Risk

1. Risk Management Policy and Plan

The Board of Directors places importance on risk management assessment by establishing risk management systems and procedures in accordance with international standards. The Board has assigned the Risk Management Committee to evaluate the effectiveness of risk management, review risk assessment results and operational processes, and oversee risk control across various business units, with regular reporting to the Board of Directors. In addition, the Risk Management Committee is responsible for reviewing and proposing risk management policies at least once a year. The Company also places emphasis on early warning signals and abnormal transactions, which are disclosed in the Annual Report.

2. Risk Factors for the Company’s Business Operation

The factors of risk likelihood and impacts on the Company’s business operation in 2025 are as follows :

2.1 Competition Risk

The housing and land allocation business is inherently highly competitive, given the large number of market participants, each striving to increase sales and profitability. At present, competition has intensified further as most developers have increasingly focused on low-rise housing projects, which are also the Company’s core products, resulting in significantly heightened competition in this segment.

Mitigation Approach: The Company closely monitors the residential property market, particularly the housing segment, as well as overall economic trends. It carefully plans construction in advance to align with market demand and develops quality homes that meet customer needs. Cost control remains a key priority, alongside efforts to build customer confidence and satisfaction. The Company also emphasizes the use of effective marketing strategies and communication channels that can efficiently reach target customers within the allocated budget, while creating differentiation in its products and services. In addition, the Company remains agile and ready to adjust its strategies in response to economic slowdowns or potential oversupply in the housing market. Furthermore, the Company continues to focus on strengthening the Sammakorn brand, particularly among younger target groups who are prospective homebuyers in the near future. One of the key priorities is to enhance brand awareness among target customers, as well as to improve their understanding of the Company’s business and brand identity.

2.2 Decreased Purchasing Power Risk

The ongoing economic slowdown has affected the country’s economic growth, coupled with uncertainty regarding Thailand’s economic recovery. As a result, consumers, even those with purchasing power, may lack confidence and exercise greater caution in their spending.

Mitigation Approach: The Company focuses on delivering quality homes at competitive prices by increasingly adopting innovations in both materials and construction processes. The Company also employs more diversified and targeted marketing strategies tailored to specific customer segments in order to stimulate sales. In addition, strengthening brand value remains a key objective, as it encourages customers to choose the Company’s products more readily without the need for excessive price reductions. Market observations indicate that customers are generally willing to pay a premium for products from well-established and recognized brands, even when compared to similar products from less established brands.

2.3 Liquidity Risk

Liquidity risk is a critical risk for property developers. Liquidity constraints may arise when the Company’s revenue falls significantly below targets while expenses remain high, or when the Company undertakes substantial investments with limited liquidity, or faces significant short-term financial obligations that must be settled within specified timeframes.

Mitigation Approach: The Company closely monitors and manages liquidity, particularly cash flow and income and expenditure accounts. It ensures that debt levels remain within its repayment capacity. The Company may defer investments that could create significant financial obligations, and where investment is necessary, thorough risk assessments are conducted. Additionally, the Company maintains close communication and negotiations with financial institutions to obtain favorable terms, ensures adequate cash reserves, and secures standby credit facilities. Early warning mechanisms are also implemented to detect potential issues in advance and allow timely corrective actions.

2.4 Emerging Risk

Climate change poses a significant global risk and has gained widespread attention due to its broad and increasing impacts. These include flooding in certain areas, air pollution such as PM2.5, drought, and increasingly volatile weather conditions, all of which have intensified over time. These impacts extend beyond environmental changes to affect lifestyles and the overall economic environment. The Company addresses this risk through two main approaches: Preparedness for immediate incidents, such as establishing response measures in the event of flooding or other emergencies. Contributing to long-term climate change mitigation by prioritizing environmental considerations in its operations, such as managing construction waste responsibly.