Risk

Domestic and international operators and investors are increasingly focusing on global trends that emphasize environmental, social, and governance (ESG) issues, as well as evolving regulations impacting business operations.  This includes those in the public sector who are more interested in the impact of business activities on their health and well-being. Therefore, the Company may lose business opportunities and competitiveness if it is unable to develop products and services that can meet the changing needs of both current and future customers or that are in addition to their basic needs, such as customer needs related to climate change, energy, and greenhouse gas emissions. In addition, the high-performance newcomers in the service and utilities businesses has intensified competition in the market, which may significantly impact the Company’s revenues from products and services.

Opportunity

The Company has a wide range of customers who are leading companies in various industries. Through close engagement with these customers, the Company can closely monitor and adapt to changes in customer needs, increasing the opportunities to develop its products and services to meet its customers’ needs swiftly and comprehensively, along with leveraging technology and innovative products and services to effectively serve the new S-Curve industries and increase its long-term competitiveness. In addition, having products and services that incorporate green technology innovations will give the local communities confidence in the Company's operations and enable them to coexist with the industry in the long term.

Management Approach

The Company is determined to develop AMATA City Industrial Estates under the concept of a perfect city that creates value for all groups of stakeholders in accordance with the Company’s ALL WIN philosophy, which focuses on being stakeholder centric.

Therefore, the Company has been focusing on developing products and services to address the needs and challenges of its manufacturing customers and to support their business success in the long run, as well as to respond to the needs of direct stakeholders who are affected by the Company's business operations, in order to gain good experiences in coexistence with the industrial sector and create mutual economic, social, and environmental values.  

The Company has established a 'Product & Service Development Framework' aimed at maximizing the value of its products and services to customers and all stakeholders. This framework focuses on stakeholder engagement, using various methods to survey, assess, and analyze the needs of current and potential customers, both regionally and globally. It includes trend and megatrend analysis, which are crucial in the real estate development business. The framework then uses this information to evaluate the impact, urgency, and importance of different factors to define the main objectives for product and service development. Meanwhile, it prepares for market readiness, collaborates with strategic business partners, and manages strategic innovation to design products and services that create competitive advantages. This also involves being open to feedback for continuous development. To achieve these goals, the Company has formed a SPRINT team composed of talented and creative employees, tasked with accelerating the development of products and services to meet customer needs more precisely.

Customer Engagement

The Company has established the Customer Communities to serve as a major channel to engage with the current customers operating in AMATA City industrial estates for good relations and communication to explore customer opinions, needs, and concerns. The information obtained will be taken into consideration in order to develop, improve, and extend the products and services. The results of 2023 performance are as follows:

In 2023, the Company collected information by conducting in-depth interviews with customers who are representatives of various industries to use the insights for analyzing and improving the Company's strategies and efficiently developing products and services that meet customer needs. The Company found that the environmental crises have become more severe, especially with climate change, leading to a global awareness of addressing environmental management across all sectors to mitigate the probability and severity of negative impacts. This has become a driving force for government agencies in many countries worldwide to declare and enforce more significant policies, and regulations, including new laws, and an increased demand for sustainability disclosure to prevent and mitigate negative environmental impacts.

Factory operators in the AMATA Industrial Estate are crucial production hubs for major global investors who import and export to various countries.  Therefore, it is essential for them to comply with the laws and regulations of important trading partners and their importing countries and strictly adhere to the environmental policies of their parent companies. Moreover, they must manufacture products and provide services that meet the growing environmental, social, and governance demands of their global customer base. Thus, factory operators seek products and services that prioritize social and environmental responsibility, adhere to the principles of circular economy principles, and provide transparent and verifiable data for sustainability disclosure.

AMATA Smart City Development

The Company is committed to becoming a Smart City developer to respond more efficiently to global emerging trends and risks. This includes business development that addresses economic, social, and environmental challenges, as well as adapting to the changing needs of future lifestyles in the post-COVID-19 era, also known as the 'Next Normal'. To achieve this goal, the Company has begun developing new investment zones that adhere to international standards with a focus on social and environmental development. Additionally, the Company aims to develop a quality workforce, positioning AMATA Smart City as an ideal investment area within the Eastern Economic Corridor (EEC) and establishing it as a regional learning center. By doing so, the Company hopes to stimulate economic growth in the region and enhance Thailand's economic value. The concept of AMATA Smart City will start with the upgrade and development of the Company’s existing industrial estates, namely AMATA City Chonburi Industrial Estate, and will eventually extend to other Company-owned industrial estates in the future.

  • On 9 February 2023, the signing ceremony of the Memorandum of Understanding between AMATA Corporation Public Company Limited and B.Grimm Power Public Company Limited marked the beginning of a feasibility study for the AMATA European Smart City project, which aims to support high-tech industry investors from Europe.
  • On 10 September 2023, the signing ceremony of the Memorandum of Understanding between AMATA Corporation Public Company Limited and Dajia International Investment Co., Ltd. took place to explore the feasibility of the AMATA Taipei Smart City project and its smart innovation development.
  • On 13 September 2023, the signing ceremony of the Memorandum of Understanding between AMATA Corporation Public Company Limited and the Federation of Hong Kong Industries took place to support industrial development in both Thailand and Hong Kong and to enhance understanding and cooperation between their business communities.
  • On 18 September 2023, The signing ceremony of the Memorandum of Understanding between AMATA Corporation Public Company Limited, Guangdong Mechanical and Electrical Polytechnic, and the Science-Based Technology Vocational College (Chonburi) aimed to enhance workforce capabilities to drive the digital economy.

