Message from Chairwoman

I have great confidence that the Company will be able to expand continuously in 2024 and sincerely hope that the Company will receive great support from all shareholders as before.

Ms. Punnee Chaiyakul
Chairwoman

Dear Shareholders, Noble Development Public Company Limited (the “Company”)

2023 has passed. The global property development industry is continuing to experience a slowdown. This decline is caused by a variety of challenges, one of which being a lack of real estate sector stimulus measures strong enough to entice buyers, which contributed to a decrease in purchasing power. Entrepreneurs need to modify their project execution strategies to remain competitive and increase sales. Nevertheless, several significant actions have been achieved, which I am pleased to report to all shareholders as follows:

1. The Company has transferred ownership of completed projects worth 6.6 billion baht in total. As a result, the Company could take advantage of the cash flow for further investment in new projects. In 2023, the Company sold inventory projects worth 6.6 billion baht, including projects that are under construction and newly launched projects worth 8.3 billion baht, resulting in an increase in the Company’s total pre-sale worth 14.9 billion baht (excluding Nue District R9 and Nue Cross Khu Khot Station).

2. The Company was successful in launching 7 new projects with a total project value of 18.9 billion baht, resulting in consistently impressive sales due to their high quality and attractive locations. Despite an unfavorable economic situation, including rising interest rates, the total pre-sale also reached 14.9 billion baht (excluding Nue District R9 and Nue Cross Khu Khot Station), supporting the backlog in 2023 to reach 19.8 billion baht, which will gradually be booked over the next three years. Also, the Company believes that there will be a positive trend in sentiment in the property market. The segments that consistently and largely contribute to its sales are the luxury housing projects and condominium projects in the central business district.

The Company believes that in 2024, the real estate market will improve as well, riding high on the back of the economy's recovery and interest rates that are stabilizing and trending downward, which will encourage investors to make investments and maintain end-user real demand. In 2024, the Company targets total revenue of 14.0 billion baht, with total pre-sale values of 20.6 billion baht, and plans to launch 7 news projects with combined values of more than 22.6 billion baht, including 5 housing and low-rise condominium projects worth 6.7 billion baht and 2 high-rise condominium projects worth 15.9 billion baht, which are spread across Bangkok’s area.

Additionally, the Company currently maintains 34.5 billion baht in inventory in prime locations to meet customer needs, including completed inventory worth 10.4 billion baht and the upcoming completed construction condominium projects worth 5.8 billion baht, namely Nue Noble Ratchada - Latprao, Noble Form Thonglor, Nue Connex Condo Don Mueang, and Nue Cross Khu Khot Station, etc., which achieved an average pre-sale of 70%, as well as under construction projects that can be ready for ownership transfer from 2025 to 2027 worth 18.4 billion baht.

3. The Company is still able to maintain its leadership in the international market, which can generate sales of over 5.2 billion baht to the total sales in 2023, which is record all-time high foreign sales, particularly from luxury condominiums in areas of Thonglor Road: Noble Form Thonglor, Sukhumvit Road: Noble State 39, and Wireless Road: The Embassy Wireless, a joint venture project between Noble and Hongkong Land, which generated overseas pre-sales of 2.2 billion baht by the end of 2023. Moreover, the Company could expand into a variety of foreign markets, such as Myanmar, Taiwan, Singapore, and Hong Kong. Nonetheless, the Company expects Chinese customers to come back when the mainland economy improves. It is anticipated that this will stimulate higher sales from the company's foreign customers.

4. As for the overall strategy implementation, the Company has continuously emphasized the enhancement of the brand “NUE” to penetrate the premium affordable market. At the end of 2023, NUE had a total value of more than 41% of the active project value of the Company. The Company has continued to expand on housing projects and low-rise condominium projects, currently worth more than 25% of the total project value. The aforementioned actions resulted in the Company’s ability to broaden the customer base and increase the continuity of order backlog every quarter.

