The Platinum Group posts 2016 net profit of THB704M, eyeing further growth in 2017 and reveals The Platinum Empowering SMEs Project

Real Estate Press Releases Wednesday March 15, 2017 12:04
Bangkok--15 Mar--IR PLUS

"The Platinum Group" posts 2016 net profit of THB704M, eyeing further growth in 2017 and reveals The Platinum Empowering SMEs Project comprising fashion shops to promote Thailand's Pratunam wholesale and retail market to be the center of ASEAN tourism, recreation and shopping

Mr. Chanchai Phansopha, president of The Platinum Group Plc (PLAT) which operates the wholesale and retail center and manages commercial retail area for rent, announced 2016 operating results of the Company and its subsidiaries that the Company's net profit hit a new high of 704 million baht, up 74 million baht or 12% from 2015. Operating profit reached 1,863 million baht, up 95 million baht or 5% from 2015. Key factors for operating profit growth were an increase in revenue from core businesses, including rental fees, service fees and hotels after the Company raised rental fees and service fees for lease and service contracts expiring during the year, as well as using its own management in some of the food selling zones in The Platinum Fashion Mall's food center. In addition, the Company provided lease areas in "Talad Neon" Downtown Night Market located on Petchaburi 23-29 Road, resulting in an increase in revenue from rental and service fees. The Company's operating profit was mainly contributed by 3 major sources, which were rental and service fees of 1,107 million baht, hotel operation revenue of 365 million baht, food and beverage sales of 246 million baht, and other revenues of 145 million baht.

"Our revenue and profit in 2016 met the target and operating profit hit a new high for PLAT of 704 million baht. Our core revenue is contributed by lease areas after we raised interim rental fees and acquired some restaurant areas for our own management. This resulted in an increase in revenue from lease areas. Hotel revenue growth is contributed by an increase in room rates and the rising number of corporate clients with higher room rates in Q3/2016, where other revenues remain unchanged. The Company's Board of Directors resolved to pay shareholder cash dividends of 0.18 per share for the operating period of 1 January to 31 December 2016 on 23 May 2017 with dividend received (XD) on 3 May 2017" Its present in PLAT Annual General Meeting 2016 for consideration. Mr. Chanchai added that for business operation plans in 2017, PLAT aims to have total revenue of over 2,000 million baht, up from 1,863 baht in 2016. In particular, lease areas in Novotel Bangkok Platinum Pratunam welcomed lots of tourists, so occupancy rates in 2016 reached 87%, and the number of hotel rooms was raised from 283 units to 288 units, which revenue of the additional 5 suite rooms will be recognized from April onwards. This will be another contribution to the Company's strong revenue growth.

For the progress of The Market Bangkok Project, a large retail center on Ratchadamri Road covering a total area of 170,000 square meters with an investment amount of 5,800 million baht, foundation piles have been laid and underground works have been completed, so overall structure including the topmost floor will be seen within this year. The project will be completed and open by Q4/2018. For the investment projects in Ko Samui, Surat Thani province, construction of 2 hotels 3 star Holiday Inn Express and 4 star Holiday Inn Resort – will start by the end of this year.

As for "Bangkok Skyline", which is a joint venture project of The Platinum Group and Gaysorn, Phase 1 has been open (total length of 300 meters, total width of 5.8 meters) for trial since July 2016 and recorded 50,000 users/day. Phase 2 (total length of 180 meters, total width of 3 meters), which is linked to Phase 1 via The Market Bangkok, Big C Super Center, Gaysorn, Amarin Plaza and Chidlom BTS Station, will be completed by Q1/2017 and help connect all shopping centers and facilitate all people. These benefit business growth in Pratunam area and also The Platinum Group's businesses because Pratunam is a business area which has enjoyed continued development and growth, driven by distinctive and explicit integration of fashion cloth wholesalers, so it is now known as Wholesale Fashion Destination Venue among Thais and foreigners. With its lucrative location in downtown Bangkok close to accommodations and tourist sites for both day and night tours, the area is remarkable and popular among both Thais and foreigners with many businesses investing in this area until now, with continual plans for further investments. The Platinum Group's core businesses are all established here, including The Platinum Fashion Mall, Novotel Bangkok Platinum Pratunam and Talad Neon as well as The Market Bangkok on Ratchadamri Road which will be completed and open by Q4/2018. Therefore, Pratunam will enjoy much more growth in the next 2 years. This year, "Bangkok Skyline" Phase 1 has been open for trial since July 2016 and "Bangkok Skyline" Phase 2 will be completed by Q1/2017. 2017 will be a year that everyone will see perfection in travel linking the Bangkok Skyline to BTS for more convenience. There is also boat service available along Saen Saep Canal for those who prefer travelling by boats to Pratunam. In addition, Pratunam is close to Airport Rail Link Ratchaprarop Station which makes it easier to go to Suvarnabhumi Airport and there will be MRT Orange Line in the future which will help Pratunam, now a wholesale fashion cloth center, to become an international business and tourism venue.

