¹ Weighted average

The shareholders’ equity as of December 31, 2024 was THB 10,324.83 million, decreased by 3.13 percent from THB 10,658.55 million at the end of 2023. This was resulted from a dividend payment and a decrease in operating performance. The Company had registered capital of THB 2,639.22 million and retained earnings of THB 4,893.99 million.

Total revenues in 2024 amounted to THB 6,408.12 million, decreased by 1.39 percent from THB 6,498.71 million in 2023 as a result of a decrease in portfolio. The major sources of revenues were from interest income form loan receivables which mainly were interest income from hire purchase business, accounted for 75.68 percent of total revenue in 2024 and 74.06 of total revenue in 2023.

The total profit for the year 2024 amounted to THB 331.80 million decreased by 72.78 percent from THB 1,218.77 million in 2023. The net profit margin ratio in 2024 was 5.18 percent decreased from 18.75 percent in 2023. The return on equity ratio in 2024 was 3.17 percent, decreased from 11.71 percent at the end of 2023.

The total portfolio before allowance for expected credit losses in 2024 amounted to THB 68,822.75 million, decreased from THB 75,257.47 million in 2023 or decreased by 8.55 percent. This was resulted from a decrease in disbursement of the Company and its subsidiary. The disbursement in 2024 amounted to THB 22,547.79 million, decrease by 36.15 percent from THB 35,313.93 million in 2023. The NPLs ratio at the end of 2024 was at 6.97 percent of the total portfolio, increased from 4.70 percent at the end of 2023. This was the result of an increase in delinquency of the Company and its subsidiary. The allowance for expected credit losses to NPLs ratio was 56.32 percent at the end of 2024, decreased from 62.32 percent at the end of 2023.

Interest income from loan receivables in 2022 - 2024 amounted to THB 4,860.42 million, THB 5,657.62 million and THB 5,747.76 million respectively. Interest income in 2023 increased 16.40 percent from 2022 and interest income in 2024 increased 1.59 percent from 2023. Interest income from loan receivables in 2022 - 2024 accounted for 86.43 percent 87.06 percent and 89.69 percent of total revenues respectively.

Interest Income from hire purchase agreements during 2022 - 2024 amounted to THB 4,168.89 million, THB 4,813.16 million, and THB 4,849.90 million respectively. The hire-purchase interest income in 2023 increased by 15.45 percent from 2022, income in 2024 increased by 0.76 percent from 2023 due to the increase of hire purchase interest rate. The hire-purchase account receivables before allowance for expected credit losses at the end of the year 2022 - 2024 equaled to THB 60,637.60 million, THB 67,716.34 million and THB 61,655.38 million respectively. The hire-purchase interest income accounted for 74.13 percent, 74.06 percent and 75.68 percent of the total revenues of the Company and its subsidiaries during the year 2022 - 2024 respectively.

Interest income from financial leases agreements of the subsidiary (Bangkok Grand Pacific Lease Plc.) during 2022 - 2024 amounted to THB 79.72 million, THB 85.70 million and THB 88.41 million respectively. This income in 2023 increased by 7.50 percent from 2022 and income in 2024 increased by 3.16 percent from 2023. The increase was from an increase in financial lease interest rate. The financial lease receivables before allowance for expected credit losses at the end of the year 2022 - 2024 equaled to THB 1,255.42 million, THB 1,325.25 million and 1,199.19 THB million respectively. Interest income from financial leases accounted for 1.42 percent, 1.32 percent and 1.38 percent of the total revenues of the Company and its subsidiaries respectively.

Interest income from loan business during 2022 - 2024 amounted to THB 611.81 million, THB 758.76 million and 809.45 THB million respectively. The loan income in 2023 increased by 24.02 percent from 2022, and loan income in 2024 increased by 6.68 percent from 2023 due to an increase in average interest rate. The loan account receivables before allowance for expected credit losses at the end of the year 2022 - 2024 equaled to THB 5,695.88 million, THB 6,215.88 million and THB 5,968.18 million respectively. The interest income accounted for 10.88 percent, 11.68 percent and 12.63 percent of the total revenues of the Company and its subsidiaries during the year 2022 - 2024 respectively.

