Annual Report 2015 by shareinvestor shareinvestor

CONTENTS 005 006 010 018 022 031 034 037 054 058 067 069 077 088 100 102 107 108 110 119 193

01. Message from Chairman and Chief Executive Officer 02. Report of the Audit Committee 03. Board of Directors 04. Executive Committee and Subsidiary’s Management 05. Highlight Events of 2015 06. Online Games Launching in 2015 07. Policy and Overview of the Group’s Business 08. Nature of Business 09. Risk Factors 10. General Information 11. Information of Securities and Shareholders 12. Management Structure 13. Corporate Governance 14. Corporate Social Responsibility 15. Internal Control and Risk Management 16. Connected Transactions 17. Statement of the Board of Directors’ Responsibilities for the Financial Reporting 18. Financial Highlight 19. Management Discussion and Analysis of Financial status and Operating Results 20. Financial Statement Next Step of Asiasoft

MESSAGE FROM CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER

Since the year 2015, the game industry has been explicitly transformed and the competition in dominating the game market has been quite extremely furious. It could be seen that the gamersâ&#x20AC;&#x2122; behavior has been changed, because lots of companies provide more various games for gamers to choose. Consequently, how much the ICOGÂżU EQPVGPV KU ETKVKECN EQOGU XGT[ Ă&#x152;TUV KP UKIJV QH VJG ICOG RTQXKFGT DGECWUG VJG IQQF ICOGÂżU EQPVGPV YQWNF seduce the customers to stay playing longer. Asiasoft has the strategy adapted to be compatible with both domestic and international changing game market, by providing more mobile games to meet the gamersâ&#x20AC;&#x2122; demands. For PC games which still have base of thousands of gamers, Asiasoft continually pushes the game selection in the core of conduction, and highly focuses on the new application development, including all of the service system improvements, to make the game service more convenient for our customers. From the previous-year transformations, they absolutely mirrored the importance of promptitude in regularly keeping up with the market trends and technologies. Asiasoft has never stayed motionless, because to become the leader of service providers is not too complicated to reach, but to maintain the standard of service provider is more elaborately subtle to obtain. Asiasoft still persists to walk through all obstacles to be the leading online entertainment service provider in Southeast Asia again. 1P DGJCNH QH #UKCUQHV YG YQWNF NKMG VQ VJCPM GXGT[DQF[ YJQ VJQTQWIJN[ UVCPFU DGUKFG WU DQVJ WPĂ?CIIKPI staffs and executives who support pushing our corporate forward, all gamers and customers who still believe in our management, trading partners and business alliances who are always encouraged and supportive in walking across the problems together, and all shareholders and investors who suggest and advise all of the creative and DGPGĂ&#x152;EKCN KFGCU HQT WU *GTGD[ CNN OGPVKQPGF CDQXG KU QWT XCNWCDNG URKTKV VJCV YQWNF UWRRQTV #UKCUQHV VQ MGGR walking forward in running the business with pursuit and responsible for whole image of economic, society, and GPXKTQPOGPV YKVJ JQRG VQ ETGCVG GXGT[DQF[ VJG OQUV GZEGNNGPV DGPGĂ&#x152;VU

Mr. Tan Tgow Lim Chairman

Mr. Pramoth Sudjitporn %JKGH 'ZGEWVKXG 1HĂ&#x152;EGT

005

REPORT OF THE AUDIT COMMITTEE

The Audit Committee of Asiasoft Corporation Public Company Limited consists solely of three independent FKTGEVQTU YKVJ VJG SWCNKĂ&#x152;ECVKQPU UGV HQTVJ D[ VJG 5GEWTKVKGU 'ZEJCPIG %QOOKUUKQP K G /T %JCNGTORJQPI ,KVMWPVKXQPI as Chairman of the Audit Committee, Mrs. Monluedee Sookpantarat and Mr. Thanwa Loahasiriwong, as Audit Committee Member. The Audit Committee has always performed its work in accordance with duties and responsibilities that assigned by the Board of Director and under the charter of Audit Committee that comply with the best practice guidelines for audit committee, relative Rules and Regulations of the Stock Exchange of Thailand. During the year 2015, the Audit Committee met totally 7 times together with the Management, the Account and Finance Department, Outsourced Internal Audit and the external auditors every quarter depending on the relevant agenda which can be concluded as follows: 'PUWTG CEEWTCVG CPF CFGSWCVG Ă&#x152;PCPEKCN TGRQTVU 6Q TGXKGY VJG SWCTVGTN[ CPF [GCTN[ EQORCP[ÂżU Ă&#x152;PCPEKCN UVCVGOGPVU VQIGVJGT YKVJ VJG GZVGTPCN CWFKVQTU CPF the Management by questioning, discussing and advising on certain issues and matters relating to the companyâ&#x20AC;&#x2122;s Ă&#x152;PCPEKCN TGRQTVU +P CFFKVKQP VJG #WFKV %QOOKVVGG JGNF VJG OGGVKPI YKVJ GZVGTPCN CWFKVQTU YKVJQWV OCPCIGOGPV times, in order to grant external auditors the opportunity to express any problems and recommendation. 6JG #WFKV %QOOKVVGG KU QH VJG QRKPKQP VJCV VJG Ă&#x152;PCPEKCN UVCVGOGPVU QH VJG EQORCP[ CPF KVU UWDUKFKCTKGU YGTG prepared in accordance with generally accepted accounting standards and were presented accurately and fairly with adequate information disclosure. 'PUWTG UWKVCDNG CPF GHĂ&#x152;EKGPV KPVGTPCN EQPVTQN CPF KPVGTPCN CWFKV U[UVGOU CU YGNN CU VQ TGXKGY VJG KPFGRGPFGPEG QH KPVGTPCN CWFKV QHĂ&#x152;EG To review internal audit systems, approve the structure of the internal audit plans, acknowledge the result of auditing including the evaluation of the adequacy of the Companyâ&#x20AC;&#x2122;s internal control system together with Outsourced Internal Audit. The Audit Committee is of the opinion that the Company has appropriate and adequate internal control and audit systems. %QPUKFGT GNGEV CPF PQOKPCVG VJG %QORCP[ÂżU QWVUQWTEGF KPVGTPCN CWFKV HQT VJG [GCT 6JG #WFKV %QOOKVVGG EQPUKFGTU GNGEVU CPF PQOKPCVGU *QPQT #WFKV CPF #FXKUQT[ %Q .VF CU VJG QWVUQWTEGF

006

KPVGTPCN CWFKV HQT VJG [GCT CPF *QPQT #WFKV CPF #FXKUQT[ %Q .VF JCU CUUKIPGF /KUU 2K[COCU 4WCPIUCGPITQD Managing Partner, to be the Project Leader and responsible for the performing of the Companyâ&#x20AC;&#x2122;s internal audit in VJG RCTV QH 2% /QDKNG 4GXGPWG 6JG #WFKV %QOOKVVGG JCU EQPUKFGTGF VJG SWCNKHKECVKQP QH *QPQT #WFKV CPF #FXKUQT[ %Q .VF CPF /KUU 2K[COCU 4WCPIUCGPITQD CPF JCU VJG QRKPKQP VJCV /KUU 2K[COCU 4WCPIUCGPITQD KU VJG GHĂ&#x152;EKGPV CRRTQRTKCVG for performing such internal audit, because she is independent internal auditor and has more than 15 years GZRGTKGPEG KP RTQXKFKPI KPVGTPCN CWFKVKPI 5JG KU C %GTVKĂ&#x152;GF 2WDNKE #EEQWPVCPV %2# )TCFWCVGF QH $CEJGNQT of Business Administration, Major Accounting from Rajamangala Institute of Technology, Borpitpimuk Campus, )TCFWCVG &KRNQOC #ECFGOKE #WFKV HTQO %JWNCNQPIMQTP 7PKXGTUKV[ CPF /CUVGT &GITGG QH #EEQWPVKPI OCLQT QH (KPCPEKCN #EEQWPVKPI CPF #UUWTCPEG HTQO 6JCOOCUCV 7PKXGTUKV[ 4GEGKXGF &KRNQOCU QH +PVGTPCN #WFKV HTQO VJG #WFKV (GFGTCVKQP QH #EEQWPVKPI 2TQHGUUKQPU CPF CV RTGUGPV UJG KU VJG /CPCIKPI 2CTVPGT QH *QPQT #WFKV CPF Advisory Co.,Ltd. 'PUWTG EQORNKCPEG YKVJ NCYU RGTVCKPKPI VQ UGEWTKVKGU CPF VJG UVQEM GZEJCPIG TGIWNCVKQPU QH VJG 5VQEM 'ZEJCPIG QH 6JCKNCPF 5GEWTKVKGU CPF 'ZEJCPIG %QOOKUUKQP CPF NCYU EQPEGTPKPI %QORCP[ DWUKPGUU The Audit Committee is of the opinion that the Company has complied with relevant rules and regulations that concerning Company business. %QPUKFGT GNGEV CPF PQOKPCVG VJG %QORCP[ÂżU CWFKVQTU HQT VJG [GCT To propose to the Companyâ&#x20AC;&#x2122;s Board of Directors to recommend at the shareholdersâ&#x20AC;&#x2122; meeting the CRRQKPVOGPV QH GZVGTPCN CWFKVQTU HTQO 2TKEGYCVGTJQWUG%QQRGT #$#5 .VF CU VJG %QORCP[ÂżU CWFKVQT HQT Ă&#x152;UECN [GCT 2016 and PricewaterhouseCooper ABAS Ltd. has assigned Ms. Nopanuch Apichatsatien, Certified Public #EEQWPVCPV 6JCKNCPF 0Q VQ DG VJG 2TQLGEV .GCFGT CPF TGURQPUKDNG HQT VJG RGTHQTOKPI QH VJG %QORCP[ÂżU external audit of the Company because they are independent auditors, has knowledge, ability and experience providing external auditing with the authority, duties, and responsibilities set forth by the Securities and Exchange Commission. %QPUKFGT VJG VTCPUCEVKQPU YKVJ TGNCVGF RCTVKGU CPF VTCPUCEVKQPU YKVJ EQPĂ?KEV QH KPVGTGUV KP NKPG YKVJ TGNGXCPV NGIKUNCVKQP CPF TGIWNCVKQPU To review process, practice, regulations and articles of association of the Company in order that the CRRTQXGF VTCPUCEVKQPU CPF FKUENQUWTG EQORN[ YKVJ VJG TWNGU QT PQVKĂ&#x152;ECVKQP QH VJG 5VQEM 'ZEJCPIG QH 6JCKNCPF CU accurate and complete. The Audit Committee is of the opinion that the transactions to be in order and are in the best interest of the Company with adequate information disclosure. 5GNH #UUGUUOGPV The Audit Committee conducted collective self-assessment in order to guide whether the performance of the Audit Committee is in accordance with the entire scope of responsibilities or not. The Self-Assessment showed that the Audit Committee performed mainly of their duties in accordance with the entire scope of responsibilities.

007

1VJGTU 8.1 Reviewing the information disclosed to the Stock Exchange of Thailand and the Securities CPF 'ZEJCPIG EQOOKUUKQP CU FKUENQUGF KP VJG %QORCP[Â¿U CPPWCN TGRQTV [GCT (QTO CPF KP VJG CPPWCN KPHQTOCVKQP FKUENQUWTG HQTO CU CV &GEGODGT (QTO 8.2 Reporting the Audit Committeeâ&#x20AC;&#x2122;s activities to the Board of Directors periodically. 4GXKGYKPI VJG %JCTVGT QH #WFKV %QOOKVVGG HQT GPUWTKPI VJG %JCTVGT QH #WFKV %QOOKVVGG KU WRFCVG CPF suitable for the Organization Environment. 8.4 The record of attendance of the Audit Committee members is summarized as follows :

#WFKV %QOOKVVGG

#V VJG OGGVKPI FWTKPI

/T %JCNGTORJQPI ,KVMWPVKXQPI

7/7

2. Mrs. Monluedee Sookpantarat

7/7

/T 6JCPYC .CQJCUKTKYQPI

7/7

On behalf of the Audit Committee

/T %JCNGTORJQPI ,KVMWPVKXQPI Chairman of the Audit Committee 26 February 2016

008

Mr.Tan Tgow Lim Chairman 'FWECVKQPCN $CEMITQWPF Ă&#x2020; $WUKPGUU #FOKPKUVTCVKQP %CODTKFIG )%' 1TFKPCT[ .GXGN â&#x20AC;˘ Presbyterian Boys School in Singapore 9QTM 'ZRGTKGPEGU â&#x20AC;˘ Chairman, Asiasoft Corporation Public Company Limited â&#x20AC;˘ Director, Asiasoft International Company Limited â&#x20AC;˘ Director, Asiasoft Online Pte. Ltd. â&#x20AC;˘ Director, AS Online Sdn. Bhd. â&#x20AC;˘ Director, PT. Asiasoft â&#x20AC;˘ Director, CIB Development Sdn. Bhd. â&#x20AC;˘ Director, Trilight Cove Enterprises Ltd. Ă&#x2020; &KTGEVQT .GXGN 7RĂ&#x17D; +PE â&#x20AC;˘ Director, Playpark Inc. 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQT #EETGFKVCVKQP 2TQITCO &#2 +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

Mr.Pramoth Sudjitporn Vice Chairman 'FWECVKQPCN $CEMITQWPF â&#x20AC;˘ Bachelor of Business Administration, Bangkok 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU 2TGUGPV Ă&#x2020; 8KEG %JCKTOCP %JKGH 'ZGEWVKXG 1HĂ&#x152;EGT CPF %JCKTOCP QH Executive Committee, Asiasoft Corporation Public Company Limited â&#x20AC;˘ Director, A Capital Company Limited â&#x20AC;˘ Director, Playpark Company Limited HQTOGT PCOG (WPDQZ %QORCP[ .KOKVGF â&#x20AC;˘ Director, Miryn Innovation Company Limited 9QTM 'ZRGTKGPEGU (QTOGT â&#x20AC;˘ Director, Asiasoft Online Pte. Ltd. 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQT #EETGFKVCVKQP 2TQITCO &#2 +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

Mr. Surasak Khaoroptham Director

Mr. Lertchai Kanpai Director

Mr. Chalermphong Jitkuntivong Independent Director and Chairman of the Audit Committee

Mrs. Monluedee Sookpantarat Independent Director and Audit Committee Member

Mr. Thanwa Laohasiriwong Independent Director and Audit Committee Member

Mr. Surasak Khaoroptham Director 'FWECVKQPCN $CEMITQWPF Ă&#x2020; /$# $WUKPGUU #FOKPKUVTCVKQP /CLQT KP (KPCPEG 7PKXGTUKV[ QH 2GPPU[NXCPKC Âź VJG 9JCTVQP 5EJQQN Ă&#x2020; /5% 'PIKPGGTKPI 5EKGPEG KP +PFWUVTKCN 1RGTCVKQPU 'PIKPGGTKPI /CLQT KP 1RGTCVKQPU 4GUGCTEJ 7PKXGTUKV[ QH /KEJKICP Âź #PP #TDQT â&#x20AC;˘ Bachelor Degree, Electrical Engineering, King Mongkutâ&#x20AC;&#x2122;s Institute of Technology Ladkrabang 9QTM 'ZRGTKGPEGU â&#x20AC;˘ Director, Asiasoft Corporation Public Company Limited Ă&#x2020; /CPCIKPI &KTGEVQT 2TKXCVG 'SWKV[ 6JCKNCPF %QORCP[ .KOKVGF â&#x20AC;˘ Director, SNC Former Public Company Limited â&#x20AC;˘ Independent Director, Somboon Advance Technology Public Company Limited Ă&#x2020; %QORGPUCVKQP 0QOKPCVKQP %QOOKVVGG /GODGT 5QODQQP #FXCPEG 6GEJPQNQI[ 2WDNKE %QORCP[ .KOKVGF â&#x20AC;˘ Executive Director, Somboon Advance Technology Public Company Limited â&#x20AC;˘ Director, Altus Advisory Company Limited Ă&#x2020; &KTGEVQT /E )TQWR 2WDNKE %QORCP[ .KOKVGF 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQTU #EETGFKVCVKQP 2TQITCO &#2 Ă&#x2020; &KTGEVQT %GTVKĂ&#x152;ECVKQP 2TQITCO &%2 +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

Mr. Lertchai Kanpai Director 'FWECVKQPCN $CEMITQWPF Ă&#x2020; $CEJGNQT QH .CYU 4COMJCOJCGPI 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Director and Managing Director, Asiasoft Corporation Public Company Limited â&#x20AC;˘ Director, Asiasoft International Company Limited â&#x20AC;˘ Director, Playpark Company Limited 9QTM 'ZRGTKGPEGU (QTOGT â&#x20AC;˘ Director, A Capital Company Limited â&#x20AC;˘ Director, Funbox Company Limited 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQT #EETGFKVCVKQP 2TQITCO &#2 +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

013

Mr. Chalermphong Jitkuntivong Independent Director and Chairman of the Audit Committee 'FWECVKQPCN $CEMITQWPF Ă&#x2020; /CUVGT QH .CYU %QTPGNN 7PKXGTUKV[ 75# Ă&#x2020; $CTTKUVGT CV NCYU 6JCK $CT Ă&#x2020; $CEJGNQT QH .CYU *QPU %JWNCNQPIMQTP 7PKXGTUKV[ Ă&#x2020; )TCFWCVG &KRNQOC KP $WUKPGUU .CYU 6JCOOCUCV 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU â&#x20AC;˘ Independent Director and Chairman of the Audit Committee, Asiasoft Corporation Public Company Limited Ă&#x2020; #VVQTPG[ &QOPGTP 5QOIKCV $QQPOC .CY 1HĂ&#x152;EG .KOKVGF 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQT #EETGFKVCVKQP 2TQITCO &#2 Ă&#x2020; 7PFGTUVCPFKPI VJG (WPFCOGPVCN QH (KPCPEKCN 5VCVGOGPVU 7(5 5RGEKĂ&#x152;E -PQYNGFIG QT 'ZRGTVKUG â&#x20AC;˘ Law +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None $WUKPGUU 4GNCVKQPUJKR YKVJ VJG %QORCP[ â&#x20AC;˘ None

014

Mrs. Monluedee Sookpantarat Independent Director and Audit Committee Member 'FWECVKQPCN $CEMITQWPF Ă&#x2020; /CUVGTÂżU &GITGG KP #EEQWPVKPI 6JCOOCUCV 7PKXGTUKV[ Ă&#x2020; )TCFWCVG &KRNQOC KP #WFKVKPI 6JCOOCUCV 7PKXGTUKV[ Ă&#x2020; $CEJGNQTÂżU &GITGG KP #EEQWPVKPI YKVJ PF ENCUU JQPQTU CPF /CLQT KP #EEQWPVKPI 6JCOOCUCV 7PKXGTUKV[ Ă&#x2020; Ă &KTGEVQTU &KRNQOCĂ&#x201A; HQT VJG &KTGEVQTU %GTVKĂ&#x152;ECVKQP 2TQITCO YKVJ TGHGTGPEG VQ HGNNQY /GODGT Ă&#x2020; Ă 6JG %GTVKĂ&#x152;ECVG QH %QORNGVKQPĂ&#x201A; HQT VJG &KTGEVQTU %GTVKĂ&#x152;ECVKQP 2TQITCO %NCUU Ă&#x2020; %GTVKĂ&#x152;GF 2WDNKE #EEQWPVCPV 6JCKNCPF .KEGPUG 0Q 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Independent Director and Audit Committee Member, Asiasoft Corporation Public Company Limited Ă&#x2020; 8KUKVKPI .GEVWTGT (CEWNV[ QH %QOOGTEG CPF #EEQWPVCPE[ 6JCOOCUCV 7PKXGTUKV[ Ă&#x2020; 8KUKVKPI .GEVWTGT (CEWNV[ QH #EEQWPVCPE[ $CPIMQM 7PKXGTUKV[ â&#x20AC;˘ Independent Director and Audit Committee Member, Plan B Media Public Company Limited Ă&#x2020; %JKGH (KPCPEKCN 1HĂ&#x152;EGT 0CXC 0CMQTP 2WDNKE %QORCP[ .KOKVGF Ă&#x2020; 8KEG 2TGUKFGPV Âź (KPCPEG 0CXC 0CMQTP 'NGEVTKEKV[ )GPGTCVKPI %QORCP[ .KOKVGF â&#x20AC;˘ Independent Director and Chairman of Audit Committee, ASN Broker Public Company Limited Ă&#x2020; %2# 6*#+.#0& 9QTM 'ZRGTKGPEGU (QTOGT Ă&#x2020; &KTGEVQT 9CXG 'PVGTVCKPOGPV 2WDNKE %QORCP[ .KOKVGF Ă&#x2020; %JKGH (KPCPEKCN 1HĂ&#x152;EGT )TQWR QH 9CXG 'PVGTVCKPOGPV 2WDNKE %QORCP[ .KOKVGF Ă&#x2020; #WFKV /CPCIGT '; 1HĂ&#x152;EG .KOKVGF 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQT %GTVKĂ&#x152;ECVKQP 2TQITCO &%2 Ă&#x2020; &KTGEVQT &KRNQOC #YCTF (GNNQY /GODGT %NCUU Ă&#x2020; &KTGEVQT #EETGFKVCVKQP 2TQITCO &#2 Ă&#x2020; #WFKV %QOOKVVGG 2TQITCO #%2 +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None $WUKPGUU 4GNCVKQPUJKR YKVJ VJG %QORCP[ â&#x20AC;˘ None

015

Mr. Thanwa Laohasiriwong Independent Director and Audit Committee Member 'FWECVKQPCN $CEMITQWPF Ă&#x2020; $CEJGNQT &GITGG %QORWVGT 'PIKPGGTKPI -KPI /QPIMWV +PUVKVWVG QH 6GEJPQNQI[ Âź .CFMTCDCPI 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Director, Prime Renewable Energy Co., Ltd. â&#x20AC;˘ Director, F.A.S.T Solutions Co., Ltd. â&#x20AC;˘ Independent Director, Chairman of Audit Committee, Thai Plastic Bags Industries Company Limited â&#x20AC;˘ Director and Acting for President, TOT Public Company Limited Ă&#x2020; &KTGEVQT 'ZRGTV (KPCPEG CPF #UUGV %QOOKVVGG -KPI /QPIMWVÂżU +PUVKVWVG QH 6GEJPQNQI[ .CFMTCDCPI â&#x20AC;˘ Independent Director and Member of Audit Committee, Easy Buy Public Company Limited â&#x20AC;˘ Independent Director and Audit Committee Member, Asiasoft Corporation Public Company Limited â&#x20AC;˘ Columnist, Prachachart turakij newspaper 9QTM 'ZRGTKGPEGU (QTOGT Ă&#x2020; +PFGRGPFGPV &KTGEVQT CPF /GODGT QH #WFKV %QOOKVVGG %QOOWPKECVKQP 5[UVGO 5QNWVKQP 2WDNKE Company Limited â&#x20AC;˘ Managing Director, IBM Thailand Company Limited Ă&#x2020; &KTGEVQT CPF %QWPVT[ /CPCIGT 5[UVGO CPF 6GEJPQNQI[ )TQWR +$/ 6JCKNCPF %QORCP[ .KOKVGF â&#x20AC;˘ Director, IBM Solution Delivery Company Limited 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; &KTGEVQT %GTVKĂ&#x152;ECVKQP 2TQITCO &%2 Ă&#x2020; %GTVKĂ&#x152;ECVKQP 5WEEGUUHWN (QTOWNCVKQP 'ZGEWVKQP QH 5VTCVGI[ 5(' 5RGEKĂ&#x152;E -PQYNGFIG QT 'ZRGTVKUG â&#x20AC;˘ Computer +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None $WUKPGUU 4GNCVKQPUJKR YKVJ VJG %QORCP[ â&#x20AC;˘ None

016

Mr. Kittipong Prucksa-aroon Deputy Managing Director

Miss Siriratt Waisarayutt Deputy Managing Director

Mr. Vinai Vimukti Deputy Managing Director

Mrs. Ratana Manomongkolkul Deputy Managing Director

Mr. Kittipong Prucksa-aroon Deputy Managing Director 'FWECVKQPCN $CEMITQWPF Ă&#x2020; $$# #UUWORVKQP 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Deputy Managing Director, Asiasoft Corporation Public Company Limited 9QTM 'ZRGTKGPEGU (QTOGT â&#x20AC;˘ Assistant Vice President / Director, MFEC Public Company Limited â&#x20AC;˘ Executive Director, Advance Intelligence Modernity Company Limited â&#x20AC;˘ Deputy Managing Director, Asys Computer Company Limited Ă&#x2020; )GPGTCN /CPCIGT #FXCPEGF 4GUGCTEJ )TQWR %QORCP[ .KOKVGF 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; 5WEEGUUHWN (QTOWNCVKQP 'ZGEWVKQP QH 5VTCVGI[ %NCUU 5RGEKĂ&#x152;E -PQYNGFIG QT 'ZRGTVKUG â&#x20AC;˘ Business Management +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

Miss Siriratt Waisarayutt Deputy Managing Director 'FWECVKQPCN $CEMITQWPF Ă&#x2020; /CUVGT QH $WUKPGUU #FOKPKUVTCVKQP 5QWVJGCUVGTP 7PKXGTUKV[ 75# Ă&#x2020; $CEJGNQT QH #TVU 6JCOOCUCV 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Deputy Managing Director, Asiasoft Corporation Public Company Limited 9QTM 'ZRGTKGPEGU (QTOGT â&#x20AC;˘ Assistant Project Director, Asiasoft Corporation Public Company Limited 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& Ă&#x2020; 5WEEGUUHWN (QTOWNCVKQP 'ZGEWVKQP QH 5VTCVGI[ %NCUU 5RGEKĂ&#x152;E -PQYNGFIG QT 'ZRGTVKUG â&#x20AC;˘ Project Management +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

019

Mr. Vinai Vimukti Deputy Managing Director 'FWECVKQPCN $CEMITQWPF â&#x20AC;˘ Master of Science, Illinois Institute of Technology Ă&#x2020; $CEJGNQT QH 5EKGPEG -CUGVUCTV 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Deputy Managing Director, Asiasoft Corporation Public Company Limited 9QTM 'ZRGTKGPEGU (QTOGT â&#x20AC;˘ Advisor IT, Bangkok Insurance Public Company Limited â&#x20AC;˘ President, Firstech Solution Company Limited 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& â&#x20AC;˘ None 5RGEKĂ&#x152;E -PQYNGFIG QT 'ZRGTVKUG â&#x20AC;˘ Information Technology +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

Mrs. Ratana Manomongkolkul Deputy Managing Director 'FWECVKQPCN $CEMITQWPF Ă&#x2020; /CUVGT QH $WUKPGUU #FOKPKUVTCVKQP )GPGTCN /CPCIGOGPV /CJKFQN 7PKXGTUKV[ Ă&#x2020; $CEJGNQT QH #FOKPKUVTCVKQP #EEQWPVKPI $CPIMQM 7PKXGTUKV[ 9QTM 'ZRGTKGPEGU 2TGUGPV â&#x20AC;˘ Deputy Managing Director, Asiasoft Corporation Public Company Limited 9QTM 'ZRGTKGPEGU (QTOGT Ă&#x2020; %(1 #UKC 4QZEGN 6JCKNCPF %Q .VF 6TCKPKPI 2TQITCO QTICPK\GF D[ 6JCK +PUVKVWVG QH &KTGEVQTU #UUQEKCVKQP +1& â&#x20AC;˘ None 5RGEKĂ&#x152;E -PQYNGFIG QT 'ZRGTVKUG â&#x20AC;˘ Accounting +NNGICN 4GEQTF KP RCUV [GCTU â&#x20AC;˘ None

020

SUBSIDIARYâ&#x20AC;&#x2122;S MANAGEMENT

Mr. Pipat Rungruang Chief Executive Officer, Playcybergames Co.,Ltd.

