BROOKER ANNUAL REPORT 2012

The Brooker Group Public Co Ltd Annual Report 2012
3. Risks associated with business expansion
The Company still pays attention to expand its business in the area of investment advisory for
Offshore Capital Investment which is related to the Company's core business. The Company has
established this service since 2008. Providing this kind of business needs past track record to
attract Offshore Capital to come to use this service. Throughout the past 5 years, the Company’s
Offshore Capital Investment business has shown a lucrative performance and grown rapidly which
contributed substantially increase in profit for the Company despite Thailand just recovered from the
great flood occurred in 2011 which bring damage to the industrial factory at large. This includes the
production of auto parts, computer components and others which affected those importers of these
products to be used in their finished goods. This disruption causes the delay of shipments schedule
to their customer worldwide. But with the capability of these industrial factories management can
cause relatively rapid recovery and return to production in a short period. Exception for many small
factories has to close down forever. Nevertheless for the past year, the investors in The Stock
Exchange of Thailand would not be disappointed because they could get return from their
investment for the average of not less than 35%. Even though the World Bank has predicted that
the global economy will grow by only 2.3 in 2012 and increased to 2.4% in 2013, apart from this,
Thailand's economy remains tied closely with the global economy and it is inevitable for Thailand to
escape from what had happened in other countries’ economy. Especially, from world major
economic zone, in particularly the European Public Debt Crisis which seems uneasy to calm down
soon and also pull down Thailand's exports. Or the stagnant of America own economy, with the
high unemployment rate that forced the central bank to inject massive money into the systems. As a
result, capital flows into Asia and Thailand immensely. Despite the boom in financial markets, but
also put pressure on the Thai Baht as well. Crisis in Europe continues to be the number one threat
for the world economy. And expected next year that Greece, where it is the beginning of the
problem still hasn’t shown the positive sign while Spain, Italy, and Portugal is also a concern.
However, there is still some good news; the hope is that the downturn in the euro zone will end in
2013, although several risk factors have continued. This may push the euro zone back into another
downturn and may cause the Company to be affected as well but it wouldn’t be more severe since
the performance of the Company is rather outperform which are the Company strengths to attract
new clients and at the same time retain the existing clients as well. Also the Company has smaller
in number of employees and operates with a cautious approach in expanding its business not too
fast and too risky or too huge to handle based on the experience, knowledge, and the ability of its
management in which the Company can cope with such situation quite well and bring about
customer satisfaction.
In 2013, the Company continues to focus on it’s current business by focusing on opportunities to
invest or expand business that give high-yield under proper risk analysis and thoroughly
consideration from related sub-committee involved subject to turbulent of existing crisis with an
emphasizing important on maximizing shareholder’s value.
4. Risk of increased competition
The Company’s main lines of business (business and financial consulting, investments; real estate
brokerage and consultancy; and offshore capital management) are attracting new entrants from
other business groups. These new entrants may become future competitors of the Company as
they are likely to have their own customer base, are competitive in pricing, and are able to supply
similar services. The Company is at risk of reduced revenue from the pricing competition from these
new competitors. However, the Company is confident in the strong relationships it has built over the
years, its reputation, and the business and financial consulting, investment expertise of Mr Chan
Bulakul, its Vice Chairman and Chairman of the Executive Committee, which helps in promoting
business connections and clients’ confidence in the Company’s services. Thus the Company
foresees little or no effect from this increase in competition on its operations.
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