Service incomes during 2022 - 2024 amounted to THB 638.10 million, THB 657.62 million and THB 411.99 million respectively. Service incomes comprised of brokerage income, fee and other service incomes. Service incomes were mainly from brokerage income which accounted for 84.59 percent of service income in 2024.

Brokerage income during 2022 - 2024 amounted to THB 585.96 million, THB 605.48 million and THB 348.51 million respectively. This income in 2023 increased by 3.33 percent from 2022 due to an increase of disbursement and penetration rate, and in 2024 decreased by 42.44 percent from 2023 due to a decrease of disbursement.

Other incomes included penalty income, dividend income, income from solar PPA business and etc. Other incomes from the Company and its subsidiaries during 2022 - 2024 amounted to THB 125.08 million, THB 183.47 million and THB 248.37 million respectively. Other other incomes in 2023 increased by 46.68 percent from 2022 and incomes in 2024 increased by 35.37 percent from 2023. The increases in 2024 were mainly attributable to an increase in income from solar PPA business of the subsidiary.

Selling and administrative expenses of the Company and its subsidiaries during 2022 - 2024 amounted to THB 1,126.66 million, THB 1,281.31 million and THB 1,286.09 million respectively. Selling and administrative expenses in 2023 increased by 13.73 percent from 2022 due to the increase of selling expense of solar PPA business, and employee expense from an increase of staff and the open of new branches, and expense in 2024 increased by 0.37 percent from 2023

The cost to income ratio in 2024 was 30.48 percent, increased from 27.91 percent in 2023 and from 26.26 in 2022. Selling and administrative expenses accounted for 30.23 percent, 25.78 percent and 21.47 percent of the total expenses exclude income tax expenses of the Company and its subsidiaries during 2022 - 2024 respectively. The selling and administrative expenses were mainly employee expenses.

Expected credit losses and impairment loss on assets foreclosed expenses of the Company and its subsidiary during 2022 - 2024 amounted to THB 1,264.88 million, 1,779.05 THB and THB 2,490.38 million respectively. Expected credit losses and impairment loss on assets foreclosed in 2023 increased by 40.65 percent from 2022, and in 2024 increased by 39.98 percent from 2023. This was a result of an increase in loss from declining in value of asset foreclosed due to repossession, and an increase in loss on sale of asset foreclosed. The expected credit losses and impairment loss on assets foreclosed accounted for 33.94 percent, 35.80 percent and 41.58 percent of total expenses exclude income tax expenses during 2022 - 2024 respectively. The Company had expected credit losses to average loan receivable ratio (Credit cost) in 2022 - 2024 equal to 1.66 percent, 1.67 percent and 1.58 percent respectively.

Financial cost was the main cost of the Company’s business which consisted of interest expenses and guarantee fees. The financial cost of the Company and its subsidiaries during 2022 - 2024 amounted to THB 1,335.61 million, THB 1,909.51 million and THB 2,213.40 million respectively. Financial cost in 2023 increased by 42.97 percent from 2022 and finance cost in 2024 increased by 15.91 percent from 2023. This increase was due to an increase of interest expense rate. The interest expense rate in 2022 - 2024 were equal to 2.63 percent, 3.14 percent and 3.49 percent respectively. During the year 2022 - 2024, the financial cost accounted for 35.83 percent, 38.42 percent and 36.95 percent of the total expenses exclude income tax expense respectively.

The total assets of the Company and its subsidiaries at the end of the year 2022 - 2024 amounted to THB 69,148.57 million, THB 77,528.92 million and THB 72,687.50 million respectively. Total assets at the end of 2023 increased by 12.12 percent from end of 2022 and total assets at the end of 2024 decreased by 6.24 percent from end of 2023. The decrease in total assets in 2024 was a result of the contraction of the loan portfolio due to the decrease in disbursement. The Company and its subsidiary's main assets are hire purchase receivables (net of allowance for expected credit losses) which were the main assets of the Company and its subsidiary which accounted for 85.66 percent, 84.86 percent and 81.49 percent of the total assets at the end of the year 2022 - 2024 respectively. The main assets of the Company and its subsidiaries were summarized as follows:

Total portfolio (net of allowance for expected credit losses) of the Company and its subsidiary at the end of the year 2022 - 2024 amounted to THB 65,844.18 million, THB 73,052.27 million and THB 66,121.19 million respectively. Total portfolio at the end of of 2023 increased by 10.95 percent from end of 2022 and total assets at the end of 2024 decreased by 9.49 percent from end of 2023. The detail of types of portfolio are as follow;

