World PCL : Report of the progress of the action to qualify to return to trading for the first quarter, year 2022

World Corporation Public Company Limited.

4 Moo 11 Hathai Rat Road, Tumbon Lat Sawai

Ampur Lum Luk Ka, Pathum Thani Province

World 06-13/2022

13 June 2022

Subject: Report of the progress of the action to qualify to return to trading for the first quarter, year 2022

To: The President,

The Stock Exchange of Thailand

According to World Corporation Public Company Limited ("the Company") submitted an application for delisting and trading on the Market for Alternative Investment (MAI) on October 1 2 , 2 0 2 1 and the stock market has notified the acceptance of the request to be cleared from the grounds of delisting and resume trading on the Stock Exchange of Thailand on November 12, 2021. The company would like to reports the progress of the process to qualify for trading for the first quarter, year 2022 with details as follows:

1. Financial status and performance of the company

The principal business operations of the group are to invest in real estate development business. The group's products are divided into 4 categories:

• Residential development projects in the form of vacant land, houses, villas, condominiums, hotels for sale and rent, including providing management services for juristic persons or related to the development of residential projects.
• Industrial estate development projects in the form of vacant land, warehouses, factories, office buildings, commercial buildings for sale and rent, including trading and providing energy utilities related to industrial estates.
• Construction business.
• Hospital business and health care service, including sale of equipment. (Not yet generating income)
  Performance
  Performance for the first quarter operating results end of March 31, 2022, the company had a net profit from continuing operations of the parent company of 9.53 million baht and a net profit from normal operations. (Excluding other income) for the parent company of 8.62 million baht. This quarter, the company has total revenue of 50.9 million baht. Most of the revenue comes from construction business projects under the operation of another subsidiary that has been recognized continuously since the second quarter of 2021 recognized by Cost-to-Cost Method and comes from

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real estate development business in the type of condominiums in The City HatYai 1 project amounted to 15.71 million baht. Compared to the same period last year, it was found that the income increased by 9.38 million baht or 22.58 percent. In terms of total expenses amounted to

41.39 million baht an increase of 6.33 million baht from the same period last year. Most of the expenses were from construction costs of 19.87 million baht, and costs from the transfer of ownership in condominiums in The City HatYai 1 project of 11.13 million baht, selling and administrative expenses of 7.40 million baht, and income tax expenses amount 3 million baht.

For the first quarter ended March 31, 2022

(Unit: Million Baht)

	Statement of comprehensive		31 Mar 2022		31 Mar 2021		Increase		%
	income						(decrease)
	Revenue	50.90	41.53	9.38	22.58
	Expenses	41.39	35.06	6.33	18.04
	Net profit from continuing operations	9.53	6.46	3.06	47.37
	- Part of the parent company
	Net profit from normal operations	8.62	5.63	2.99	53.01
	- Part of the parent company

Financial position

As of March 31, 2022, there were total assets of 2 ,414.94 million baht, increased from the previous year 23.69 million baht or 0.99 percent. Most of the group's assets are inventories 1,199.22 million baht. (Comprising apartment business of 952.62 million baht and industrial estate business of 2 4 6 .6 million baht) a decrease of 10.17 million baht or 0.84 percent and land, buildings and equipment of 9 5 7 . 4 9 million baht ( Most of which were buildings for hospital and health services businesses) increased from the previous year 8.45 million baht or 0.89 percent.

Note:The financial statements for the period of December 31, 2021 are used for comparison. It is a revised budget in the land buildings and equipment of industrial estate projects with improvements in wastewater treatment systems and the land on which the water supply and wastewater treatment system is located, increased by 100.88 million baht and adjusted inventory items decreased by 33.92 million baht.

The company had total liabilities of 2 6 4 . 9 1 million baht, most of which were advance income of 187.08 million baht as shown in trade and other payables. Total liabilities increased from the previous year by 14.17 million baht or 5.65 percent, mainly due to advance income for land of

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the World Industrial Estate (Lamphun) project and has shareholders' equity of 2,150.03 million baht, divided into equity of the parent company of 1,951.18 million baht, an increase of 9.53 million baht or 0 . 4 9 percent from the end of the year, resulting from profitable operating results in the first quarter of 2022 and non-controlling interests of 198.86 million baht, a decrease of 0.01 million baht from the previous year.

Note:The financial statements for the period of December 31, 2021 are used for comparison. It is a revised budget. As for income tax payable, an increase of 13.86 million baht and an increase in unappropriated retained earnings of 53.10 million baht.

As for net cash flows from operating activities for the first quarter of 2 0 2 2 , amounted to

11.23 million baht due to cash received from the transfer of ownership of condominium units in The City HatYai 1 project.

2. Progress various projects of the group of companies for current business/project

2.1. The World Industrial Estate (Lamphun) project is operated by World Industrial Estate Co., Ltd., a subsidiary, which the company holds 100% shares, divided into 2 parts:

2.1.1. Allocate vacant land for sale both industrial zones and commercial zone classified as follows:

		Type			Industrial zone		Commercial zone		Total
				Area amount		%		Area amount		%		Area amount		%
		Total sales area	236-3-59.2	Rai	93.41	16-2-82	Rai	6.59		253-2-41.2Rai	100
		Ownership transferred	207-3-9.2	Rai	81.93	16-2-82	Rai	6.59	224-1-91.2	Rai	88.52
		Wait for sale		29-0-50	Rai		11.48			-		-		29-0-50	Rai		11.48

As for the unsold area in the industrial zone of 2 9 Rai 5 0 Square Wah the company has completed the development and construction of basic utilities. At present, there are people who are interested to inquire about the purchase of land from time to time but no one has agreed to enter into a contract. However, the company is expected to sell out by 2022.

