|52 Weeks' Range||0.99 - 1.33|
ZMICO'S 2017 PERFORMANCE
2017 was the abnormal year for ZMICO due to unfavorable performances of our flagship businesses under KT ZMICO and SOLARIS. Apart from sluggish retail trading volume which is main business of our brokerage joint venture with Krungthai Bank (KTB), KT ZMICO was impacted by bad debt provision in receivables in EARTH shares. Meanwhile SOLARIS, our fund management company, had to record impairment loss due to default payments from investment in high-yield debt securities. With this double impact, last year our consolidated net income was 9.87 million baht compared to 277.02 million baht in 2016.
Summary of performance of ZMICO's key businesses are as follows:
2017 was a very difficult year for brokerage business under KT ZMICO as well as for brokerage industry. Due to intense competition from new comers and declining in retail trading volume, KT ZMICO ended up with market share of 2.27% in 2017 compared to 2.57% in 2016. In addition, KT ZMICO also recorded bad debt provision amounting 102.07 million baht from KTB-referral large clients in EARTH shares. As a result, ZMICO recognized share of loss from brokerage business of 5.02 million baht. Albeit tough domestic environment, our cross-border businesses proved doing very well. Last year saw explosive growth in business from Vietnam market as number of account openings increased by more than 80% while value of our clients' portfolio surged by 6 folds. As per our slogan "Gateway to CLMVT Capital Market", KT ZMICO aims to deliver the best solutions to investors who want to gain investment exposures within these markets. Thus, this year KT ZMICO has introduced private fund focusing on Vietnam market. We believe this tailored-made service will eventually increase our clients' net worth. To cope with disruption from financial technology, we have integrated Fintech innovations into wealth management, stock trading and investment research to enhance our customer-centric service capable. Last year we have incorporated Setscope AI investment platform with our Znet application powering users for stock scanning and robo advisory. After that, KT ZMICO has developed "eZySmart Application" focusing on E-service with concept dubbed "Availability, Agility and Accessibility". Through our continuing Fintech initiatives, KT ZMICO aims to be the leading investment technology-cum-brokerage company.
In 2017 the default payments from investment in high-yield debt securities still impacted Solaris posting net loss of 124.09 million baht. Solaris is during the legal process to obtain a remedy. We expect to see positive outcome after the court conducts the trial of the case during the mid of this year.
ZMICO's direct investment business in 2017 exhibited mixed results. Although our investment in health and wellness business under Absolute Yoga Co., Ltd. (AY) (30% holding) contributed share of loss for 6.96 million baht last year, we expect to see better performance in the near future. AY's net loss last year was mainly due to business restructuring as it transformed and renovated many outlets for further expansion especially in aboard. Despite insignificant shared earnings of 0.36 million baht from Scentimental (Thailand) Co., Ltd. (46% holding) who operates fragrance business, we look forward to see more progress as it has successfully launched new perfume products continuing from last year. We are still looking for new kinds of investment that we believe to create value to our shareholders.
2017 AWARDS AND RECOGNITION
Our major accomplishment last year was that ZMICO was one of the winners from SET Award 2017. The Company received "Outstanding Company Performance Award" for listed company with market capitalization of less than 3,000 billion baht. Also, the Company has won an "Excellent" rating for the AGM 2017 assessed by the Thai Investors Association. The Company also earned a "Very Good" rating for the Corporate Governance 2017 assessed by the Thai Institute of Director (IOD).
Finally, the Company would like to thank our shareholders and other stakeholders for continuing to support us. We will honor that trust with our commitment and efforts to deliver better results in the future.