JMART GROUP (JMART, J, JMT, SINGER, SGC): Oppday Q3/2025: Oppday Q3/2025

SET Opportunity Day Q3 2568 Overview

Introduction to the Event

• The event is a welcome address for investors and shareholders, hosted by SET Opportunity Day for Q3 of the year 2568.

• Acknowledgment of personal data collection during the event, aimed at recording audio and visual content for investor updates on company performance.

Structure of Presentations

• The presentation is divided into three main segments:

• Segment 1: JMAT Group Holding, JMAT Mobile, KBJ Capital, and J Asset (9:15 AM - approx. 10:15 AM).

• Segment 2: Focus on JMT (approx. 10:15 AM).

• Segment 3: Discussion on Singer and SG Capital (approx. 11:15 AM).

Introduction of Executives

• Key executives introduced include:

• Adisak Sukhumvit, CEO of JMAT.

• Kittiphat Chonwuthin, DCEO of JMAT Group.

• Additional introductions include Dusit Sukhumvit from JM Mobile and other CEOs from KBJ Capital and J Asset.

Company Performance Insights

• Overview provided on the performance of JMK Group in Q3; no significant changes noted in group structure.

• Mentioned divestment from PRTR as part of investment portfolio adjustments without impacting profits or shareholder value.

Business Focus Areas

• Continued focus on three main sectors: Commerce, Finance, and Technology.

• Notable growth in finance sector with mobile phone lending showing consistent profitability across quarters.

Financial Highlights

• Reported profit for Q3 stands at approximately 83 million THB; a decrease compared to the previous year due to special items affecting financial statements.

• Adjustments made in financial reporting to reflect true business operations; one-time revenue recognition discussed.

Future Outlook

• Anticipated impacts from adjustments will be reflected in future earnings reports; ongoing evaluation for new investment opportunities highlighted.

• Emphasis placed on maintaining strong partnerships within the industry while adapting strategies based on market conditions.

Growth and Challenges in Mobile Financing

Overview of KBJ Capital's Performance

• KBJ Capital has significantly increased mobile phone sales through financing, reporting a 48% growth in profits for Q3 compared to the previous year.

JMT's Cash Flow Management

• In Q3, JMT focused on maintaining cash flow despite economic challenges by enhancing consumer engagement and simplifying payment programs.

• Although cash collection decreased, it was not as severe as anticipated; however, provisions for expected credit losses were necessary due to some uncollectible debts.

Future Economic Outlook

• If the economy improves and consumer spending increases, the reserves set aside may be reversed positively in future financial statements.

Financial Contributions from Subsidiaries

• KBJ Capital's lending business performed well over nine months, contributing approximately 123 million THB to JM Group’s profits.

• Despite a reported profit of 60 million THB from lock phone operations, adjustments were made due to branding impacts recognized in Q3.

SG Capital's Profitability and Market Position

• SG Capital reported strong profits of 123 million THB in Q3, indicating effective risk management strategies within their lending practices.

Competitive Landscape and Strategic Adjustments

• The competitive environment is intensifying; however, SG Capital continues to adapt its marketing strategies while managing costs effectively.

J Asset's Performance Issues

• J Asset faced challenges with a reported loss of 114 million THB impacting JM Group Holdings; plans are underway for operational improvements.

Anticipated Trends for Q4

• Expectations for JMAX Mobile include new flagship models driving revenue growth through enhanced synergy with mobile financing solutions.

Insights into NPL Control and Business Scalability

• The management highlighted that both KPJ and HGC have successfully scaled their businesses while keeping non-performing loans (NPL) between 1% to 2%, indicating robust control measures.

This structured summary captures key insights from the transcript regarding the performance of various entities under JM Group amidst economic fluctuations.

Market Insights and Business Growth Strategies

Overview of Market Segmentation

• The speaker discusses that over 50% of the market consists of China brands, with KBJ managing Samsung products and providing credit services for these brands.

Mobile Business Segment Analysis

• The mobile business is segmented into three parts: cash purchases (10%), credit card purchases (25%), and loans (60-70%). This indicates a significant reliance on credit services in the market.