In the third quarter of 2021, the company entered into an agreement to purchase an additional 15 Rai to expand the area in the estate and at the same time, it entered into a contract to sell the land to the former major customer of the company as well the transfer of ownership is scheduled in the fourth quarter of 2022.

2.1.2. Allocated to be commercial buildings for sale, with a total area of 27 Rai 3 Ngan 0.8 Square Wah, currently under development as a commercial building and a commercial community area. On an area of approximately 20 Rai, which is a sale in progress, including the gradual transfer of ownership. Which will begin operation in 2022 - 2023, the rest of the area. The company is under consideration which may be allocated as vacant land ready for sale in the future.

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2.2. The City HatYai 1 and The City HatYai 2

2.2.1. The City HatYai 1 project is operated by World Corporation Public Company Limited.

There are 2 buildings, each building has 78 units, total 156 units. End of the first quarter of 2022, the company has gradually transferred ownership of 40 units, remaining 116 units. It is expected to sell out by 2023.

2.2.2. The City HatYai 2 project is operated by World Property and Asset Co., Ltd., a subsidiary company which the company holds 100 percent shares. There are 2 buildings with 78 units of each building, total 156 rooms. However, the company expects both buildings to be sold out by 2024.

2.3. The Forest Patong project is operated by World Corporation Public Company Limited. The nature of the project is a residential project for sale and rent with a hotel service. In

which the owners of condominiums and projects will receive compensation from the management of the hotel. The total area of the project will be allocated into 5 phases. At present, the construction of the sales office of The Forest Patong Project has been completed. In the process of developing public utilities with 8 0 % progress. And will start construction after the renovation of the building is completed by gradually constructing the building in phases. In addition, the company has selected partners to join the sales management of the project, Forest Patong, which has already been selected for Phase 1 , is in the process of agreeing on the terms of the contract and is in the process of negotiating to select the remaining phase partners. It is expected to start selling the project in 2023 and it is expected that the construction of Phase 1 will be completed and ownership transfers can begin in 2024. The land used for this project the ownership has not been transferred to the company because it is in the process of making payment for the purchase of land. An additional note was made on July 12, 2021 requesting an extension of the payment period until September 2024 due to the impact of the COVID-1 9 epidemic situation. The company has been contacting to negotiate such conditions since October 2020. However, the company has received consent from the seller to be able to use the land administrative control as well as receiving all potential benefits, including land development construction of buildings and other operations as specified in the land purchase agreement dated 4 November 2018 without any additional conditions.

2.4. Construction business is operated by World Design and Construction Company Limited, a subsidiary in which the company holds 100 percent of the shares.

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2.5. Private hospital is operated by N Hospital Co., Ltd. is a joint venture company in which the company holds 7 4 percent of the shares. The subsidiaries operate health-related businesses, hospitals, pharmaceuticals, medical devices, etc. They own a land size of 10-2-99.6 Rai and a building of 21,887 Square Meters, located in San Sai District, Chiang Mai Province. It will be developed into a 60-bed hospital, currently in the process of building renovations. It is expected to be completed in

2 0 2 2 ( originally expected to be completed by the end of 2 0 2 1 ) due to the COVID-1 9 epidemic situation. As a result, the construction did not go as scheduled and is expected to start operations around 2023.

2.6. North Sathorn Residence Project is operated by Capital Link North Sathorn Company Limited, a joint venture company in which the company holds 50 percent of the shares. Later, the company considering that the management did not meet as agreed as the establishment of the company, together with the problem of the form of investment projects with different opinions that could not continue to operate. Therefore, the company, as a shareholder, filed a request for liquidation, but due to the Covid-1 9 situation, the court postponed this case first and a new appointment will continue to inform. In the fourth quarter of 2 0 2 1 , the resolution of the board of directors' meeting approved the company to enter into an investment sale contract and transfer the claim to a third party.

3. Summary report of internal auditor's internal control review

The group has received an internal audit from Acconsult Service Co., Ltd., which has audited the group since the accounting period ended 31 May, 2016 (old accounting period) - present for the first quarter ended 31 March 2022 can be summarized as follows:

1. The internal auditor issued the audit report on 9 April 2022
2. Every quarter, the internal auditors set 3 audit areas as follows:
3. • Monitor the implementation of the operation manual and important internal control systems of the lending system and receive payment for loans, investment systems in subsidiaries / associates, Income, Accounts Payable and Receipts, Accounts Payable and Accrued Expense Systems, Borrowing and Payments, Borrowing Systems, Procurement, Fixed Assets, Accounts Payable and Accrued Expenses, Advance Payment Systems Paying and closing systems.
   • Examining transactions from related parties.
   • Check the performance tracking of the company against the set goals.

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