Message from Chairman and Chief Executive Officer

Dear Shareholders,

Year 2021

Due to the current COVID-19 situation that Thailand and the world are currently facing, it has been a difficult situation where many businesses face new challenges. The consumption behavior of consumers has changed drastically in light of the pandemic and it clearly has an impact on the business model. At Chayo, we have experienced and adapted the way of working to cope with these changing circumstances. We have shifted to “New Normal” way of working through the use of information technology and increase work efficiency for the safety of all employees and stakeholders. Chayo has shown the ability to be able to adapt and turn this crisis into an opportunity. As a result, in 2021, Chayo’s net profit from operating the business was 222.04 million baht, growing by 43%, which was higher than the target set.

In the midst of the COVID-19 pandemic that has affected the country’s tourism industry and Thailand’s economic growth. Chayo is proud to be a part of one of the major driver of the economy, whether it’s through helping the debtor to gain financial independence, driving assets to be circulated to the market for development and providing the people options to access funding sources through loans.

For the growth plan in 2022, the Company has set a target for the total revenue growth of at least 25%, with plans to buy more non-performing loans into the Company for approximately 10,000 - 14,000 million baht and determined an investment budget of approximately 3,000 million baht (including Chayo JV). Chayo expects that in 2022 there will still be an opportunity for the Company to buy non-performing loans or NPL for a continuous management by having non-performing loans that may increase in 2022. At the end of 2021, the Bank of Thailand reported that there was approximately 530,736 million baht in non-performing loans or NPL in the system. In addition, the Company has determined additional lending budget of approximately 1,000 million baht for the lending business.

To operate the business with efficiency, sustainability, as well as to generate returns for investors, shareholders and related parties will not be successful at all if the Company fails to be aware of its responsibility to the customers, society, economy, and nation, and most importantly, to receive supports from the customers, shareholders, investors, employers, financial institutions, and related persons.

Therefore, Chayo would like to take this opportunity to express our gratitude to our customers, shareholders, investors, employers, financial institutions, and all stakeholders who have always supported and believed in the operation and management of CHAYO. We will strive to work to the best of our ability and will operate the business in accordance with the principles of good governance with the awareness of all stakeholders, including social responsibility, and responsibility to the nation and the environment to step towards stable growth and generate sustainable returns.

Year 2020

The overview of Chayo Group in 2020 was another satisfactory year of the Company. In the 2020, the Company had aimed the growth goal of gross income not lower than 15%. However, the Company could actualize or the growth of real income approximately 62% as well as net profit from operation which grow around 39%, when comparing to a former year. The net profit margin of the company was about 32.31%, for investment non-performing loans. In 2020, the Company was succeed in purchasing non-performing loans to administrate increasingly 15,500 million Baht, which result in, by the end of 2020 year, the Company owned non-performing assets to administrate approximately 65,397 million Baht. A total investment in non-performing assets as of 31st December, 2020 was 1,572.74 million Baht.

The overall operation in year 2020, the Company had total income of 479.12 million Baht which increasing 62.40%, comparing to the former year which was 295.02 million Baht. The proportion of core business income were interest margin from non-performing assets credit around 87.09%, income from debt tracking service 10.72% income from loan 1.57% also income from selling products through Call Center, and/or TV Shopping, and/or Online Channel approximately 0.62%

Operation Direction of 2021 year, the Company has planned to grow in total income not lower than 25%. The company believes that non-performing loan trend in 2021 would be increasing more than the end of 2020 year, approximately 523,261 million Baht or equal to 3.11% of the whole credit system. The Company expects that NPLs would still increase due to slow economic recovery which cause from Coronavirus Epidemic 2020 (COVID-19)

In 2021, the Company still focuses on main business investment for instance; Non-performing assets management business or buying debt to manage business which the company has aimed to buy additional non-performing loans to manage approximately 10,000 million Baht. The Company has set investment budget around 1,000 - 1,200 million Baht. As for Negotiation, debt collection and debt tracking business, the Company has expected to grow not less than 20% by emphasizing on finding new customers as well as expanding or customers base in case of additional existing customers. In part of lending business, the company has set additional lending budget approximately 150 - 200 million Baht. Finally, selling products through Call Center business, and/or through TV Shopping, and/or Online Channel, the Company has set the goal in providing new products such as dietary supplements and cosmetic products to sell in order to increasing company’s income alternatively.