• The total market size is estimated at 17-18 million devices, highlighting growth opportunities for both Samsung and China brands through expanding loan services.

Future Projections

• By 2026, the company anticipates full engagement in mobile business operations due to sandbox initiatives with iPhone, indicating a strategic shift towards comprehensive service offerings.

• JB will oversee urban mobile retail networks while rural areas will be managed by other entities. A robust network of approximately 3,000 to 4,000 outlets is expected to enhance sales performance significantly in Q4 and beyond.

Core Business Opportunities

• JNT remains a core business area with potential growth as existing players struggle to manage debt effectively. JMT has been established as a strong player in debt collection for over 20 years.

• Investment opportunities are seen in Sukitinoi, which is expected to expand vertically and horizontally next year. Further details will be provided by another speaker regarding this expansion strategy.

Financial Management Insights

• Confidence in growth and efficiency improvements is emphasized as the company prepares for Q4 and next year's operations based on solid foundational sales data.

Debt Management Strategy

• The management highlights effective risk management strategies implemented within their lending practices, ensuring they can meet obligations without extending repayment periods or defaulting on debts.

• Recent repayments include significant amounts from JM and JMT companies without any defaults reported. Cash flow management has been rigorous to ensure timely payments on bonds totaling around 2.176 billion due next year.

Shareholder Engagement

• A dividend payment of 0.13 baht per share was announced based on positive first-half results, reflecting gratitude towards shareholders for their support during challenging times.

Company Financial Health Overview

• Current assets stand at approximately 61 billion baht against liabilities of about 28 billion baht, resulting in an equity figure around 33 billion baht.

• The company's debt-to-equity ratio is noted at approximately 0.74, indicating room for future fundraising through bonds or other financial instruments under careful cash flow management strategies.

Investment Performance Update

Expansion Plans for Sukitinoi

• As of October's end, Sukitinoi operates with a total of 96 branches including various formats like Suki Tini Noi restaurants aimed at absorbing demand across different regions.

Quarterly Profit Analysis

• In Q3 alone, the company reported profits amounting to 220 million baht compared to previous quarters' performance metrics indicating ongoing profitability despite challenges faced earlier in the year.

Growth Strategies and Challenges in Sukiyaki Business

Financial Performance Overview

• The company has experienced a drop in profits, attributed to intense competition and promotional strategies aimed at attracting new customers.

• Over the past nine months, the total profit reached 802 million baht, indicating a consistent growth momentum year over year.

Customer Engagement and Growth Metrics

• The strategy focuses on providing value for money, encouraging customer visits through appealing promotions.

• In 2024, approximately 19.66 million customers visited Sukiyaki restaurants across 74 branches; this number increased to 27.6 million across 96 branches within nine months.

• Customer visits per branch rose by 8.5%, showcasing effective customer-centric strategies that led to an increase from 265,000 to 288,000 visitors per branch.

Marketing and Promotions

• Active engagement on social media platforms like Facebook has helped maintain customer interest with daily posts about promotions and activities.

• Despite a reported profit decrease of over 30%, the company continues to offer attractive promotions to retain customer loyalty.

Recent Promotions and Events

• A recent sales milestone of over 8 billion baht was celebrated with special promotions on menu items priced affordably at just 9 baht for small sizes.

• Upcoming events include live sessions on Facebook where customers can win concert tickets, enhancing community engagement.

Expansion Plans

• The company plans to open one new branch weekly next year, focusing primarily on provincial areas while also expanding in Bangkok with additional locations.

• Emphasis is placed on selecting suitable locations that provide adequate space and visibility for brand recognition.

Cost Management Strategies

• Rental costs in provincial areas are considered favorable, contributing positively towards managing overall expenses and achieving profit targets.

Data Analytics Utilization

• The use of data analytics plays a crucial role in understanding consumer behavior and tailoring offerings that align with their expectations regarding value for money.

Business Performance Overview

Sales and Growth Insights

• The closure of unprofitable branches has led to a focus on flexibility in branch management, impacting sales positively.

• JM Network has emerged as a rising star with significant revenue growth, achieving 583 million THB in the first nine months.