Therefore, within this year, The Platinum Group has marked The Platinum Fashion Mall to completely become The Best Wholesale Fashion HUB of ASEAN as Singaporean and Malaysian customers are still the top visitors of The Platinum Fashion Mall while the number of Indonesian customers surged by 4 times from 2015. Moreover, there are more foreigners from CLMV who are interested to travel and buy wholesale fashion clothes for sale in their countries as these countries have seen continued economic growth and their people have a better well-being where consumers with medium to high purchasing power are interested in quality and fashionable products, especially modern and weekly updated fashion products at The Platinum Fashion Mall. Those who shop here every week will find that fashion products are never the same and selling prices are much lower compared to their high quality and outstanding design. These strong points arise from a thorough understanding in consumer behaviors and the sincerity of many leading fashion shop entrepreneurs in The Platinum Fashion Mall. To widely and internationally promote these strengths, the mall has initiated The Platinum Empowering SMEs Project since May 2016 and introduced 20 pilot shops on 17 August 2016. Now there are 100 participating shops, all having the same ambition to become The Best Wholesale Fashion HUB of ASEAN. The objectives of the project are develop Thai SMEs to build their brands, stay competitive, stimulate sales and enjoy sustainable growth in both local and international fashion cloth markets; to facilitate both fashion product retailers and wholesalers to directly access information of the fashion shops and products finely selected by the project; and to develop Thailand's Pratunam wholesale market to become one of ASEAN's tourism, recreation and shopping venues which will further generate spending and more revenue from tourism and shopping for the country.

The basic benefits for participating shops include poster design and production and advertising in the mall's passenger elevators, product display design and installation area in the mall, making of shop presentation video for public relations in 2 languages (Thai and English), TV broadcasting in all zones of the mall and preparation of public relations plan among target retail and wholesale business partners and foreign tourists, starting from ASEAN first. In addition, there will be shop public relations via online media and social network of the mall such as Website, Instagram, Facebook and YouTube, shop promotion leaflets distributed to tour agencies, tour guides and Thai and foreign tourists; seminars and training courses for shops such as online and offline business development training programs, rendering services, English for business communications, further business development and knowledge in financial transactions provided by financial institutions such as credit card payment to facilitate customers; new and useful information updates for product development, selling techniques, establishing customer base, business matching, and other advantages. The project is now selecting more interesting activities that are appropriate for participating shops.

Since commencement, the project has gained positive response from many shops that have obtained more new customers and increased sales volume. To enable the project's newcomers to observe the overall operations, the project has chosen 5 prototype entrepreneurs as follows:

1. Rattikan Iamchan, Shop operator of "Classic Accessories", female accessories
2. Thanjira Sukonthakan, Shop operator of "MODEL Kids", tailed kid's clothes
3. Chanurak Sae Yang, Shop operator of "V Shanel", jean clothes for teenagers
4. Bundit Patcharathamaroj, Shop operator of "96 Studio", casual men's clothes
5. Maneerat Samutpatanapong, entrepreneur of "SHIRTFOLDING", modern men's clothes

All 5 Business owner have their private brands and have sustained much success in building their brands gaining much widespread popularity in local and international retail and wholesale markets. In addition, their products have unique design and employ local raw materials and labor. These entrepreneurs have continually developed their products in various aspects including an emphasis on shop decoration, marketing and public relations. They are willing to participate in the project's training programs and share their experiences and opinions in product development with all newcomers, helping the project achieve its key objectives sooner.


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