Lastly, on behalf of the Board of Directors, executives as well as employees, deeply grateful to all business partners who trust and support the Company’s operation consistently. Please be assured that the Company would determine in operation with full effort. Moreover, the Company will had a good governance in operating business, concerning stakeholders involving responsible for society and environment in order to step into steady growth and sustainable compensation.

Year 2019

For 2019 year overview, the company had the income growth of 19.9% and the net profit from the operation grew 29.9% when compared to the previous year, with the company's net profit margin at 37.7% which increased slightly increased from the percentages of 33.5%. Investing in non-performing assets purchasing in 2019, the company successfully increased management of non-performing assets by 13,906 million Baht which will affect on the end of the 2019 year. The company has owned non-performing asset portfolios to manage more than 50,427 million Baht, at the end of 2019, with a total investment in non-performing assets approximately 1,131.3 million Baht.

For 2019 performance, the company had total revenue of 314.71 million Baht (including profit from the sale of foreclosed assets) increased by 19.9% compared to the previous year at 262.38 million Baht, with the proportion of revenue from the main business which include interest income to non-performing loan was 79.9% (including profit from sales of foreclosed assets), income from debt collection services was 19.50%, and credit lending 0.60% of total revenue in 2019.

Meanwhile, the gross profit of 2019 year was 190.00 million Baht which increasing 15.9% when comparing to the previous year at 163.95 million Baht and the net profit for the year of operation was 111.05 million Baht, which increasing 29.9% when comparing to the previous year at 85.44 million Baht. In this year, the company has Net Profit Margin at 37.7%

The Direction of 2020 Operation, the company has a plan of net income growth strategies to increase the revenue not less than 20%. The company believes that the trend of bad debt in 2020 will increasing continually. Non-performing loans (NPLs) are expected to remain in many systems. In addition, the new accounting standards or TFRS 9 which may result in financial institutions having to set aside a provision. We expected that the total bad dept will be around 500 billion Baht and the dept which financial institution will be released for sale at approximately 2.0-3 billion Baht. Therefore, in 2020, the company plans to expand the main business, which is the non-performing asset management business, By targeting in the non-performing loans purchase for additional management is approximately 10,000 million Baht and the investment budget of approximately 1,000 million Baht. Likewise, for the service and debt collection business which targeting in continuously growth by focusing on seeking for new customers consecutively. As for the lending business has set a budget approximately 200 million Baht. However, the process will be gradually and carefully due to economic conditions which tend to shrink.

Finally, on behalf of the Board of Directors, all executives and employees, thank you to all business partners for consistently trust and support of. Please rest assured that company will devote in operation with utmost efforts and operating business in accordance with the principles of good governance awareness of every stakeholder including responsible for society and environment to step towards steady growth and sustainable compensation.

Year 2018

In 2018, we have unlocked all the limitations on business expansion given that we have already entered into stock market which in turn resolving our restraints, even we used to have limitations on the capital acquisition in the past. We have planned to expand the funds in both secured and unsecured non-performing loans, which we expect that we will achieve a leap growth in 2018.

For this opportunity, Chayo would like to thank our shareholders, customers, partners, business partners, directors, management team, and all staff, who have supported strong fundamental growth of the business. We aim to be parts of society to drive the economic growth, to reduce numbers of non-performing loans, to provide creditability back to customer sand not relying on the loan shark, and to stand with the country to build strong economy and society.

Year 2017

2017 is the start of the company's journey in becoming a new member of Stock Exchange of Thailand. We prepared to enter Stock Exchange since 2014, starting by appointing Price waterhouse Coopers ABAS Co., Ltd as company's auditor. Consultant was hired to lay down the control system. Internal audit was engaged to evaluate internal control system, as well as on company's capital increase and restructuring of shareholding during late of 2015. Further, new management team was hired to reinforce the company's strength in 2016. Later, on 19th September 2017, the company filed form 69-1to the Securities and Exchange Commission (SEC). Being approved by SEC, the company has been registered as listed company in Stock Exchange of Thailand in February 2018, firstly traded in M arch 2018.

Apart from being the starting year of our journey, 2017 was also our challenging year. The challenges are varied in many aspects such as to achieve goal of receivables collections during the economic recovery period, capital raising to support the business expansion, and even on more investment in secured non-performing loans. From 20-year experiences in debt collection service, we have achieved and generated total revenue of more than 205 million baht in 2017. Together with our success during previous years, financial institutions provided more funds and loans supporting our business expansion. As a result, we could expand our investment in the secured non-performing loans in a great extent in 2017. By end of 2017, the company had operated secured and unsecured non-performing loans, which was worth around 29,136 million baht.