Miss Ketesara Parinyanusorn Managing Director, Thinkplus Digital Co.,Ltd.

Mr. Surapong Weerarakdeacha Managing Director, Miryn Innovation Co.,Ltd.

Mr.Quach Quang Dong

Mr.Gerry Wai Ung

Managing Director, Asiasoft Online Pte. Ltd. Managing Director, CIB Development Sdn. Bhd. Managing Director, Level Up! Inc.

Managing Director, Trilight Cove Enterprises Ltd. Managing Director, PT. Asiasoft

HIGHLIGHT EVENTS OF 2015 MAR • Asiasoft Talk 2015

Thailand JAN

• #UKCUQHV CPF )TCXKV[ FQPCVGF VQ UWRRQTV (QWPFCVKQP for Children • LINE Dragonica Mobile Press Conference

• Children’s Day Celebration • Asiasoft Moving Forward

FEB

• Launched Playpark’s free stickers at LINE Store

APR

• Onimusha Soul Press Conference in Anime Festival Asia 2015

022

• #PPWCN )GPGTCN /GGVKPI

• Asiasoft and Kasikorn Bank launched K-My debit %CTF )COGT 'FKVKQP

• “A” Day By Asiasoft welcomes new generation to support mobile marketing

AUG • LINE Dragonica Mobile was No.1 popular Mobile )COG YKVJ /KNNKQP FQYPNQCFU

MAY • #UKCUQHV CPF $NK\\CTF NCWPEJGF *GTQGU QH VJG Storm in Southeast Asia

OCT

• #WFKVKQP YCU VJG $GUV /WUKE )COG HTQO 6JCKNCPF )COG 5JQY $KI (GUVKXCN

JUL • +PVGTPUJKR 2TQITCO # 'ZRGTKGPEG

• 2NC[RCTM (CP (GUV

023

â&#x20AC;˘ Playpark Cosplay Contest 2015 By SPONSOR

â&#x20AC;˘ Phantasy Star Online 2 Braver Class Launch Event

APR â&#x20AC;˘ /CRNG5VQT[ /QXKG )CVJGTKPI

NOV â&#x20AC;˘ 6CNM 'XGPV Ă ,1/1 0GY )GP QP 5QEKCN /GFKCĂ&#x201A;

JUN â&#x20AC;˘ #WFKVKQP %QOOWPKV[ )CVJGTKPI

Singapore MAR â&#x20AC;˘ Audition Single Competition

JUL â&#x20AC;˘ MapleStoryâ&#x20AC;&#x2122;s 10th Anniversary celebration

â&#x20AC;˘ *GTQGU QH VJG 5VQTO *165 %QOOWPKV[ %WR

024

• *165 0GZWU %JCORKQPUJKR 5KPICRQTG

• Audition FAM Competition

• #WFKVKQP 5VCT*WD $KI $CPI %QPEGTV

DEC • Special Force II League

SEP • Audition - FAM of the Year

Malaysia MAR • The MAT 5th Anniversary Birthday Bash at Selangor, Negeri Sembilan and Perak

OCT • 5RGEKCN (QTEG ++ 1RGTCVKQP (KTUV 9CXG 5PGCM 2TGXKGY

025

â&#x20AC;˘ MapleStoryâ&#x20AC;&#x2122;s 10th Anniversary celebration at Kuala .WORWT ,QJQT CPF 2GPCPI

MAY â&#x20AC;˘ /CRNG5VQT[ Ă 6JG #XGPIGTUĂ&#x201A; /QXKG )CVJGTKPI

â&#x20AC;˘ MAT Battle of the Clans 2015

OCT â&#x20AC;˘ 5RGEKCN (QTEG ++ CPF *GTQGU QH VJG 5VQTO LQKPGF #UCUJK )COKPI 'ZRQ

â&#x20AC;˘ LINE Dragonica Mobile was launched

â&#x20AC;˘ :&1/% 5VCVG 3WCNKĂ&#x152;GTU HQT 5WRGT &CPEGT Online

JUN â&#x20AC;˘ /CNC[UKC 5'# %JCORKQPUJKR 3WCNKĂ&#x152;GTU HQT *GTQGU of the Storm

DEC â&#x20AC;˘ Playpark E-sports 2015

026

â&#x20AC;˘ Charity Drive at Playpark E-sports 2015

JUL â&#x20AC;˘ LINE Dragonica Mobile was launched

Vietnam FEB â&#x20AC;˘ $KI $CPI *GTQ YCU NCWPEJGF

DEC â&#x20AC;˘ Dragon Encounter was launched

APR â&#x20AC;˘ *GCTV %CUVNG YCU NCWPEJGF

â&#x20AC;˘ 1HĂ?KPG 6JTGG -KPIFQOU YGPV QPNKPG VQ EGNGDTCVG VJ Anniversary

JUN â&#x20AC;˘ 1HĂ?KPG 6JTGG -KPIFQOU YGPV QPNKPG KP RTQXKPEGU VQ EGNGDTCVG DKI WRFCVG XGTUKQP

027

Philippines MAY • *GTQGU QH VJG 5VQTO )CVJGTKPI

FEB • *GTQGU +)4 'XGPV

JUN • %TGCVKXG CF RNCEGOGPV HQT *GTQGU QH VJG 5VQTO

MAR • Playpark media launched for All-Star 2015

• *GTQGU QH VJG 5VQTO CV ECHG UMKPPKPI

APR • Ozine Fest 2015

• 4QCF VQ $NK\\EQP 3WCNKÌGTU • *GCTV %CUVNG YCU NCWPEJGF

028

• *GTQGU QH VJG 5VQTO +)4 6TKCN

AUG • Playpark Fest - All Stars Final

JUL

• *GTQGU QH VJG 5VQTO 5'# %JCORKQPUJKRU

• 6GCO $KDKPIMC YQP VJG *GTQGU QH VJG 5VQTO 5'# Philippine National Finals

• Playpark Cafe-Stahan • 2NC[RCTM YGPV OQDKNG CV 9CTIQFU )COKPI 'ZRQ

• LINE Dragonica Mobile was launched • 5/ %[DGT /QPVJ )COG (GUV

029

SEP

DEC

â&#x20AC;¢ Playpark Field Trip

â&#x20AC;¢ Internet Cafe Assembly

â&#x20AC;¢ Dragon Encounter was launched

OCT â&#x20AC;¢ 2NC[RCTM DTKPIU /QDKNG )COKPI (WP CV ' 5RQTV )COKPI 5WOOKV '5)5

NOV â&#x20AC;¢ The Xtreme Party XPerience

030

ONLINE GAMES LAUNCHING IN 2015

Heroes of the Storm Thailand, Singapore, Malaysia, Philippines

Onimusha Soul Thailand

LINE Dragonica Mobile Thailand, Singapore, Indonesia, Malaysia, Philippines, Indochina

Audition World (World in Audition) Thailand

031

Special Force II Singapore, Malaysia, Philippines

Heart Castle Thailand, Singapore, Indonesia, Malaysia, Philippines, Indochina

Line of Sight Thailand

Big Bang Hero Vietnam

Dragon Encounter Thailand, Singapore, Indonesia, Malaysia, Philippines, Indochina

032

POLICY AND OVERVIEW OF THE GROUPâ&#x20AC;&#x2122;S BUSINESS

8KUKQP CPF 5VTCVGI[ Asiasoft strives to be the leading Online Entertainment Service Provider in Southeast Asia. Operational Strategy â&#x20AC;˘ To extend our service offering geographically to the entire Southeast Asia region. â&#x20AC;˘ To continuously enhance our service offering to provide more relevant online entertainment services from online gaming and beyond. â&#x20AC;˘ To provide the best content to gaming community by offering the best title from different genres. Asiasoft is committed bringing in AAA titles and IPs from leading developers and partners from around the world. â&#x20AC;˘ To improve our engagement with consumers by embracing the online community and working with them to jointly develop the shared virtual space. $WUKPGUU 1XGTXKGY #UKCUQHV %QTRQTCVKQP 2WDNKE %QORCP[ .KOKVGF VJG Ă %QORCP[Ă&#x201A; QT Ă #5Ă&#x201A; YCU HQTOGTN[ ECNNGF $ / /GFKC

6JCKNCPF %Q .VF 6JG %QORCP[ YCU KPEQTRQTCVGF QP 5GRVGODGT YKVJ VJG TGIKUVGTGF ECRKVCN QH $CJV million as a distributor of PC games by co-founders of the Company, Mr. Pramoth Sudjitporn, Mr. Sherman Tan and Mr. Lertchai Kanpai, all of whom have long experience in the entertainment software business. +P VJG %QORCP[ DGICP QPNKPG ICOG UGTXKEG DWUKPGUU KP 6JCKNCPF D[ NCWPEJKPI Ă 4CIPCTQM 1PNKPGĂ&#x201A; NKEGPUGF HTQO )TCXKV[ %QTRQTCVKQP 5QWVJ -QTGC +V YCU NQECNK\GF KPVQ 6JCK NCPIWCIG VQ UGTXG 6JCK ICOGTU 6JKU ICOG YCU CP KOOGPUG UWEEGUU YKVJ VJG JKIJGUV RGCM %QPEWTTGPV 7UGTU QH QXGT CPF RWV VJG HQWPFCVKQP for the Company to be widely known as one of the leading online game operators in Thailand. In 2004 - 2005, the %QORCP[ TGUVTWEVWTGF KVU UJCTGJQNFKPI YKVJKP VJG )TQWR VJTQWIJ VJG RWTEJCUG QH UJCTGU HTQO KVU OCLQT UJCTGJQNFGTU VQ HQEWU QP VJG )TQWRÂżU QRGTCVKPI UVTWEVWTG VQ UCXG EQUVU CPF VQ GPJCPEG VJG GHĂ&#x152;EKGPE[ QH VJG )TQWRÂżU OCPCIGOGPV )TQWR 5VTWEVWTG #U CV &GEGODGT VJG #UKCUQHV )TQWR VJG Ă )TQWRĂ&#x201A; EQORTKUGU QH EQORCPKGU CU HQNNQYU

034

035

6JG )TQWRÂżU OCKP DWUKPGUU KU KP QPNKPG GPVGTVCKPOGPV CU FGVCKNGF DGNQY

%QORCP[

%QWPVT[

/CKP DWUKPGUU

#UKCUQHV %QTRQTCVKQP 2NE Ă #5Ă&#x201A;

Thailand

Online game services business and distribution of games in Thailand

#UKCUQHV +PVGTPCVKQPCN %Q .VF Ă #5+Ă&#x201A;

Thailand

Investment arm in overseas

2NC[RCTM %Q .VF Ă 2NC[RCTMĂ&#x201A;

Thailand

Online game services business in Thailand

# %CRKVCN %Q .VF Ă # %CRKVCNĂ&#x201A;

Thailand

Investment arm in Thailand

(WPDQZ %Q .VF Ă (WPDQZĂ&#x201A;

Thailand

9GD RQTVCNU HQT QPNKPG ICOGU CPF YGD advertisement services

6. Thaiware Communication Co., Ltd. Ă 6JCKYCTGĂ&#x201A;

Thailand

Exchange of information and distribution of software and IT service, including software download on the website â&#x20AC;&#x153;www.thaiware.comâ&#x20AC;?

7. Cybergames Corporation Co., Ltd. Ă 6%)Ă&#x201A;

Thailand

)COG RTQXKFGT WPFGT KVU RTKXCVG .#0 ECNNGF 6%) PGVYQTM

#UKCUQHV 1PNKPG 26' .6& Ă #51Ă&#x201A;

Singapore

Online game services and providing in Singapore in online game service as well as distributing prepaid cards in Singapore

#5 1PNKPG 5&0 $*& Ă #5/Ă&#x201A;

Malaysia

Online game services and providing in Malaysia in online game service as well as distributing of prepaid cards in Malaysia

26 #UKCUQHV Ă #5+&Ă&#x201A;

Indonesia

Online game services in Indonesia

%+$ &GXGNQROGPV 5&0 $*& Ă %+$Ă&#x201A;

Malaysia

Online game services in Malaysia

2NC[E[DGTICOGU %Q .VF Ă 2%)Ă&#x201A;

Thailand

Online game services in Thailand

British Virgin

Online game services in Indochina

Thailand

Digital marketing agency in Thailand

Philippines

Online game services in Philippines

6TKNKIJV %QXG 'PVGTRTKUGU .VF Ă 6.%Ă&#x201A; 14. Thinkplus Digital Co., Ltd. .GXGN 7RĂ&#x17D; +PE 16. Miryn Innovation., Ltd.

Thailand

To develop the game applications on mobile phone

17. Pomelo Network Pte. Ltd.

Singapore

To Develop the mobile applications and mobile messenger

036

NATURE OF BUSINESS

5VTWEVWTG QH VJG )TQWRÂżU +PEQOG 6JG )TQWRÂżU OCKP KPEQOG D[ V[RG QH DWUKPGUU ECP DG FKXKFGF KPVQ OCKP V[RGU CU HQNNQYU

6[RG QH 4GXGPWG

$CJV /KNNKQP

1. Revenue from online game service

2. Revenue from distribution business

115

114

1VJGT KPEQOG

899

6QVCN

6JG )TQWRÂżU TGXGPWGU ECP DG ENCUUKĂ&#x152;GF D[ IGQITCRJKECN CTGC KPVQ V[RGU CU HQNNQYU

6[RG QH 4GXGPWG

$CJV /KNNKQP

1. Revenue from operation in Thailand

805

572

2. Revenue from overseas operation

725

729

6QVCN

037

2TQFWEVU CPF 5GTXKEGU 8.2.1 Nature of the Groupâ&#x20AC;&#x2122;s Business 6JG )TQWR KU C NGCFKPI RTQXKFGT QH QPNKPG GPVGTVCKPOGPV UGTXKEG KP 5QWVJGCUV #UKC HQEWUKPI KP QPNKPG ICOGU 6JG )TQWRÂżU NCWPEJ QH Ă 4CIPCTQM 1PNKPGĂ&#x201A; KP 6JCKNCPF KP YCU CP KOOGPUG UWEEGUU YKVJ C TGEQTF PWODGT of over 110,600 concurrent users. In 2008, Asiasoft published and operated â&#x20AC;&#x153;MapleStorySEAâ&#x20AC;?, which is one of the most played Massively Multiplayer Online Role-playing games in Singapore. This was a major milestone, which made the Companyâ&#x20AC;&#x2122;s reputation as one of the leading online game operators in Southeast Asia. #U QH UV &GEGODGT 6JG )TQWR QRGTCVGU QPNKPG ICOG VKVNGU KP EQWPVTKGU 6JCKNCPF ICOGU 5KPICRQTG ICOGU /CNC[UKC ICOGU +PFQPGUKC ICOGU 2JKNKRRKPGU ICOGU CPF +PFQEJKPC ICOGU &WTKPI VJG RCUV [GCTU VJG RTQXKUKQP QH QPNKPG ICOG UGTXKEGU YCU C OCLQT EQPVTKDWVQT QH VJG )TQWRÂżU TGXGPWG CEEQWPVKPI HQT QH VJG )TQWRÂżU QXGTCNN RTQĂ&#x152;VU The online services were operated through subsidiaries companies in each country. Each subsidiary provides its respective game servers to support services for the gamers in each country. 6JG )TQWR IGPGTCVGU KPEQOG HTQO VJG QPNKPG ICOG DWUKPGUU VJTQWIJ VJG UCNGU QH "%CUJ 1PG %CNNĂ&#x17D; CPF TrueMoney, including credit card and debit card that activated by Visa or MasterCard to gamers who use these products to increase air time, exchange for in-game points or virtual money to buy premium in-game items. "%CUJ 1PG %CNNĂ&#x17D; CPF 6TWG/QPG[ CTG CXCKNCDNG XKC DQVJ RTGRCKF ECTFU CPF GNGEVTQPKE (QT RTGRCKF ECTFU VJG[ CTG FKUVTKDWVGF VJTQWIJ +PVGTPGV ECHGU CPF EQPXGPKGPV UVQTGU UWEJ CU 'NGXGP $+) % 6GUEQ .QVWU CPF 6TWG 5JQR (QT GNGEVTQPKE %CUJ %CTFU "%CUJ KU FKUVTKDWVGF VJTQWIJ UGXGTCN EJCPPGNU UWEJ CU 'NGXGPÂżU 6GTOKPCN YJKNG 1PG %CNNĂ&#x17D; CPF 6TWG/QPG[ CTG FKUVTKDWVGF CV 'NGXGP $+) % 6GUEQ .QVWU .QVWU 'ZRTGUU 6TWG 5JQR CPF 6GNGYK\ Payments may be made by cash, money transfer or credit cards. "%CUJ 1PG %CNNĂ&#x17D; CPF 6TWG/QPG[ ECP DG WUGF HQT CNN QPNKPG ICOGU KP GCEJ EQORCP[ YKVJKP VJG )TQWR /QTGQXGT VJG RTGRCKF "%CUJ ECTFU ECP CNUQ DG WUGF HQT QVJGTUÂż QPNKPG ICOGU VJCV CTG YKVJKP VJG )TQWRÂżU DWUKPGUU alliances. In addition, in order to provide support to the online game services. In year 2015, The Company has new online game service through PlayMall, which is the new all-in-one wallet system of Playpark. Topping up for favorite Playpark game is easy with PlayMall which can top up to all of Companyâ&#x20AC;&#x2122;s games using any method of payment such as credit card, debit card, as well as mobile phone operator where gamers make payment too. 6JG )TQWR JCU GUVCDNKUJGF EWUVQOGT UGTXKEG HWPEVKQP EQPUKUVKPI QH C JQWT ECNN EGPVGT CPF CP GOCKN UGTXKEG VQ answer any technical questions relating to the game play or payment procedures regarding the Companyâ&#x20AC;&#x2122;s products.

038

#U QH UV &GEGODGT VJG )TQWR YCU ITCPVGF VJG TKIJVU VQ UGTXKEG QPNKPG ICOGU KP FKHHGTGPV EQWPVTKGU

1PNKPG )COG

6[RG QH )COGa

6[RG QH TGXGPWG OQFGND

1. Ragnarok Online

//142)

*[DTKF 5CNG

2. MapleStory

//142)

Item Sale

;WNICPI

//142)

Item Sale

-KPIFQOU

//142)

Item Sale

2GTHGEV 9QTNF

//142)

Item Sale

)TCPCFQ 'URCFC

//142)

Item Sale

7. Cabal

//142)

Item Sale

8. TLBB

//142)

Item Sale

&TCIQP 0GUV

//142)

Item Sale

10. Elsword

//142)

Item Sale

&TCIQPU

//142)

Item Sale

12. Phantasy Star Online 2

//142)

Item Sale

#WFKVKQP

Casual

Item Sale

)GV#ORGF

Casual

Item Sale

15. Super Dance Online

Casual

Item Sale

9QTNF +P #WFKVKQP #WFKVKQP 9QTNF

Casual

Item Sale

17. Special Force II

FPS

Item Sale

18. Mission Against Terror Online

FPS

Item Sale

#UUCWNV (KTG

FPS

Item Sale

20. Line of Sight

MOBA

Item Sale

21. Strife

MOBA

Item Sale

*GTQGU QH VJG 5VQTO

MOBA

Item Sale

1PKOWUJC 5QWN

9GD

Item Sale

24. Advance Dino

Mobile

Item Sale

*GCTV %CUVNG

Mobile

Item Sale

26. Dragonica Mobile

Mobile

Item Sale

27. Dragon Encounter

Mobile

Item Sale

6QVCN )COGU

039

Remarks : //142) TGHGTU VQ /CUUKXGN[ /WNVKRNC[GT 1PNKPG 4QNG RNC[KPI )COG C ICOG IGPTG YJKEJ UWRRQTVU C NCTIG PWODGT QH ICOGTU RNC[KPI CPF KPVGTCEVKPI YKVJ QPG CPQVJGT QP VJG UCOG UGTXGT UKOWNVCPGQWUN[ %CUWCN )COG KU C game which players do not need to commit much time to and it does not require high skills, a game which is mainly associated with simple art style and characters. a

Air Time Sale is a revenue model which charges gamers according to playing time; Item sale is a revenue model YJKEJ RTQĂ&#x152;VU VJTQWIJ VJG UCNG QH KP ICOG KVGOU CPF J[DTKF UCNG KU C EQODKPCVKQP QH VJG CHQTGOGPVKQPGF TGXGPWG models b

/CUUKXGN[ /WNVKRNC[GT 1PNKPG 4QNG 2NC[KPI )COG Ă //142)Ă&#x201A; 4QNG RNC[KPI ICOGU YJGTG C XGT[ NCTIG PWODGT QH RNC[GTU KPVGTCEV YKVJ QPG CPQVJGT YKVJKP C XKTVWCN ICOG YQTNF QPNKPG 6JG UVQT[NKPG KP //142)U KU OQUVN[ about action adventures where one has to defend oneself or be part of a battle between warring countries, along with the following general characteristics : a

â&#x20AC;˘ )COGTU ECP VCMG WR VQ QPG QT OQTG TQNGU KP VJG ICOG WUKPI VJG /WNVK %JCTCEVGT %QPVTQN 5[UVGO /%% 'CEJ character varies in their strengths and weaknesses. â&#x20AC;˘ )COGTU ECP VTCKP VQ NGXGN WR VJGKT ICOG EJCTCEVGTU CPF EQNNGEV XCTKQWU KVGOU UWEJ CU YGCRQPU QT RQKPVU VQ increase the statistics of their characters and differentiate their game characters from other playersâ&#x20AC;&#x2122; characters by customizing, exchanging and selling their in-game items. â&#x20AC;˘ 6JGTG KU PQ GPF ICOG KP CP //142) CPF VJGTG KU PQ FGĂ&#x152;PKVG YKP QT NQUG KP VJG ICOG â&#x20AC;˘ Most gamers are loyal to the game, partly due to the nature of the game which requires a considerable amount QH EQOOKVOGPV DQVJ RU[EJQNQIKECNN[ CPF Ă&#x152;PCPEKCNN[ VQ KORTQXG VJG ICOG EJCTCEVGTU CPF VQ NGXGN WR %CUWCN )COG #P QPNKPG ICOG YJKEJ JCU UKORNG ICOGRNC[ CPF XKUWCN CPF KV KU QHVGP CUUQEKCVGF YKVJ EWVG EQNQWTHWN ECTVQQP EJCTCEVGTU # %CUWCN )COG KU TGNCVKXGN[ GCU[ VQ RNC[ CU EQORCTGF VQ OQUV QH VJG QVJGT ICOG IGPTGU )COGTU FQ PQV PGGF C NCTIG COQWPV QH VKOG QT UMKNNU VQ RNC[ CPF ECP WUWCNN[ Ă&#x152;PKUJ GCEJ UGUUKQP QH VJG ICOG within a short period of time. a

(KTUV 2GTUQP 5JQQVGT #P CEVKQP QTKGPVGF QPNKPG ICOG YJGTG RNC[GTU CTG RKVVGF CICKPUV GCEJ QVJGT VQ CEJKGXG EGTVCKP QDLGEVKXGU G I &GCVJ /CVEJ %CRVWTG 2QKPV CPF %CRVWTG 6JG (NCI 6JG IGPTGÂżU PCOG FGTKXGU HTQO VJG ICOG RTGUGPVCVKQP YJGTG VJG ICOG UKOWNCVGU C UEGPCTKQ HTQO C Ă&#x152;TUV RGTUQPÂżU RGTURGEVKXG a

9GD DCUGF )COG #P QPNKPG ICOG YJGTG RNC[GT ECP GPLQ[ QP VJGKT YGD DTQYUGTU YKVJQWV FQYPNQCFKPI CP[ program and/or software. a

/1$# )COG 5WD IGPTG QH ICOGU WPFGT VJG 4GCN 6KOG 5VTCVGI[ ECVGIQT[ 6JG ICOGRNC[ KU EJCTCEVGTK\GF by strategic combat between two small teams of players, each trying to destroy the opponentâ&#x20AC;&#x2122;s base. a

6JG )TQWR GPICIGU KP QPNKPG GPVGTVCKPOGPV UGTXKEGU RTKOCTKN[ QPNKPG ICOG UGTXKEGU CPF ICOG FKUVTKDWVKQP Online games are hosted on the Internet where gamers can play with, compete and interact with other gamers simultaneously through the gameâ&#x20AC;&#x2122;s servers system whereby the main gameâ&#x20AC;&#x2122;s program and gamersâ&#x20AC;&#x2122; information are stored. Online game operators provide services to gamers whose computers are installed with the online game client and have registered their details under a game operatorâ&#x20AC;&#x2122;s database or game portal. Online games do not include games which operate on LAN system.

040

6JG QPNKPG ICOG DWUKPGUU KU VJG OCKP UQWTEG QH VJG )TQWRÂżU KPEQOG CEEQWPVKPI HQT QH VJG )TQWRÂżU VQVCN KPEQOG KP 6JG )TQWR QRGTCVGU KVU DWUKPGUU QP C EQORTGJGPUKXG DCUKU VQ GPCDNG VJG DGUV CPF OQUV GHĂ&#x152;EKGPV way in operating online game services to gamers in each country, from acquiring game licenses, marketing and establishing game information centers to payment channels. Another important task is to prepare the technology and system for the provision of services, including the server system, computer equipment and software, client program as well as creating websites for online games. Each company in each country has its own separate server system. #U QH UV &GEGODGT VJG )TQWR RTQXKFGU QPNKPG ICOG UGTXKEGU KP VQVCN QH 27 games in 6 countries, as follows :

0WODGT

ICOGU

1PNKPG ICOGU HQT YJKEJ UGTXKEGU CTG RTQXKFGF CU QH &GEGODGT

Thailand

4CIPCTQM ;WNICPI )TCPCFQ 'URCFC %CDCN &TCIQP 0GUV 'NUYQTF 2JCPVCU[ 5VCT 1PNKPG #WFKVKQP #WFKVKQP 9QTNF 9QTNF +P #WFKVKQP 5VTKHG *GTQGU QH VJG 5VQTO .KPG QH 5KIJV #FXCPEG &KPQ *GCTV %CUVNG Onimusha Soul, Dragonica Mobile, and Dragon Encounter

Singapore

/CRNG5VQT[ %CDCN 2JCPVCU[ 5VCT 1PNKPG #WFKVKQP 9QTNF +P #WFKVKQP 5VTKHG *GTQGU QH VJG 5VQTO 5RGEKCN (QTEG ++ #FXCPEG &KPQ *GCTV Castle, Dragonica Mobile, and Dragon Encounter

Malaysia

6.$$ 2JCPVCU[ 5VCT 1PNKPG 5WRGT &CPEG 1PNKPG 9QTNF +P #WFKVKQP /KUUKQP #ICKPUV 6GTTQT 5VTKHG *GTQGU QH VJG 5VQTO #FXCPEG &KPQ *GCTV %CUVNG &TCIQPKEC /QDKNG CPF &TCIQP 'PEQWPVGT

Vietnam

;WNICPI %CDCN &TCIQPU 2JCPVCU[ 5VCT 1PNKPG 5VTKHG #FXCPEG &KPQ *GCTV %CUVNG &TCIQPKEC /QDKNG CPF &TCIQP 'PEQWPVGT

Philippines

2GTHGEV 9QTNF %CDCN 2JCPVCU[ 1PNKPG 5VCT #UUCWNV (KTG 9QTNF +P #WFKVKQP #WFKVKQP 5RGEKCN (QTEG ++ 5VTKHG *GTQGU QH VJG 5VQTO #FXCPEG &KPQ *GCTV %CUVNG &TCIQPKEC /QDKNG Ä Ä&#x2C6;Ä&#x201C; &TCIQP 'PEQWPVGT

Indonesia

2JCPVCU[ 5VCT 1PNKPG 5VTKHG #FXCPEG &KPQ *GCTV %CUVNG &TCIQPKEC Mobile, and Dragon Encounter

5GTXKEG EQWPVTKGU

Note : Some games were served in more than one country. 6JG )TQWR CNUQ QRGTCVGU TGNCVGF DWUKPGUUGU VQ UWRRQTV VJG QPNKPG ICOG UGTXKEGU (QT KPUVCPEG YYY RNC[RCTM EQO a game portal website which allows gamers to connect to other games, including online and PC games. Moreover, it KU C XGPWG HQT ICOGTU VQ DTQYUG CPF FQYPNQCF HQT CP[ QH VJG )TQWRUÂż RWDNKUJGF ICOGU YJKNG UGTXKPI CU C XKTVWCN community center for gamers to interact with one another, read about game related news and updates as well as sharing opinion.