• Profit margins have increased by 36% compared to 2024, closing at 90 million THB.

• Confidence remains high for Q4 growth targets of 20%, driven by flagship product launches like iPhone 17 and Xiaomi 15.

Strategic Focus Areas

• Four main strategies are prioritized: affordable campaigns, financial destinations, channel expansion, and mobile care production.

• The affordable campaign aims to enhance product accessibility through trade-in programs during Q4's new product launches.

• Financial destination strategies have shown significant growth in Samsung Finance Plus and SG networks.

Channel Expansion Efforts

• JMAN Mobile is focusing on smaller-sized branches to support the JM Network effectively while expanding its reach.

• Transaction volumes remain strong; however, unit sales show a slight decline due to increased focus on gadget products.

Financial Performance Highlights

• Q3 marked a record high for new loans from S Finance and Samsung Finance Plus, contributing to a total growth of 56% over nine months.

• Outlook for Q4 anticipates reaching sales targets of up to 950 million THB due to flagship product releases.

Future Projections and Developments

• Plans include sandbox testing within JM for Apple products aimed at strengthening fundamentals into 2026.

• JMAN network shows continuous improvement since its launch in early 2024 with active dealers increasing significantly across Thailand.

Branch Expansion Strategy

• GM Shop currently operates with plans for further expansion; profitability is prioritized when opening new branches.

• Mobile Care Production achieved record highs recently; expectations remain optimistic for continued success in upcoming quarters.

Performance Overview and Growth Insights

Sustained Growth in Loan Assets

• The company reported a total new loan asset growth of 14.5% year-on-year, reaching 1.453 billion by the end of October.

• The strong growth is attributed to successful sales promotions for Samsung mobiles, contributing significantly to the loan asset portfolio which now totals 15.39 billion.

Monthly Trends and App Performance

• Following the launch of a new mobile app, it has become a major channel for revolving loans alongside POS and personal channels.

• Investment in online advertisement is planned for Q4 to boost sales through the app channel, indicating a strategic focus on digital marketing.

Asset Quality Management

• The MPA (Managed Portfolio Asset) ratio remains stable at 1.6%, with improvements noted due to enhanced delinquency management using AI-driven IVR systems.

• Cost-to-income ratio decreased to 14.1%, reflecting tighter budget controls despite moderate headcount increases aimed at supporting business expansion.

SF Plus Account Growth

• By the end of Q3, active accounts for SF Plus exceeded 1.22 million; although growth rates have slowed compared to previous periods, they continue to rise.

• SF Plus aims to bridge financial access gaps in rural Thailand, with competitive interest rates and quick approval processes enhancing customer appeal.

Strategic Mission and Future Outlook

• The mission for 2025 focuses on profitability enhancement through core products, asset soundness strengthening, IT infrastructure stabilization, and customer loyalty building.

• Projected operating assets are expected to reach 15.682 billion by fiscal year 2025 primarily driven by Samsung Finance Plus and revolving loans.

J Asset's Business Focus and Financial Performance

Core Business Areas

• J Asset continues focusing on three main business areas: Community Mall operations, IT market engagement, and newly launched Senera Wellness group.

Financial Insights

• Despite reporting losses this year due to non-recurring items affecting fair value assessments, there was significant growth in underlying profits from previous years.

Profitability Trends

• Over nine months this year, J Asset's performance showed an increase from previous figures despite fluctuations caused by special items impacting overall results.

Future Projections

• Excluding special items reveals an upward trend in operational profit margins; projections indicate continued improvement moving forward into subsequent quarters.

Growth and Strategy Overview

Revenue Projections and Business Focus

• The company anticipates an increase in revenue from 416 to approximately 514 by the end of this year, with a target of nearly 600 for next year.

• Focus will be on increasing sales area per square meter and managing costs effectively to enhance profitability in the short term.

Sales Performance and Backlog Management

• Currently managing around 90,000 square meters of sales space with a backlog of approximately 9,500 units expected to sell by the end of this year.

• Aiming for a closing rate of about 97% by the end of next year, with plans to manage existing assets or explore new directions for backlog growth.