Business Development in Foreign Countries

The Company has foreseen opportunities in CLMV countries where its strategic locations have high potential in connection to global supply chains and are now the focus of leading investors. Besides, the CLMV’s policies promoting regional economic development have become increasingly interconnected, presenting a high potential to support sustained economic growth in the future. The Company, therefore, has expanded its Eco-Industrial City business to CLMV countries by implementing its expertise and experiences in city development and introducing its AMATA Smart City model to open new business opportunities in some of those countries.

Business development aimed at meeting the needs of stakeholders and society

Strategic Innovation Management

The Company has emphasized the significance of the innovation management process to make a difference and increase the value-added to the its products and services. This includes a focus on refining and improving work processes for greater efficiency, thereby reducing operating costs and mitigating the negative impacts on society and the environment.

Therefore, innovation is an important mechanism driving the Company to grow sustainably. Consequently, the Company has prioritized innovation development within the organization. This began with the development of innovative thinking skills, knowledge, and competency among the Company’s personnel, as defined in the attributes of the AMATA DNA, regarding innovative creativity and trying new ideas for development, which are also applied as indicators of employee performance evaluations at all levels.

In 2023, the Company has developed a strategic innovation management process to enable its innovation management to support its business strategy, create value-added products and services, enhance work efficiency, minimize negative environmental impacts, and leverage the quality of life of all groups of stakeholders.

In this regard, the Company has two approaches to acquiring business innovations (INPUT), which are 1) collaborating with strategic partners to develop innovations (EXTERNAL) and 2) promoting its employees to be the creators of business innovations (INTERNAL). The obtained innovations, either concepts or already implemented projects, will be supported with the resources required for further development to create additional value before delivery to customers and stakeholders.

1) Collaborating with strategic business partners to develop innovation

The Company has established strategies for the development of smart cities and supports projects through its strategic business partners to achieve high-quality business development rapidly. Consequently, the Company has collaborated with leading companies and organizations, both domestically and internationally, that are renowned in various fields, to develop new business projects under the AMATA Smart City concept. The AMATA Smart City area covers approximately 10 square kilometers, divided into smart city zones based on business partnership cooperation from countries such as China, Taiwan, Japan, Europe, and others. The goal is to support economic growth by attracting investment in target industries and research and development, as well as enhancing the quality of life for workers, promoting business ecosystem innovation, and facilitating research and development activities.

The cooperation with these leading companies and organizations will not only concretely drive the development of a smart city through various projects but also benefit Thai entrepreneurs in related industries. They will learn new technology concepts from foreign experts via the technology transfer process and apply these insights to research and develop their own technology. This will become a crucial mechanism for driving sustainable development in Thailand.

2) Promoting employees to be innovation creator

The Company has promoted and given opportunities to employees of all levels to demonstrate their potential and create innovations for business, society, and the environment, as well as to engage in the development and improvement of the Company's work procedures. Every year, the Company will organize an “Innovation Project & Idea Contest” as a stage for the employees to show their potential and present their ideas to develop innovative products, services, and effective team collaboration in the workplace.

In 2023, the Company organized the "AMATA INNO Awards 2023" competition, in which potential projects were considered and selected by a committee consisting of the Chief Executive Officer and senior executives for future extension and development. The competition aimed to motivate employees to submit projects and innovative ideas, with a total prize of 2.5 million baht, supported by a private fund from the AMATA Foundation of 2 million baht. This year, there were 17 teams and a total of 21 entries, including 7 innovation projects and 14 innovation ideas, that participated in the competition.

According to the innovation projects implemented between 2020 and 2022, the Company has saved a total of 19.33 million baht in operating expenses. This amount can be further categorized into 4 projects aimed at reducing environmental impacts and 3 social innovation projects.

Economic Performance

In 2023, the Company recorded total revenue of 9,698.81 million baht, marking a 20.49% increase from 2022. However, its net profit was 1,884.76 million baht, reflecting a 19.50% decrease compared to the previous year. The revenue structure is composed of three parts: property sales generated 4,804.05 million baht, utilities and services contributed 3,875.59 million baht, and leasing and other activities accounted for 1,019.17 million baht.

Revenue from
Real Estate

4,804.05

million baht

Revenue from
Public Utility & Services

3,875.59

million baht

Revenue from
Rental & Others

1,019.17

million baht

In 2023, various factors contributed to the increased real estate purchases. These included significant advancements in infrastructure and government policies aimed at reducing transfer and mortgage fees (effective from 1 January 2023). Moreover, there was a surge in demand from customers as the world recovered from the COVID-19 pandemic. Despite the pandemic not being fully resolved, the situation gradually improved as countries reopened and most social distancing measures were lifted, leading to a rise in international travel and a return to normalcy. Driven by the Company's dedication to meeting customer and stakeholder needs, initiatives such as developing smart cities in the Eastern Economic Corridor to international standards, expanding environmentally-friendly industrial city projects to CLMV countries, and continuous innovation and improvement of products and services through innovative management processes. As a result, a 66.77% increase in the Company's revenue from real estate sales compared to 2022 was primarily due to the increased transfer of land both domestically and internationally and the expansion of its projects. The growth in real estate development also led to  to a 38.37% rise in revenue from utilities and services compared to 2022. However, revenue from ready-built factories for rent and other sources declined by 56.96% compared to 2022. This decline was due to the sales of ready-built factories for rent in Vietnam, with 2 sold in 2023 and 24 sold in 2022.

Start
Building the Future
with AMATA

Start
Building the Future
with AMATA

Contact us for more details.

Thailand
+66 38 939 007
Vietnam

+84 251 3991 007 (South)
+84 203 3567 007 (North)

Myanmar

+95 1 230 5627

Laos
+856 21 810007