Investing, simplif ied Pi Securities PCL
BRAND PHILOSOPHY Investing, simplif ied
At Pi, we fundamentally formulated ourselves around this notion. We task ourselves not only to get continually new customers, but to create limitless knowledgeable investors and equipped them with handful of financial tools, solutions and plans. At Pi, we pledge to always be the fuel behind the strong financial inclusion society in Thailand 1. 2. 3. Pi is a symbol of structural planning, a symbol with never-ending decimal nor enters a permanentrepeating pattern, enabling the formula to construct solutions, plans and projects in a very structural way.
BRAND PHILOSOPHY Investing, simplif ied
At Pi, we fundamentally formulated ourselves around this notion. We task ourselves not only to get continually new customers, but to create limitless knowledgeable investors and equipped them with handful of financial tools, solutions and plans. At Pi, we pledge to always be the fuel behind the strong financial inclusion society in Thailand Pi is a symbol of structural planning, a symbol with never-ending decimal nor enters a permanentrepeating pattern, enabling the formula to construct solutions, plans and projects in a very structural way.
01 02 03 04 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Message from The Chairperson Message from Chief Executive Officer Board Of Directors Management Team Vision and Mission Awards Corporate Social Responsibility Overview Of The Business Nature Of Business Risk Factors Operating Assets Legal Dispute Others Important Information Shareholder Information Management Structure Corporate Governance Social Responsibilities 18 Internal Control And Risk Management Related Transactions Financial Status And Performance Audits Reports Of Certified Public Accountant Financial statements TABLE OF CONTENT 6 PI SECURITIES PCL
MOVING WITH PI 2022 ANNUAL REPORT 7
VISION Build a robust and inclusive financial society in Thailand. Making investment a simple and responsible task that anyone, at any age and economical condition can achieve sustained personal wealth as planned. “ “ 8 PI SECURITIES PCL
MISSION Provide limitless opportunities and access to financial assets and markets with robust financial literacy supports in a simplest and most trusted way. “ “ 2022 ANNUAL REPORT 9
Lorem Ipsum is simply dummy text of the printing and type setting industry. “ “ SURABHON KWUNCHAITHUNYA Chairperson 10 PI SECURITIES PCL
MESSAGE FROM CHAIRPERSON Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum. Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of “de Finibus Bonorum et Malorum” (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, “Lorem ipsum dolor sit amet..”, comes from a line in section 1.10.32. Dear Shareholders, Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum. Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of “de Finibus Bonorum et Malorum” (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, “Lorem ipsum dolor sit amet..”, comes from a line in section 1.10.32. SURABHON KWUNCHAITHUNYA Chief Executive Off icer 2022 ANNUAL REPORT 11
Our hero application, “Pi Financial” will become the promising strength of the business. “ “ BOB WOUTERS Chief Executive Officer 12 PI SECURITIES PCL
MESSAGE FROM CEO BOB WOUTERS Chief Executive Off icer February 2022 marks the time Country Group Securities PCL reinvented and transformed into Pi Securities PCL. Setting off to disrupt the securities business landscape in Thailand, Pi Securities targets to deliver the best customer experience and enter a new era of true “Customer first” ecosystem in financial sector. Building a fresh brand for fresh customer experience that disrupt the market, we aim to exploit our expertise and capability to build a financial inclusive society in Thailand. Providing full access to both financial literacy and financial products. Unlocking potentials to maximize personal wealth opportunities, we task ourselves to support customers in all financial facets they encounter. Our key strategy truly summed up to our tagline, “Investing, simplified.” Making simplicity runs through the organization not only as philosophy but as company culture. Starting from reengineering our internal practice to the development of mobile application that will fully support customers’ transactional processes. Dear Shareholders, “Digital with human touch” is our approach to the future growth. Our operating functions will start and center around people, our customers and employees. Leading business with simplified seamless technology but still with a touch of human along the journey to deliver the most meaningful effectiveness and agile governance. We ended 2022 with strong performance from the perseverance team who thrive to embark on this transformation journey with strong force along the way. 2023 will be an exciting road ahead, a springboard from the fundamentals we have started to the real take-off of the strategies and tools in our pipelines. Our hero application, “Pi Financial” will become the promising strength of the business. Illustrating the ambition, we are going forward to and the position we will firmly stand in the market. We believe that through the strong foundation we’ve built and dedication of the team will bring us another successful year, creating appropriate returns and sustainable growth to shareholders. 2022 ANNUAL REPORT 13