Business Unit Insights

• The performance in generating revenue has improved over three years; expectations are set for positive EBITDA contributions from subsidiaries like Cinderella within Q4 next year.

• By 2027, strong profits are anticipated as part of a clear direction for business growth.

Financial Health and Cost Management

• Efforts are underway to improve EBITDA margins from 4% to at least 13%, addressing cost burdens that have accumulated over recent years.

• Anticipated reduction in debt levels starting from 2027 is expected to strengthen overall company health significantly.

Engineering and Project Development Strategies

• Initiatives began this year focusing on converting shopping centers into mixed-use projects aligning with current trends.

• Successful models include integrating educational zones and sports activities into shopping centers, enhancing customer engagement throughout the day.

Community Engagement and Seasonal Activities

• Plans include expanding community-focused activities across all shopping centers while adapting offerings based on seasonal trends.

• Emphasis on maintaining high occupancy rates (targeting around 97%) while improving revenue per square meter through diverse activities.

Future Outlook

• Continuous efforts will be made towards enhancing community relations through engaging activities within shopping centers.

• Positive outlook for Q4 performance compared to Q3 due to strategic initiatives aimed at boosting core business metrics.

Earnings and Market Trends Discussion

Core Earnings Insights

• The core earnings are expected to improve compared to Q3, excluding extra items. Mobile business growth is a significant factor in this positive outlook.

• The upcoming high season for events and consumer spending, supported by government policies, contributes to an optimistic view for Q4.

Market Share and Technology Trends

• A question was raised regarding the impact of increasing market share of Chinese technology products (mobile phones and tablets) on retail markets and company performance in both short-term and long-term.

• The response highlighted ongoing partnerships with existing brands while exploring new business models with two undisclosed brands that may enter the Thai market.

Strategic Partnerships

• Emphasis was placed on collaboration with new players entering the market who are willing to invest, aiming to strengthen the overall market landscape.

Operational Challenges and Strategies

Management Response to Credit Losses

• JMT has faced credit loss challenges but has managed these through proactive strategies. Plans include hiring 1,000 additional staff over four months to enhance customer engagement.

Customer Engagement Initiatives

• A royalty program tailored for different customer segments is being implemented, focusing on high-ticket clients as well as those with lower income levels.

Government Collaboration

• JMT collaborates with government agencies like the Department of Legal Execution to manage debt collection more effectively across Thailand.

Financial Recovery Plans

Addressing Payment Issues

• Despite a decrease in customers unable to pay, there’s a reduction in payment amounts per customer. Strategies aim at increasing total payments from previously non-paying customers through targeted programs.

Future Projections

• There’s an expectation that ECL (Expected Credit Losses), currently around 280 million THB monthly, will gradually decrease as economic conditions improve over time.

Legal Strategy Adjustments

• A shift towards legal actions against only those customers who can afford payments but refuse to pay aims at reducing legal costs while enhancing recovery rates.

Cash Collection Improvements

Enhanced Collection Efforts

• JMT has improved cash collection from approximately 70 million THB monthly in previous periods to about 100–120 million THB recently by optimizing processes related to debt recovery.

Financial Strategies and Opportunities for JMT

Interest Burden Reduction

• The funds will help reduce the interest burden of JM, showcasing a strategic financial maneuver to alleviate costs.

• A significant amount of NPL (Non-Performing Loans) is highlighted, with 1.2 trillion in total debt, indicating potential market opportunities.

Market Dynamics and Investment Potential

• Discussion on the target debts that JM aims to address, focusing on specific segments within the market that present investment opportunities.

• JMG is prepared to invest 2 billion if financial institutions engage during this period, emphasizing readiness to capitalize on market conditions.

Management and Strategic Adjustments

• The professional management team at JMG is positioned to acquire and manage debts effectively, ensuring quality oversight.

• Local investors are being engaged more frequently for projects involving purchasing from institutions directly, indicating a shift towards collaborative investment strategies.

Asset Management and Ecosystem Development

• Various forms of NPA (Non-Performing Assets), including condos and single-family homes, are discussed as part of JMT's asset management strategy.

• Emphasis on pricing strategies to clear inventory efficiently while maintaining competitive advantages over rivals.