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6JG )TQWR CNUQ KPXGUVGF KP TGNCVGF DWUKPGUU ECNNGF 6JCKYCTG HQT UQWTEG QH VGEJPQNQI[ TGICTFKPI CDQWV +6 Thaiware also a center for downloading software, both domestic and overseas, including freeware as well as community sharing related news for IT sector. 6JG )TQWR CNUQ GUVCDNKUJGF C PGY EQORCP[ ECNNGF 2NC[E[DGTICOGU %Q .VF HQT QPNKPG ICOG UGTXKEG KP 6JCKNCPF with paid-up capital of 20 Million Baht. The Company holds 100% of the registered capital. Playcybergames provides the service of MOBA genre, which get good response from gamers in internet cafes. +P VJG %QORCP[ KPXGUVGF KP QTFKPCT[ UJCTGU QH 6JKPMRNWU &KIKVCN %Q .VF KP RTQRQTVKQP QH QH 6JKPMRNWUÂż registered and paid-up capital of 5 Million Baht. Thinkplus provides the service of digital marketing agency and OGFKC UGNNKPI JQWUG VQ VJG )TQWRÂżU DWUKPGUU KP 6JCKNCPF %QORCP[ EQPUKFGTGF VJCV 6JKPMRNWU JCU VJG RQVGPVKCN VQ carry on the providing the service of digital marketing agency via internet and media selling. The Company believes that investment in Thinkplus will support the core business of the Company in the future. +P GCTN[ %QORCP[ KPXGUVU KP QTFKPCT[ UJCTGU QH .GXGN 7RĂ&#x17D; +PE CESWKTKPI HWNN UJCTGU QH .GXGN 7RĂ&#x17D; 4GIKUVGTGF CPF RCKF WR ECRKVCN QH /KNNKQP $CJV .GXGN 7RĂ&#x17D; RWDNKUJKPI QPNKPG ICOGU KP 2JKNKRRKPGU 6JG %QORCP[ EQPUKFGTGF VJCV .GXGN 7RĂ&#x17D; JCU VJG RQVGPVKCN VQ GZRCPF VJG VJG )TQWRÂżU QPNKPG ICOGU DWUKPGUU KP 2JKNKRRKPGU CU KV JCU IQQF HQQVJQNF KP VJG NQECN ICOGU KPFWUVT[ .GXGN 7RĂ&#x17D; YKNN UWRRQTV VJG QPNKPG ICOKPI UGTXKEG VJCV KU EQTG DWUKPGUU QH VJG Company in the future and will become an additional overseas source of income to the Company. +P VGTOU QH TGXGPWG VJG )TQWR EWTTGPVN[ EJCTIGU ICOGTU KP VJG HQNNQYKPI OCPPGTU â&#x20AC;˘ #KT 6KOG 5CNG )COGTU RC[ HGG HQT VJG QPNKPG ICOG UGTXKEG CEEQTFKPI VQ RNC[KPI VKOG KP VJG ICOG OCKPN[ WUGF HQT //142) %WTTGPVN[ QPN[ 4CIPCTQM 1PNKPG KU WPFGT VJKU DWUKPGUU OQFGN YJKEJ EQPVTKDWVGU XGT[ UOCNN amount of the total revenue in 2015. â&#x20AC;˘ Item Sale : This method usually allows gamers to play the game for free in order to sell in-game items such as weapons, clothes and accessories to gamers who will decide whether or not to buy the items using real cash. 6JG UCNGU QH VJGUG KP ICOG KVGOU CTG XKVCN VQ VJG )TQWRÂżU KPEQOG *QYGXGT VJG RTKEG QH VJGUG XKTVWCN KVGOU YKNN vary depending on each country in which services are provided, the latest marketing strategies, and the type and number of in-game items available of sale. Such virtual items are often charged at a lower price when offered in packages. At present, revenue model of online game services around the world has gradually changed from Air Time sale VQ +VGO 5CNG 6JG TGCUQP KU VJCV QPEG ICOGTU RNC[ ICOGU HQT HTGG Ă&#x152;TUV VJGTG KU JKIJGT RQUUKDKNKV[ VJCV VJG[ YKNN DG drawn into the game and be more inclined to make in-game purchases, and thus increase the opportunity of earning ITGCVGT KPEQOG HQT VJG )TQWR 8.2.2 Distribution and distribution channels /CTMGVKPI CEVKXKVKGU 6JG )TQWR JCU DGGP QRGTCVKPI WPFGT VJG VTCFG PCOG Ă #UKCUQHVĂ&#x201A; HTQO VJG DGIKPPKPI QH KVU QRGTCVKQP KP The name has become widely known among gamers throughout the region as the leader in the online game market, UKIPKH[KPI C IQQF NGXGN QH SWCNKV[ KP VJG ICOGU VJG %QORCP[ RWDNKUJGU CPF VJG )TQWRÂżU CDKNKV[ VQ TGVCKP KVU EWUVQOGT

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base as well as the trust in the Companyâ&#x20AC;&#x2122;s server system for the game services. Marketing activities are an important strategy for effective communication with customers regarding the services CPF QPNKPG ICOGU QHHGTGF D[ VJG )TQWR 6JG QDLGEVKXG QH VJGUG GHHQTVU OGCPU VQ ETGCVG CYCTGPGUU COQPI RQVGPVKCN customers of online games, bringing the promoted game across as an inexpensive and convenient means of daily GPVGTVCKPOGPV +P CFFKVKQP VQ VJG NCWPEJ QH PGY ICOGU VJG )TQWRÂżU OCTMGVKPI CEVKXKVKGU CNUQ CKO CV UVTGPIVJGPKPI VJG )TQWRÂżU OCTMGV RQUKVKQP QTICPK\CVKQPCN KOCIG CPF UQEKCN TGURQPUKDKNKV[ 6JG )TQWR CNUQ TGIWNCTN[ EQPFWEVU market surveys in order to understand needs and behaviours of gamers, which are the basis for effective marketing UVTCVGIKGU +P CFFKVKQP VJG )TQWR EQPFWEVU OCTMGVKPI CEVKXKVKGU KP EQPLWPEVKQP YKVJ FKUVTKDWVQTU CPF +PVGTPGV ECHGU VQ IKXG ICOGTUÂż VJG DGUV WPFGTUVCPFKPI CDQWV QPNKPG ICOGU UGTXKEGU CPF RTKEKPI UVTCVGIKGU QH VJG )TQWR &KUVTKDWVKQP +P RTQXKFKPI QPNKPG ICOG UGTXKEGU VJG )TQWR CNUQ FKUVTKDWVGU "%CUJ RTGRCKF ECTFU HQT VJG RC[OGPV QH QPNKPG ICOG UGTXKEG HGG CPF CNUQ EQQRGTCVG YKVJ #+5 CPF 6TWG VQ FKUVTKDWVG 1PG %CNNĂ&#x17D; CPF 6TWG/QPG[ CU CNVGTPCVKXG RC[OGPV EJCPPGNU 6JG )TQWR DGNKGXGU VJCV GHHGEVKXG FKUVTKDWVKQP EJCPPGNU CUUKUV VJG %QORCP[ VQ TGCEJ QWV VQ VJG )TQWRÂżU VCTIGV EWUVQOGTU GHHGEVKXGN[ @Cash, One-2-Call!, and TrueMoney through electronic : 6JG )TQWR FKUVTKDWVG "%CUJ ECTFU HQT VJG RC[OGPV UGTXKEG )COGTU YKNN TGEGKXG VJG EQFG CPF UGTKCN PWODGT CU well as password number for registering in games, or redeem points. The virtual cash item will be able to pay game online services in each game in our group, including game in partner company. â&#x20AC;˘ Through Credit Card and Debit Card that issue in Thailand and allow to purchase online items. â&#x20AC;˘ &KUVTKDWVKQP QH 1PG %CNNĂ&#x17D; CPF 6TWG/QPG[ %CUJ %CTF VJTQWIJ EQPXGPKGPV UVQTG â&#x20AC;˘ PlayMall system. )COGTU ECP RWTEJCUG "%CUJ 1PG %CNNĂ&#x17D; 6TWG/QPG[ CPF %CUJ 2QKPVU KP 2NC[/CNN U[UVGO VJTQWIJ GNGEVTQPKE as following : Thailand : â&#x20AC;˘ 1PG %CNNĂ&#x17D; %CUJ %CTF CPQVJGT FKUVTKDWVKQP EJCPPGN VJCV VJG %QORCP[ LQKPV YKVJ #+5 VJG NGCFGT KP OQDKNG RJQPG QRGTCVQT )COGTU ECP DW[ 1PG %CNNĂ&#x17D; RTGRCKF ECTF YJKEJ Ă "Ă&#x201A; U[ODQN CV VJG EQTPGT 6JG ECTF ECP DG WUGF VJG UCOG CU "%CUJ ECTF 6JG )TQWR UVCTVGF VJKU UGTXKEG KP 5GRVGODGT â&#x20AC;˘ 6TWG/QPG[ %CUJ %CTF FKUVTKDWVKQP EJCPPGN VJCV %QORCP[ LQKPV YKVJ 6TWG %QTR )COGTU ECP DW[ 6TWG/QPG[ card at True Shop and 7-Eleven. This service has started in September 2012. â&#x20AC;˘ PlayMall : new all-in-one wallet system that let gamers top up their favourite games, using any method of payment in each region, quickly and easily through credit card and debit card.

043

Malaysia : â&#x20AC;˘ 1PNKPG %TGFKV %CTF VJG UCNG QH GNGEVTQPKE "%CUJ ECTFU VJTQWIJ JVVRU RCUURQTV CUKCUQHVUGC EQO QT www.paypal.com, where payment is made through credit cards. â&#x20AC;˘ /1. G 2KP ICOGTU ECP RWTEJCUG GNGEVTQPKE "%CUJ RTGRCKF ECTFU VJTQWIJ /1.2QKPVU CV VJG CWVJQTK\GF shops or makes an online payment at www.offgamers.com or through authorized shops with E-Pay symbol. â&#x20AC;˘ "%CUJ QP /QDKNG VJG UCNG QH GNGEVTQPKE "%CUJ VJTQWIJ OQDKNG RJQPG KP /CNC[UKC YJGTG ICOGTU OCMG VJG payment through Maxis Network systems. Singapore: â&#x20AC;˘ 5 # / -KQUM G 2KP ICOGTU ECP RWTEJCUG GNGEVTQPKE "%CUJ RTGRCKF ECTFU VJTQWIJ VJG CWVQOCVKE 5 # / machines and through AXS Auto machine. â&#x20AC;˘ "%CUJ QP /QDKNG VJG UCNG QH GNGEVTQPKE "%CUJ VJTQWIJ OQDKNG RJQPG KP 5KPICRQTG YJGTG ICOGTU OCMG VJG RC[OGPV VJTQWIJ 5KPIVGN 5VCT*WD CPF ): â&#x20AC;˘ /1. G 2KP C RC[OGPV U[UVGO KP 5KPICRQTG YJKEJ GNGEVTQPKE "%CUJ RTGRCKF ECTFU ECP DG RWTEJCUGF VJTQWIJ MOLPoints, eNETS and PayPal at the authorized shops. â&#x20AC;˘ ")NQDCN )COG CNNQYU RNC[GTU KP 5QWVJGCUV #UKC VQ RNC[ KP VJG UCOG UGTXGT GPEQWTCIKPI ETQUU EQWPVTKGU HTKGPFUJKRU CPF EQORGVKVKQP COQPI ICOGTU D[ JQNFKPI 5'# 1PNKPG )COGU 6QWTPCOGPVU 2NC[GTU CTG CNUQ CDNG VQ RWTEJCUG "%CUJ KP 5QWVJGCUV #UKC VJTQWIJ CNN QH #UKCUQHVÂżU YKFG TCPIG RC[OGPV U[UVGOU Indonesia : â&#x20AC;˘ 7PK 2KP ICOGTU ECP RWTEJCUG 7PK 2KP RTGRCKF ECTFU VJTQWIJ CWVJQTK\GF UJQRU Ă +PFQOCTGVĂ&#x201A; C EQPXGPKGPV store whose branches locating throughout the country. â&#x20AC;˘ "%CUJ 2TGRCKF %CTF KU FKUVTKDWVGF VJTQWIJ QWT CWVJQTK\GF UJQRU Philippines : â&#x20AC;˘ /1. G 2KP ICOGTU ECP RWTEJCUG GNGEVTQPKE "%CUJ ECTFU VJTQWIJ /1.2QKPVU CV VJG CWVJQTK\GF UJQRU QT makes an online payment at www.offgamers.com or through authorized shops with E-Pay symbol. â&#x20AC;˘ 1PNKPG %TGFKV %CTF VJG UCNG QH GNGEVTQPKE "%CUJ ECTFU VJTQWIJ JVVRU RCUURQTV CUKCUQHVUGC EQO QT www.paypal.com, where payment is made through credit cards.

044

&KCITCO FGOQPUVTCVGU VJG FKUVTKDWVKQP QH "%CUJ RTGRCKF ECTFU )COGTU ECP RC[ HQT VJG QPNKPG ICOG UGTXKEG HGGU D[ RWTEJCUKPI "%CUJ RTGRCKF ECTFU GKVJGT KP C HQTO QH plastic cards from the distributors or in electronic form from the various electronic systems.

&KCITCO FGOQPUVTCVGU VJG FKUVTKDWVKQP QH 1PG %CNNĂ&#x17D; %CUJ %CTF In 2010, the Company added another payment channel.

&KCITCO FGOQPUVTCVGU VJG FKUVTKDWVKQP QH 6TWG/QPG[ %CUJ %CTF In 2012, the Company added another payment channel.

045

8.2.3 Competition strategies &KXGTUKĂ&#x152;ECVKQP QH KPXGUVOGPV VQ EQWPVTKGU YKVJ JKIJ ITQYVJ RQVGPVKCN #V RTGUGPV VJG )TQWR FKXGTUKĂ&#x152;GU KVU KPXGUVOGPV KP VJG QPNKPG ICOG DWUKPGUU KP 5QWVJGCUV #UKCP EQWPVTKGU 6JCKNCPF 5KPICRQTG /CNC[UKC +PFQPGUKC 2JKNKRRKPGU CPF +PFQEJKPC 8KGVPCO /[CPOCT %CODQFKC VQ TGFWEG TKUMU HTQO QRGTCVKPI QPN[ KP 6JCKNCPF QT QPG RCTVKEWNCT EQWPVT[ 6JG )TQWR FGRNQ[U TGIKQPCN OCPCIGOGPV UVTCVGIKGU which help to reduce operating costs from purchasing licenses fees of games in packages, computers and related GSWKROGPV 6JG )TQWR CNUQ UJCTGU TGUQWTEGU K G JWOCP TGUQWTEG MPQYNGFIG VGEJPQNQI[ CPF YQTM GZRGTKGPEGU YJKEJ CTG MG[ QH UWEEGUU HQT VJG )TQWR VQ RGPGVTCVG GCEJ OCTMGV +PETGCUKPI VJG PWODGT QH QPNKPG ICOGU CPF EQPVKPWQWUN[ WRFCVKPI XGTUKQP HQT GZKUVKPI ICOGU #U QH UV &GEGODGT VJG )TQWR RTQXKFGU QPNKPG ICOG UGTXKEGU KP VQVCN QH ICOGU KP EQWPVTKGU 6JG )TQWR EQQRGTCVGU YKVJ ICOG FGXGNQRGTU CPF ICOG RWDNKUJGTU VQ KORTQXG VJG HGCVWTGU CPF EQPVGPVU QH VJG )TQWRÂżU QPNKPG ICOGU VQ DG EQPUKUVGPVN[ WRFCVGF +P CFFKVKQP VJG )TQWR RNCPU VQ RTQXKFG UGTXKEGU HQT PGY ICOGU KP GCEJ country to satisfy customersâ&#x20AC;&#x2122; needs in terms of design, graphics, and technology, for example, providing localized in-game contents. 5VTGPIVJGPKPI KVU OCTMGV RQUKVKQP 6JG )TQWR WUGU OCKP UVTCVGIKGU VQ UVTGPIVJGP KVU OCTMGV RQUKVKQP CPF VQ ICKP C EQORGVKVKXG GFIG QXGT KVU competitors : â&#x20AC;˘ 1HHGTKPI VQR QPNKPG ICOGU YJKEJ CTG YGNN MPQYP CPF RQRWNCT KP HQTGKIP OCTMGVU 6JG )TQWR DGNKGXGU VJCV online games that are well-known and popular in foreign markets have outstanding features both in terms of FGUKIP CPF EQPVGPVU YJKEJ YQWNF KPETGCUG VJG EJCPEG HQT VJG )TQWRÂżU UWEEGUU KP OCTMGVKPI UWEJ ICOGU VQ customers in each target country. â&#x20AC;˘ /CTMGVKPI CEVKXKVKGU VQYCTFU VCTIGV EWUVQOGTU 6JG )TQWR JCU C UVTQPI FCVCDCUG QH ICOGTU CPF KV WUGU marketing efforts to attract its current user base to its new games, as well as continually expanding the Companyâ&#x20AC;&#x2122;s customer base. Such marketing activities include the promotion during the launch of new games, creating noise for the game via in-game competition and special seasonal activities as well as out-of-game activities such as meetings and parties among gamers etc. â&#x20AC;˘ +PETGCUKPI VJG PWODGT QH FKUVTKDWVKQP EJCPPGNU 6JG )TQWR RNCPU VQ KPETGCUG VJG PWODGT QH FKUVTKDWVQTU QH "%CUJ RTGRCKF ECTFU CPF QPNKPG RTQFWEVU D[ RTQXKFKPI IWKFG DQQMU CPF FGCNU VQ EQXGT C YKFGTÂźTCPIG QH distribution channels. The Company also added new distribution channel such as the aforementioned and VJKU YQWNF KPETGCUG VJG )TQWRÂżU CFXCPVCIGU QXGT KVU EQORGVKVQTU KP OCKPVCKPKPI VJG )TQWRÂżU GZKUVKPI EWUVQOGT DCUG CPF KPETGCUKPI PGY EWUVQOGT DCUG +P CFFKVKQP VJG )TQWR CNUQ KORTQXGF VJG GNGEVTQPKE FKUVTKDWVKQP EJCPPGNU KP QTFGT VQ TGFWEG VJG )TQWRÂżU QRGTCVKPI EQUV KP VJG HWVWTG /QTGQXGT VJG GZRCPFGF FKUVTKDWVKQP network can extend the reach of Companyâ&#x20AC;&#x2122;s marketing activities, for instance, the distribution of posters that will be directed to the end customers of these distribution channels. /CTMGVKPI CEVKXKVKGU VQ RTQOQVG VJG UCNG QH KP ICOG KVGOU /QUV QH QPNKPG ICOGU UGTXKEG QRGTCVGF D[ VJG )TQWR VCMG QP VJG DWUKPGUU OQFGN QH HTGG VQ RNC[ ICOGU CPF VJWU VJG )TQWR HQEWUGU QP GHHQTVU VQ GPEQWTCIG ICOGTU VQ RWTEJCUG KP ICOG KVGOU TGIWNCTN[ (QT GZCORNG VJTQWIJ monthly in-game promotions, Item Shops and Item Mall on websites, newsletters and SMS regarding new arrivals

046

in the cash shops, and promoting via social media. 'HĂ&#x152;EKGPV QPNKPG ICOG KPHQTOCVKQP EGPVGT Online game information center provides an important service which enables gamers to play games smoothly and continuously, enhancing game loyalty and increasing game sessions and opportunities to attract in-game RWTEJCUGU %WTTGPVN[ VJG )TQWR RTQXKFGU ICOG KPHQTOCVKQP VJTQWIJ KVU JQWT ECNN EGPVGT G OCKN CPF .KXG %JCV CU YGNN CU VJTQWIJ VJG %QWPVGT 5GTXKEG "%NWD HQT EWUVQOGTU YJQ EQPVCEV VJG KPHQTOCVKQP EGPVGT KP RGTUQP 6JG )TQWR aims to improve the quality of the information service and obtain adequate personnel and equipment to meet the needs of customers which expect to increase in the future. &GXGNQROGPV QH VJG UGTXGT U[UVGO HQT VJG QPNKPG ICOG UGTXKEG 6JG )TQWR DGNKGXGU VJCV C IQQF UGTXGT U[UVGO GPCDNGU ICOGTU VQ KPVGTCEV YKVJ QPG CPQVJGT UOQQVJN[ EQPVKPWQWUN[ CPF TCRKFN[ YJKEJ KU XGT[ KORQTVCPV HQT QPNKPG ICOG UGTXKEG 6JGTGHQTG KV KU VJG )TQWRÂżU IQCN VQ CNYC[U improve and maintain the server systems in top-notch conditions and capabilities, like increasing the size of its EQOOWPKECVKQP EKTEWKV VQ CEEQOOQFCVG OQTG ICOGTU #U C TGUWNV VJG )TQWR KU CDNG VQ RTQXKFG GHĂ&#x152;EKGPV UGTXKEGU in terms of consistent and adequate speed of the network connection, with minimal errors and information losses, YJKEJ EQPUGSWGPVN[ TGFWEGU VJG EJCPEG QH UGTXKEG FKUTWRVKQP +P CFFKVKQP VJG )TQWR JCU EQPUVCPVN[ KORTQXGF VJG information security system to prevent gamersâ&#x20AC;&#x2122; information and privacy being breached. 6JG )TQWR QDVCKPGF +51 +'% +PHQTOCVKQP 5GEWTKV[ /CPCIGOGPV 5[UVGO +5/5 YJKEJ KU C UVCPFCTF FGĂ&#x152;PGF D[ VJG TGPQYPGF CPF TGNKCDNG KPVGTPCVKQPCN +51 6JG +PVGTPCVKQPCN 1TICPK\CVKQP HQT 5VCPFCTFK\CVKQP CPF +'%

6JG +PVGTPCVKQPCN 'NGEVTQVGEJPKECN %QOOKUUKQP 6JG DGPGĂ&#x152;V HTQO +51 +'% â&#x20AC;˘ Customer data and systems that provide secured information to be accurate and always available, which guarantees customer satisfaction. â&#x20AC;˘ Ensuring that the Company can conduct the service and business smoothly and continuously for both customer and business partners. #RRTQRTKCVG CPF EQORGVKVKXG QPNKPG ICOG UGTXKEG HGG +V KU VJG )TQWRÂżU RQNKE[ VQ UGV WR VJG QPNKPG ICOG UGTXKEG HGGU CV VJG TCVGU VJCV CRRTQRTKCVG HQT EWUVQOGTU KP GCEJ EQWPVT[ (QT OQUV QH KVU UGTXKEGU VJG )TQWR CNNQYU EWUVQOGTU VQ RNC[ ICOGU HQT HTGG CPF EJCTIGU HQT KVU UGTXKEG VJTQWIJ VJG UCNG QH KP ICOG KVGOU VQ KPETGCUG VJG EQORGVKVKXGPGUU QH VJG )TQWR YKVJ QVJGT QRGTCVQTU KP VJG UCOG industry and in other entertainment industries. At the same time, such rates must produce a good return for the )TQWR *QYGXGT VJG )TQWR FQGU PQV JCXG C RTKEG YCT RQNKE[ +PFWUVT[ 6TGPFU CPF %QORGVKVKQP 1XGTXKGY QH 5QWVJGCUV #UKC QPNKPG ICOKPI OCTMGV 6JG 5QWVJGCUV #UKCP TGIKQP KU VJG VCTIGV OCTMGV HQT VJG QPNKPG GPVGTVCKPOGPV UGTXKEGU QH VJG )TQWR YJKEJ EQPUKUV of 6 countries : Thailand, Singapore, Malaysia, Vietnam, Indonesia, and Philippines. It can be observed that the proliferation of social network sites such as Facebook and Twitter is a major contributor to the tremendous jump in the number of internet users for the recent years, resulting in the increase in the pool of online gamers. Meanwhile,