The hire-purchase receivables (net of allowance for expected credit losses) of the Company and its subsidiary at the end of the year 2022 - 2024 amounted to THB 59,234.97 million, THB 65,790.00 million and THB 59,234.90 million respectively. The hire-purchase receivables at the end of 2023 increased by 11.07 percent from end of 2022 and hire-purchase receivables at the end of 2024 decreased by 9.96 percent from end of 2023 due to the decrease of disbursement. The disbursement in 2024 amounted to THB 17,949.19 million, decreased 38.99 percent from THB 29,421.96 million in 2023.

The financial lease receivable (net of allowance for expected credit losses) of the subsidiary (Bangkok Grand Pacific Lease Plc.) at the end of the year 2022 - 2024 amounted to THB 1,235.24 million, THB 1,300.34 million and THB 1,167.69 million respectively. Financial lease receivables at the end of 2023 increased by 5.27 percent from end of 2022 and financial lease receivables at the end of 2024 decreased by 10.20 percent from end of 2024 due to the decrease in disbursement. Financial lease disbursement in 2024 amounted to THB 485.01 million decreased by 21.14 percent from THB 615.04 million from 2023.

The loan receivables (net of allowance for expected credit losses/ doubtful accounts) of the Company and its subsidiary at the end of the year 2022 - 2024 amounted to THB 5,357.58 million, THB 5,961.93 million and THB 5,718.60 million respectively. The loan receivables at the end of 2023 increased by 11.28 percent from end of 2022 and loan receivables at the end of 2024 decreased by 4.08 percent from end of 2023. The decrease in the loan receivables were mainly from a decrease of the disbursement of the Company and its subsidiary. The disbursement in 2024 amounted to THB 3,691.22 million increased 26.35 percent from THB 5,012.10 million in 2023. The majority of disbursement were from and car loan of the and the subsidiary in the amount of THB 1,699.98 million.

The Company and its subsidiary had the customer’s status classification under Thai Financial Report Standard 9 to assess the quality of the receivables. The Company classify receivables status by state of credit risk.

Note: * The hire purchase receivables were calculated from the hire purchase receivables before subtracting allowance for expected credit risk

Note: * The financial lease receivables were calculated from the financial lease receivables before subtracting allowance for expected credit risk.

Note: * The loan receivables were calculated from the loan receivables before subtracting allowance for expected credit risk.

Non-performing loans to total lending (NPL ratio) at the end of the year 2022 - 2024 of the Company and its subsidiary were at 3.47 percent 4.70 percent and 6.97 percent respectively.

The Company and its subsidiary have adequate provision for expected credit losses according to financial reporting standards. Management judgement is used in estimating the allowance for expected credit losses of debtors who are having problems making principal and/or interest payments, with management taking into consideration analysis of debtor status performed on an individual and a group basis, the probability of default, estimated losses arising from the default, historical collection experience, collateral value, statistical data and economic factors. These are used in determining assumptions and forward-looking scenarios, as well as probability weighted outcomes.

The allowance for expected credit losses to NPL ratio at the end of 2024 was 56.32 percent, reflecting the adequacy of the provision for credit losses of the Company and its subsidiary according to financial reporting standards.

Land, Building and Equipment and Intangible assets (Intangible assets such as computer programs) of the Company and its subsidiaries at the end of the year 2022 - 2024 amounted to THB 202.62 million, THB 497.63 million and THB 929.30 million respectively. The increase in 2024 was mainly from solar cell equipment of the subsidiary's solar PPA business.

Assets foreclosed of the Company and its subsidiary such as vehicles and equipment repossessed from contractual customers’ default, at the end of the year 2022 - 2024 amounted to THB 556.55 million, THB 1,570.43 million and THB 2,513.80 million respectively, comprised of 587 contracts, 1,522 contracts and 2,598 contracts respectively. The increase of the assets foreclosed in 2023-2024 was a result of an increase in repossessed vehicles of the Company. However, the number of contracts of assets foreclosed are considered to be low compared to total contracts in 2022 - 2024 which were 63,279 contracts, 69,912 contracts and 67,727 contracts, respectively.