Long-term Debt Collection Strategies

• A multi-faceted approach is necessary for effective debt collection; management has contingency plans (B, C, D) ready for various scenarios.

• With less than 1% customer default rate noted by JMG, leveraging technology and database synergy can enhance overall recovery rates in the future.

Financial Performance Insights

• Introduction of new company member JOVY into the group indicates growth in operational capacity within the fintech sector.

Revenue Highlights

• Current CAS collections stand at approximately 6.3 billion but have seen a slight decline of about 2%.

Debt Acquisition Trends

• Notable profitability continues among subsidiary companies despite fluctuations in overall revenue streams.

Operational Efficiency

• Revenue from debt collection services has decreased by around 8%, yet efficiency metrics show improved collection rates rising from 28% to 53%.

Future Projections

• Over the past nine months, an increase in acquired debts suggests stability; however, spending remains conservative at just over 300 million.

Economic Overview and Financial Insights

Current Economic Status

• The financial performance shows a decrease of approximately 10% compared to last year, with a 2% decline over the first nine months.

• Customers are hesitant to close accounts quickly due to uncertainty about future cash needs, preferring gradual payments instead.

Debt Portfolio Performance

• The debt portfolio has seen significant growth since 2006, accumulating around 600%, with notable returns from investments made in previous years.

• In the past nine months, $380 million was spent on investments, yielding a recovery of about 10%, which is lower than the previous year's nearly 30%.

Margin Trends and Operational Costs

• Gross margin for the current period stands at $2.3 billion, down from $2.5 billion last year; quarterly revenue reached $770 million.

• The gross margin rate improved to 66% in Q3 from last year's 60%, attributed to reduced operational costs such as legal expenses.

ECL (Expected Credit Loss)

• SG&A expenses include significant ECL provisions that impact profit margins; these provisions are not fixed costs but can be adjusted based on future cash flow predictions.

• Increased ECL provisions aim to mitigate risks associated with potential cash flow issues over the next few quarters.

Profitability and Asset Management

• Net profit currently stands at $231 million, reflecting a slight decrease from the previous quarter's $246 million.

• Total assets have increased to $41 billion due to higher cash flows and investment returns; equity has also risen significantly.

Debt Repayment Strategy

• Full repayment of debts totaling $3.3 billion was completed in October; plans for an additional repayment of around $1.1 billion are set for mid-next year.

• Cash flow projections indicate an expected collection of approximately $3.8 billion by mid-next year, ensuring liquidity for upcoming obligations.

Future Investment Plans

• Investment plans for next year include allocating between $1.5 - $2 billion towards purchasing debts while maintaining reserves for subsidiary companies' dividends.

Special Mention: Consumer Debt Analysis

• Out of total consumer debt estimated at 400 billion baht, home loans account for approximately 160 billion baht with an NPL rate around 6%; auto loans represent another significant portion with rising concerns regarding their NPL rates.

Discussion on Debt Management and Market Strategies

Current Status of Debt and NPL

• The speaker discusses the current state of debt management, indicating a readiness to move forward with Non-Performing Loans (NPL), highlighting that the volume remains high at 1 million.

• There is an opportunity for purchasing additional debts in the upcoming year, with approximately 2.5 billion baht currently held in legal enforcement.

• An unofficial recovery of 1 billion baht has been achieved, leaving 1.5 billion still to be collected.

NPA Management Insights

• The speaker notes that despite challenges, customer interest in booking homes has not decreased; however, approval rates have dropped from 50-60% to around 30-40%.

• Campaigns are being implemented to assist customers with good credit histories who may need more time before securing financing.

Rental Market Dynamics

• There is a notable increase in rental inquiries, suggesting strong demand even if sales have not yet materialized.

• Marketing strategies are comprehensive and include various channels to reach potential customers effectively.

Financial Strategy and Future Planning

• Discussions about pricing strategies indicate a focus on reasonable conditions for partnerships and customer trials.

Questions on Debt Aging and Profitability

• A question arises regarding how JMT will handle aging debts; it is clarified that they do not focus solely on litigation but rather on restructuring debt with clients.