047

with the advancement in technology and infrastructure, the cost of high-speed internet is also becoming more affordable even for the new emerging markets in Southeast Asia. These are all the supporting factors of the growth of the gaming industry in the region. Moreover, operators in the online games industry enjoy a number of advantages over operators in other online GPVGTVCKPOGPV KPFWUVTKGU UWEJ CU QHĂ?KPG 2% ICOGU CTECFG ICOGU OQXKGU OWUKE CPF MCTCQMG 5QOG TGCUQPU include : â&#x20AC;˘ Online games are cheaper and easily accessible : Online games can be played anywhere as long as the user has access to a stable and smooth running internet connection. The majority of gamers in Southeast Asia play online games in internet cafes, which is inexpensive, convenient, and a place for community bonding. *QYGXGT OQUV 5KPICRQTGCPU VQFC[ VGPF VQ RNC[ QPNKPG ICOGU HTQO VJGKT QYP EQORWVGTU QT NCRVQRU CV JQOG because of the availability of the internet network and technological advantage in Singapore. Compared to other entertainment services, the online games industry in the region sees an optimistic trend of an decreasing cost for playing online games and the improvements in technology and infrastructure to support online gaming from home. â&#x20AC;˘ The majority of online gamers use the services on a continuous basis : The nature of the relationship a gamer has with the game is relatively stronger than that many of the other entertainment products. The attachment VQ C ICOG WUWCNN[ FGXGNQRU HTQO C ICOGTÂżU EQOOKVOGPV KPVQ VJG ICOG GURGEKCNN[ HQT //142) VKVNGU CPF competitions and contacts with other gamers. For instance, the time and money spent in a game are common reasons for online gamers to continually support their favorite game services. â&#x20AC;˘ Increasing rate of internet and broadband penetration : On top of the need to keep up with the demand for quality internet resulting from the rise in more advanced and affordable computers, Internet Service Providers are also competing against each other for a larger slice of the market. As a result, users stand to enjoy their favorite games via smoother and cheaper network services. â&#x20AC;˘ Low level of piracy : Concerns about piracy arising from entertainment products like music, PC games, and computer programs is a major headache for operators in this region, and has very much impacted their operations. In contrast to that, operators of online games face lesser risk of piracy because the main EQORQPGPVU QH VJGKT UGTXKEGU CTG JGNF KP VJG UGTXGTU YJKEJ KU FKHĂ&#x152;EWNV HQT ICOGTU VQ QDVCKP UWEJ FCVC /QTGQXGT the client program, which is a program for installing the game on the gamersâ&#x20AC;&#x2122; computers, is relatively inexpensive. Therefore, the issue of piracy in online game is not as severe as compared to copyrighted work stored in the form of CDs, DVDs or cartridges, which can be easily copied and distributed. 1XGTXKGY QH QPNKPG ICOG KPFWUVT[ KP 6JCKNCPF 5KPICRQTG /CNC[UKC 8KGVPCO +PFQPGUKC CPF 2JKNKRRKPGU 6JG )TQWR RTQXKFGU QPNKPG ICOG UGTXKEGU KP EQWPVTKGU 6JCKNCPF 5KPICRQTG /CNC[UKC 8KGVPCO +PFQPGUKC and Philippines. The online game industry in these countries is growing at an exponential rate. In the past, most QPNKPG ICOG QRGTCVQTU YGTG UOCNN QRGTCVQTU QHHGTKPI C NKOKVGF PWODGT QH QPNKPG ICOGU OQUVN[ //142) ICOGU CPF EJCTIGF HQT VJGKT UGTXKEGU VJTQWIJ #KT 6KOG 5CNG *QYGXGT VJG EQORGVKVKQP KP VJG KPFWUVT[ VQFC[ KU KPETGCUKPIN[ intense due to the entrance of large game operators and the abundance of new online games developed every day. Furthermore, the change in the revenue model of online game, from Air Time Sale to free-to-play, has contributed to the competition within the online gaming market. The online game licensing fees are an important operating cost for operators in this business. At present, most

048

game operators in the aforementioned countries normally acquire licenses of online games that are popular and/ QT UWEEGUUHWN KP ICOG FGXGNQRGTUÂż JQOG EQWPVT[ QT QVJGT EQWPVTKGU QH RWDNKECVKQP *QYGXGT QPNKPG ICOG QRGTCVQTU today have began to develop their own games in order to reduce the increasing cost of licensing. Industry trends and competition in the online gaming market of Thailand 6JG OCTMGV XCNWG QH 6JCKNCPFÂżU QPNKPG ICOGU YCU YQTVJ OQTG VJCP $CJV DKNNKQP KP 5QWTEG %QORCP[ÂżU FCVC 6JCKNCPFÂżU QPNKPG ICOKPI OCTMGV YCU PQV CU EQORGVKVKXG CU KP VJGTG YGTG EQORCPKGU QRGP KP CPF ICOGU KP UGTXKEG C FGETGCUG HTQO ICOGU KP Major contributing factors to the growth of the online game business in Thailand â&#x20AC;˘ )TQYVJ QH DTQCFDCPF KPVGTPGV UGTXKEG +P VJG RCUV VQ [GCTU VJG DTQCFDCPF KPVGTPGV UGTXKEG DWUKPGUU JCU been growing rapidly due to intense competition among the service providers both in terms of the quality of UGTXKEG CPF RTKEKPI %WTTGPVN[ VJG UGTXKEG HGG HQT VJG /DRU KU CTQWPF $CJV RGT OQPVJ YJKEJ KU TGNCVKXGN[ affordable. Therefore, the broadband internet service has been widely adopted. As online gaming requires speed for downloading data and to make the game experience more enjoyable, the availability of broadband internet service has increased the attachment to online games as well as expansion into an untapped market of customers who are new to online gaming. â&#x20AC;˘ Variety of available online games : Recently, online game operators have launched new online games which have a variety of game features and content which increases the gratifying pleasure from online gaming and attracting more users to the games. â&#x20AC;˘ /QTG 8CNWG #FFGF 5GTXKEGU 8#5U #U EQORGVKVKQP DGEQOGU OQTG KPVGPUG QXGT VJG PGZV HGY [GCTU UWRRQTV services will become a key factor in retaining gamers and reducing subscriber migration. Service Providers

52U CTG NQQMKPI VQ GPJCPEG VJG EWUVQOGT GZRGTKGPEG VJTQWIJ JQWT %CNN %GPVGT UGTXKEGU TGIWNCT EQPVGPV updates, road shows and other social events, as well as promotional campaigns through the various media channels. Online gaming SPs are expected to offer more of such VASs to meet gamersâ&#x20AC;&#x2122; expectations. â&#x20AC;˘ 5GVVKPI WR CP ' 5RQTVU )COG #UUQEKCVKQP VQ RTQOQVG EQORGVKVKXG ICOKPI +P VJG RCUV RNC[KPI ICOGU QP computers are often passive and activities are limited to online or among a group of like-minded individuals, which sometimes can be considered as a cause of teenage misbehaviour and social problems. Currently, gaming is becoming widely accepted as a form of sports, called Electronic Sports or E-Sports by the International 1N[ORKE %QOOKVVGG +1% +V YCU DGNKGXGF VJCV RNC[KPI ' 5RQTVU KU C YC[ VQ FGXGNQR VJG URQTVU KPFWUVT[ #U C result, competition on games are regularly arranged on local, regional and international levels. Most popular EQORGVKVKQPU CTG KP VJG HQTO QH QPNKPG ICOGU VJG HWPFCOGPVCN TGCUQP YJKEJ DWKNV CP ' 5RQTVU )COG #UUQEKCVKQP in Thailand to effectively manage, control and supervise, as well as to promote and encourage Thai game athletes to compete on international levels. If this concept can occur like what actually happened in South Korea, it will play a huge part in promoting the growth of the Thai online games market. To culture the mentality of turning casual gaming into a profession and eventually entering into major E-Sports competitions. Industry trends and competition in the online gaming market in Singapore Singapore continues to show strong growth in the online gaming market with the increase of both new technology and infrastructure over the years. This has in turn provided its gamers to have greater access to newer and more technologically advanced games in that are available worldwide.

049

6JG /&# /GFKC &GXGNQROGPV #UUQEKCVKQP CPF '&$ 'EQPQOKE &GXGNQROGPV $QCTF JCXG MKEM UVCTVGF CP initiative to attract both foreign publishers and developers into Singapore, not only to distribute their games within the region, but also to invest their resources to grow the industry by setting up studios locally. In addition, with both social and mobile games in Singapore showing an increase in popularity, developers have seen the potential in the Singapore market and began prioritizing their resources to focus on expanding their share and developing the industry. +P VJGTG CTG RWDNKUJGTU YKVJ ICOGU KP VJG QPNKPG ICOKPI OCTMGV KP 5KPICRQTG QH ICOGTU KP 5KPICRQTG RNC[ /1$# HQNNQYGF D[ //142) KP VJG RGTEGPVCIG QH Industry trends and competition in the online gaming market in Malaysia #V VJG GPF QH VJGTG CTG RWDNKUJGTU YKVJ QPNKPG ICOGU KP VJG OCTMGV QH ICOGTU KP /CNC[UKC RNC[U //142) HQNNQYGF D[ (25 CPF %CUWCN ICOGU KP VJG RGTEGPVCIG QH CPF TGURGEVKXGN[ //142) VKVNGU CTG predominantly serviced in Chinese, while Casual and SNS titles are in English to target a wider audience. In recent years, the market sees an increase in foreign publishers, mostly China companies such as Perfect 9QTNF #MCTPQ RNWU UOCNNGT RWDNKUJGTU YJQ CTG HQEWUKPI QP YGD VKVNGU Major contributing factors to the growth of the online game business in Singapore and Malaysia â&#x20AC;˘ /QTG HTGSWGPV WRFCVGU QH GZKUVKPI ICOGU QT PGY ICOG NCWPEJGU 9KVJ VJG HTGG VQ RNC[ OQFGN DGKPI FQOKPCPV in the market, it will be more challenging for SPs to retain current gamers. SPs will need to constantly upgrade existing games or offer new virtual items for sale to attract gamers to commit to the game. â&#x20AC;˘ Cheaper and advanced network : internet and wireless communication infrastructure in Singapore is constantly advancing. This contributes to the growth of online games business and caters for future development of both QPNKPG ICOGU CPF OQDKNG ICOGU (WTVJGTOQTG DQVJ DTQCFDCPF CPF Ă&#x152;DGT QRVKEU UWDUETKRVKQP HGG CETQUU CNN +52U KP 5KPICRQTG JCU UJQYP UKIPKĂ&#x152;ECPV FGETGCUG QXGT VJG [GCTU TGUWNVKPI KP CP KPETGCUG KP WUCIG HTQO DQVJ new and existing users. Industry trends and competition in the online gaming market of Vietnam There was not much changes in the Vietnamese online gaming market in 2015 as the local government did not grant any license for new games in the last few years. The permission for new games launch is still under consideration and control by the government. #V VJG GPF QH VJGTG YGTG CTQWPF RWDNKUJGTU QRGTCVKPI ICOGU /CP[ ICOGTU KP 8KGVPCO CTG KPVGTGUVGF KP /1$# CPF //142) ICOGU /CLQT EQPVTKDWVKPI HCEVQTU VQ VJG ITQYVJ QH VJG QPNKPG ICOG DWUKPGUU KP 8KGVPCO Internet penetration and broadband access : Internet adoption in Vietnam is growing at a robust pace. Dial-up connections are no longer popular and are used mostly in the underdeveloped regions of Vietnam. Instead, broadband EQPPGEVKQPU YKVJ JKIJGT VTCPUHGT URGGFU CPF UVCDNG SWCNKV[ JCXG DGEQOG KPETGCUKPIN[ YKFGURTGCF )TGCVGT KPVGTPGV penetration and faster connections will continue to expand the online gaming market in Vietnam. Industry trends and competition in the online gaming market in Indonesia +P VJG EQORGVKVKQP KP +PFQPGUKC YCU OQFGTCVG 6JGTG YGTG QPN[ RWDNKUJGTU QRGTCVKPI ICOGU CPF //142) IGPTG YCU JQNFKPI C UKIPKĂ&#x152;ECPV OCTMGV UJCTG YKVJ VQVCNKPI HQNNQYGF D[ (25 VQVCNKPI

050

+PFWUVT[ VTGPFU CPF EQORGVKVKQP KP VJG QPNKPG ICOKPI OCTMGV KP 2JKNKRRKPGU In 2015, the competition in Philippines was moderate. There were only 7 publishers operating 21 games, and /1$# IGPTG YCU JQNFKPI C UKIPKĂ&#x152;ECPV OCTMGV UJCTG /QUV QH ICOGTU KP 2JKNKRRKPGU RNC[GF /1$# HQNNQYGF D[ (25 VQVCNKPI 6JGTG JCU DGGP PQ OCLQT //142) VKVNG TGNGCUGF KP 2JKNKRRKPGU UKPEG VJG RCUV [GCTU *QYGXGT there has been a general shift to Mobile since smartphones and data plan have been more affordable the past year. 2TQEWTGOGPV QH QPNKPG ICOG UGTXKEGU 1XGTXKGY QH VJG QPNKPG ICOG DWUKPGUU 6JG QPNKPG ICOG DWUKPGUU EQPUKUVU QH OCKP RCTVKGU CU UJQYP KP VJG RKEVWTG DGNQY (KTUV VJG )COG &GXGNQRGT FGUKIPU CPF FGXGNQRU ICOGU CPF VJGP UGNNU VJG NKEGPUG QH VJG ICOG QT CRRQKPVU C )COGU 2WDNKUJGT VQ HKPF CRRTQRTKCVG OCTMGVU VQ UGNN VJG NKEGPUG QH VJG ICOGU VQ VJG NQECN )COG 1RGTCVQT KP GCEJ EQWPVT[ 6JG )TQWR DWUKPGUU GPEQORCUUGU VJCV QH C )COG 2WDNKUJGT CPF C )COG 1RGTCVQT The overview of parties in the online game business

Game Developer

Game Publisher

Game Operator

Distributors & Payment Channels

Telecom Operators

Gamers

+P IGPGTCN YJGP C )COG 1RGTCVQT DW[U VJG NKEGPUG QH C ICOG VJG )COG 1RGTCVQT YKNN RTGRCTG C &CVC %GPVGT for the installation of game servers to support the online game services required and will usually collect a service HGG HTQO ICOGTU VJTQWIJ VJG UCNG QH KP ICOG EWTTGPE[ QT XKTVWCN KVGOU XKC RTGRCKF ECTFU QT ETGFKV ECTF 6JG +PVGTPGV 5GTXKEG 2TQXKFGTU +52U TGPV QWV KPVGTPGV DCPFYKFVJU VQ GPCDNG EQOOWPKECVKQP CPF UVQTCIG QH ICOG FCVC COQPI VJG UGTXGTU QH VJG )COG 1RGTCVQT KPVGTPGV ECHGU CPF ICOGTU 6JG )TQWRÂżU QRGTCVKPI RTQEGFWTGU HQT VJG RTQXKUKQP QH QPNKPG ICOG UGTXKEGU 6Q RTQEWTG C ICOG VQ RTQXKFG UGTXKEGU KP GCEJ EQWPVT[ VJG )TQWR CRRQKPVU )COG /CPCIGT VGCO VQ DG responsible for the procurement and preparation of essential game services. Each team will be responsible for one ICOG 6JG )TQWR JCU RTCEVKEGF VJG HQNNQYKPI UVGRU KP VJG RTGRCTCVKQP QH ICOG UGTXKEGU The operating procedures for the provision of online game services Selection of online games

Negotiation and purchase of online game license

Preparation of online game service system

Distribution of Client Program

Opening for service

Publicity and advertisement

5GNGEVKQP QH QPNKPG ICOGU Firstly, the team selects potential games from various sources, for instance, games that are popular in each EQWPVTKGU )COGU YKNN DG UGNGEVGF QP VJG DCUKU QH VJGKT EQPVGPVU CPF CUUGUUGF CEEQTFKPI VQ VJGKT UWKVCDKNKV[ HQT VJG gamers and the culture of each country. In addition, they must have the following basic qualities :

051

â&#x20AC;˘ *KIJ SWCNKV[ ICOG XKUWCNU CPF EQPVGPV UWKVCDNG HQT VJG VCTIGV EWUVQOGT ITQWRU GZENWUKXG QH GZVTGOG XKQNGPEG and sexually explicit content. â&#x20AC;˘ 6JG QPNKPG ICOG RTQITCOU CTG EQORCVKDNG YKVJ VJG VCTIGV EWUVQOGTUÂż EQORWVGTU URGEKĂ&#x152;ECVKQPU â&#x20AC;˘ .KEGPUKPI HGG KU CRRTQRTKCVG JGNRKPI VJG )TQWR VQ IGPGTCVG RTQĂ&#x152;V HTQO VJG ICOGU â&#x20AC;˘ Contains unique features and content which differ from those of other games available in the market at that time. 0GIQVKCVKQP CPF RWTEJCUG QH QPNKPG ICOG NKEGPUG 6JG VGCO YKNN PGIQVKCVG VJG RTKEG CPF VJG VGTOU QH VJG ICOG NKEGPUG CPF VJGP GPVGT KPVQ C EQPVTCEV YKVJ VJG )COG &GXGNQRGT QT )COG 2WDNKUJGTU VQ NGICNN[ UGTXKEG VJG ICOG KP VJG )TQWRÂżU TGIKQP QH DWUKPGUU 2TGRCTCVKQP QH QPNKPG ICOG UGTXKEG U[UVGO â&#x20AC;˘ 'SWKROGPV CPF EQORWVGT RTQITCOU 6JG )TQWR YKNN RTGRCTG VJG UGTXGT U[UVGO CPF EQORWVGT GSWKROGPV YJKEJ OGGV VJG URGEKĂ&#x152;ECVKQP TGSWKTGF D[ VJG )COG &GXGNQRGT +P VJKU TGICTF VJG PWODGT QH UGTXGTU TGSWKTGF VQ UWRRQTV VJG QPNKPG ICOG UGTXKEGU YKNN DG GUVKOCVGF D[ VJG )TQWR 6JG )COG &GXGNQRGT YKNN VJGP KPUVCNN VJG online game programs prior to the opening of the game services at a later stage. â&#x20AC;˘ %NKGPV 2TQITCO 6JG )COG /CPCIGT YKNN OQFKH[ CPF KORTQXG VJG %NKGPV 2TQITCO UWEJ VJCV VJG RTQITCO YKNN be suitable to be installed on gamersâ&#x20AC;&#x2122; computers, this includes the translation of the gameâ&#x20AC;&#x2122;s language into the NQECN NCPIWCIG U CNUQ MPQYP CU )COG .QECNK\CVKQP â&#x20AC;˘ $WKNFKPI CPF JQUVKPI ICOG YGDUKVGU 6JG )COG /CPCIGT YKNN ETGCVG YGDUKVGU HQT QPNKPG ICOGU CU C UQWTEG QH information for gamers regarding playing instructions, making payments and customer service matters. They CNUQ UGTXG CU CFXGTVKUKPI OGFKWO HQT VJG )TQWR XKC YGDUKVG DCPPGTU â&#x20AC;˘ 5GTXKEG OCPCIGOGPV U[UVGO 6JG )COG /CPCIGT YKNN RTGRCTG VJG EQORWVGT U[UVGO HQT VJG OCPCIGT QH VJG ICOG UGTXKEGU VJG )COG /CUVGT VQ EQPVTQN CPF OQPKVQT VJG QPNKPG ICOG RNC[ GZRGTKGPEG HQT CP[ PGY EQPVGPV as well as to facilitate and attend to gamersâ&#x20AC;&#x2122; feedback. &KUVTKDWVKQP QH %NKGPV 2TQITCO 6JG )TQWR YKNN FKUVTKDWVG VJG ENKGPV RTQITCO VJTQWIJ VJG XCTKQWU FKUVTKDWVKQP EJCPPGNU VQ GPUWTG VJCV KV TGCEJGU as many gamers as possible. Such distribution channels include free downloads from game websites, giveaways YKVJ XCTKQWU ICOG OCIC\KPGU CPF UCNGU RCEMCIG YKVJ ICOG OCPWCNU CPF "%CUJ RTGRCKF ECTFU +P CFFKVKQP VJG ENKGPV RTQITCO KU CNUQ UGPV VQ +PVGTPGV ECHGU VJCV CTG OGODGTU QH VJG )TQWRÂżU "%CHG RTQITCO YKVJQWV CP[ CFFKVKQPCN charges. 1RGPKPI HQT UGTXKEG 9JGP CNN JCU DGGP RTGRCTGF VJG )TQWR YKNN DGIKP VJG QRGTCVKQP QH VJG QPNKPG ICOG YJKEJ KU FKXKFGF KPVQ stages, as follows. â&#x20AC;˘ +PVGTPCN 6GUV 6JG )COG /CPCIGT CPF UVCHH QH VJG )TQWR YKNN VGUV VJG QPNKPG ICOG HTQO VJG UGTXGT VQ Ă&#x152;PF CP[ GTTQTU CPF VQ Ă&#x152;Z VJGO RTKQT VQ VJG TGNGCUG QH VJG ICOG â&#x20AC;˘ Closed Beta : The game is open for free trials to a limited number of gamers who have been registered or KPXKVGF VQ VT[ VJG ICOG CU RCTV QH VJG GHHQTV VQ Ă&#x152;PF CPF Ă&#x152;Z GTTQTU

052

â&#x20AC;˘ 1RGP $GVC 6JG ICOG KU QRGP VQ CNN ICOGTU YJQ JCXG TGIKUVGTGF VQ VT[ VJG ICOG CU VJG Ă&#x152;PCN RJCUG QH VGUVKPI in hosting as many amount of gamers as possible simultaneously. â&#x20AC;˘ %QOOGTEKCN .CWPEJ #HVGT VJG ICOG JCU DGGP VGUVGF VJG )TQWR YKNN QRGP VJG ICOG HQT UGTXKEG VQ VJG IGPGTCN ICOGTU CV C URGEKĂ&#x152;GF UGTXKEG TCVG 2WDNKEKV[ CPF CFXGTVKUGOGPV 6JG )TQWR YKNN RWDNKEK\G CPF CFXGTVKUG VJG ICOG VQ RTQOQVG VJG NCWPEJ QH VJG ICOG 6JKU KU CNUQ FKXKFGF KPVQ stages, as follows. â&#x20AC;˘ Pre-Marketing : This involves the introduction of the game on game portals, online game websites, game magazines and information technology magazines before the game is available to the public. â&#x20AC;˘ Launching : This involves advertising on game portals and online game websites and sending Electronic Direct Mailer to introduce the game to the current database. â&#x20AC;˘ Developing : The focus is on out-of-game activities on the mass media such as television and newspaper, advertisement boards and internet cafes, as well as in-game activities such as in-game competition. â&#x20AC;˘ Maturing : The focus is on maintaining the current performance of the game via continued marketing efforts in VJG ICOG CU YGNN CU CEVKXKVKGU VJTQWIJ FKUVTKDWVQTU QH "%CUJ RTGRCKF ECTFU CPF KPVGTPGV ECHGU 1PNKPG ICOG NKEGPUKPI HGGU +P RTQXKFKPI QPNKPG ICOG UGTXKEGU VJG )TQWR CESWKTGU ICOG NKEGPUGU HTQO UGXGTCN )COG &GXGNQRGTU QT )COG 2WDNKUJGTU VQ RTQXKFG UGTXKEGU CU VJG UQNG QRGTCVQT HQT VJG ICOG KP C URGEKĂ&#x152;E VGTTKVQT[ CV VJG TCVG CITGGF D[ VJG parties. Most of the agreements have a term of 2-4 years from the commercial launch with the right to renew at the UCOG RTKEG CPF WPFGT VJG UCOG EQPFKVKQPU +P VJKU TGICTF VJG )COG &GXGNQRGTU )COG 2WDNKUJGTU OC[ VGTOKPCVG VJG CITGGOGPVU KP ECUG QH C DTGCEJ QH VJG CITGGOGPVU D[ VJG )TQWR CPF QT VJG )TQWR HCEKPI Ă&#x152;PCPEKCN FKHĂ&#x152;EWNV[ KPUQNXGPE[ KPCDKNKV[ VQ NCWPEJ QPNKPG ICOG UGTXKEGU KP C URGEKĂ&#x152;E VKOG GVE 6JG NKEGPUG HGG QH QPNKPG ICOG ECP DG divided into 4 main types, as follows : â&#x20AC;˘ +PKVKCN NKEGPUKPI HGG C Ă&#x152;ZGF UWO VQ DG RCKF CV VJG FCVG QH UKIPKPI VJG CITGGOGPV QT YKVJKP C URGEKĂ&#x152;GF RGTKQF â&#x20AC;˘ Monthly royalty fee : will be paid depend upon provision of game service in each month. â&#x20AC;˘ /KPKOWO )WCTCPVGG 5QOG %QPVCEV YKNN DG URGEKH[ VJG OKPKOWO NKEGPUG HGG KP GCEJ OQPVJ â&#x20AC;˘ 5WEEGUU HGG RC[CDNG YJGP VJG )TQWRÂżU TGXGPWG HTQO VJG ICOG TGCEJGU VJG URGEKĂ&#x152;GF NGXGN The type and amount of licensing fee payable as well as the payment period will depend upon the negotiation DGVYGGP VJG )TQWR CPF VJG )COG &GXGNQRGT QT )COG 2WDNKUJGT

053

RISK FACTORS

4KUMU HTQO GZVGTPCN HCEVQTU 4KUMU HTQO EJCPIGU KP VJG NCYU CPF TGIWNCVQT[ requirements regarding state control Currently, online game business in Thailand is regulated by the Ministry of Culture, the Ministry of Information and Communication Technology, and Department of Intellectual Property, the Ministry of Commerce. The Ministry of Culture governs game operating licenses and examines the licensed game EQPVGPV DGHQTG KVU NCWPEJ 9KVJKP VJG &GRCTVOGPV QH Intellectual Property, the Ministry of Commerce also plays a part in this regulation through managing the EQR[TKIJV EQFG &+2 EQFG KUUWGF VQ VJG NKEGPUGF owner for game disc production or publication. The Ministry of Information and Communication Technology released the Computer Related Crime Act. B.E. 2550

VQ TGIWNCVG CPF RTGXGPV EQORWVGT TGNCVGF ETKOGU The Ministry of Culture also oversees and assigns game ratings based on the game content. Last year, â&#x20AC;&#x153;The 9JKVG )COG 2TQLGEVĂ&#x201A; YCU TQNNGF QWV VQ RTQOQVG CPF regulate control over the online games industry for ICOGTU KP 6JCKNCPF 9JGTGCU KP 5KPICRQTG /CNC[UKC Indonesia and Philippines, the regulations set in place for online games are less stringent. On the other hand, is relatively new; therefore, government regulations that manages the local operations and licensing of online ICOGU CPF KPVGTPGV ECHGU JCXG [GV VQ DG ENGCTN[ FGĂ&#x152;PGF Online game business in Vietnam is regulated by the Ministry of Culture. There operating licenses and examines the licensed game content before its can be published. The government has very strict censorship policy which dictate the type of contents that can be published. All games with sexual, violent

054

CPF CPVK IQXGTPOGPV EQPVGPVU CTG DCPPGF *QYGXGT currently Vietnamese government has been strictly control the launch of new games lately which blocked out foreign entitles to step in the market. Regardless, any changes in governing policies related to the online games industries or game play RQUGU C RQVGPVKCN GHHGEV QP VJG )TQWRÂżU RGTURGEVKXG DWUKPGUU QWVNQQM Ă&#x152;PCPEG CPF QRGTCVKQPU +P 8KGVPCO the local government holds a strong control over the media sector and enforces strict laws over the local online games business, for instance, policy that restricts foreign investments into Vietnam. Currently, the Company is planning to set up a company in Vietnam and is keeping a close eye on an appropriate time to enter the Vietnamese market. 4KUMU HTQO UVTQPI EQORGVKVKQP CPF KPETGCUG QH PGY QPNKPG ICOG QRGTCVQTU At present, the competitiveness in the online games market in Thailand, Singapore, Malaysia and Vietnam is intensifying as a result of the increasing numbers of new comers vying to share a slice of the RKG 6JG TKUG KP ICOG RWDNKUJGTU CPF KPĂ?WZ QH QXGTUGC publishers, tends to continue due to the exponential ITQYVJ CPF RQVGPVKCN RTQĂ&#x152;VCDKNKV[ QH VJG EWTTGPV ICOKPI UEGPG *QYGXGT VJG %QORCP[ JCU C UVTQPI HQQVJQNF in Southeast Asia and has covered a wide variety of game genres over the past decade, as compared to its competitors. Currently, there are no other publisher which have published all available game genres and has garnered as many users as the )TQWR KP VJG TGIKQP 6Q UVC[ CJGCF QH EQORGVKVKQP the Company also pays attention to the daily trends and demands of the games market in Southeast Asia.

