Page 66 - E-BOOK

the asset management companies see this opportunity to expand their businesses to be more stable
because of reasonable price of such distributed NPLs. This would make the businesses to have good overall operation
in the future. Therefore, the asset management companies joined the bidding for these NPLs to manage until the
total assets of this business grew. Furthermore, the overall operation of the asset management companies grew
well provided that in 2020, the net profit was 17,287 million Baht, which increased for 66.22% compared with
2019, having net profit for 10,400 million Baht. Nevertheless, it may be caused by the overview of this business
accelerating process of debt restructuring and debt settlement into cash with a measure of debt restructuring as
well as sales promotion for NPAs. This would rush the property sale to meet the buyers’ need, and lead to growth
of the overall operation despite economic fluctuation.

Product or service supply
The Company seeks opportunity to purchase the NPLs and NPAs from the domestic financial institutions
regularly. Mostly, the Company purchases NPLs through bidding, and sometimes, the Company acquires NPLs from
the financial institutions directly. The Company also acquire NPAs through bidding the collaterals of NPLs managed
by the Company from the debtors transferring the collaterals/ repayment properties, and purchasing NPAs from the
financial institutions in form of bidding or direct purchase from the financial institutions.

Non-delivered work
- None -

Main regulations about business operation
The Company is under supervision of BOT, established in 1942 according to BOT Act. BOT is the central bank
64 performing duties to carry out the national financial policy. Previously, BOT supervised the financial and banking

businesses in Thailand under supervision of the Ministry of Finance, and by virtue of BOT Act.

Furthermore, the Emergency decree on Asset Management Companies authorize BOT and the Ministry of
Finance to supervise the asset management businesses. The details of regulations related to the asset management
companies in Thailand can be summarized as follows.

Asset management Company
The Emergency decree on asset management Company is regulated to resolve the NPLs, which are
an obstacle to the financial institutions in raising fund and approving loans for business sector. Furthermore,
such law also grants certain rights to the asset management companies to operate the business easier, and helps
the financial institutions to focus on operatizing main businesses which are money deposit and credit facility. This
allows the financial institutions to transfer the NPLs to the asset management companies.

The Company was established according to the Emergency decree on asset management Company, stipulating
that the asset management companies must be registered for founding with the Ministry of Commerce with minimum
registered capital at 25.0 million Baht. It aims to manage assets of the financial institutions or financial business
operators, and then it can apply for registration as an asset management Company with BOT.