Collection Trends and Future Projections

• The speaker emphasizes that while they do not prioritize litigation based on debt age, they remain committed to assisting clients through various campaigns.

Q4 Collection Outlook

• In Q4, collection efforts appear stable without significant fluctuations; some clients are increasing payments while overall trends remain steady.

Strategic Positioning for Debt Purchases

• The financial institutions are awaiting clarity on measures related to managing large sums (120 billion baht), which will influence future debt purchases.

Potential Joint Ventures (JV)

• Opportunities for new joint ventures depend on discussions with financial partners regarding long-term objectives.

Share Buyback Considerations

• The discussion touches upon share buybacks within the company’s group, emphasizing the importance of cash flow sufficiency before making such decisions.

Discussion on Financial Strategies and Performance

Importance of Capital Increase and Bond Issuance

• The company plans to present its readiness for capital increase and bond issuance at the board meeting, indicating a proactive approach to financial management.

• Frequent bond issuances are not due to liquidity issues; rather, they align with careful financial projections and strategic planning.

• The company has not increased capital in several years, suggesting stability in its financial strategy while still utilizing bonds as a funding mechanism.

Investment Portfolio Management

• JMK views new investments as part of a diversified portfolio, emphasizing that current valuations are favorable for growth.

• Continuous dividends from key investments indicate positive returns, reinforcing confidence in the company's investment strategies.

• Valuation remains strong compared to investments made over the past 2-3 years, showcasing effective asset management.

Revenue Growth Insights

• The presentation transitions to revenue performance metrics, highlighting consistent growth across various quarters.

• Adjustments in accounting practices (from one-time recognition to amortization) will impact financial statements but do not affect operational performance negatively.

Performance Metrics Analysis

• Revenue has shown steady growth since Q3 2024, driven by sales contributions from different segments including interest income from SGC.

• Interest income has significantly increased year-over-year, reflecting successful business operations and effective revenue generation strategies.

Challenges and Strategic Responses

• A decline in certain interest earnings is noted due to quality control measures on electrical appliances; however, this is aimed at improving overall sales quality.

• Despite some reductions in specific portfolios like C4C, other areas such as phone-related earnings have seen substantial growth.

Overall Company Performance Trends

• SC&A's management shows improvement with revenue trends stabilizing around 37% recently; however, there was a drop observed compared to previous periods.

Financial Overview of SCNA

Cash and Cash Equivalents

• The cash balance decreased from 1,225 million to 1,027 million due to the repayment of bonds by Singer during Q1.

• As of September 2025, the cash balance for Singer is projected at 465 million.

Accounts Receivable (AR)

• AR decreased by 154 million primarily because C4C did not issue new loans; however, Rock Phone's AR increased.

Inventory Management

• Inventory dropped by 112 million due to sales throughout the year and clearance of second-hand products.

• Despite a reduction in overall stock, there was an increase in mobile phone inventory to support growing mobile business.

Liabilities and Equity

• Total liabilities rose to 1,383 million mainly due to bond repayments amounting to 1,700 million.

• Shareholder equity increased by 94 million driven by profits from the Singer group.

Net Financial Income Analysis

• A graph illustrates that interest income from ATC (blue line) has decreased while financial costs related to bonds (red line) have also diminished significantly since Q1 2025.

• There are no significant financial costs currently as all bonds have been repaid.

Future Cash Projections

• Estimated ending cash for Singer is projected at around 6 billion baht by the end of fiscal year 2030, indicating strong financial health.

Sales Revenue Insights

• An analysis of sales revenue shows fluctuations across different product categories with notable increases in air conditioning sales during Q2 due to seasonal demand.

Seasonal Sales Trends

• Air conditioning sales did not perform as well in H1 compared to last year due to shorter summer seasons and early onset of rainy weather affecting market conditions.

Second-Hand Product Sales Decline

• Sales of second-hand products declined significantly post-Q1 2025 as Singer ceased issuing loans for water dispensers which were previously a major revenue source.

Mobile Business Growth

• The mobile segment began scaling operations in Q3 with increasing contributions observed through subsequent quarters leading up to Q3 2025.