$WUKPGUU TKUMU 4KUMU HTQO VJG HCKNWTG QH VJG ICOG NCWPEJGF VQ VJG OCTMGV YJKEJ VJG NKEGPUGU YGTG CNTGCF[ DQWIJV D[ VJG %QORCP[ ITQWR The initial investment to publish games is substantially high, which primarily accounts for the gameâ&#x20AC;&#x2122;s license fee, servers, related computer equipment, as well as the marketing expenses. If revenues generated from the games operations is PQV UWHĂ&#x152;EKGPV VQ EQXGT VJQUG EQUVU QT YJGP VJG TGXGPWG does not meet the Companyâ&#x20AC;&#x2122;s expectation, it will have C PGICVKXG KORCEV QP VJG HWVWTG QRGTCVKQPU CPF RTQĂ&#x152;V HQT VJG )TQWR %QPUGSWGPVN[ VJG )TQWR OC[ EQPUKFGT to write-off the deferred license fee of the potentially non-remunerative game in full amount if the Company HQTGECUVU NQY RTQĂ&#x152;VCDKNKV[ QWV QH VJG ICOG YJKEJ YKNN NKMGN[ JCXG C FKTGEV GHHGEV QP VJG )TQWRÂżU TGXKGY QH KVU QRGTCVKQPU CPF RTQĂ&#x152;VU FWTKPI VJG CEEQWPVKPI RGTKQF In order to increase the Companyâ&#x20AC;&#x2122;s success, VJG )TQWR YKNN WUG KVU GZRGTKGPEG CU YGNN CU GZRGTVKUG to understand the product, analyze and assess the gameâ&#x20AC;&#x2122;s key selling points before making a decision VQ KPXGUV KP PGY QPNKPG ICOGU +P CFFKVKQP VJG )TQWR JCU FGĂ&#x152;PGF C ENGCT RQNKE[ VQ FKXGTUKH[ KVU UQWTEGU of revenue into various online games licensing by launching more than one online games for reach GCEJ EQWPVT[ #U QH &GEGODGT VJG )TQWR has offered a total 27 online game titles in 6 countries, 17 titles in Thailand, 12 titles in Singapore, 11 titles in /CNC[UKC VKVNGU KP +PFQPGUKC VKVNGU KP 2JKNKRRKPGU CPF VKVNGU KP +PFQEJKPC CPF KU EQPVKPWQWUN[ RNCPPKPI to release new online games in the future. 4KUMU HTQO RQQT UCNGU QH KP ICOG XKTVWCN KVGOU +P VJG RCUV VJG )TQWRÂżU TGXGPWGU YGTG OCKPN[ derived from the Air Time Sale of its online games. *QYGXGT KVU TGXGPWG CV RTGUGPV OQUVN[ EQOGU HTQO the sales of in-game virtual items, the business OQFGN YJKEJ VJG %QORCP[ Ă&#x152;TON[ DGNKGXGU KP CPF will continue to practice. The business model was

055

adapted from the change in consumersâ&#x20AC;&#x2122; behavior towards free-to-play online games where purchase can be made whenever the users desire. Moreover, online game operators today believe that charging service only through selling in-game items would remove the barrier for gamers to enter the game, and potentially converting these gamers into paying users. *QYGXGT VJG )TQWR CNUQ HQTGUGGU C TKUM KP declining revenue from the sales of virtual in-game items due to the intense competition in the free-toplay online game sector. In addition, if a huge proportion of gamers playing the free-to-play game FQ PQV TGĂ&#x152;NN VQ UWRRQTV VJG ICOGÂżU DWUKPGUU TGIWNCTN[ KV OC[ TGĂ?GEV RQQTN[ QP VJG )TQWRÂżU DWUKPGUU Ă&#x152;PCPEG CPF TGUWNVU QH QRGTCVKQPU *QYGXGT VJG %QORCP[ ensures that the chosen games should have various characters and features to entice and encourage gamers to spend; for instance, to buy in-game items to customize game avatars or gain a skill boost. Thus, VJG )TQWR DGNKGXGU KP CFQRVKPI CP CIITGUUKXG marketing business model to target the right group of gamers can potentially make the Companyâ&#x20AC;&#x2122;s business successful. 4KUMU HTQO PCVWTCN FKUCUVGT 6JG Ă?QQF KP JCU FCOCIGF UGXGTCN household properties and affected many provinces in Thailand. The internet cafes, which are also members of the Company, were not spared either. If the local government is unable to mitigate and manage such natural disasters, the Company will be at the risk of OCMKPI NGUU RTQĂ&#x152;VU QT GXGP NQUUGU KP VJG TWP NQPI CU these internet cafes may choose to discontinue their business and their partnership with the Company. 4KUMU HTQO FGRGPFGPEG QP C HGY QH KPVGTPGV UGTXKEG RTQXKFGTU 6JG )TQWR EWTTGPVN[ RTQXKFGU QPNKPG ICOG services through the rental of Internet Data Center

+&% VQ KPUVCNN KVU UGTXGT U[UVGO CPF DCPFYKFVJ HTQO C HGY +PVGTPGV 5GTXKEG 2TQXKFGTU +52U KP GCEJ

country as following : Thailand : For the service in Thailand, the )TQWR TGPVU +&% CPF TGPVU DCPFYKFVJ HTQO 6TWG Internet Data Center Co., Ltd. 5KPICRQTG : For the service in Singapore, the company rents the server from Net Mediacorp and TGPVU DCPFYKFVJ HTQO 5VCT*WD CPF 5KPIVGN /CNC[UKC : For the service in Malaysia, the Company rents the server and bandwidth from %QNQECVKQP *QUVKPI 8KGVPCO : For the service in Vietnam, the company rents the server and rents Bandwidth from DTS Communication Technologies Corporation and FPT Telecom international. 2JKNKRRKPGU : For the service in Philippines, the company rents the server and rents Bandwidth from Philippine Long Distance Telephone Company

G2.&6 The contract was made on a short term basis and can be renewed. Should the aforementioned service providers be unable to provide quality internet UGTXKEGU QT FKUEQPVKPWG VJGKT QRGTCVKQPU VJG )TQWRÂżU online game services would be greatly affected. Such cases will potentially decrease our gamersâ&#x20AC;&#x2122; enjoyment and satisfaction in the Companyâ&#x20AC;&#x2122;s games CPF VJGTGD[ CHHGEVKPI VJG )TQWRÂżU TGRWVCVKQP CPF results of operations in the future. The ISPs referred to above are among the biggest providers in their respective country, with the backup and security systems, which meet international UVCPFCTFU 6JG )TQWR CFFGF OQTG +&% KP DQVJ NQECN and overseas to reduce the risk on the dependency of existing IDC if service was interrupted. 4KUMU HTQO PQV DGKPI C EQR[TKIJV QYPGT CPF QT FGXGNQRGT QH QPNKPG ICOGU +P RTQXKFKPI QPNKPG ICOG UGTXKEGU VJG )TQWR buys copyright of games from the copyright owners who are developers or distributors of the online games in foreign countries to provide online game UGTXKEGU NKEGPUGF HQT TGNGCUG KP CP KFGPVKĂ&#x152;GF VGTTKVQT[

056

HQT CRRTQZKOCVGN[ [GCTU HTQO VJG EQOOGPEGOGPV of its commercial launch at the fee agreed upon with the copyright owners. The copyright owners will provide support in various aspects of the game services UWEJ CU KORTQXGOGPV QH RTQITCO ETGCVKPI RCVEJ Ă&#x152;NG UQNXKPI DWIU GVE 6JG )TQWR OC[ HCEG TKUMU KH CP[ NKEGPUGF ICOGU VJCV VJG )TQWR QRGTCVGU CTG VGTOKPCVGF or not renewed at the acceptable price and under acceptable conditions. There is also a risk of the copyright owners being unable to provide assistance QT VGEJPKECN UWRRQTV VQ VJG )TQWR VQ GPCDNG VJG )TQWR to provide quality services to gamers, which may CHHGEV VJG )TQWRÂżU DWUKPGUU Ă&#x152;PCPEG CPF TGUWNVU QH operations in the future. +P QTFGT VQ TGFWEG UWEJ TKUMU VJG )TQWR JCU C policy of procuring copyright from various developers or distributors of online games, whose reputation is widely recognized. The agreement with the copyright owners will specify renewed terms and conditions as per original, or improved, in order to maximize the DGPGĂ&#x152;VU YJKNG VJG ICOGU CTG UVKNN RQRWNCT KP VJKU ECUG //142) CPF %CUWCN )COGU VGPF VQ DG DG OQUV RTQĂ&#x152;VCDNG KP VJG EQPVTCEVGF RGTKQF DGVYGGP [GCTU 4KUMU HTQO QPNKPG ICOGU EQR[TKIJV XKQNCVKQPU At present, some operators illegally import online game programs whose copyright have been ITCPVGF VQ VJG )TQWR KPUVCNN VJGO KP VJGKT UGTXGTU and provide services of such games through their own network at a lower fee service rate. This may TGUWNV KP VJG NQUU QH UQOG QH TGXGPWG *QYGXGT VJG services provided through the pirated servers are normally poor in quality both in terms of speed and ability to accommodate a large number of players simultaneously. Moreover, players can only play the games on the network of servers in which the games have been illegally installed and cannot play them on VJG )TQWRÂżU PGVYQTM 6JGTGHQTG VJGTG CTG QPN[ C NKOKVGF number of players in the community on such illegal networks. Furthermore, operators violating copyright cannot solve the bugs in the game programs or

technical problems that arise and therefore their services are not as popular among gamers. Therefore, VJG )TQWR DGNKGXGU VJCV VJG NQUU QH KPEQOG HTQO UWEJ ECUGU YKNN PQV CHHGEV VJG )TQWRÂżU Ă&#x152;PCPEKCN EQPFKVKQP by much. In order to reduce the impact of such RTQDNGOU VJG )TQWR UGV WR C VGCO VQ KPXGUVKICVG CPF proceed legal action against copyright violators. 4KUMU HTQO VJG OCLQTKV[ UJCTGJQNFGTUÂż KPĂ?WGPEG QP VJG RQNKE[ CPF OCPCIGOGPV QH VJG )TQWR After this offer of newly issued ordinary shares to the public, the shareholding proportion of /T 2TCOQVJ 5WFLKVRQTPÂżU ITQWR VJG )TQWRÂżU OCLQTKV[ UJCTGJQNFGTU DGEQOGU QH VJG VQVCN RCKF WR ECRKVCN &GVCKN CU QH /CTEJ YJKEJ GPCDNGU

057

them to control the votes in the passing of all resolutions in the meeting of shareholders, except special resolutions which, according to the law, require a vote of three fourths in value of shares held by those present and eligible to vote. Therefore, other shareholders may not be able to gather votes to provide a counterbalance to the majority shareholders. Moreover, the majority shareholders have the power VQ OCPCIG VJG )TQWR YKVJ QH VJGO DGKPI FKTGEVQTU out of a total of 7 directors; with 1 of them being an elected director by the other shareholders. As such, VJG %QORCP[ JCU CRRQKPVGF KPFGRGPFGPV FKTGEVQTU who are outsiders to assess the management of the executives and ensure that the interest of the minority shareholders are being accounted for.

GENERAL INFORMATION

#U QH &GEGODGT

Asiasoft Corporation Public Company Limited â&#x20AC;˘ Type of Business

Providing online entertainment services as an online game and mobile game operator in Thailand, Singapore, Malaysia, Vietnam, Indonesia, Philippines and 5QWVJGCUV #UKC KPENWFKPI FKUVTKDWVKPI 2% )COGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO Âź th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Registered Number

0107550000050

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Website

www.asiasoft.co.th and www.asiasoft.net

â&#x20AC;˘ Registered Capital

$CJV FKXKFGF KPVQ QTFKPCT[ UJCTGU YKVJ C RCT XCNWG QH Baht 1 each.

â&#x20AC;˘ Paid-up Capital

$CJV FKXKFGF KPVQ QTFKPCT[ UJCTGU YKVJ C RCT XCNWG QH Baht 1 each.

058

%QORCPKGU KP YJKEJ VJG %QORCP[ JQNF QT OQTG QH UJCTGU

#U QH &GEGODGT

Funbox Company Limited

(QTOGT PCOG YCU 2NC[RCTM %QORCP[ .KOKVGF

â&#x20AC;˘ Type of Business

9GD RQTVCNU HQT QPNKPG ICOGU CPF YGD CFXGTVKUGOGPV UGTXKEGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO Âź th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Registered Capital

5,000,000 Baht divided into 50,000 ordinary shares with a par value of Baht 100 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Paid-up Capital

QH TGIKUVGTGF ECRKVCN

â&#x20AC;˘ Note

6JKU %QORCP[ YCU EJCPIGF VJG PCOG VQ (WPDQZ %QORCP[ .KOKVGF UKPEG ,WPG 2014. This Company is on the Liquidation process.

Asiasoft International Company Limited â&#x20AC;˘ Type of Business

+PXGUVOGPV #TO *QNFKPI %QORCP[

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Registered Capital

112,000,000 Baht divided into 1,120,000 ordinary shares with a par value of Baht 100 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Paid-up Capital

QH TGIKUVGTGF ECRKVCN

059

A Capital Company Limited â&#x20AC;˘ Type of Business

+PXGUVOGPV #TO *QNFKPI %QORCP[

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO Âź th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Registered Capital

20,000,000 Baht divided into 200,000 ordinary shares with a par value of Baht 100 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Paid-up Capital

QH TGIKUVGTGF ECRKVCN

Playpark Company Limited

(QTOGT PCOG YCU (WPDQZ %QORCP[ .KOKVGF

â&#x20AC;˘ Type of Business

1PNKPG )COGU $WUKPGUU 5GTXKEGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO Âź th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4254

â&#x20AC;˘ Website

www.playpark.com

â&#x20AC;˘ Registered Capital

40,000,000 Baht divided into 400,000 ordinary shares with a par value of Baht 100 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

QH TGIKUVGTGF ECRKVCN

â&#x20AC;˘ Note

This Company was changed the name to Playpark Company Limited since 12 May 2014

Thaiware Communication Company Limited â&#x20AC;˘ Type of Business

Developing computer software, implement computer system and web advertising services.

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 6WPI *WC 2WI $WKNFKPI $ 6QYGT th (NQQT 4QQO 0Q 5QK 5WMUC 9KVVC[C 5KNQO 4QCF 5KNQO 5WD FKUVTKEV $CPI 4CM &KUVTKEV $CPIMQM

â&#x20AC;˘ Telephone

060

â&#x20AC;˘ Facsimile

â&#x20AC;˘ Website

www.thaiware.com

â&#x20AC;˘ Registered Capital

1,500,000 Baht divided into 150,000 ordinary shares with a par value of Baht 100 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

40% of registered capital held by A Capital Company Limited.

Cybergames Corporation Company Limited â&#x20AC;˘ Type of Business

Providing games through the communications and network system services via internet and web advertising services.

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Website

www.thaicybergames.com

â&#x20AC;˘ Registered Capital

1,000,000 Baht divided into 100,000 ordinary shares with a par value of Baht 100 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

QH TGIKUVGTGF ECRKVCN JGNF D[ # %CRKVCN %QORCP[ .KOKVGF

Playcybergames Company Limited â&#x20AC;˘ Type of Business

1PNKPG )COGU $WUKPGUU 5GTXKEGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Registered Capital

20,000,000 Baht divided into 2,000,000 ordinary shares with a par value of Baht 10 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

QH TGIKUVGTGF ECRKVCN

061

Thinkplus Digital Company Limited â&#x20AC;˘ Type of Business

Carry on the providing the service of digital marketing agency via internet and media selling house.

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 7/ 6QYGT 4QQO th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

66 2717 4250

â&#x20AC;˘ Website

www.thinkplusdigital.com

â&#x20AC;˘ Registered Capital

5,000,000 Baht divided into 1,000,000 ordinary shares with a par value of Baht 5 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

QH TGIKUVGTGF ECRKVCN

Miryn Innovation Company Limited â&#x20AC;˘ Type of Business

Carry on the manufacturing and distributing as well as developing and operating the mobile application and games application on mobile phone including computer software.

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

0Q 6JG 0KPVJ 6QYGT )TCPF 4COC th Ă?QQT 6QYGT # 4QQO 60# 4COC 4QCF *WC[MYCPI $CPIMQM

â&#x20AC;˘ Telephone

â&#x20AC;˘ Registered Capital

10,000,000 Baht divided into 1,000,000 ordinary shares with a par value of Baht 10 each. All shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

QH TGIKUVGTGF ECRKVCN

Asiasoft Online PTE. LTD. â&#x20AC;˘ Type of Business

1PNKPG )COGU CPF /QDKNG )COGU $WUKPGUU 5GTXKEGU CPF FKUVTKDWVKPI 2% )COGU in Singapore.

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

-CNNCPI #XGPWG 2KEQ %TGCVKXG %GPVGT 5KPICRQTG

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

062

â&#x20AC;˘ Website

www.asiasoftsea.net

â&#x20AC;˘ Registered Capital

2,000,000 Singapore Dollar, all shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

100% of registered capital held by Asiasoft International Company Limited.

AS Online SDN. BHD. â&#x20AC;˘ Type of Business

1PNKPG )COGU $WUKPGUU 5GTXKEGU CPF FKUVTKDWVKPI 2% )COGU KP /CNC[UKC

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

5WKVG Âź th (NQQT /GPCTC 5WOOKV 2GTUKCTCP -GYCLKRCP 75, 7'2 5WDCPI ,C[C 5GNCPIQT &CTWN 'JUCP /CNC[UKC

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

â&#x20AC;˘ Registered Capital

5,000,000 RM.

â&#x20AC;˘ Paid-up Capital

4,000,000 RM.

â&#x20AC;˘ Shareholding Status

100% of paid-up capital held by Asiasoft International Company Limited.

PT. Asiasoft â&#x20AC;˘ Type of Business

1PNKPG )COGU $WUKPGUU 5GTXKEGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

$GNNG\C 1HĂ&#x152;EG 6QYGT th (NQQT , .GVLGP 5QGRGPQ 0Q ,CMCTVC 5GNCVCP Indonesia

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

â&#x20AC;˘ Website

www.asiasoft.net.id

â&#x20AC;˘ Registered Capital

75 &QNNCT

â&#x20AC;˘ Paid-up Capital

75 &QNNCT

â&#x20AC;˘ Shareholding Status

QH RCKF WR ECRKVCN JGNF D[ #UKCUQHV +PVGTPCVKQPCN %QORCP[ .KOKVGF

063

CIB Development Sdn. Bhd. â&#x20AC;˘ Type of Business

1PNKPG )COGU CPF /QDKNG )COGU $WUKPGUU 5GTXKEGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

Suite 6.05-6.07, 6th (NQQT /GPCTC 5WOOKV 2GTUKCTCP -GYCLKRCP 75, + 7'2 5WDCPI ,C[C 5GNCPIQT /CNC[UKC

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

â&#x20AC;˘ Website

www.cib.com.my

â&#x20AC;˘ Registered Capital

1,000,000 RM, all shares have been issued and fully paid up.

â&#x20AC;˘ Shareholding Status

61.68% of registered capital.

Trilight Cove Enterprises Ltd. â&#x20AC;˘ Type of Business

1PNKPG )COGU CPF /QDKNG )COGU $WUKPGUU 5GTXKEGU KP +PFQEJKPC TGIKQP

â&#x20AC;˘ 4GIKUVGTGF 1HĂ&#x152;EG

2QTEWNNKU 6TWUV0GV %JCODGTU 2 1 $QZ 4QCF 6QYP 6QTVQNC $TKVKUJ 8KTIKP Islands

â&#x20AC;˘ %QTTGURQPFGPV 1HĂ&#x152;EG

-CNNCPI #XGPWG 2KEQ %TGCVKXG %GPVGT 5KPICRQTG

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

â&#x20AC;˘ Registered Capital

75 &QNNCT CNN UJCTGU JCXG DGGP KUUWGF CPF HWNN[ RCKF WR

â&#x20AC;˘ Shareholding Status

60.00% of registered capital held by AS Online Sdn. Bhd.

Level Up!, Inc. â&#x20AC;˘ Type of Business

1PNKPG )COGU CPF /QDKNG )COGU $WUKPGUU 5GTXKEGU KP 2JKNKRRKPGU

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

6th Floor, OPL Building, 100C Palanca St., cor Dela Rosa St., Legaspi Village, Makati City, Philippines

â&#x20AC;˘ Telephone

â&#x20AC;˘ Facsimile

064

â&#x20AC;˘ Website

www.levelupgames.ph

â&#x20AC;˘ Registered Capital

2*2 FKXKFGF KPVQ %NCUU # EQOOQP UJCTGU YKVJ C RCT XCNWG QH 2*2 GCEJ CPF %NCUU $ EQOOQP UJCTGU YKVJ C RCT XCNWG QH 2*2 GCEJ

â&#x20AC;˘ Paid-up Capital

2*2 FKXKFGF KPVQ %NCUU # EQOOQP UJCTGU YKVJ C RCT XCNWG QH 2*2 GCEJ CPF %NCUU $ EQOOQP UJCTGU YKVJ C RCT XCNWG QH 2*2 GCEJ

â&#x20AC;˘ Shareholding Status

100% of Paid-up Capital.

Pomelo Network PTE. LTD. â&#x20AC;˘ Type of Business

Development of the other Software and Programming Activities NEC.

â&#x20AC;˘ *GCF 1HĂ&#x152;EG

%QNGOCP 5VTGGV 6JG #FGNRJK 5KPICRQTG

â&#x20AC;˘ Telephone

â&#x20AC;˘ Website

https://palplus.me

â&#x20AC;˘ Registered Capital

75& FKXKFGF KPVQ %NCUU # EQOOQP UJCTGU YKVJ C RCT XCNWG QH 75& GCEJ CPF %NCUU $ EQOOQP UJCTGU YKVJ C RCT XCNWG QH 75& GCEJ

â&#x20AC;˘ Paid-up Capital

75& FKXKFGF KPVQ %NCUU # EQOOQP UJCTGU YKVJ C RCT XCNWG QH 75& GCEJ CPF %NCUU $ EQOOQP UJCTGU YKVJ C RCT XCNWG QH 75& GCEJ

â&#x20AC;˘ Shareholding Status

11.01% of Paid-up Capital.

065

Reference Persons Registrar Thailand Securities Depository Company 6JG 5VQEM 'ZEJCPIG QH 6JCKNCPF $WKNFKPI 4CVEJCFCRJKUGM 4QCF &KPFCGPI &KPFCGPI $CPIMQM â&#x20AC;¢ Telephone

â&#x20AC;¢ Facsimile

Auditors PricewaterhouseCoopers ABAS Ltd.

Mr. Pisit Thangtanagul CPA License No.4095

$CPIMQM %KV[ 6QYGT VJ (NQQT 5QWVJ 5CVJQTP 4QCF $CPIMQM 6JCKNCPF â&#x20AC;¢ Telephone

â&#x20AC;¢ Facsimile

0 2286 5050

066

INFORMATION OF SECURITIES ANG SHAREHOLDERS

%QORCP[Â¿U 5GEWTKVKGU #U QH &GEGODGT VJG %QORCP[Â¿U TGIKUVGTGF ECRKVCN YCU $CJV FKXKFGF KPVQ QTFKPCT[ UJCTGU YKVJ C RCT XCNWG QH $CJV GCEJ QH YJKEJ $CJV KU RCKF WR ECRKVCN FKXKFGF KPVQ QTFKPCT[ UJCTGU YKVJ C RCT XCNWG QH $CJV GCEJ %QORCP[Â¿U 5JCTGJQNFGTU As of the latest book closing date on 12 May 2015, Top Ten Companyâ&#x20AC;&#x2122;s shareholders were as follows:

0COGU QH 5JCTGJQNFGTU

0Q QH 5JCTGU

*QNFKPI

1. Mr. Pramoth Sudjitporna

42.654

2. Mr. Tan Tgow Lim b

#UKC +PXGUVOGPV 2CTVPGTU .KOKVGF c

/KUU 5CQYCNCM ,KVUCOTKV a

27,000,000

5. Mr. Lertchai Kanpai

5.045

/KUU 5GGV ,KPI *WCP ,GPPKHGT b

15,000,000

4.880

7. Mr. Taweechat Chulangkul

5,700,000

1.854

8. Mr. Chakrit Suwannachot

1,140,100

/KUU #PIMCPC 5QPIMJWPCVWO

10. Miss Thitima Pornsuwan

1,000,000

067

4GOCTMU

C /T 2TCOQVJ 5WFLKVRQTP KU C URQWUG YKVJ /KUU 5CQYCNCM ,KVUCOTKV

D /T 6CP 6IQY .KO KU C URQWUG YKVJ /KUU 5GGV ,KPI *WCP ,GPPKHGT

E Being company for investment in Lombard Asia III Fund, which support and manage by .QODCTF +PXGUVOGPV +PE JGCF QHĂ&#x152;EG CV 5CP (TCPEKUEQ 75# Moreover, Asia Investment Partners Limited is the company for investment which was hold the whole UJCTGU D[ .QODCTF #UKC +++ (WPF JCXKPI JGCF QHĂ&#x152;EG CV *QPI -QPI .QODCTF #UKC +++ (WPF JCU GORJCUK\G VQ KPXGUV in Thailand and other countries in Southeast Asia and has policy to invest in long-term shares in potential competitive EQORCPKGU 7PKV JQNFGTU QH UWEJ HWPF CTG HCOQWU KPUVKVWVKQP KPXGUVQT UWEJ CU VJG %CNKHQTPKC 2WDNKE 'ORNQ[GGUÂż 4GVKTGOGPV 5[UVGO %CN2'45 #UKCP &GXGNQROGPV $CPM +PVGTPCVKQPCN (KPCPEG %QTRQTCVKQP QH VJG 9QTNF $CPM )TQWR CPF (WPF QH (WPFU YJKEJ GUVCDNKUJGF D[ %&% )TQWR 2.% .KUV QH OCLQT UJCTGJQNFGTU YJQ CEEQTFKPI VQ VJGKT EQPFWEVU YGTG CDNG VQ CUUGTV VJGKT KPĂ?WGPEGU VQYCTFU the management policy and operation procedure of the Company with ulterior motives 5JCTGJQNFKPI ITQWRU QT shareholders who owned over 10% and holding position as the Companyâ&#x20AC;&#x2122;s director or sending representative as VJG %QORCP[ÂżU FKTGEVQT CTG /T 2TCOQVJ 5WFLKVRQTPÂżU )TQWR CPF /T 6CP 6IQY .KOÂżU )TQWR &KXKFGPF 2C[OGPV 2QNKE[ +P IGPGTCN KH #UKCUQHV )TQWR JCU PQ HWPFKPI TGSWKTGOGPV HQT CFFKVKQPCN KPXGUVOGPV QT DWUKPGUU GZRCPUKQP CPF JCU UWHĂ&#x152;EKGPV ECUJ Ă?QY #UKCUQHV )TQWR JCU C RQNKE[ VQ RC[ FKXKFGPF VQ UJCTGJQNFGTU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU QH CV NGCUV QH PGV RTQĂ&#x152;V QH GCEJ EQORCP[ CEEQTFKPI VQ GCEJ EQORCP[ÂżU Ă&#x152;PCPEKCN UVCVGOGPVU CHVGT FGFWEVKPI EQTRQTCVG KPEQOG VCZ NGICN TGUGTXGU CPF QVJGT PGEGUUCT[ TGUGTXGU QP C JCNH DCUKU 6JG Ă&#x152;TUV FKXKFGPF payment shall be paid as an interim dividend and the second dividend payment shall be paid as an annual dividend. Nevertheless, this dividend payment rate may be changed depending on the necessity and appropriateness, IKXGP VJCV VJKU EJCPIG OWUV RTQXKFG VJG JKIJGUV DGPGĂ&#x152;V VQ VJG UJCTGJQNFGTU # TGUQNWVKQP QH VJG %QORCP[ÂżU $QCTF of Directors regarding the dividend payment must be proposed to the Shareholder Meeting for approval, except for an interim dividend payment, which the Board of Directors may approve and then report to the next Shareholder Meeting.