Total liabilities of the Company and its subsidiaries at the end of the year 2022 - 2024 amounted to THB 58,894.05 million, THB 66,870.37 million and THB 62,362.67 million respectively. The total liabilities at the end of 2023 increased 13.54 percent from end of 2022 and total liabilities at the end of 2024 decreased 6.74 percent from end of 2023. The increases in liabilities were mainly from an increase in the borrowings to support disbursement and the growth of portfolio.

(Million Baht)

Source: Audited 2022-2024 consolidated financial statements of Asia Sermkij Leasing Public Company Limited.

Note: ¹Other liabilities consisted of lease liabilities, amounts due to related parties, income tax payable, other current liabilities, deposits relating to collateral of customers, derivative liabilities, provision for long-term employee benefit, and other non-current liabilities.

The Company and its subsidiaries had short-term borrowings (Including the current portion of long-term borrowings that due within 1 year) at the end of 2022 - 2024 amounted to THB 22,198.23 million, THB 31,931.36 million and THB 28,356.72 million respectively, or equaled to 37.69 percent, 47.75 percent and 45.47 percent of total liabilities at the end of 2022 - 2024 respectively.

Debt to equity ratio of the Company and its subsidiaries at the end of the year 2022 - 2024 equaled to 5.74 times, 6.27 times and 6.04 times respectively.

Shareholders’ equity of the Company and its subsidiaries at the end of the year 2022 - 2024 amounted to THB 10,254.52 million, THB 10,658.55 million and THB 10,324.83 million respectively, decreasing from a decrease of operating profit. The retained earnings at the end of 2024 equaled to THB 4,893.99 million, increased from THB 5,179.435 million in 2023.

Return on equity during 2022 - 2024 equaled 15.69 percent, 11.71 percent and 3.17 respectively.

As at December 31, 2024 the loan repayment and the installment to be obtained in different period were summarized as follows:

(Unit : Million Baht)

The Company and its subsidiaries have the loan repayment due in 1 year more than installment expected to be obtained within 1 year in the amount of THB 2,318.64 million. However, this gap would not affect the Company and its subsidiary liquidity as the Company and its subsidiaries can always renew the loan agreement and can regularly issue new bond when it comes maturity. In addition, the Company and its subsidiaries still have the unused credit line from financial institutions amounting to approximately THB 14,311 million. These factors reflected the credibility and sufficiency in the financial status of the Company and its subsidiaries

The Company and its subsidiaries have improved the funding structure by gradually increasing the long-term borrowings to short-term borrowings ratio to prevent liquidity risk. In the end of 2024, the Company and its subsidiaries had long-term borrowings to short-term borrowings ratio at 91:9.

The Company and its subsidiaries had the profit before tax during the year 2022 - 2024 amounted to THB 1,896.45 million, THB 1,528.84 million and THB 418.25 million respectively. After adjusting the non-cash expenditures and the change in assets and liabilities, the Company and its subsidiaries had the net cash flow used in operating activities during the year 2022 - 2023 amounted to THB 10,250.89 million and THB 7,357.34 million. This was mainly resulted from an increase in hire purchase receivables during the year 2022 - 2023 in the amout of THB 12,229.53 million and THB 9,857.57 million, and the increase in loan receivables during the year 2022 - 2023 in the amout of THB 1,212.00 million and THB 1,208.65 million. The net cash clow from operating activities in the year 2024 amouted to THB 5,806.31 million.

The net cash flow used in investing activities of the Company and its subsidiaries during the year 2022 - 2024 amounted to THB 62.97 million, THB 310.35 million and THB 487.21 million respectively. The net cash flow used in 2023 and 2024 increased from previous years due to an investment in equipment which was solar cell equipment for solar PPA business of the subsidiary.

Moreover, the net cash flow from financing activities of the Company and its subsidiaries during the year 2022 - 2023 amounted to THB 10,443.76 million and THB 7,617.37 million. The net cash used in financinf activites in 2024 amounted to THB 4,893.45 million, resulting from the repayment of bank loans and debentures.

The Company has to comply with the borrowing covenant by maintaining debt to equity ratio of not more than 10 times which the Company has always fulfilled the obligation. As of December 2024, the Company has debt to equity ratio at 6.04 times.