Message from Chairman and Group CEO

Although WHA Group has aced challenges from the COVID-19 pandemic, the Company has maintained its customer base; and strong operating results have been forthcoming, across all business hubs, as a result of the Company continuing to nurture its strong foundations. Furthermore, the Company has continued to identify new business opportunities which emphasize innovative solutions that create value added products and services; and the Company has explored business expansion in both Thailand and Vietnam; all whilst upholding financial discipline and efficient financial management.

The year 2020 was a challenging year across the globe due to the COVID-19 pandemic which not only caused epic infection and death rates, but also resulted in the world’s largest recessions since the Great Depression. Yet in 2020, WHA Group confirmed its status as Thailand’s leading developer of Logistics Properties, Industrial Estates, Industrial Utilities and Power, and Digital Platform provider. The Company reported total revenue and share of profit at THB 9,406.6 million, and net profit at THB 2,523.7 million. The normalized net profit excluding FX impact and one-time gain/loss item stands at THB 2,542.6 million with total asset of THB 82,621.1 million. This solid performance reflects the robustness of WHA Group’s 4-business hub platform and the Company’s capabilities in effective organizational restructuring for dealing with changes, challenges and unexpected situations.

The Logistics business grew in line with booming E-commerce and consumer business and rising demand for premium warehouse facilities. In 2020, WHA Group developed 5 new Built-to-Suit projects comprising leasable area of over 130,000 sq.m. As a result, at the end of 2020, total rental warehouse space under owned and managed was 2.5 million sq.m.

Pertaining to its Industrial Estate Development business, WHA Group continuously develops and expands new industrial estates. The Company’s 11th domestic industrial estate, 1,280-rai WHA Rayong 36 located in the Eastern Economic Corridor (EEC), had started construction since Q4 2020. In Vietnam, WHA Industrial Zone 1- Nhge An attracted overwhelming interest from investors with total land sales in 2020 exceeding the original target. The Company is pushing the construction of the next phase, covering land area of 6,800 rai. Moreover, the Company signed a collaboration agreement with the local government of Thanh Hoa province to develop two industrial zones - (1) WHA Smart Technology Industrial Zone – Thanh Hoa, and (2) WHA Northern Industrial Zone – Thanh Hoa, with a combined land area of 7,500 rai. This has marked another successful milestone for WHA Group’s overseas business.

Coupled with this, WHA Group has co-operated with its business allies to present new products and services, for example, the establishment of a joint venture with Tus-Holdings, a leading Chinese developer of a science and technology service centers,to implement the first innovation and incubation center “TusPark WHA” in Thailand, which will become a Science Park in the next phase. Additonally, the Company has also established a joint venture with Bangkok Industrial Gas Ltd. (“BIG”) to produce and distribute industrial gas to the customers in WHA industrial estates.

In its Utility Business, WHA Group focuses on providing high value-added products and innovative water solutions by launching (1) Thailand’s biggest Reclamation Water Plant, which has a capacity of 9.125 million cubic meters per year located in WHA Eastern Industrial Estate (Map Ta Phut); (2) Demineralized Water plant, contracted to provide water to Global Power Synergy Plc (GPSC) under an annual contract of 1.6 million cubic meters for 15 years; and (3) an introduction of new innovations and modern technologies, for example, an adoption of SCADA system (supervisory control and data acquisition).

Meanwhile, the Company’s Power business has continued to enlarge its customer portfolio with the development of renewable energy solutions, in particular solar projects including rooftop, floating and ground-mounted systems. In 2020, the Company has increased additional electricity-generating capacity of solar power of 50.8 MW, raising the shareholding equity of Power business to 590 MW. The Company has also focused on developing innovative solutions with strategic partners such as Peer to Peer energy trading platform with Blockchain technology and has pursued international expansion through merger and acquisition. Furthermore, WHA Group has already established a strong footprint in industrial development, water Meanwhile, the Company’s Power business has continued to enlarge its customer portfolio with the development of renewable energy solutions, in particular solar projects including rooftop, floating and ground-mounted systems. In 2020, the Company has increased additional electricity-generating capacity of solar power of 50.8 MW, raising the shareholding equity of Power business to 590 MW. The Company has also focused on developing innovative solutions with strategic partners such as Peer to Peer energy trading platform with Blockchain technology and has pursued international expansion through merger and acquisition. Furthermore, WHA Group has already established a strong footprint in industrial development, water

In its Digital Platform business, WHA Group has maintained a strong commitment to develop and offer new services and innovative digital products that respond to increasingly sophisticated customer demand. For example, the company has rolled-out the FTTx network in WHA industrial estates to accommodate the connectivity of future 5G and data center services, along with an investment in a 5G tower to serve as a crucial building block which supports both the Company and its industrial customers’ digital innovation and transformation goals.

In addition, The Company also successfully divested 3 mega logistics centers to WHA Premium Growth Freehold & Leasehold REIT (WHART) comprising the leasable area of 128,789 sq.m., and divested warehouses and factories to Hemaraj Leasehold REIT (HREIT) comprising the leasable area of 48,127 sq.m., with total value of 2 transitions of 4,870 million Baht. Additionally, in a highly-celebrated milestone, WHA Group recently inaugurated WHA Tower, its new headquarters located on Debaratna Road (Bangna Trad) KM 7. The 25-storey Grade A office building offers a gross area of 52,000 sq.m. The building won the “Commercial High Rise Architecture Thailand” award for its contemporary, environmentally-friendly design which promotes creativity and work-life balance. Office spaces are now available for rent.

For 2021, WHA Group believes the economy will improve, yet it shall err on the side of caution, and shall remain ready to adjust to disruptions and challenges from both internal and external factors which could arise. In 2021, the Company shall continue to focus on creating new value-added products and services via innovative solutions and business platforms combining with infrastructure base. The Company also expects digital transformation to continually emerge. WHA Group will also continue to firmly adhere to operate by driving business forward on the principle of sustainability and consideration to stakeholders covering all three dimensions, including environmental(E), social(S) and governance(G) as the Company has an important role toward supporting and driving economy and social growth in Thailand, both raising the technological and innovative capabilities of the production and service industries, attracting foreign direct investment, employment and labor skill development, as well as reduction of costs transport and logistics from the manufacturer to the consumer, etc. involved directly with a development of the capability in the country’s competitiveness.

In closing, on behalf of the Chairman, the Group CEO, the Board of Directors and executives, I would like to thank you all for your support and contribution to our success. I would like to express my gratitude to all shareholders for your trust; to all customers for allowing us to serve you; and to our business partners and financial institutions for supporting our growth. Finally, I thank the Board of Directors, the Executive Committees and all employees for your demonstrated capabilities to drive the businesses forward and grow sustainably, in pursuit of the best value for society, shareholders, customers and stakeholders.

Miss Jareeporn Jarukornsakul
Chairman and Group CEO
WHA Corporation Public Company Limited