068

MANAGEMENT STRUCTURE

$QCTF QH &KTGEVQTU #U QH &GEGODGT VJG %QORCP[ÂżU $QCTF QH &KTGEVQTU JCF OGODGTU CNN QH YJQO JCXG CVVGPFGF the Thai Institute of Directorsâ&#x20AC;&#x2122; training programs, as follows :

2QUKVKQP

#V VJG OGGVKPI FWTKPI

Chairman of the Board

5/5

Vice Chairman of the Board

5/5

Director

5/5

Director

5/5

/T %JCNGTORJQPI ,KVMWPVKXQPI

Independent Director and Chairman of the Audit Committee

5/5

6. Mrs. Monluedee Sookpantarat

Independent Director and the Audit Committee Member

5/5

7. Mr. Thanwa Laohasiriwong

Independent Director and the Audit Committee Member

5/5

0COG 1. Mr. Tan Tgow Lim 2. Mr. Pramoth Sudjitporn /T .GTVEJCK -WPRCK

4. Mr. Surasak Khaoroptham

Mrs. Monluedee Sookpantarat the Audit Committee Member has adequate expertise and experience to review ETGFKVCDKNKV[ QH VJG Ă&#x152;PCPEKCN TGRQTVU Mr. Parinya Kaewmanee is the Secretary to the Board. #WVJQTK\GF &KTGEVQTU VQ DKPF VJG %QORCP[ RWTUWCPV VQ KVU %GTVKĂ&#x152;ECVG QH +PEQTRQTCVKQP Mr. Pramoth Sudjitporn signs signature together with Mr. Lertchai Kunpai or Mr. Tan Tgow Lim totally up 2 RGTUQPU CPF CHĂ&#x152;ZU VJG %QORCP[ UGCN 6JG RTKPEKRCN RQYGT FWVKGU CPF TGURQPUKDKNKVKGU QH VJG $QCTF QH &KTGEVQTU 1. Overseeing, monitoring and managing the Companyâ&#x20AC;&#x2122;s operations to ensure that they are carried out pursuant to the law, the Companyâ&#x20AC;&#x2122;s objectives and the Company Charter and are in line with resolutions adopted at shareholder meetings on the basis of good corporate governance principles, and ensuring that action taken is in line with the rules and regulations prescribed by the SET and the SEC.

069

2. Determining or revising the list of authorized directors to bind the Company. 5GVVKPI RQNKEKGU UVTCVGIKGU CPF FKTGEVKQP HQT VJG %QORCP[ÂżU QRGTCVKQPU CPF UWRGTXKUKPI VJG OCPCIGOGPV VQ GPUWTG GHHGEVKXG CPF GHĂ&#x152;EKGPV KORNGOGPVCVKQP QH VJG FGUKIPCVGF RQNKEKGU VQ ETGCVG JKIJGUV GEQPQOKE DGPGĂ&#x152;VU VQ KVU shareholders and for the Companyâ&#x20AC;&#x2122;s sustained development. 4. Making decisions on important matters such as business plans, budgets, major investment projects, management authority and any other matters prescribed by law. #RRQKPVKPI CP[ UWD EQOOKVVGG U QT KPFKXKFWCN U G I 'ZGEWVKXG %QOOKVVGG #WFKV %QOOKVVGG CPF /CPCIKPI Director, to help in the monitoring, follow-up and supervision of the Companyâ&#x20AC;&#x2122;s management on matters which are substantial within the Boardâ&#x20AC;&#x2122;s jurisdiction. This includes evaluation of performance and determination of TGOWPGTCVKQP HQT VJG OGODGTU QH VJQUG UWD EQOOKVVGG U QT KPFKXKFWCN U QT FGNGICVKQP QH CWVJQTKV[ QH CP[ FWTCVKQP CU KU FGGOGF GZRGFKGPV 5WEJ CWVJQTKV[ OC[ JQYGXGT DG VGTOKPCVGF TGXQMGF OQFKĂ&#x152;GF QT TGXKUGF D[ VJG $QCTF 6CMKPI CEVKQP VQ GPUWTG VJCV VJGTG KU CP GHĂ&#x152;EKGPV CPF GHHGEVKXG U[UVGO KP RNCEG HQT KPVGTPCN EQPVTQN KPVGTPCN CWFKV and risk management and monitoring and following up those issues on a regular basis. 2TGRCTKPI VJG $QCTFÂżU #PPWCN 4GRQTV U CPF VCMKPI EJCTIG QH RTGRCTKPI CPF FKUENQUKPI Ă&#x152;PCPEKCN UVCVGOGPVU VQ IKXG KVU UJCTGJQNFGTU KPHQTOCVKQP QP VJG %QORCP[ÂżU Ă&#x152;PCPEKCN UVCVWU CPF KVU RGTHQTOCPEG KP VJG RTGEGFKPI [GCT *QYGXGT FGNGICVKQP QH CWVJQTKV[ VQ VJG CDQXG UWD EQOOKVVGG U QT KPFKXKFWCN U UJCNN PQV KPENWFG CP[ FGNGICVKQP of authority which will empower any of them to authorise a transaction between the Company or any of its UWDUKFKCTKGU CPF VJG CDQXG UWD EQOOKVVGG U QT KPFKXKFWCN QT VJGKT CWVJQTKUGF TGRTGUGPVCVKXG YKVJ C RQUUKDNG EQPĂ?KEV of interest of any kind. In addition, the Company is required to ask for prior approval from the Companyâ&#x20AC;&#x2122;s shareholders regarding the Companyâ&#x20AC;&#x2122;s entering into a connected party transaction and acquisition or disposal of its OCVGTKCN CUUGVU KP CEEQTFCPEG YKVJ VJG 5'6 CRRNKECDNG TGIWNCVKQPU +H CP[ FKTGEVQT QT KPFKXKFWCN OC[ JCXG C EQPĂ?KEV QH KPVGTGUV CU UVKRWNCVGF KP 0QVKĂ&#x152;ECVKQP U QH VJG 5'% CPF QT VJG 5'6 VJCV FKTGEVQT U QT KPFKXKFWCN U UJCNN PQV JCXG a right to vote or be authorized to approve that transaction in any way. /QTGQXGT VJG $QCTF JCU FGNGICVGF CWVJQTKV[ VQ CP[ QH VJG CDQXG UWD EQOOKVVGG U QT KPFKXKFWCN U VQ GZGEWVG transactions concerning the Companyâ&#x20AC;&#x2122;s operations and investment in its normal course of businesses in which the UEQRG QH CWVJQTKV[ CPF Ă&#x152;PCPEKCN NKOKVU CV GCEJ NGXGN CTG ENGCTN[ FGĂ&#x152;PGF 5WEJ FGNGICVKQP QH CWVJQTKV[ OC[ PQV DG OCFG YKVJQWV UGVVKPI C Ă&#x152;PCPEKCN NKOKV /CPCIGOGPV CEEQTFKPI VQ VJG FGĂ&#x152;PKVKQP QH VJG 5'% CPF VJG 5'6 #U QH &GEGODGT VJG %QORCP[ÂżU /CPCIGOGPV EQPUKUVGF QH GZGEWVKXGU CU HQNNQYU

0COG

2QUKVKQP

1. Mr. Pramoth Sudjitporn

%JKGH 'ZGEWVKXG 1HĂ&#x152;EGT

2. Mr. Lertchai Kanpai

Managing Director

/T -KVVKRQPI 2TWEMUC CTQQP

Deputy Managing Director - Sales

4. Mr. Vinai Vimukti

&GRWV[ /CPCIKPI &KTGEVQT Âź +6

/KUU 5KTKTCVV 9CKUCTC[WVV 6. Miss Ratana Manomongkolkul

&GRWV[ /CPCIKPI &KTGEVQT Âź 2TQFWEVU &GRWV[ /CPCIKPI &KTGEVQT Âź #EEQWPVKPI CPF (KPCPEG

070

ORGANIZTION CHART

Board of Directors Executive Committee

Audit Committee

Chief Executive Officer (CEO) Managing Director (MD)

DMD - Accounting and Finance

DMD - IT

DMD - Product

DMD - Sales

Accounting

IT Infrastructure

Marketing

Customer Care

Business Development

Corporate Finance

Management Information System

Project

FPS & MOBA

Creative

Sales

Corporate Service Internal Control Purchasing

071

6JG RTKPEKRCN RQYGT FWVKGU CPF TGURQPUKDKNKVKGU QH %JKGH 'ZGEWVKXG 1HĂ&#x152;EGT 1. Supervising, monitoring and approving transactions/matters pertaining to the normal course of the Companyâ&#x20AC;&#x2122;s business and that of its subsidiaries to ensure that they remain in line with the Boardâ&#x20AC;&#x2122;s policies and decisions. It is also authorised to delegate authority, as considered appropriate, to the Managing Director, executives or one or several individuals in the Company and its subsidiaries to take any action relating to the Companyâ&#x20AC;&#x2122;s regular and daily operations and those of its subsidiaries. 2. Taking action and managing operations/activities involving the administration of the Company and its subsidiaries. 6CMKPI CP[ CEVKQP KP VJG PQTOCN EQWTUG QH VJG %QORCP[ÂżU DWUKPGUU QT VJCV QH KVU UWDUKFKCTKGU UWEJ CU VJG purchase of goods and licenses, and investment in properties which does not exceed Baht 20 million per each contract, and delegating authority for payments to personnel at executive levels in the Company and its subsidiaries VQ RWTEJCUGU EQPVTCEVWCN JKTG GORNQ[OGPV HQT RTQRGTVKGU CPF UGTXKEGU HQT VJG DGPGĂ&#x152;V QH VJG %QORCP[ CPF KVU subsidiaries. 4. Delegating authority to the Managing Director, employees at the executive level or one or several individuals in the Company and its subsidiaries to take any action considered appropriate on behalf of the Chief Executive 1HĂ&#x152;EGT VJG %'1 FKUEJCTIKPI URGEKĂ&#x152;E FWVKGU UWEJ CU RWTEJCUGU GORNQ[OGPV RC[OGPV WPFGT VJG %'1ÂżU UWRGTXKUKQP CPF YKVJKP VJG VKOGHTCOG VJG %'1 UGVU 5WEJ FGNGICVKQP QH CWVJQTKV[ OC[ DG VGTOKPCVGF TGXQMGF TGXKUGF QT OQFKĂ&#x152;GF by the CEO. 5. Taking action on behalf of and representing the Company and its subsidiaries to third parties in matters TGNCVKPI CPF DGPGĂ&#x152;EKCN VQ VJG %QORCP[ CPF KVU UWDUKFKCTKGU 6. Appointing advisors in various areas necessary for the operations of the Company and its subsidiaries within the budgetary framework authorised each year by the Board. 7. Carrying out any other duties which may be assigned to them from time to time by the Board or the Executive Committee. 6JG %'1 YKNN TGRQTV FKTGEVN[ VQ VJG 'ZGEWVKXG %QOOKVVGG *G QT UJG OWUV CEV KP CEEQTFCPEG YKVJ VJG IWKFGNKPGU and policies set by the Executive Committee. Moreover, the CEO will have no authority to take any action or be involved in any transaction or matter between the Company or any of its subsidiaries and the CEO or his/her authorised representative with a possible EQPĂ?KEV QH KPVGTGUV QH CP[ MKPF *QYGXGT VJKU TWNG OC[ DG YCKXGF KH VJG CWVJQTKUCVKQP KPXQNXGU C VTCPUCEVKQP YJKEJ KU to be undertaken on an armsâ&#x20AC;&#x2122; length basis in the normal course of the Companyâ&#x20AC;&#x2122;s business within the scope of his/ JGT RQYGTU CPF QT Ă&#x152;PCPEKCN NKOKV UGV D[ VJG $QCTF UWDLGEV VQ VJG ETKVGTKC VGTOU CPF RTQEGFWTG WPFGT VJG %QORCP[ÂżU articles of association and the applicable rules of the SEC. 6JG RTKPEKRCN RQYGT FWVKGU CPF TGURQPUKDKNKVKGU QH VJG /CPCIKPI &KTGEVQT 1. Supervising, monitoring and authorising matters pertaining to the normal course of the Companyâ&#x20AC;&#x2122;s operations to ensure they remain in line with the policies set by the CEO. The Managing Director is also authorised to delegate authority to executives or one or several individuals to take any action involving the Companyâ&#x20AC;&#x2122;s regular operations CU JG QT UJG UGGU Ă&#x152;V 7PFGTVCMKPI CEVKQP CPF OCPCIKPI QRGTCVKQPU CEVKXKVKGU KPXQNXKPI VJG IGPGTCN CFOKPKUVTCVKQP QH VJG %QORCP[ÂżU affairs. 'ORNQ[KPI CRRQKPVKPI TGNQECVKPI FKUOKUUKPI CPF VGTOKPCVKPI %QORCP[ GORNQ[GGU DGNQY VJG GZGEWVKXG

072

NGXGN CU YGNN CU FGVGTOKPKPI CPF CFLWUVKPI VJGKT TGOWPGTCVKQP CPF DQPWUGU VQIGVJGT YKVJ CRRQKPVKPI KPFKXKFWCN U VQ represent the Employer on the Companyâ&#x20AC;&#x2122;s Provident Funds Committee. 4. Authorising action in the normal course of the Companyâ&#x20AC;&#x2122;s operations such as the purchase of goods and licenses, and investment in properties which does not exceed Baht 10 million per each contract, and delegating the authority for payments to Companyâ&#x20AC;&#x2122;s executives to purchases, contractual hire/employment for property and UGTXKEGU HQT VJG DGPGĂ&#x152;V QH VJG %QORCP[ 5. Delegating authority to employees at the executive level or to one or several individuals to take any action EQPUKFGTGF CRRTQRTKCVG QP DGJCNH QH VJG /CPCIKPI &KTGEVQT KP QTFGT VQ FKUEJCTIG URGEKĂ&#x152;E FWVKGU QP JKU QT JGT DGJCNH

UWEJ CU RWTEJCUGU GORNQ[OGPV RC[OGPV WPFGT JKU QT JGT UWRGTXKUKQP CPF YKVJKP VJG VKOGHTCOG VJCV JG QT UJG UGVU 5WEJ FGNGICVKQP QH CWVJQTKV[ OC[ DG VGTOKPCVGF TGXQMGF TGXKUGF QT OQFKĂ&#x152;GF D[ VJG /CPCIKPI &KTGEVQT 6. Issuing orders, rules, announcements and memoranda to ensure that work is carried out pursuant to the Companyâ&#x20AC;&#x2122;s policies and in its interests and for the sake of maintaining order within the organisation. 6CMKPI CEVKQP QP DGJCNH QH CPF TGRTGUGPVKPI VJG %QORCP[ VQ VJKTF RCTVKGU KP OCVVGTU TGNCVKPI CPF DGPGĂ&#x152;EKCN to the Company. 8. Carrying out any other duties which may be assigned from time to time by the CEO. The Managing Director will come under the CEOâ&#x20AC;&#x2122;s jurisdiction and will report directly to him or her. The Managing Director will act in accordance with guidelines and policies set by the CEO. Moreover, the Managing Director will have no authority to take any action in or relating to transactions or matters between the Company or CP[ QH KVU UWDUKFKCTKGU CPF VJG /CPCIKPI &KTGEVQT QT VJGKT CWVJQTKUGF TGRTGUGPVCVKXG YKVJ C RQUUKDNG EQPĂ?KEV QH KPVGTGUV QH CP[ MKPF *QYGXGT VJKU TWNG OC[ DG YCKXGF KH VJG CWVJQTKUCVKQP KPXQNXGU C VTCPUCEVKQP YJKEJ KU WPFGTVCMGP QP CP armsâ&#x20AC;&#x2122; length basis in the normal course of the Companyâ&#x20AC;&#x2122;s business and is within the scope of its powers and/or the Ă&#x152;PCPEKCN NKOKV UGV D[ VJG %'1 UWDLGEV VQ VJG ETKVGTKC VGTOU CPF RTQEGFWTG WPFGT VJG %QORCP[ÂżU CTVKENGU QH CUUQEKCVKQP and the applicable rules of the SEC. %QORCP[ 5GETGVCT[ 6JG $QCTF QH &KTGEVQTUÂż /GGVKPI 0Q JGNF QP VJ #WIWUV JCU VJG TGUQNWVKQP VQ CRRQKPV /T %JCNGTOEJCK &WRJCVUCMWN CU VJG %QORCP[ 5GETGVCT[ *G TGUKIPGF HTQO VJG %QORCP[ QP UV 1EVQDGT 6JG Board of Directorsâ&#x20AC;&#x2122; Meeting No. 5/2015 held on 11th November 2015 has the resolution to appoint Mr. Parinya -CGYOCPGG CU VJG %QORCP[ 5GETGVCT[ *G TGUKIPGF HTQO VJG %QORCP[ QP VJ (GDTWCT[ 6JG $QCTF QH Directorsâ&#x20AC;&#x2122; Meeting No. 1/2016 held on 26th February 2016 has the resolution to appoint Mrs. Ratana Manomongkolkul as the Company Secretary, and has the rights, duties and responsibilities in accordance with the laws as summarized following : 1. Prepare and keep the following documents â&#x20AC;˘ a register of directors â&#x20AC;˘ a notice for calling director meeting, a minute of meeting of the board of directors and an annual report of the Company â&#x20AC;˘ a notice for calling shareholder meeting and a minute of shareholdersâ&#x20AC;&#x2122; meeting -GGR TGRQTVU QH EQPĂ?KEV QH KPVGTGUV YJKEJ CTG TGRQTVGF D[ C FKTGEVQT QT OCPCIGOGPV 2GTHQTO CP[ QVJGT CEVU CU URGEKĂ&#x152;GF KP VJG PQVKĂ&#x152;ECVKQP QH VJG %CRKVCN /CTMGV 5WRGTXKUQT[ $QCTF 2TQXKFG CP CFXKEG QP VJG TGNCVGF .CYU 4GIWNCVKQPU CPF CP[ %QTRQTCVG )QXGTPCPEG VQ CNN &KTGEVQT U %QPFWEV VJG $QCTF QH /GGVKPI CPF #PPWCN )GPGTCN /GGVKPI

073

%QPVCEV YKVJ VJG 4GIWNCVQT U UWEJ CU 1HĂ&#x152;EG QH 5GEWTKVKGU CPF 'ZEJCPIG %QOOKUUKQP CPF 6JG 5VQEM Exchange of Thailand, and to comply with the Laws and Regulations, be responsible for disclosing and reporting KPHQTOCVKQP VQ VJG 4GIWNCVQT U CPF 2WDNKE /TU 4CVCPC /CPQOQPIMQNMWN ITCFWCVGF $CEJGNQT QH #EEQWPVKPI HTQO $CPIMQM 7PKXGTUKV[ CPF VJG /CUVGT &GITGG QH /CPCIGOGPV HTQO /CJKFQN 7PKXGTUKV[ &KTGEVQTU CPF /CPCIGOGPV 4GOWPGTCVKQP Monetary Remuneration 1. Directorsâ&#x20AC;&#x2122; Remuneration in 2015

4GOWPGTCVKQP $CJV

/GGVKPI #NNQYCPEG

$CJV

1. Mr.Tan Tgow Lim

2. Mr. Pramoth Sudjitporn

240,000.00

/T .GTVEJCK -CPRCK

240,000.00

/T %JCNGTORJQPI ,KVMWPVKXQPI

240,000.00

280,000.00

5. Mrs. Monluedee Sookpantarat

240,000.00

210,000.00

6. Mr. Surasak Khaoroptham

240,000.00

7. Mr. Thanwa Laohasiriwong

240,000.00

210,000.00

2QUKVKQP

2GTUQPU

4GOWPGTCVKQPa $CJV

Executivesb

&KTGEVQT

6QVCN 2. Remuneration of Management in 2015

Remarks : a Comprising salaries, bonus, contributions to Social Security Funds and Provident Funds, overtime RC[OGPVU CPF YGNHCTG DGPGĂ&#x152;VU b #U FGĂ&#x152;PGF D[ VJG 5'% CPF VJG 5'6 CPF KPENWFGU /T 2TCOQVJ 5WFLKVRQTP CU VJG %'1 c Remuneration were calculated by the actually work days, some management has resigned from the Company during the year.

074

*WOCP 4GUQWTEGU 6JG PWODGT QH GORNQ[GGU CPF TGOWPGTCVKQP HQT VJG )TQWR QH %QORCP[ GZENWFKPI FKTGEVQTU CPF GZGEWVKXGU as of the end of year 2015 is detailed below :

5GEVKQPU

0WODGT QH 'ORNQ[GGU #U QH &GEGODGT %QORCP[

5WDUKFKCTKGUa

6QVCN

1PNKPG )COGU 2TQLGEV

120

Business Development

9GD &KIKVCN

#EEQWPVU (KPCPEG

Sales

Marketing

Creative

*4 CPF #FOKPKUVTCVKQP

Customer Service

102

124

Legal

+PVGTPCN %QPVTQN 1HĂ&#x152;EG

Management

Others

239

6QVCN

6[RG QH 4GOWPGTCVKQP

'ORNQ[GGUÂż 4GOWPGTCVKQP $CJV /KNNKQP

Salaries

Bonus

Others b

Total

075

Remarks : a +PENWFKPI #51 #5+ #5/ 22 26 %+$ 6.% 2%) 62 .7+ /4 b Comprises of contributions to the social security funds and provident funds, social welfare, overtime, commissions and allowances. 5KPEG KV EQOOGPEGF QRGTCVKQPU VJGTG JCU DGGP PQ NCDQWT FKURWVG YKVJKP VJG )TQWR 2QNKE[ QH *WOCP 4GUQWTEG &GXGNQROGPV 6JG %QORCP[ RNCEGU ITGCV KORQTVCPEG QP *WOCP 4GUQWTEG &GXGNQROGPV YKVJ EQPUKUVGPE[ D[ 2QNKE[ CPF 5VTCVGIKE QH *WOCP 4GUQWTEG &GXGNQROGPV KP DWKNFKPI WR VJG DWUKPGUU EQORGVKVKXGPGUU VJGTGHQTG YG HQEWU KP developing and lift up our personal competency with variety of learning models. The Company has provided the employees with the right knowledge, skills and competencies to carry out their duties and strengthen the Company for further prosperity. It is the Companyâ&#x20AC;&#x2122;s policy to provide employees training both in-house and external training courses, training with its business partners who are online game developers. This will enhance employeesâ&#x20AC;&#x2122; knowledge of Information Technology, online games and others. Field Trip in abroad are provided for employees to bring in and apply new technology and know-how for the Companyâ&#x20AC;&#x2122;s business. Employees also learn their jobs by 1P VJG ,QD 6TCKPKPI YKVJ QDLGEVKXG VQ RTQXKFG -PQYNGFIG 5MKNN CPF 'ZRGTVKUGÂżU VTCPUHGT KPENWFKPI 'HHKEKGPE[ Performance of Employees in all levels together with creating the working environment and atmosphere of proactive working to carry out their duties and strengthen the Company for further prosperity.

076

CORPORATE GOVERNANCE

%QTRQTCVG )QXGTPCPEGÂżU 2QNKE[ The Board is aware of its role, duties and responsibilities towards the Company and its shareholders and has already approved written policies pertaining to supervision and monitoring of its operations. Criteria and operating IWKFGNKPGU JCXG DGGP UGV KP NKPG YKVJ 2TKPEKRNGU QH )QQF %QTRQTCVG )QXGTPCPEG QH VJG 5'6 VQ UWRRQTV VJG )QQF %QTRQTCVG )QXGTPCPEG KP RTCEVKEG /QTGQXGT VJG %QORCP[ must comply with the various rules and regulations prescribed by the SEC and the SET in every respect and review its governance policies and evaluate the result pursuant to those policies at least once a year. 1P ,WPG VJG $QCTF QH &KTGEVQTU /GGVKPI No.1/2007 resolved to create policies on the supervision of its operations, which will be used as guidelines. They can be divided into 5 sections, as follows :

â&#x20AC;˘ 9JGTG C UJCTGJQNFGT ECPPQV CVVGPF VJG OGGVKPI KP person, he or she is given the opportunity to appoint an independent director or any individual as his or her proxy at the meeting by using any of the forms of proxy sent by the Company together with the convening notice for the meeting. â&#x20AC;˘ Before a scheduled meeting date, shareholders are given the opportunity to send their opinions, recommendations and questions by e-mail to the +PXGUVOGPV 4GNCVKQPU 1HĂ&#x152;EGT QT VJG $QCTF 5GETGVCT[ â&#x20AC;˘ The Company will arrange an appropriate time-slot for shareholders to make their comments and recommendation or raise questions freely on any agenda item before a resolution is adopted on that item. Adequate information has already been provided to shareholders for these meetings and the Company will arrange to have available staff who are well informed in each area under question, under the Boardâ&#x20AC;&#x2122;s supervision, to respond to any questions or FQWDVU TCKUGF HTQO VJG Ă?QQT â&#x20AC;˘ All directors will attend the meeting so that shareholders may ask for further details or information on any relevant issues.

6JG 4KIJVU QH 5JCTGJQNFGTU The rights of shareholders covers a variety of rights such as the right to purchase, sell or transfer shares, VJG TKIJV VQ UJCTG KP VJG %QORCP[ÂżU RTQĂ&#x152;VU VJG TKIJV VQ attend shareholder meetings, and the right to express an opinion and to participate in making important decisions in the Company. Such decisions include the selection of 'SWKVCDNG 6TGCVOGPV QH 5JCTGJQNFGTU directors, approval of major transactions with a potential It is the Companyâ&#x20AC;&#x2122;s policy to treat all shareholders impact on the Companyâ&#x20AC;&#x2122;s direction, and revisions of the equally and protect their rights in the interest of Companyâ&#x20AC;&#x2122;s Memorandum and Articles of Association. strengthening equitable treatment particularly for minority It is the Companyâ&#x20AC;&#x2122;s policy to promote and facilitate shareholders. For instance : the shareholdersâ&#x20AC;&#x2122; exercise of their various rights, by â&#x20AC;˘ Shareholders will be given equal opportunities and facilities. No action will be taken that will limit, violate such means as the following: or diminish their rights. â&#x20AC;˘ Distribute information concerning shareholder meetings on the Companyâ&#x20AC;&#x2122;s website before sending â&#x20AC;˘ The right to vote at meetings will be determined by the number of shares held by each shareholder at out paper documents, and elaborating on the rights the rate of one vote for one share. of shareholders in attending the meeting and voting.