BOARD OF DIRECTORS MR. SURABHON KWUNCHAITHUNYA Chairperson ACM. PERMKIAT LAVANAMAL Independent director and chairperson of the audit committee DR. SUPACHAI SUKHANINDR Independent director and chairperson of the audit committee 14 PI SECURITIES PCL
MS. SHARINEE KALAYANAMITR Independent director and chairperson of the audit committee MR. BOB WOUTERS Director and chief executive officer MR. THANACHOTE RUNGSITIVAT Director and Executive Director 2022 ANNUAL REPORT 15
BOARD OF DIRECTORS MR. SURABHON KWUNCHAITHUNYA Chairperson ACM. PERMKIAT LAVANAMAL Independent director and chairperson of the audit committee DR. SUPACHAI SUKHANINDR Independent director and chairperson of the audit committee 16 PI SECURITIES PCL
MS. SHARINEE KALAYANAMITR Independent director and chairperson of the audit committee MR. BOB WOUTERS Director and chief executive officer MR. THANACHOTE RUNGSITIVAT Director and Executive Director 2022 ANNUAL REPORT 17
EXECUTIVE MR. BOB WOUTERS Chief Executive Offier MR. THANACHOTE RUNGSITIVAT Executive Committee MR. NORATHEP SIRIPRASERTCHOK Chief Transformation Officer MS. NATTCHARINPHON JESADAPISIT Chief Commercial Officer MR. WEERAYUT CHENPANITSAP Chief Operation Officer MR. CHATCHAWAN SANGPREEDEEKORN Chief Marketing Office MR. NIKUN KHOONGUMJORN Chief Product Officer 18 PI SECURITIES PCL
MR. KAVEE CHUKITKASEM Head of Research and Content MS. KANCHANOK JUNLABON Head of Human Resource MS. LALIDA TEEKHASAENEE Head of Finance & Accounting MR. ASHWANI AHUJA Managing Director MR. SUMRITCHAI THANGHARAT Managing Director MR. DEMETRI GORADETSKY Head of Product-Global markets MR. SANJAY KISHORE MOTWANI Head of Product-Social Tradin 2022 ANNUAL REPORT 19
EXECUTIVE MS. DEEKSHA MALIK Head of Data MR. THANAPOOM KUNAROCHRAKSE Vice President MR. CHAMRAS KUANHA Managing Director MR. VACHIRAPHONG PIMPHAN Assistant Managing Director MS. RATHANAPATH NAOWARATTHANAKORN Managing Director MR. THAWATCHAI THONGDEE Managing Director K. Rathanapath 20 PI SECURITIES PCL
MR. PONGSAK SANGKAJANTRANON Managing Director MR. TANAPATRA BOONTARAPONG Managing Director MR. SUPAT APIRATIMAI Managing Director MR. KRISNASON TERAPORNAMORNRAT Managing Director MR. CHALERMPOL NEAIMSRI Managing Director MR. PUVADON CHARNCHIEW Managing Director MS. SABAIJAI VONGKASIKORN Managing Director K. Tanapatra K. Puvadon K. Sabaijai 2022 ANNUAL REPORT 21
COMPANY’S TIMELINE 1966 Establishment The Company was establishment of “Adkinson to the Enterprise Company Limited”. 1996 Establishment CGS established Country Group Holdings Public Company Limited (CGH) to be a holding company of CGS, CGH makes a tender offer for all the securities of CGS effective January 8, 2014. 2016 One stop service CGS Successful major reorganization targeting retail, foreign, and institutional clients. One stop service by providing full range of financial products and services. Diverse revenue streams from other higher margin products. 1974 Assigned Assigned as “Broker No. 3” of the SET. 2020 Full-service CGS continues to transform from retail broker into modern full-service brokerage. 2021 Digital Platform CGS start focus in Financial Technology Digital Platform 2022 Digital Platform xxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxx 2014 Established The Company changes its name to Country Group Securities Public Company Limited (CGS) Increased investment proportion in MFC Asset Management Plc. to 22.50 percent of its registered capital, of which MFC becomes the associated company. 22 PI SECURITIES PCL
KEY BUSINESS ACHIEVEMENT IN 2022 Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s. 1. 2. 3. Company’s digital transformation Company’s digital Beta launch of Pi Financial mobile application Build a strong digital ecosystem 2022 ANNUAL REPORT 23
Total Assets Total Assets (Million Bath) (Million Bath) Total Assets (Million Bath) Total Assets (Million Bath) Total Assets (Million Bath) Total Assets (Million Bath) 2020 FINANCIAL HIGHLIGHTS 2020 2020 2021 2021 9,348.78 9,348.78 9,348.78 9,348.78 9,348.78 9,348.78 2022 2022 2020 2021 9,348.78 9,348.78 9,348.78 2022 2020 2021 9,348.78 9,348.78 9,348.78 2022 2020 2021 9,348.78 9,348.78 9,348.78 2022 2020 2021 9,348.78 9,348.78 9,348.78 2022 24 PI SECURITIES PCL
