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Message from the Chairman
The past year was a significant challenge as the Thai economy experienced slower-than-anticipated growth. In 2024, Thailand’s GDP expanded by only 2.5%, falling short of the Office of the National Economic and Social Development Council (NESDC) initial forecast at 3.0% to 3.2%, which caused by various factors, including geopolitical tensions and domestic structural issues that have impeded economic recovery. Additionally, high household debt levels have led to cautious on consumer spending and lending, further impacting overall economic activity.
The domestic business landscape also continues to face challenges in various areas including the rapid advancement of new technologies and innovations that are compelling businesses to adapt to the digital era. At the same time, climate change has emerged as a critical challenge, requiring business sectors to revise environmental policies and comply with international sustainability standards.
Despite these economic headwinds, XSpring Financial Group remains committed to empowering our clients by providing both capital and knowledge essential for navigating the evolving business landscape. Our approach focuses on enhancing competitiveness and fostering sustainable business expansion while upholding principles of environmental sustainability and social responsibility. Concurrently, the Company has strategically adjusted the investment portfolio to align with prevailing market conditions, resulting in improved financial performance compared to the previous year. Our key business segments have demonstrated resilience and adaptability, as outlined below:
1. Securities and Investment Banking Business (Operated by Krungthai XSpring Securities Co., Ltd., a joint venture with Krungthai Bank Public Company Limited)
Amid economic uncertainty and declining trading activity, the average daily securities trading volume in the first nine months of 2024 declined to 46 billion baht, a 17% decrease compared to the previous year. This downturn has affected revenue from securities trading fees. However, the company has strengthened its investment banking capabilities to comprehensively address client needs. Additionally, the selling agent business has continued to generate stable revenue. Moving forward, the company remains focused on developing new investment products to diversify revenue streams and reduce reliance on securities trading fees.
2. Asset Management Business (Operated by XSpring Asset Management Co., Ltd.)
The business is committed to enhancing the investment experience for its clients through the XSpring Application, which enables 24/7 monitoring and transactions across investment portfolios. The mutual funds and private funds businesses have expanded through strategic collaborations with globally renowned partners. Over the past year, the company has strengthened its strategic partnerships by collaborating with Macquarie Asset Management, one of the world's largest infrastructure-focused asset management firms, to introduce X-PEGINFRA-UI. The company has also expanded its portfolio to the X-PLUS Fund, a short-term fixed income fund, designed to align with evolving market conditions and meet the diverse needs of investors. Additionally, through the collaboration with TS Lombard, a leading economic research firm, the company has enhanced its analytical capabilities, particularly for overseas investments. These initiatives underscore the commitment to delivering innovative investment solutions and driving sustainable growth under the concept of “Your Trusted Partner in an Evolving Financial World”.
3. Non-Performing Asset Management Business (Operated by XSpring AMC Asset Management Co., Ltd.)
The asset management sector has been significantly impacted by economic slowdowns and high household debt, leading to more cautious lending by financial institutions and reduced domestic consumption. In response, the company has strategically deferred debt portfolio acquisitions while prioritizing effective debt collection and credit loss management to maintain portfolio stability and long-term profitability. Moving forward, it will continue to assess investment opportunities in non-performing debt focusing on prudent pricing and cash flow management. At present, the company manages assets totaling approximately 4,000 million baht.
4. Digital Asset Business (Operated by XSpring Digital Co., Ltd.)
The digital asset sector has seen substantial growth in 2024, driven by key developments such as the U.S. SEC’s approval of Spot Bitcoin ETFs, favorable policy shifts under the new U.S. administration, and increased investor inflows due to geopolitical factors. Consequently, the cryptocurrency brokerage and trading businesses have experienced notable revenue growth. However, revenues from ICO Portal services, which facilitate digital token issuances, have been below expectations due to economic sluggishness causing issuers to postpone fundraising initiatives. Nevertheless, with anticipated policies supporting digital fundraising and broader economic stimulus measures, the digital token market is poised for expansion.
Looking ahead to 2025, XSpring Financial Group remains steadfast in its mission to drive sustainable growth as a “New Era Financial Leader,” to establish a fair and seamless financial ecosystem and leveraging cutting-edge technology to integrate businesses across the group. Notably, the introduction of the XSpring Application, allows investors to access over 1,000 mutual funds from 17 leading asset management companies nationwide while offering comprehensive portfolio monitoring. The company will continue to expand its service offerings to address the evolving needs of investors.
Beyond financial performance, XSpring Financial Group is committed to upholding corporate social responsibility and environmental care. In collaboration with the Securities and Exchange Commission, Thailand, the Stock Exchange of Thailand, and the National Association of the Deaf of Thailand, the Company launched the “Because Sharing is Caring - "The Unsilenced Truths: Money is Something You Need to Know", initiative to promote financial literacy among the hearing-impaired community. This initiative, which provides educational resources and fraud prevention training, the Company was honored with a prestigious plaque and the distinguished “Investment Knowledge Provider” symbol in the category of “Sustainability.” from the Securities and Exchange Commission, Thailand for the second consecutive year.
Beyond financial performance, XSpring Financial Group is committed to upholding corporate social responsibility and environmental care. In collaboration with the Securities and Exchange Commission, Thailand, the Stock Exchange of Thailand, and the National Association of the Deaf of Thailand, the Company launched the “Because Sharing is Caring - "The Unsilenced Truths: Money is Something You Need to Know", initiative to promote financial literacy among the hearing-impaired community. This initiative, which provides educational resources and fraud prevention training, the Company was honored with a prestigious plaque and the distinguished “Investment Knowledge Provider” symbol in the category of “Sustainability.” from the Securities and Exchange Commission, Thailand for the second consecutive year.
On behalf of the Board of Directors of XSpring Financial Group, I extend my deepest gratitude to our shareholders, clients, and business partners for their unwavering trust and support. We are committed to driving continuous progress and transformation. With unwavering dedication, we will invest our full capabilities—both intellectual and operational—toward fostering sustainable growth and long-term success for the Company."
Sincerely,
Mr. Thanarak Phongphatar
Chairman of the Board
XSpring Capital Public Company Limited