077

â&#x20AC;˘ Independent directors are assigned to take care of minority shareholders who may make recommendations, comments or complaints to them. These independent directors will give appropriate consideration to each issue. For example, in the case of complaints, they will establish the facts and decide a suitable remedy. In the case that the independent directors consider VJCV VJG TGEQOOGPFCVKQP JCU UKIPKĂ&#x152;ECPV KORCEV QP those with vested interests or on the Companyâ&#x20AC;&#x2122;s operations in general, that issue will then be submitted to the shareholder meeting for the shareholdersâ&#x20AC;&#x2122; consideration. â&#x20AC;˘ Shareholders will be encouraged to exercise their rights. For example, minority shareholders will be given the opportunity to add agenda items before the scheduled meeting date or to nominate directors. The agenda, however, may not be expanded without prior notice to shareholders. â&#x20AC;˘ The Board has taken measures against insider trading by relevant parties including directors, executives, GORNQ[GGU CPF GORNQ[GGU QH VJG )TQWR KPXQNXGF YKVJ VJCV KPHQTOCVKQP KPENWFKPI VJG URQWUGU CPF PQP UWK LWTKU EJKNFTGP QH VJQUG KPFKXKFWCNU

in their work. In addition, channels have been opened for stakeholders to communicate with, and comment or provide information to the Board through independent directors.

4QNG VQYCTFU UVCMGJQNFGTU The Company takes seriously the rights of all stakeholders such as customers, suppliers, employees or shareholders as well as the public and society overall. They will be treated by the Board in accordance with their rights, conditions, legal requirements and various related rules and regulations. Action will also be taken for co-operation between these various stakeholders according to their roles and duties to ensure smooth operations with stability and equitable returns for all parties. To ensure that stakeholders receive their due, the Company has established an operating guideline in its Code of Conduct for Employees. The Code of Conduct has been distributed on the Companyâ&#x20AC;&#x2122;s website and internal communications media such as the Intranet and the PR Board. The directors, executives and employees at every level must adhere closely to the Code of Conduct

078

â&#x20AC;˘ Shareholders : In its determination to achieve good performance, stable growth and competitiveness for the Company in the face of current and future risks, and to create added value for its shareholders in the long-term, it is the Companyâ&#x20AC;&#x2122;s duty to disclose information for the sake of equity and transparency such that it will endeavour to protect the Companyâ&#x20AC;&#x2122;s property and to preserve its good reputation to the best of its ability. â&#x20AC;˘ The Companyâ&#x20AC;&#x2122;s Board of Directors : The Board is aware of the rights of all stakeholders and the action to be taken to treat all fairly and equitably. â&#x20AC;˘ Employees : Employees are a valuable asset of the Company. Therefore the Company recruits people with the relevant skills and experience to ensure the %QORCP[ÂżU ITQYVJ CPF UCVKUH[ KVU TGSWKTGOGPVU *WOCP resource development is ongoing to ensure that staff competencies are maintained at a high level and that staff are appropriately and competitively compensated vis-Ă -vis leading companies. Moreover, the Company is focused on building up and reinforcing a good working culture and environment and treating its employees fairly on an equal basis. The Company looks after employeesâ&#x20AC;&#x2122; security and welfare through its Provident Funds and its provision of loans to GORNQ[GGU CTTCPIGOGPVU HQT Ă&#x152;TG FTKNNU RTQXKUKQP QH safety/security systems etc. â&#x20AC;˘ Customers : The Company focuses on customer satisfaction with its workforce of quality staff and excellent service together with its readiness to meet their demands. Customers are treated respectfully and responsibly and care is taken to keep information from them confidential. Customer feedback is GPEQWTCIGF YKVJ UVCHH URGEKĂ&#x152;ECNN[ CUUKIPGF VQ TGEGKXG complaints. â&#x20AC;˘ Suppliers : The Company takes care to treat its suppliers in line with commercial terms and

contractual obligations. Action is taken within a framework of fair competition avoiding cheating behavior. â&#x20AC;˘ Competitors : The Company functions within a framework of fair competition and has always avoided dishonest measures that try to eliminate competitors. â&#x20AC;˘ Communities, Society and the Environment : The Company fully cognizant of its role as a part of society with a commitment for its well-being, public activities is supported in the interest of developing communities and the Environment. Our online game services are provided with a serious commitment to society as it is the Companyâ&#x20AC;&#x2122;s policy to provide games with suitable content without violence and with appropriate warnings in its games and advertisements. Seminars are arranged to encourage players to spend their time appropriately and to RNC[ VJGKT ICOGU RTQRGTN[ 6JG %QORCP[ KU VJG Ă&#x152;TUV online games operators in Thailand to provide an CIG ENCUUKĂ&#x152;ECVKQP HQT GCEJ ICOG KP CEEQTFCPEG YKVJ VJG 5VCVGÂżU CIG ENCUUKĂ&#x152;ECVKQP RQNKE[ +V CNUQ OCMGU C )COG /CUVGT CXCKNCDNG HQT GCEJ ICOG KP QTFGT VQ check and monitor gamersâ&#x20AC;&#x2122; various activities in the games and to ensure that no violence, gambling or other inappropriate activity is involved. Moreover, its online games services help to build gamersâ&#x20AC;&#x2122; computer skills and expand the internet usage and internet network infrastructure, enabling the public to easily access data and various information. In addition, QPNKPG ICOGU FGXGNQRGF D[ VJG )TQWR JCXG EQPVTKDWVGF VQ VJG FGXGNQROGPV QH 6JCKNCPFÂżU 4 & KP UQHVYCTG and animation.

â&#x20AC;˘ Disclosure of guidelines in recruiting directors, relevant evaluation guidelines and evaluation of the Boardâ&#x20AC;&#x2122;s performance. â&#x20AC;˘ Disclosure of remuneration policies for directors and high-level executives as well as the form, manner and amount of remuneration received by each member of the various sub-committees. â&#x20AC;˘ Disclosure of policies created for protection of the environment and in support of society, and the results of their implementation. â&#x20AC;˘ Report on policies of corporate governance and their implementation. â&#x20AC;˘ Opportunity for the public to raise any concern/query XKC VJG +PXGUVOGPV 4GNCVKQPU 1HĂ&#x152;EGT 4GURQPUKDKNKVKGU QH VJG $QCTF KVU UVTWEVWTG CPF XCTKQWU UWD EQOOKVVGGU

6JG $QCTFÂżU 5VTWEVWTG 6JG XKUKQP QWVNKPGF D[ VJG )TQWR KU VJCV Ă 9G CTG determined to maintain our leadership in Online Entertainment Services involving online games in the Southeast Asian region, with a focus on providing GHĂ&#x152;EKGPV UGTXKEGU FGXGNQRKPI QWT RGTUQPPGN VQ UWRRQTV the services and expanding investment to other high potential countries in the region, under a transparent and accountable management pursuant to the principles QH )QQF %QTRQTCVG )QXGTPCPEGĂ&#x201A; 6Q TGCNK\G VJKU XKUKQP the Board strives to maintain the highest ethical standards within the framework of the law, the Companyâ&#x20AC;&#x2122;s objectives and its Charter as well as resolutions adopted at shareholder meetings with commitment, honesty, integrity and prudence in line with good operating &KUENQUWTG CPF 6TCPURCTGPE[ practice so as to deliver highest economic value to the Besides making complete and timely financial Company and maximum stability to shareholders. disclosure or disclosure of other information to the public via various channels in strict compliance with the law, The Companyâ&#x20AC;&#x2122;s Board of Directors comprises the Company shall also make the following disclosures of people who have knowledge, skills and experience to show the transparency of its operations : drawn from a variety of professions in the areas of PC games, online business, finance, marketing, law, â&#x20AC;˘ Disclosure of information concerning performance management, IT and other fields beneficial to the by various sub-committees such as the frequency of Companyâ&#x20AC;&#x2122;s work. The Board is free to decide in the best their meetings. interests of the Company and its shareholders overall.

079

6JKU $QCTF JCU RNC[GF C RCTV KP FGVGTOKPKPI QT CRRTQXKPI the Companyâ&#x20AC;&#x2122;s Vision, Mission, Strategies, Targets, Business Plans and Budgets as well as supervising the performance of its management to ensure effective implementation of the Business Plans and Budgets for VJG ITGCVGUV GEQPQOKE DGPGĂ&#x152;V HQT VJG %QORCP[ CPF maximum stability for the shareholders. Action has also been taken to ensure that there is a process for regular evaluation of the adequacy of internal control, internal CWFKV TKUM OCPCIGOGPV Ă&#x152;PCPEKCN TGRQTVKPI CPF HQNNQY WR of performance.

terms, openly and transparently. The remuneration shall be submitted for approval to the annual general meeting of shareholders. Criteria governing remuneration of directors are as follows : â&#x20AC;˘ Appropriate and commensurate with the duties and responsibilities of each director. â&#x20AC;˘ At a level capable of attracting and retaining quality directors with suitable ability and knowledge. â&#x20AC;˘ Clear, transparent and easily comprehensible. â&#x20AC;˘ Comparable to the remuneration of directors in the UCOG QT UKOKNCT KPFWUVT[ KGU

Currently, the Companyâ&#x20AC;&#x2122;s Board of Directors EQORTKUGU QH OGODGTU QH YJQO CTG GZGEWVKXG CPF 4 are non-executive. Three members of the Board are independent directors which, therefore, exceeds one-third of the Board thereby giving an appropriate balance vis-a-vis executive directors. The Board has set up 2 sub-committees to help supervise operations of the )TQWR K G VJG 'ZGEWVKXG %QOOKVVGG CPF VJG #WFKV %QOOKVVGG YJKEJ EQPUKUVU QH KPFGRGPFGPV FKTGEVQTU YKVJ C VGTO QH QHHKEG QH WR VQ [GCTU 6JG FWVKGU CPF responsibilities of those Committees have been GZRTGUUN[ FGĂ&#x152;PGF CV RTGXKQWU UJCTGJQNFGT OGGVKPIU

The remuneration for executives will be determined by the Board, both in monetary and non-monetary terms, in line with the Companyâ&#x20AC;&#x2122;s performance and each executiveâ&#x20AC;&#x2122;s performance. They will be set at such rates as are adequately attractive to retain quality senior executives and shall be comparable to rates of other companies in the same grade or operating in the same line of business.

$QCTF /GGVKPIU Board meetings will be convened and conducted pursuant to the Companyâ&#x20AC;&#x2122;s Charter, the laws governing public companies and the rules and regulations of the The Company has clearly separated the duties and SET with special meetings to be convened, where TGURQPUKDKNKVKGU QH KVU $QCTF CPF UGPKQT GZGEWVKXGU 9JKNG necessary. the Boardâ&#x20AC;&#x2122;s duty is to establish policies and supervise The Chairman of the Board, as chairman of the performance of high level executives pursuant to those meeting, will support the exercise of prudent discretion policies, it is the duty of high-level executives to and will allow enough time for the meeting to ensure administer the Companyâ&#x20AC;&#x2122;s affairs in various areas to ensure that major problems may be submitted and discussed that these policies are implemented appropriately. The by management with due diligence. An invitation to the %JCKTOCP QH VJG $QCTF CPF VJG %JKGH 'ZGEWVKXG 1HĂ&#x152;EGT meeting, together with the agenda items and supporting must be two different individuals to ensure that there is a documents, will be sent to the Board at least 7 days clear separation between the determining of supervisory before the meeting. All directors will be required to RQNKEKGU CPF VJG CFOKPKUVTCVKQP QH TGIWNCT CHHCKTU *QYGXGT attend every Board meeting except in the case of an both of them will be representatives of majority shareholder emergency. Minutes of the meeting will be properly and groups, albeit different groups, which together constitute correctly recorded by the Company and will be accessible the Companyâ&#x20AC;&#x2122;s founders. D[ UJCTGJQNFGTU HQT XGTKĂ&#x152;ECVKQP 4GOWPGTCVKQP HQT &KTGEVQTU CPF 'ZGEWVKXGU 4GRQTV HTQO VJG $QCTF QH &KTGEVQTU The Company has a policy of determining remuneration The Board will be responsible for preparing the for its directors, both in monetary and non-monetary

080

%QORCP[ÂżU Ă&#x152;PCPEKCN UVCVGOGPVU KPENWFKPI VJG %QPUQNKFCVGF Financial Statements for the Company and its subsidiaries and the Financial Information to be presented in the Annual Report. Those financial statements will be prepared pursuant to the accounting standard generally accepted in Thailand based on appropriate, acceptable and consistence accounting policies. Discretion and care will be exercised to ensure that the Notes to the Financial Statements disclose adequate vital information. 5GNH 'XCNWCVKQP D[ VJG $QCTF %QOOKVVGG /GODGTU 6Q GPJCPEG VJG GHĂ&#x152;EKGPE[ QH RGTHQTOCPEG D[ KVU XCTKQWU Committees, arrangements are made by the Company to have members of each Committee evaluate their own overall performance so that they can together appraise and look at their performance and problems. Following this evaluation, the Board will analyse their performance and determine measures which will improve the %QOOKVVGGUÂż GHĂ&#x152;ECE[ &GXGNQROGPV QH &KTGEVQTU CPF 'ZGEWVKXGU The Company will support the attendance of its Board and senior executives at training courses which YKNN DG DGPGĂ&#x152;EKCN VQ VJGKT RGTHQTOCPEG CPF YKNN GPCDNG them to exchange opinions, on a regular basis, with Board members and senior executives of other organisations. Such courses include those arranged by the Companyâ&#x20AC;&#x2122;s employee training unit, units under the Stateâ&#x20AC;&#x2122;s jurisdiction and independent entities such as Thai Institution of Directors. It is an SEC requirement

that directors of listed companies attend at least one QH VJGUG EQWTUGU G I &KTGEVQT %GTVKĂ&#x152;ECVKQP 2TQITCO

&%2 &KTGEVQT #EETGFKVCVKQP 2TQITCO &#2 CPF #WFKV %QOOKVVGG 2TQITCO #%2 UQ VJCV MPQYNGFIG CPF experience gained can be used for the Companyâ&#x20AC;&#x2122;s further development. +PXGUVQT 4GNCVKQPU The Board takes care that adequate information is disclosed to its shareholders, investors and other relevant parties. That disclosure must be correct, complete, transparent, comprehensive and on-time RWTUWCPV VQ )QQF %QTRQTCVG )QXGTPCPEG RTKPEKRNGU +V OWUV KPENWFG Ă&#x152;PCPEKCN TGRQTVU QRGTCVKPI TGUWNVU CPF other related information as well as information which may have an impact on the pricing of its securities. Information and various newsletters will be distributed, through channels set up by the SET and the SEC KPENWFKPI VJG %QORCP[ÂżU QYP YGDUKVG YYY CUKCUQHV EQ VJ QT YYY CUKCUQHV PGV CPF YKNN JGNR GPUWTG VJCV investors, shareholders and related parties can use the information in their investment decisions. The Company RNCPU VQ UGV WR CP +PXGUVQT 4GNCVKQPU 7PKV VQ OQPKVQT CPF provide information and newsletters, and to answer queries raised by shareholders, investors, analysts and the public in general.

%QOOKVVGGU #WFKV %QOOKVVGG #U QH &GEGODGT VJG #WFKV %QOOKVVGG JCF OGODGTU CU HQNNQYU

081

2QUKVKQP

#V VJG OGGVKPI FWTKPI

/T %JCNGTORJQPI ,KVMWPVKXQPI

Independent Director and Chairman of the Audit Committee

7/7

2. Mrs. Monluedee Sookpantarat

Independent Director and the Audit Committee Member

7/7

/T 6JCPYC .CQJCUKTKYQPI

Independent Director and the Audit Committee Member

7/7

0COG

Mrs. Ratana Manomongkolkul is Secretary to the Audit Committee. 6JG RTKPEKRCN RQYGT FWVKGU CPF TGURQPUKDKNKVKGU QH of at least the following information : VJG #WFKV %QOOKVVGG â&#x20AC;˘ an opinion on the accuracy, completeness and 1. to review the Companyâ&#x20AC;&#x2122;s financial reporting creditability of the Companyâ&#x20AC;&#x2122;s financial report, process to ensure that it is accurate and adequate; â&#x20AC;˘ an opinion on the adequacy of the Companyâ&#x20AC;&#x2122;s 2. to review the Companyâ&#x20AC;&#x2122;s internal control system internal control system, and internal audit system to ensure that they are â&#x20AC;˘ an opinion on the compliance with the law on securities UWKVCDNG CPF GHĂ&#x152;EKGPV VQ FGVGTOKPG CP KPVGTPCN CWFKV and exchange, the Exchangeâ&#x20AC;&#x2122;s regulations, or the unitâ&#x20AC;&#x2122;s independence, as well as to approve the appointment, laws relating to the Companyâ&#x20AC;&#x2122;s business, transfer and dismissal of the chief of an internal audit unit or any other unit in charge of an internal audit; â&#x20AC;˘ an opinion on the suitability of an auditor, VQ TGXKGY VJG %QORCP[ÂżU EQORNKCPEG YKVJ VJG NCY on securities and exchange, the Exchangeâ&#x20AC;&#x2122;s regulations, and the laws relating to the Companyâ&#x20AC;&#x2122;s business; 4. to consider, select and nominate an independent person to be the Companyâ&#x20AC;&#x2122;s auditor, and to propose such personâ&#x20AC;&#x2122;s remuneration, as well as to attend a non-management meeting with an auditor at least once a year; 5. to review the Connected Transactions, or the VTCPUCEVKQPU VJCV OC[ NGCF VQ EQPĂ?KEVU QH KPVGTGUVU VQ ensure that they are in compliance with the laws and the Exchangeâ&#x20AC;&#x2122;s regulations, and are reasonable and for the JKIJGUV DGPGĂ&#x152;V QH VJG %QORCP[

â&#x20AC;˘ an opinion on the transactions that may lead to conflicts of interests, â&#x20AC;˘ the number of the audit committee meetings, and the attendance of such meetings by each committee member, â&#x20AC;˘ an opinion or overview comment received by the audit committee from its performance of duties in accordance with the charter, and â&#x20AC;˘ other transactions which, according to the audit committeeâ&#x20AC;&#x2122;s opinion, should be known to the shareholders and general investors, subject to the scope of duties and responsibilities assigned by the Companyâ&#x20AC;&#x2122;s board of directors; and

6. to prepare, and to disclose in the Companyâ&#x20AC;&#x2122;s 7. to perform any other act as assigned by the annual report, an audit committeeâ&#x20AC;&#x2122;s report which must Companyâ&#x20AC;&#x2122;s board of directors, with the approval of the be signed by the audit committeeâ&#x20AC;&#x2122;s chairman and consist audit committee.

082

'ZGEWVKXG %QOOKVVGG #U QH &GEGODGT VJG 'ZGEWVKXG %QOOKVVGG JCF OGODGTU CU HQNNQYU

0COG 1. Mr. Pramoth Sudjitporn 2. Mr. Tan Tgow Lim

2QUKVKQP

#V VJG OGGVKPI FWTKPI

Chairman of the Executive Committee

2/2

Executive Committee Member

2/2

6JG RTKPEKRCN RQYGT FWVKGU CPF TGURQPUKDKNKVKGU QH mortgages, provision of collateral/security including the VJG 'ZGEWVKXG %QOOKVVGG purchase/sale and registration of title over land in the normal course of its operations, as considered appropriate, 1. Planning and determining policies, direction and which does not exceeding Baht 40 million. strategies for the Companyâ&#x20AC;&#x2122;s operations to keep them in line with the targets set by the Board for further submission %QPUKFGTKPI VJG %QORCP[ÂżU RTQĂ&#x152;VU CPF NQUU UQ CU to the Board for approval. to recommend to the Board whether an interim or annual dividend should be declared. 2. Determining business plans, budgets and principles governing the operations to keep them in line with the 7. Delegating authority to one or several individuals targets set by the Board. It is also authorised to supervise to act on its behalf on any matter, as considered appropriate, and monitor the Companyâ&#x20AC;&#x2122;s operations to ensure that under the supervision of the Executive Committee and they are in line with the policies, business plans and HQT UWEJ RGTKQF CU KV FGGOU Ă&#x152;V 5WEJ CWVJQTKV[ OC[ JQYGXGT business strategies approved by the Board, subject to DG VGTOKPCVGF TGXQMGF OQFKĂ&#x152;GF QT TGXKUGF D[ VJG 'ZGEWVKXG the laws, any conditions, the relevant rules and regulations Committee. and the Companyâ&#x20AC;&#x2122;s Charter. 8. Carrying out other duties as may be assigned from &GVGTOKPKPI VJG %QORCP[ÂżU QTICPK\CVKQPCN UVTWEVWTG time to time by the Board. management authority, remuneration policy and salary In no circumstance will the above authorisation structure, as well as appointing, employing, relocating, empower the Executive Committee or its authorised terminating, and determining salaries, remuneration and representative to authorise any transaction between the bonus for employees at executive levels. Company or any of its subsidiaries and the Executive 4. Taking any action in the normal course of the Committee or their authorised representative with a Companyâ&#x20AC;&#x2122;s business such as the purchase of goods or RQUUKDNG EQPĂ?KEV QH KPVGTGUV QH CP[ MKPF *QYGXGT VJKU licenses or investment in properties which exceed Baht rule may be waived if the authorisation involves a 20 million but not exceeding Baht 40 million per each transaction which is entered into on an armsâ&#x20AC;&#x2122; length basis in the normal course of the Companyâ&#x20AC;&#x2122;s business contract. and is within the specified scope of the Executive 7PFGTVCMKPI Ă&#x152;PCPEKCN VTCPUCEVKQPU YKVJ DCPMU Ă&#x152;PCPEKCN %QOOKVVGGÂżU RQYGT CPF QT KVU CWVJQTKUGF Ă&#x152;PCPEKCN NKOKV institutions pertaining to the opening of accounts, lending subject to the criteria, terms and procedure under the and borrowing, procurement of credit lines, pledges, Companyâ&#x20AC;&#x2122;s articles of association and the applicable rules of the SEC.

083

Moreover, the Board may revise, where necessary 5WDUKFKCTKGU CPF #HĂ&#x152;NKCVGU )QXGTPCPEG or appropriate, any of the Executive Committeeâ&#x20AC;&#x2122;s duties The Company has sent the representatives to be and responsibilities. FKTGEVQT KP 5WDUKFKCTKGU CPF #HĂ&#x152;NKCVGU CEEQTFKPI VQ the proportion of shareholding of the Company. Such 4GETWKVOGPV QH &KTGEVQTU CPF 6QR 'ZGEWVKXGU representatives have the rights to control the material transaction that is any material agreement or contract Currently, the Company has no Nominating Committee QH 5WDUKFKCTKGU QT #HĂ&#x152;NKCVGU UJCNN UKIP D[ FKTGEVQT YJQ KU for selecting directors. This matter is therefore left to the the representative of the Company. The representative Board, which will select individuals and propose them to of the Company who is nominated to be directors of the shareholders based on a variety of factors such as 5WDUKFKCTKGU QT #HĂ&#x152;NKCVGU JCU VJG FWV[ VQ FQ HQT VJG DGUV their educational background, competencies and business DGPGĂ&#x152;V QH UWEJ 5WDUKFKCTKGU QT #HĂ&#x152;NKCVGU experience. They must also be qualified under the 2WDNKE .KOKVGF %QORCPKGU #EV $ ' 0QVKĂ&#x152;ECVKQP In addition, in case is the Subsidiaries, the of the SEC and other relevant laws. Director selection representatives of the Company who is nominated to will be made by majority vote at shareholder meetings be director of Subsidiaries shall manage Subsidiaries to in accordance with the following criteria and procedure : keep the information and accounting records in order to the Company can verify and collecting such information 1. A shareholder will be entitled to one vote for each VQ RTGRCTG VJG EQPUQNKFCVG Ă&#x152;PCPEKCN UVCVGOGPVU KP VKOG share. 2. The vote to select directors will be done on an /QPKVQTKPI VJG 7UG QH +PUKFG +PHQTOCVKQP +PUKFG individual basis. 6TCFKPI 6JG RGTUQP YKVJ VJG OQUV XQVGU YKNN DG UGNGEVGF CU The Company has introduced a policy and a director. If there is more than one vacancy, the persons measures to prevent the use of inside information which with the most votes in descending order will be selected has not yet been disclosed to the public, for personal CU FKTGEVQTU 9JGTG VJGTG KU C VKG VJG %JCKT QH VJG gain and securities trading : shareholder meeting has a casting vote. 1. Directors, executives, employees and workers &KTGEVQTU YKNN DG KP QHĂ&#x152;EG HQT C VGTO QH [GCTU #V YKVJKP VJG )TQWR OWUV MGGR %QORCP[ KPHQTOCVKQP CPF GCEJ #PPWCN )GPGTCN 5JCTGJQNFGTU /GGVKPI QPG VJKTF QVJGT KPUKFG KPHQTOCVKQP EQPĂ&#x152;FGPVKCN of the Board will retire with those who have been longest in office retiring first. A retiring director may 2. Directors, executives, employees and employees be reappointed for another term. YKVJKP VJG )TQWR OC[ PQV FKUENQUG CP[ EQPHKFGPVKCN KPHQTOCVKQP QT QVJGT KPUKFG KPHQTOCVKQP CDQWV VJG )TQWR For selection of Top Executives, the Board will consider or use it for their own gains or those of others, and nominate the Top Executives by considering based whether directly or indirectly, and whether or not on a variety of factors such as their educational it is for compensation. background, competencies, business experience and their work responsibilities. &KTGEVQTU GZGEWVKXGU GORNQ[GGU CPF YQTMGTU YKVJKP VJG )TQWR OC[ PQV DW[ QT UGNN VTCPUHGT QT CEEGRV the transfer of the Companyâ&#x20AC;&#x2122;s securities through the use

084

QH EQPĂ&#x152;FGPVKCN QT KPUKFG KPHQTOCVKQP CDQWV VJG )TQWR QT photocopying of documents without authorization. VCMG CP[ QVJGT CEVKQP WUKPI VJCV EQPĂ&#x152;FGPVKCN QT KPUKFG KPHQTOCVKQP YJKEJ YQWNF ECWUG VJG )TQWR VQ UWHHGT C 6JG #WFKVQTÂżU TGOWPGTCVKQP loss, whether directly or indirectly. Directors, executives, employees and workers of the )TQWR YJQ YQTM KP C WPKV YJKEJ JCU CESWKTGF KPUKFG information should avoid buying or selling the Companyâ&#x20AC;&#x2122;s UGEWTKVKGU HQT OQPVJ DGHQTG FKUENQUWTG QH KVU Ă&#x152;PCPEKCN statements to the public. This provision includes the spouses and non sui juris children of directors, employees and workers of the )TQWR +V KU C UGTKQWU QHHGPEG VQ DTGCEJ VJKU RTQXKUKQP 4. Directors and executives are required to report to the SEC any change in their holding of securities or that of their spouses and non sui juris children. The Company will take disciplinary action against any of its directors, executives, employees and workers who breaches or fails to comply with the Company policy. The disciplinary action begins with a written notice and is HQNNQYGF D[ UCNCT[ EWV U WPRCKF VGORQTCT[ UWURGPUKQP from work and dismissal from employment, depending on the severity of the offence and the provisions in the Companyâ&#x20AC;&#x2122;s Charter informing all directors, executives, employees and workers of the disciplinary action. Moreover, each director and executive has acknowledged in writing his or her duty to report his or her holding of the Companyâ&#x20AC;&#x2122;s securities and those held by his or her spouses and non sui juris children, and to report any change in such holdings to the SEC and the 5'6 RWTUWCPV VQ UGEVKQP CPF VJG RGPCNV[ RTGUETKDGF by section 275 of the Securities and Exchange Act, B.E.

