Message from Chairman

Throughout 2023, the global economy dealt with ongoing challenges from the aftermath of the COVID-19 pandemic and geopolitical tensions arising from the Russia-Ukraine conflict. Additionally, the conflict between Israel and Hamas significantly impacted global economic dynamics. Concurrently, escalating interest rates across international markets constrained economic expansion. Unavoidably, Thailand was not resilient to these impacts. The Bank of Thailand (BOT) incrementally raised the policy interest rate from 1.5 percent at the onset of the year to 2.5 percent by year-end, consequently amplifying operational expenses for the business sector and limiting domestic purchasing power. Meanwhile, the recuperation of the tourism sector remained in progress, contributing to the modest growth of the country's gross domestic product (GDP) in 2023, amounting to only 1.9 percent*.

Nevertheless, notwithstanding the deceleration in economic growth, XSpring Group has improved operational outcomes compared to the previous fiscal year. The performance was attributed to the strategic realignment of our investment portfolios to align with market conditions, resulting in enhanced returns. Furthermore, our diverse business entities within the corporate umbrella commenced full-fledged operations, yielding promising operational outcomes that surpass previous trajectories as follows: -

1. Securities and Investment Banking Business (operating under Krungthai XSpring Company Limited in collaboration with Krungthai Bank Public Company Limited) encountered fluctuations in the securities trading market, which experienced a daily turnover of 49,000 million baht, marking a notable 30 percent decline from the preceding year. Consequently, the revenue from the brokerage witnessed a reduction. However, the company offset this decline through augmented income derived from investment banking activities and other sources. Additionally, the successful integration of Krungthai NEXT application in the first quarter of this year also led to an expansion of the customer base.

2. Asset Management Business (by XSpring Asset Management Company Limited) underwent an expansion initiative across mutual funds and private funds. In the mutual fund sector, the company fostered collaborations with over 16 asset management entities, diversifying the array of funds available to prospective investors. While, within the realm of private funds, the company broadened its clientele base by continually innovating new investment products, thereby enhancing the range of choices accessible to investors. Consequently, the operational performance of the company exhibited a progressive uptrend.

3. Distressed Asset Management Business (by XSpring AMC Company Limited) sustained a consistent effort throughout 2023 in auctioning non-performing loans sourced from financial institutions. This endeavor encompassed secured loans, previously managed by the company, unsecured loans, and corporate loans. Consequently, the company currently manages a comprehensive spectrum of debt categories, with the aggregate debt under management approximating 3,500 million baht, indicative of significant growth momentum.

4. Digital Assets Business (by XSpring Digital Company Limited) encountered challenges in the previous fiscal year stemming from the digital asset market's inability to fully recover, coupled with a decline in market trading volume. As a result, revenue derived from cryptocurrency brokerage and trading activities experienced a decline commensurate with the global market landscape. In the meanwhile, revenue generated from serving as an ICO Portal fell short of initial projections, primarily due to impediments posed by varied tax policy. The digital token market in Thailand remained subdued, with a limited number of token offering projects materializing during the period under review. However, the current 

government's initiative to bolster digital fundraising through token offerings, coupled with anticipated adjustments in tax policy, is poised to reignite interest in digital token issuance and offerings, thus fostering a resurgence in this business segment during the forthcoming fiscal year.

XSpring Group remains steadfast in its commitment to fostering sustainable growth across its business ventures. Central to this undertaking is the integration of various entities within the group, spanning customer outreach, operational frameworks, and human capital. The company maintains a persistent dedication to ongoing technological advancement aimed at enhancing operational efficiency, customer convenience, and safety. Looking ahead to 2024, the company aims to unveil the XSpring application, facilitating integrated investment opportunities. Furthermore, plans are underway to forge expanded partnerships with diverse enterprises, thereby broadening avenues for business expansion.

In closing, on behalf of XSpring Capital Public Company Limited’s Board of Directors, I would like to extend profound gratitude to all shareholders, customers, and business associates for their unwavering trust, confidence, and continuing support bestowed upon the company. I express heartfelt appreciation to the management team and each employee for their relentless commitment and resilience in navigating the challenges of the preceding year. As we embark upon the endeavors of 2024, I earnestly urge executives and staff to maintain collaborative efforts in propelling the company toward sustained growth and enduring success.

Sincerely,