Water Station Business Expansion

• Revenue from water station businesses continues expanding with approximately 2,500 units operational by the end of Q3.

This structured overview captures key insights into SCNA's financial position and operational performance based on the provided transcript.

Overview of Financial Performance and Growth Strategies

Key Insights on Inventory and Asset Management

• The discussion begins with the management of fuel dispensers, indicating a conversion from inventory to assets for operational use at gas stations. This process involves gradual depreciation.

• The reduction in asset numbers is attributed to an increase in gas station establishments across the country, particularly in lower northeastern regions and southeastern areas, totaling around 2,500 installations by the end of Q3.

Revenue Generation Channels

• A new retail channel has emerged this year through Singer's retail stores, featuring updated merchandising displays and Retail POS systems aimed at enhancing competitive sales capabilities.

• The partnership with mobile corner retailers has contributed positively to revenue since Q1, driven by expanding retail shop formats.

Online Business Expansion

• There has been significant growth in online business activities compared to last year, especially through e-commerce platforms like Shopee and Lazada. Popular products include fabric care items and small appliances.

Outlook for Q4

• The company anticipates continued growth momentum into Q4 based on consistent sales increases observed since Q3. Plans include further expansion of physical locations and mobile dealer networks.

• Administrative expenses are projected to decrease by 15% compared to Q3 due to effective cost control measures.

Strategic Expansion Plans

• Singer plans to open 11 additional retail branches during Q4 while aiming for a total of 1,200 mobile dealers by year-end. Current figures show progress towards this goal with over 900 dealers established as of September.

Financial Results Overview

Company Profitability Highlights

• In Q3, the company reported a net profit of 123 million baht, marking a 74% increase from Q2 and approximately 350% growth compared to the same quarter last year.

Factors Driving Profit Growth

• Key drivers behind profitability include continuous growth in Rock Phone business operations, improved cost control leading to a reduced cost-to-income ratio (21%), and decreased financial costs due to reduced debt levels.

Accounting Adjustments for Marketing Support

• SGC received recommendations regarding monthly marketing support accounting practices. They decided to shift from one-time recognition of income to amortization over contract durations (12–24 months).

Impact on Financial Statements

• This change aims for smoother financial reporting; historical data will be adjusted accordingly for better comparability between years.

Revenue Growth Metrics

• Total revenue for STC reached 740 million baht in Q3—a record high—reflecting a 7% increase from Q2 and a remarkable 65% rise compared to the same quarter last year.

Financial Performance Overview

Revenue Growth and Contributions

• The company reported a total revenue of 2,076 million Baht over the past nine months, marking a growth of approximately 56% compared to the previous year.

• Interest income from the Rock Phone business reached 470 million Baht in Q3, while interest income from C4C decreased to 219 million Baht due to downsizing efforts.

• Over nine months, total interest income was 2,024 million Baht; 58% (1,170 million Baht) came from Rock Phone and 736 million Baht from C4C.

Loan Disbursement Trends

• In the first nine months of this year, HC disbursed new loans totaling approximately 6.3 billion Baht, with an accumulated total of 9.585 billion Baht over the last 18 months.

• The average loan disbursement in Q1 and Q2 of 2025 was around 500-600 million Baht; however, it increased to about 900 million in Q3 and Q4 due to seasonal demand.

Factors Influencing Loan Growth

• Increased loan disbursements are attributed to two main factors: seasonal spending patterns in H2 and new product launches by brands like OPPO and Vivo.

• Notable product releases such as OPPO's Reno 14 contributed significantly to sales growth during July.

Operational Efficiency Insights

Operating Expenses Analysis

• In Q3, operating expenses were recorded at 133 million Baht, reflecting a decrease of about 16% compared to the previous quarter due to revised commission structures for collection staff.

• Despite reduced expenses per transaction type (e.g., mobile installment plans), overall costs did not negatively impact HC's performance; cost-to-income ratio improved significantly.

Asset Management Overview

• As of Q3, total assets amounted to approximately 13.4 billion Baht; cash reserves stood at around 532 million Baht.

• The company's portfolio mix showed significant changes over one year: Rock Phone grew substantially while C4C saw a reduction in its share.