5. In terms of finance, the Company has implemented a strict financing policy. At the end of 2023, when considering the Company's net interest bearing debt to equity (Net D/E) ratio, it represents 2.05, which is significantly lower than the guarantee that the Company has with bondholders and financial institutions. The Company still has a return on equity (ROE) of 14.7%. Towards the end of 2023, the Company issued 1-year, 5-month, and 26-day debentures (series No. 1) worth 1.0 billion baht and 3-year debentures worth 0.8 billion baht (series No. 2). The debentures earned a credit rating of BBB, a stable level based on an assessment from TRIS Rating Co., Ltd.

6. In addition to operating its core business with strict caution as set out above, the Company is also committed to conducting business in parallel with taking responsibility for the economy, society, and environment. This is to set guidelines for organizational management according to the principles of sustainable development and build engagement with all groups of stakeholders in order to mobilize the organization to achieve sustainable growth that creates shared values in the Company's business chain under the principles of good governance, good corporate governance, transparency, and comprehensive risk management. In 2023, the Company received honorary awards, including:

  • Received “excellent”, 5-star evaluation for corporate governance from Thai Institute of Directors (IOD).
  • Received 100 full score or excellent rating of the 2023 Annual General Shareholders' Meeting Assessment Project (AGM Checklist), conducted by the Thai Investors Association.
  • Awarded the Sustainability Disclosure Acknowledgement 2023 from Thaipat Institute.
  • Listed in the SET ESG Rating 2023 sustainable stocks at the “AA” level, it has been on the list of sustainable stocks for two consecutive years, aiming to be an organization that emits net zero carbon dioxide (Net Zero) from the Stock Exchange of Thailand.
  • The first renewed the certificate of certification to be a member of the Thai Private Sector Collective Action Coalition Against Corruption for another 3 years from the Thai Institute of Directors.
  • Received the prestigious "BCI Asia Top 10 Developers Awards 2023." The winning project is NUE Evo Ari. Noble places importance on developing unique residential projects that enhance the quality of life for residents, and the project stands out for its outstanding concepts and designs tailored to all lifestyles, placing a strong emphasis on environmental consciousness from BCI Central Co., Ltd.
  • Received the “Energy Saving Homes REED Awards 2023” from the project to promote energy efficiency standards for residential homes, “Residential Energy Efficiency Design.” The winning projects are Noble Gable Watcharapol, Noble Curve Ekamai - Ramindra, Noble Terra Rama 9 - Ekamai, Noble Norse Krungthep Kreetha, Nue Verse Krungthep Kreetha, and Nue Connex House Don Mueang from the Department of Alternative Energy Development and Efficiency (DEPA).
  • Awards from “HR Excellence Awards 2023”: the Company received awards in 2 categories: “Gold: Most People—Focus CEO: Mr. Thongchai Busrapan”, which is an award for CEOs who value employees who are creative in helping drive business transformation, and the “Bronze: Excellence in HR Communication Strategy” award recognizes organizations that have implemented effective communication strategies within the HR field. Communication is prioritized. This results in a clearer and more effective understanding of employees' needs from Human Resources Online.
  • Received “Living Insider Awards 2023,” the Company received 2 awards from a panel of real estate experts judged to elevate the real estate industry to grow even more, such as the Noble Create project, which won the "Best Natural Condo" category as a condominium with more than 5 rai of green space designed under the concept of forest habitat, simulating an ecosystem that is conducive to living. And SERVE Property Management Co., Ltd., a subsidiary of Noble, has been awarded the Top Performance Agent award, guaranteeing the best quality and service to all customers from Living Insider Co., Ltd.

To conclude all the actions mentioned above, I have great confidence that the Company will be able to expand continuously in 2024 and sincerely hope that the Company will receive great support from all shareholders as before.

On behalf of the Board of Directors, the management team, and the Company's employees, thank you for your confidence and support in various fields and please accept my best wishes for all shareholders here.

Sincerely yours

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