KEY ACHIEVEMENTS AWARDS 2022 • Popular Agent (most new open accounts) • TFEX Best Award of Honor 2022 2017 • First Runner-Up TFEX Broker Champion SET in the City 2017 #1, (moved from December 2016 ) • First Runner-Up TFEX Broker Champion SET in the City 2017 #2) 2015 • Second Runner-Up TFEX Broker Champion SET-TFEX Digital Investor Fair • Second Runner-Up TFEX Broker Champion SET in the City 2015 2014 • First Place TFEX Broker Champion from Money Expo 2014 (Bangkok) • Second Runner-Up TFEX Broker Champion SET-TFEX Online Investor Fair) • Second Runner-Up TFEX Broker Champion from Money Expo (Korat) • First Runner-Up TFEX Broker Champion SET in the City 2014 2013 First Place TFEX Broker Champion from Money Expo (Chiang Mai) 2012 TFEX on Spot Daily from Money Expo 2012 (Bangkok) 2021 Active Agent Award 2021 / TFEX Best Award 2021 2020 Most Active Agent / TFEX Agent of the year reward 2020 2019 Most Active Agent / TFEX Agent of the year reward 2019 2018 • First Runner-Up TFEX Broker Champion SET in the city 2018 • First place TFEX Broker Champion Money Expo (Korat) because King Rama 9 passed away • First Runner Up Equity Broker Champion Money Expo (Korat) 2022 ANNUAL REPORT 25
CORPORATE SOCIAL RESPONSIBILITY LOREM IPSUM LOREM IPSUM Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum. 26 PI SECURITIES PCL
NATURE OF BUSINESS 01 2022 ANNUAL REPORT 27
1. NATURE OF BUSINESS 28 PI SECURITIES PCL
1.3 Marketing and Competition • Key Marketing of Products and Services Marketing Policy in the Past Year The Company’s hotel marketing policy in the past year focused on increasing brand awareness since its two hotels had just opened for operations and it was needed to create awareness among the hotel customers of their various services such as guest rooms, restaurants, banquet rooms, and other services in order for their targeted clients to recognize the quality and distinctive points of both the hotels and their services. In the previous year, the marketing plans had mostly launched via the online channels and various social media platforms they are the direct and effective ways to reach the target groups. The hotel managementteams have set up a clear marketing scheme and standard. There are marketing teams with professionalexpertise positioned at the hotels and also within the relevant hotel management companies to regularly advise and oversee the marketing work of the hotelmarketing team that is positioned at the hotels. This results in marketing success and ensures good awareness among the targeted clientele. The hotels also promote their marketing on other channels such as direct contacts from the hotel sales teams to customers, participation in travel exhibitions, and focusing on good customer services to encourage word-of-mouth recommendations. Pricing Policy The setting of the hotel room rates are based on information analysis and relevant factors that the hotel management teams have identified by using advanced information analysis tools. These factors include prevailing room rates, market demand for rooms, tourist seasons, hotel operational costs, and the pricing of market competitors. The appropriate pricing strategy for hotel room prices in a competitive market is an attempt to achieve the highest revenue per available room (RevPAR) under the given market demand. In 2021, the tourism market in Thailand was impacted by the COVID-19 crisis. The demand for hotel rooms was not as high as in the normal situation, with most of the demand coming from domestic tourists or staycation. The Company set appropriate room rates for domestic tourists and added other attractive features without cutting the room rates too deeply. The features also include the sales of package stays with additional spending credit to be used in the hotel. Target Customers, Nature of Clients, Relationship and Relationship Management The hotels focus on meticulous attention to every detail of services to offer the most impressive experiences for room stay and dining at the hotel restaurants, as well as hosting of banquets and parties, conferences, or relaxing at the hotel spa. As both of the Company’s hotels commenced their operations in 2021, during the time in which the tourism industry was not under normal conditions, the number of hotel customers thus did not meet its long-term target plan because almost all of the hotel customers were local tourists and staycations. The target customers for both hotels are a combinationof foreign tourists, business men who make their business trips to Bangkok, international conferences, and domestic tourists who want to stay in luxurious hotels by the river. The target customers for hotel restaurants are Bangkok residences, hotel guests, and foreign tourists who stay in other hotels and would like to experience a high quality of food and fine dining. The hotels pay attention to long-term customer relationship management. The hotel operators operate with a systematic database on client information to be aware of the needs of each client. The hotel operators also train the hotel staff to remember the needs of customers in detail to provide good customer relationship and the best impression when the customers revisit the hotels. This will build long-term customer loyalty. 2022 ANNUAL REPORT 29