The Board of Directors is pleased to present the annual report of the company and its subsidiaries, including the audited financial statements for the year ended December 31, 2024.
The year 2024 was another challenging year, influenced by both domestic and global factors. Domestically, delays in the approval of the government's annual budget and a contraction in private sector investment, along with persistently high household debt levels stemming from the COVID-19 period, posed significant challenges. Additionally, Thailand's economy continued to be impacted by geopolitical conflicts and trade protectionist measures. Nevertheless, the country experienced growth in exports and the tourism industry, which remained key drivers of economic recovery.
In the automotive industry, overall new vehicle sales in the domestic market declined due to economic slowdown and high household debt. As a result, total vehicle sales in 2024 fell by 35.47 percent, reaching 572,675 units, compared to 775,780 units in 2023. Similarly, domestic truck sales dropped by 42.03 percent, from 27,682 units in 2023 to 16,046 units in 2024, as demand for commercial vehicles weakened following accelerated purchases in previous years.
In response to economic conditions, the Monetary Policy Committee of the Bank of Thailand reduced the policy interest rate once in October 2024, from 2.50 percent to 2.25 percent per year.
PERFORMANCE IN 2024
As of December 31, 2024, the Company total assets were THB 72,688 million, decreasing by 6.2 percent from 2023. The total liabilities were THB 62,363 million decreasing by 6.7 percent from 2023. The shareholders’ equity was THB 10,325 million, decreasing by 3.1 percent from 2023 resulting from a decrease in the Company’s operating profit. The Company has paid up capital at THB 2,639 million with the retained earnings of THB 4,894 million. In 2024, the total revenues were THB 6,408 million, decreasing by 1.4 percent from 2023. The total operating expenses were THB 3,776 million, increasing by 23.4 percent from 2023 mainly due to an increase in decline in value of assets foreclosed as a result of an increase in seized assets and an increase in loss on assets foreclosed. Consequently, the total profit for the year 2024 was recorded at THB 332 million, decreasing by 72.8 percent from THB 1,219 million in 2023. The total portfolio in 2024 amounted to THB 68,823 million, decreasing by 8.5 percent from 2023.
According to the Thai economic slowdown, the Company overall asset quality has been dropped. NPLs ratio at the end of 2024 was 6.97 percent of total portfolio, increasing from 4.70 percent in 2023. The allowance for expected credit loss to NPLs stood at 56.32 percent at the end of 2024.
Despite the challenges, the company's credit rating remained stable. Fitch Ratings (Thailand) Limited reaffirmed Asia Sermkij Leasing Public Company Limited's national long-term rating at 'A(tha)', with a stable outlook, reflecting continued support from major shareholders.
CORPORATE GOVERNANCE & CORPORATE SOCIAL RESPONSIBILITY
The Board of Directors is committed to enhancing efficiency, effectiveness, and transparency while firmly upholding the principles of sustainable development. The company strictly adheres to good corporate governance policies, social responsibility initiatives, anti-corruption measures, and business ethics. The Board aims to maintain rigorous governance standards to establish a solid foundation for long-term sustainable growth.
In terms of corporate social and environmental responsibility, the company promotes responsible lending with the goal of fostering long-term financial stability. Additionally, it actively supports environmental conservation efforts by installing solar panels at branch offices to utilize alternative energy sources for electricity generation.
The company has also established policies to continuously engage in social responsibility initiatives, such as providing scholarships to students and encouraging employees to participate in blood donation programs with the Thai Red Cross Society. Furthermore, employees are encouraged to contribute to community development projects.
In 2024, the company received 98 points in the Annual General Meeting (AGM) Quality Assessment for listed companies on the Stock Exchange of Thailand (SET). This assessment was conducted by the Securities and Exchange Commission (SEC) of Thailand, in collaboration with the Thai Investors Association.
Additionally, the company achieved a 5-stars or “Excellent” rating in the Corporate Governance Report (CGR) for Thai Listed Companies 2024, published by the Thai Institute of Directors Association (IOD).
Most notably, in 2024, the company received an “A” rating for SET ESG Rating and was successfully selected to be in SET ESG Index for the first half year of 2025, affirming its commitment to sustainability and responsible business practices.
BUSINESS OUTLOOK AND STRATEGY FOR 2025
The Board of Directors has approved the company's business strategy, objectives, and policies, reaffirming its commitment to sustainable operations and good corporate governance. This includes effective risk management and cost control measures to ensure long-term stability and profitability.
The company projects that the Thai economy will expand by approximately 2.9 percent in 2025, driven by public investments, particularly in infrastructure projects and economic stimulus measures. Private investment, including Foreign Direct Investment (FDI), is also expected to grow, benefiting from the relocation of global manufacturing bases. Additionally, the tourism industry is anticipated to recover to pre-pandemic levels, further supporting economic expansion.
However, economic growth may face challenges, including high household debt levels, geopolitical conflicts, and trade barriers imposed by the United States.
The domestic new car market is expected to grow by 4.86 percent, reaching 600,000 units in 2025, reflecting gradual economic recovery.
In 2025, the company aims to maintain its leadership in the new truck hire purchase market, expanding its business cautiously while ensuring asset quality control. The company will also enhance its products, operational processes, and services to better meet customer needs and improve overall efficiency.
On behalf of the Board of Directors, I would like to express my sincere gratitude to our shareholders, customers, and business partners for their unwavering support and trust. Your continued confidence in us is invaluable.
I am confident that through our collective efforts and the dedication of our team, we will achieve greater milestones and create sustainable value for all stakeholders. Thank you.
For and on behalf of the Board of Directors.
Mr. Yang, Tze-Ting
Chairman of the Board of Directors