood donations at the building throughout the year.
2. Hosting the "ESG Bonding Hub Grand Opening" in collaboration with Young Happy and the Social Enterprise Group of Thailand (SE Thailand) to promote health, knowledge, and vocational skills for the elderly.
3. Organizing the "Green Expo: Better Futures Project 2024 @ G Land," designed to inspire sustainability initiatives and support the Company's commitment to achieving the Net Zero 2050 target.
4. Launching the “Jasmine Flowers, Unite to Love Mom” project to promote Thai traditions in the celebration of National Mother’s Day. Proceeds from this initiative were donated to the National Council on Social Welfare of Thailand to support those in need and fund scholarships for underprivileged children.

Additionally, the Company supported social enterprise groups by providing spaces for initiatives such as the CATCHAWA store.

On behalf of the Board of Directors, I would like to express my sincere gratitude to all shareholders and stakeholders for their continued support of the Company’s operations. I would also like to thank all executives and employees for their dedication and collective efforts in driving the Company’s strong growth while recognizing the importance of responsible use of resources. The Company firmly believes that sustainable growth must go hand in hand with environmental consideration. The Board of Directors, together with the executives and employees, remains committed to carrying out their duties with the utmost diligence, prudence, and a focus on delivering value to all stakeholders.