Message from Chairman
In 2010 Thailand's economy expanded by 7.8%, supported by global economy recovery and domestic demand, especially, private-sector investments and household consumption that expanded by 13.8% and 4.8%, respectively. Additionally, there was the acceleration in government's investments in infrastructure projects, which helped increase demand for related industrial products. This includes the export product value in US dollar that surged by 28.5%.
For the Company, we achieved the best operating results in the history of the Company's operations for more than twenty years. That is, the Company had a net profit of Baht 930 million having a basic earning per share of Baht 0.98. This is because the land sales of 663 rais exceeded the target. In addition, our both condominium projects in China have made good progress in terms of sales and construction. The first project has been sold by 70% and some of the condominium units have been gradually conveyed to the customers, with sales and unit transfers expectedly to be complete by 2011. The second project started to recognize revenues according to the percentage of work completed with the progress on sales for its first phase of approximately 75%. Furthermore, there were increases in revenues from the sales of electricity and water for industrial uses.
In 2011, the Federation of Accounting Professions issued the notifications regarding the change in accounting standards but there is only one that will affect revenue and costs recognition. That is the change in the accounting standard related to the revenue recognition of real estate business, from that revenues are recognized at the time of work completed to that revenues are recognized only when there are risk transfers to the customers, which will have an effect on the recognition in net profits (losses) of the Company. However, such change is only the change an accounting policy; itt does not make any change to the Company's operations.
For the Company's performance in 2011, the Company and the subsidiaries have confident to carry out our business to achieve the goals under supports from financial institutions, clients, employees, business partners, including other related departments, which will enable the Company to grow further in the future. The Board of Directors of Rojana Industrial Park Public Company Limited would like to take this opportunity to express our thankfulness to you all.