Debt Quality Assessment

Non-performing Loans (NPL)

• The principal balance across all debts is over 14 billion Baht with NPL standing at approximately 2.7 billion Baht; ECL provisions are set at around 2.34 billion Baht.

• NPL percentage slightly increased from previous periods but remains under close monitoring as part of risk management strategies.

Financial Overview and Outlook for HGC

ECL Reserves and Business Performance

• The company's target for ECL reserves is approximately 15% by the end of the year, with current reserves increasing from 2,096 million in Q2 to 2,340 million in Q3.

• The rise in ECL is attributed to two main factors: increased provisions in the CC business due to a low season during Q3, leading to reduced cash flow for operators.

• In Q4, expected improvements are anticipated as it marks a high season with increased work opportunities and cash inflow from vehicle sales and hiring.

Debt Management and Financial Position

• Total liabilities decreased from 7,100 million to approximately 6,100 million this quarter; major liabilities include company debt at 5,300 million.

• Shareholder equity rose from 7,000 million to 7,311 million due to improved performance; this led to a reduction in the Debt-to-Equity ratio to 0.82.

Bond Issuance and Capital Raising

• HGC successfully raised funds through bond issuance (Series 2), totaling 600 million with a coupon rate of 6.8%, contributing to an overall bond capital of 1,250 million across three series.

Growth Projections for Q4

• Positive outlook for loan growth continues into Q4; new high loans reached at 936 million in October compared to previous months.

• Anticipated product launches from OPPO (FX9 Series) and Vivo (X300 Series) are expected to drive further growth in lending.

New Product Launches

• Introduction of SDIEL embedded insurance products has seen significant growth (30%) compared to Q2; expectations are set for continued expansion into Q4.

Solar Loan Initiative

• A new Solar Loan product is being launched as part of ESG initiatives aimed at energy savings amidst rising global temperatures; initial rollout will be through SG Finance Plus platform.

Addressing Financial Questions

• Discussion on managing long-term debts amounting to approximately 2,100 million due within one year while maintaining liquidity with available cash around 532 million. Plans include restructuring debt into equity and extending repayment terms.

Financial Overview and Projections

Loan Agreements and Long-Term Financing

• The company has secured a loan of 1 billion baht from a partner, with plans to repay it over the next two years. This will convert all loans into long-term liabilities by year-end, eliminating any current portion.

Current Assets and Liabilities

• The current ratio is strong due to an increase in short-term assets from Rock Phone operations, which have raised current assets to over 7 billion baht against current liabilities of about 2 billion baht. This indicates good liquidity.

Revenue Generation from SGC

• Monthly revenue from SGC has reached approximately 1 billion baht, marking the highest level since entering the stock market. As of the end of the quarter, cash reserves stood at 532 million baht, monitored daily for financial planning purposes.

Expected Credit Loss (ECL) Provisions

• In the first nine months of the fiscal year, ECL provisions amounted to 1.04 billion baht, reflecting ongoing asset quality issues that impact profits and capital base as part of efforts to clean up the balance sheet.

Strengthening Capital Base

• The company is considering ways to strengthen its capital base to absorb losses effectively while aiming for growth in its portfolio management strategy amidst high ECL levels compared to industry standards. Current ECL coverage stands at 86%, below other non-bank sectors which exceed 100%.

Risk Management Strategies

• Regular reviews are conducted on accounting models used for ECL provisions under TFS9 standards, with additional management overlays applied where risks are identified in specific portfolios. This proactive approach aims to mitigate future business risks effectively.

Sales Trends and Growth Projections

• Sales trends show significant growth driven primarily by mobile phone sales through direct channels and an expansion in dealer networks from 600 to 1,200 dealers within six months. Additionally, electrical appliances also contribute positively due to increased branch openings and new sales channels emerging.

Lending Forecast for Q4

• For Q4, lending is projected to exceed 900 million baht per month with expectations that total lending will surpass targets set at around 8 billion baht by year-end—indicating a positive outlook on loan disbursements despite maintaining low Non-Performing Loan (NPL) rates at approximately 2.1%.