+P '; 1HĂ&#x152;EG .KOKVGF HQTOGTN[ MPQYP CU 'TPUV ;QWPI 1HĂ&#x152;EG .KOKVGF YCU VJG GZVGTPCN CWFKVQT HQT VJG %QORCP[ CPF KVU Ă&#x152;XG UWDUKFKCTKGU TGURGEVKXGN[ +P PricewaterhouseCoopers ABAS Ltd. was the external auditor for the Company and its twelve subsidiaries, TGURGEVKXGN[ 'ZENWFKPI UWDUKFKCT[ EQORCP[ PCOGN[ Ă 26 #UKCUQHVĂ&#x201A; YJKEJ YCU CWFKVGF D[ ,KOO[ $WFJK 4GMCP Registered Public Accountants, Indonesia, and its CWFKV GZRGPUGU KP CPF COQWPV 6*$ / And 0.07 M. respectively. And excluding subsidiary company, namely â&#x20AC;&#x153;AS Online Sdn. Bhd.â&#x20AC;?, which was CWFKVGF D[ 45/ 4-6 )TQWR /CNC[UKC CPF KVU CWFKV GZRGPUGU KP COQWPV 6*$ / #PF KP CPF GZENWFKPI QPG CPF Ă&#x152;XG UWDUKFKCTKGU KP 6JCKNCPF respectively, which were audited by PYS Audit Co., Ltd., CPF KVU CWFKV GZRGPUGU COQWPV 6*$ / CPF / TGURGEVKXGN[ In 2014 and 2015, EY Office Limited has been provided the purchasing price allocation of valuation YKVJ UGTXKEG HGG COQWPV 6*$ / +P &GNQKVVG 6QWEJG 6QJOCVUW ,CK[QU #WFKV JCU DGGP RTQXKFGF VJG purchasing price allocation of valuation with service fee COQWPV 6*$ / CPF 7PKSWG #FXKUQT %QORCP[ Limited has been provided the internal control systems YKVJ UGTXKEG HGG COQWPV 6*$ / +P 0CXCTTQ #ORGT %Q 2JKNKRRKPGU DGGP RTQXKFGF VJG RWTEJCUKPI price allocation of valuation with service fee amount 6*$ / 6JG CWFKVQTU CPF VJG CWFKV EQORCP[ JCXG no relationship with the Company and the subsidiaries. The following table shows the auditing expenses for the years 2014 and 2015.

On the subject of providing supporting data to KVU CHĂ&#x152;NKCVGU VJG %QORCP[ JCU RTGUETKDGF RTQEGFWTGU to prevent information leaking, such as requesting a UKIPGF %QPĂ&#x152;FGPVKCNKV[ #ITGGOGPV CPF C DCP CICKPUV

085

'ZRGPUG 6[RGU

6JG %QORCP[

6JG 5WDUKFKCTKGU 6QVCN %QORCP[ CPF UWDUKFKCTKGU %QORCP[

5WDUKFKCTKGU 6QVCN %QORCP[ CPF UWDUKFKCTKGU

#WFKV (GGU 6*$ • 5VCVWVQT[ ÌPCPEKCN UVCVGOGPVU

1,110,000.00

• 4GXKGY QH KPVGTKO ÌPCPEKCN UVCVGOGPVU 540,000.00

SWCVGTU 6QVCN CWFKV HGGU

540,000.00

700,000.00

1VJGT 'ZRGPUGU 6*$ • EY

• Deloittle

700,000.00

• 7PKSWG #FXKUQT

607,000.00

• 0CXCTTQ #ORGT %Q

• PricewaterhouseCoopers ABAS Ltd.

6QVCN CWFKV GZRGPUGU

086

CORPORATE SOCIAL RESPONSIBILITY

Asiasoftâ&#x20AC;&#x2122;s vision is absolutely determined to be the high-quality online entertainment provider in the Southeast Asia and resolutely follow the mission that the company would offer the online entertainment to HCKVJHWN EWUVQOGTU *GPEG YG JCXG EQPUVCPVN[ FGXGNQRGF CPF TCKUGF VJG UGTXKEG SWCNKV[ HQT QWT EWUVQOGTU YKVJKP the framework â&#x20AC;&#x153;Your Satisfaction is our Successâ&#x20AC;? for making the most high-quality online entertainment in the region as completely as possible and contributing the service to be a part of social responsibility which highly focuses on the three essential dimensions : Economic, Social, and Environment. 'EQPQOKE #UKCUQHV JCXG TWP VJG DWUKPGUU DCUGF QP Ă %QTRQTCVG )QXGTPCPEGĂ&#x201A; YJKEJ JCU VJG UVTWEVWTG EQPFWEVKQP and internal procedure to determine the direction and supervise the performance for the utmost value including supporting and reinforcing the business to be sustainable. The principles are as follows : â&#x20AC;˘ The shareholderâ&#x20AC;&#x2122;s right : the shareholder has his ownership by controlling the corporate through appointing the committee to operate instead and could have the right to make a decision relating to the corporateâ&#x20AC;&#x2122;s critical transformation. The corporate should support its shareholder to attribute and manage his own right. â&#x20AC;˘ The practice to shareholder should be impartially done : All of the shareholders, both executive and non-executive shareholders, and foreign shareholders must be treated equally and fairly, and the minor ones who has their right offended should be compensated. â&#x20AC;˘ The role of Interested Persons : the interested persons should receive the very good care from the corporate as their right based on the relevant law. The committee should provide the cooperation between the corporate and VJG KPVGTGUVGF RGTUQPU KP ETGCVKPI VJG YGCNVJ VJG Ă&#x152;PCPEKCN UVCDKNKV[ CPF VJG DWUKPGUU UWUVCKPCDKNKV[ â&#x20AC;˘ The information disclosure and transparency : the committee supervise and ask the corporate to disclose VJG ETKVKECN KPHQTOCVKQP DQVJ Ă&#x152;PCPEKCN CPF PQP Ă&#x152;PCPEKCN KPHQTOCVKQP CEEWTCVGN[ EQORNGVGN[ KP VKOG CPF VTCPURCTGPV via the simply accessible, impartial, and reliable channel. â&#x20AC;˘ 6JG EQOOKVVGG TGURQPUKDKNKV[ VJG EQOOKVVGGU JCXG C DKI TQNG KP UWRGTXKUKQP HQT VJG JKIJGUV DGPGĂ&#x152;V QH VJG corporate and are responsible for the outcome of mission operation to shareholders, and are independent of the management control. 6JG IQQF %QTRQTCVG )QXGTPCPEG CUUGUUOGPV YKVJKP VJG OCPCIGOGPV QH 6JCKNCPF +PUVKVWVG QH &KTGEVQT

+1& #UKCUQHV JCU GPTQNNGF VJG UWTXG[ KP NKUVGF EQORCPKGU KP YKVJ TGICTF QH VJG CURGEVU OGPVKQPGF CDQXG KVGOU CNVQIGVJGT YJKEJ #UKCUQHV IGVU VJG CUUGUUOGPV UEQTG CV QT KP IQQF NGXGN EQPVKPWCNN[

088

6JG #PPWCN )GPGTCN /GGVKPI QH 5JCTGJQNFGTU 3WCNKV[ #UUGUUOGPV QH VJG 6JCKNCPF .KUVGF %QORCP[ by Thai Investors Association, Asiasoft has this year score 100 percentage, increasing from the last yearâ&#x20AC;&#x2122;s and the UEQTG KU JKIJGT VJCP VJG CXGTCIG UEQTG QH CNN VJG NKUVGF EQORCP[ VJCV KU RGTEGPVCIG +P VJG [GCT #UKCUQHV JCU RGTEGPVCIG YJKEJ KU JKIJGT VJCP VJG CXGTCIG UEQTG RGTEGPVCIG Asiasoft determines key stakeholders that related to the business operation and both direct and indirect affecting to the business existence.

5VCMGJQNFGTU

2QNKE[ CPF 5VTCVGI[

/GVJQF CPF %JCPPGN

%WUVQOGTU )COGTU

â&#x20AC;˘ Select only high-quality game and service â&#x20AC;˘ Create the survey of service satisfaction. â&#x20AC;˘ %CNN %GPVGT .KXG %JCV 9GDUKVG CTG EQPVCEV based on their need. channels. â&#x20AC;˘ The products and services are in trend â&#x20AC;˘ Conduct within the framework of ISO and up-to-date. â&#x20AC;˘ The customersâ&#x20AC;&#x2122; information would be the 270001:2005, 24/7 supervision ready for service. most safely protected.

Customers : Internet Cafes

â&#x20AC;˘ 7RFCVG VJG PGY KPHQTOCVKQP CDQWV ICOG â&#x20AC;˘ Increase promotion for the internet cafes. â&#x20AC;˘ Develop the critical program to facilitate the internet cafes. â&#x20AC;˘ Support the knowledge for internet cafes owner continually.

â&#x20AC;˘ Visit internet cafes and discuss through the corporate agents. â&#x20AC;˘ Call Center / Live Chat. â&#x20AC;˘ Meet and exchange ideas and accept suggestions.

Staff

â&#x20AC;˘ Take care staff as family member. â&#x20AC;˘ Provide the good welfare. â&#x20AC;˘ 9QTM YKVJKP VJG IQQF GPXKTQPOGPV â&#x20AC;˘ The in-trend device is well managed. â&#x20AC;˘ Every staff gets the impartiality or no partiality. â&#x20AC;˘ Support the working progress in all levels.

â&#x20AC;˘ The internal communication channel is well prepared for the right comprehension. â&#x20AC;˘ The activities for reinforcing the good relationship are done. â&#x20AC;˘ 6QYP *CNN /GGVKPI KU HQT VJG GZGEWVKXG VQ talk with staff. â&#x20AC;˘ Survey the staffâ&#x20AC;&#x2122; satisfaction for the YGNHCTG CPF VJG Ă&#x152;ZGF CEVKXKVKGU â&#x20AC;˘ Consider the promote internal staff prior to external persons.

089

5VCMGJQNFGTU

2QNKE[ CPF 5VTCVGI[

/GVJQF CPF %JCPPGN

Shareholders and Investors

â&#x20AC;˘ Run the business worth for the utmost DGPGĂ&#x152;V â&#x20AC;˘ Operate the business with â&#x20AC;&#x153;good governanceâ&#x20AC;? CPF HQNNQY Ă %QTRQTCVG )QXGTPCPEG Ă&#x201A; â&#x20AC;˘ Follow the law. â&#x20AC;˘ Provide the appropriate supervision.

â&#x20AC;˘ The communication channel to corporate is prepared through investor relations. â&#x20AC;˘ )KXG VJG GSWCNKV[ VQ CNN UJCTGJQNFGTU CPF investors by offering the information constantly and accurately.

Trading Partners and Alliance

â&#x20AC;˘ Transparent and sincere in business contact â&#x20AC;˘ Cooperate and improve the contact fairly in case of request. HQT VJG RTQRGT DGPGĂ&#x152;V â&#x20AC;˘ #EEGRV VJG RTQDNGO CPF OGGV VQ Ă&#x152;PF VJG right conclusion.

Community and Society â&#x20AC;˘ Support the society to learn and understand the effect from providing service. â&#x20AC;˘ Campaign the white game cafe of Ministry of Culture. â&#x20AC;˘ Participate and support the education standard of Thai youth.

â&#x20AC;˘ Meet to talk and discuss about the management guideline. â&#x20AC;˘ Listen to the society and improve the UGTXKEG RTQEGUU HQT VJG WVOQUV DGPGĂ&#x152;V â&#x20AC;˘ Open channels to accept the problems and provide CSR activity to reinforce the sustainable development.

Environment

â&#x20AC;˘ Campaign using the power worthily for â&#x20AC;˘ Survey the quantity of consuming the powers. decreasing the effect to environment. â&#x20AC;˘ Set the target using the power worthily for reducing the expense.

)QXGTPOGPV 5GEVQTU and Audit Agents

â&#x20AC;˘ Follow every steps of regulations.

â&#x20AC;˘ Participate in meeting to offer suggestions and join the relevant activities.

The business conduction transparently is what the corporate highly focuses on. From announcing the intention of Collective Action Coalition of Thai private sectors to be against with corruption on December 8th, 2014, throughout the year 2015, Asiasoft provided the training against corruption for new staff monthly for causing everyone seriously realize the importance and work within the framework of corporateâ&#x20AC;&#x2122;s policy resisting the corruption including the minor companies. Also, the joint venture corporates each support the policy against every form of the cheats and corruptions because the corporate extremely realizes that to bribe and to corrupt could cause a lot of damage to the economic and social development and the country stability. The Company is now in the process of RTGRCTKPI VQ LQKP VJG EGTVKĂ&#x152;ECVKQP D[ VJG CNKIPOGPV QH RTKXCVG UGEVQTU KP 6JCKNCPF HQT DGKPI CP CPVK EQTTWRVKQP EQORCP[ +V KU GZRGEVGF VJCV D[ VJG %QORCP[ YKNN DG UWEEGUUHWNN[ EGTVKĂ&#x152;GF 6JG %QORCP[ JCU CNUQ RTQXKFGF FGVCKNGF information on policies against corruption which appear on the Companyâ&#x20AC;&#x2122;s website, www.asiasoft.co.th/IR, under VJG VQRKE ECNNGF %QTRQTCVG )QXGTPCPEG

090

#EEGRVKPI CPF EQPUKFGTKPI VJG EQORNCKPVU The corporate provides the channel for all stakeholders to contact, offer the information, complain, and suggest including informing any clues relating to the suspicious behavior of corruption or whistleblowing behavior QH VJG EQTRQTCVG OGODGTU UVCHH CPF QVJGT KPVGTGUVGF RGTUQPU *GTGD[ VJG EQOOKVVGGU EQPVTKDWVG VJG OCPCIGOGPV consistent to the good supervision as follows. â&#x20AC;˘ 8KC 2QUV : Asiasoft Corporation Public Limited Company

7 / 6QYGT 4QQO VJ (NQQT 4COMJCOJCGPI 4QCF Suanluang, Bangkok 10250, Thailand

â&#x20AC;˘ Tel â&#x20AC;˘ (CZ â&#x20AC;˘ Website : www.asiasoft.co.th/IR/index.html â&#x20AC;˘ ' OCKN EQTREQO"CUKCUQHV EQ VJ 2TQVGEVKQP OGCUWTGOGPV HQT YJKUVNG DNQYGTU CDQWV VJG EQTTWRVKQP 6Q DWKNF VJG EQPĂ&#x152;FGPEG HQT VJG EQORNCKPGTU CPF YJKUVNG DNQYGTU #UKCUQHV GORJCUK\GU QP MGGRKPI VJG EQORNCKPVU CPF KPHQTOCVKQP EQPĂ&#x152;FGPVKCNN[ CPF JCU VJG OGCUWTGOGPV VQ RTQVGEV VJG YJKUVNGDNQYGTU HTQO KPVKOKFCVKPI or threatening, and for the staff, they will be protected not to be affected in working. For anyone who reacts or threatens the whistleblowers will be punished properly including being charged based on the law. For the previous year, the whole picture of game industry has extremely transformed, and the mobile games have come to have a big role in the game market. The player groups have changed their behavior from previously playing the PC game mainly to currently heading to attend the mobile games increasingly. The corporate itself has planned and adapted to keep up with the market trend and player needs by turning to move forward to the mobile games more and more. For providing the service game both PC and mobile, the corporate has improved the service system constantly by mainly considering the playersâ&#x20AC;&#x2122; need Direction adaptation in business from providing the PC online games to mobile games and applications causes Asiasoft to have new services on mobile channel coming out to service. 2NC[RCTM /QDKNG Ă #P[YJGTG #P[VKOG HQT )COGTUĂ&#x201A; offers information on www.playpark.com via smartphone and smart device for allowing the customers to more convenient access information, activity, and promotions of Playparkâ&#x20AC;&#x2122;s games. 2NC[/QDKNG : An application for the mobile game players who could follow the information of mobile games, news, and could download games through the application effortlessly.

091

2NC[/CNN The top-up system with the features of central wallet for buying items in games and services from Playpark, focusing on convenience and simplicity. Compatible with gamersâ&#x20AC;&#x2122; using throughout Southeast Asia : Thailand, Singapore, Vietnam, Malaysia, Indonesia, and Philippine, together with the website that supports 6 languages altogether. 2CN This forum application is the center for people who are interested in the same things to talk in the form of DQCTF 7UGTU YKNN Ă&#x152;PF PGY HTKGPFU YKVJ VJG UCOG NKHGUV[NGU 6JKU application is ready to service in more than 14 countries : England, 6JG 7PKVGF 5VCVGU QH #OGTKEC %CPCFC /KFFNG 'CUV 6CKYCP ,CRCP 5KPICRQTG /CNC[UKC 2JKNKRRKPGU 6JCKNCPF )GTOCP[ Russia, Vietnam and Indonesia. $CVVNG PGV ' 2KP *GTQGU QH VJG 5VTQO KPETGCUGU another channel of topping up into Battle.net system, for buying games and other services of Blizzardâ&#x20AC;&#x2122;s ICOGU UWEJ CU *GTQGU QH VJG 5VTQO *GCTVJUVQPG QT StarCraft. The customers can buy the code at Counter Service in 7-Eleven with three alternatives of prices : CPF $CJV "7RFCVGT 6JKU #WVQ )COG 7RFCVG RTQITCO KU especially developed for the internet cafe business, to help decreasing the burden and the expense of the internet cafe management, saving time and cutting down the complicated instruction when install a new game or update a new patch. The customers could set working time of the system as needed, to avoid the prime VKOG QH ICOG WUGTU "7RFCVGT UWRRQTVU VJG KPVGTPGV ECHG VJCV WUGU &KUMNGUU U[UVGO QT *CTFFKUM YKVJQWV CP[ RTQDNGOU $GUKFGU VJG U[UVGO JCU )COG /GPW KPUVCNNGF at the target computer for facilitating the customersâ&#x20AC;&#x2122; use YKVJ VJG ICOG RTQITCO ENCUUKĂ&#x152;ECVKQP +P #UKCUQHV developed a new version which is more convenient and faster to update the games, and increase the privileges, such as free IP Bonus. "-G[ #UKCUQHV KPKVKCVGF VQ UGTXKEG "-G[ U[UVGO with the form of portable device in 2010, which was the device creating code to prevent hacking and boosting

092

UGEWTKV[ HQT 2NC[RCTM ICOGTU +V YCU 1PG 6KOG 2CUUYQTF 162 #PF KP YG FGXGNQRGF "-G[ QP /QDKNG KP VJG CRRNKECVKQP HQTO WUKPI QP OQDKNG RJQPG QT VCDNGV 2TGUGPVN[ OQTG VJCP "-G[ KVGOU CPF EQFGU QH "-G[ on Mobile altogether are used. Providing customer service is the very first thing that Asiasoft attends the most because â&#x20AC;&#x153;customersâ&#x20AC;&#x2122; satisfaction is our workâ&#x20AC;?, which has adapted working process and service structure appropriately and QRGPU %CNN %GPVGT CPF .KXG %JCV UGTXKEG KP VJG UCOG VKOG C O R O (QT VJG RCTV QH EQORNCKPV KPHQTO XKC YGDUKVG (QTO 6QQN KV KU UVKNN JQWT UGTXKEG (TQO VJG EJCPPGNU RTGRCTGF HQT UGTXKPI EWUVQOGTU VJG RTQRQTVKQP QH WUG KU .KXG %JCV %CNN %GPVGT CPF (QTO 6QQN YJKEJ OQTG VJCP VKOGU QH ECUG CEEGUU /QUV QH VJGO YGTG TGNCVGF VQ ICOG RTQDNGOU UWEJ CU VJG ICOG EJCTCEVGTU JWPI HTQO $WIU Ă&#x152;PFKPI DQV or playing facilitating program, or being blocked from Auto Block system. The campaign of fair playing without the facilitating program still is a topic that Asiasoft continually focuses on for not causing any advantage or disadvantage between gamers. In 2015, monitoring wrongdoers in the part of using facilitating program was done by banning more than 160,000 ID which was 67% reduced from the year 2014. Asiasoft increases contact channels as customersâ&#x20AC;&#x2122; changed behavior by using Youtube channel to communicate UVQTKGU TGNCVKPI VQ ICOGU CPF KPVTQFWEGU VJG UGTXKEG D[ RTQFWEKPI VYQ RTQITCOU Ă 5CTC &GG &GG $[ )/Ă&#x201A; CPF Ă )/ )COG 4GXKGYĂ&#x201A; YJKEJ JCF OQTG VJCP VKOGU QH XKGY Knowledge Base or corpus of game and computer knowledge TGEGKXGF WRFCVG TGIWNCTN[ 0QYCFC[U VJGTG CTG CTQWPF VQRKEU in Knowledge Base, which was created by our team who is controlling and supervising game information, and gamers who wanted to share their experience with other gamers. 5QEKCN In Asiasoftâ&#x20AC;&#x2122;s business conduction, the main point of online entertainment service for users is staff who is VJG ETKVKECN IGCT QH FTKXKPI DWUKPGUU CPF UGPFU VJG RGQRNG KP VJG UQEKGV[ JCRRKPGUU 9G CVVGPF CPF ECTG GXGT[ RCTV of our staff like our family members because we believe that if our staff work happily, they will be able to multiply offer happiness to our customers using our service. Asiasoft members in 6 countries across Southeast Asia are up VQ +P PGY UVCHH EQOKPI VQ YQTM CV #UKCUQHV YGTG RGQRNG #XGTCIGN[ VJGTG YGTG PGY UVCHH GCEJ OQPVJ 6JG TCVG QH PGY UVCHH KP YCU RGQRNG *GTGD[ KV KU UCHG VQ UC[ VJCV #UKCUQHV JCU ETGCVGF UGXGTCN occupations and positions relating to game industry, both general work such as accounting, information and VGEJPQNQI[ CPF OCTMGVKPI CPF FGOCPFKPI YQTM UWEJ CU )COG 2NCPPKPI )COG 5WRRQTV )COG 2TQLGEV )COG 6GUVGT CPF )COG 5RGEKCNKUV YJKEJ KU C MKPF YQTM VJCV TGNKGU QP HCXQT CPF RCUUKQP KP RNC[KPI ICOGU 6JG UVCHH JCXG VQ FGXGNQR VJG GZRGTVKUG HWTVJGT VQ OCMG DGPGĂ&#x152;VU HQT VJG EQTRQTCVG Asiasoft is regarded as a corporate that creates and offers happiness in both online world and real society; VJGTGHQTG QWT UVCHH CTG C PGY IGPGTCVKQP VJCV WPFGTUVCPFU VJG ICOGTUÂż PGGFU 9G CNUQ CTG VJG EQTRQTCVG VJCV JCU PQ sexism in recruitment and employment. As you could see from the amount of male and female staff that is slightly different. Asiasoft opens the opportunity of working for every gender and every age to be a part of work creating the online entertainment for our society.

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The staffâ&#x20AC;&#x2122;s potential development in all levels was pleasantly supported by the executives who could see how important learning was, which made all staff keep up with technology and transformation, including increasingly learning new knowledge from untraditional or unexpected surroundings. In 2015, we had all staff attend the knowledge training and seminar. Apart from domestic staff training, Asiasoft held the staff training from every country by having Thailand as Regional Meeting. Both online and workshop training were done for developing the staff potential of each country to reach the same standard including department head and worker levels. +P YG EQPUKFGTGF VQ RTQOQVG VJG GZVGTPCN UVCHH RQUKVKQPU D[ UGNGEVKPI HTQO VJGKT EQORGVGPEG CPF RTQĂ&#x152;EKGPE[ HQT VJG JKIJGT RQUKVKQP TGURQPUKDKNKV[ +V YCU VJG EQTRQTCVGÂżU RQNKE[ VQ RWUJ UVCHH HQTYCTF VQ DG CDNG VQ ITQY KP VJGKT YQTMKPI Ă&#x152;GNFU CPF KP GCEJ [GCT 6QR 6GUVGT #YCTF YQWNF DG GNCDQTCVGN[ IKXGP VQ CP[ UVCHH YJQ EQWNF EQPVTKDWVG VQ VGUV ICOGU DGHQTG QHĂ&#x152;EKCNN[ NCWPEJKPI The opportunity of working was open to all staff to show their ability or responsibility in the special project aside from their main duty, which was greatly supported by Asiasoft. In 2014, we established the special department named â&#x20AC;&#x153;Change Teamâ&#x20AC;? and â&#x20AC;&#x153;Reboot Teamâ&#x20AC;? by selecting staff in each department to join. Change Team has the main target in improving the process and regulations more appropriate and up to date. For Reboot Team, it has the main goal to study and improve the customer service process in every part of the system to be more convenient, easier, not complicated. In 2015, both teams still had the great performance and offered the executive team some aspects to revise such as the internal regulations, PlayMall system, PlayID system, and so QP /QTGQXGT 4GDQQV 6GCO JGNF 7UGT 'ZRGTKGPEG VTCKPKPI HQT UVCHH KP CNN NGXGNU DQVJ GZGEWVKXGU CPF YQTMGTU HQT VJG better understanding and access to the usersâ&#x20AC;&#x2122; needs. Asiasoft attends the welfare of every staff, which covers in every part both the basic welfare that they should receive such as salary, wage, bonus, allowance and supporting budgets including corporate welfare fund. Furthermore, annual checkup is done together with health insurance apart from social security to all staff, and the corporate is interested in staffâ&#x20AC;&#x2122;s health by founding badminton, table tennis, and football clubs allowing all staff to exercise for their health. For the conscious mind, we activate all staff to be socially responsible for keeping the online entertainment creation sustainably move forward together with the society and opening the opportunity to all to enjoy happiness both online world and real life, which causes everyone learn to share their own happiness to others in our society through several forms of activities. )COGTU .QXG &CF This project encourages gamers to share the kindness to society, and has been EQPVKPWQWUN[ JGNF HQT VGP [GCTU 6JKU [GCTÂżU EQPEGRV KU Ă 6KOGU /WNVKRN[ )QQFPGUU 7R .GXGN QH 5JCTKPI VJG Endless Kindnessâ&#x20AC;?. The gamers could join by simply buying the special items â&#x20AC;&#x153;Love Dadâ&#x20AC;? from 8 Playparkâ&#x20AC;&#x2122;s games. The income from distributing the special items was LQKPVN[ FQPCVGF VQ HQWPFCVKQPU WPFGT VJG 4Q[CN 2CVTQPCIG QH *KU /CLGUV[ VJG -KPIU TGNGXCPV VQ children and youthâ&#x20AC;&#x2122;s education : The Chaipattana Foundation, Ananda Mahidol Foundation, Phra Dabos Foundation, Rajaprajanugroh Foundation under the

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4Q[CN 2CVTQPCIG &KUVCPEG .GCTPKPI (QWPFCVKQP 6JCK ,WPKQT 'PE[ENQRGFKC 2TQLGEV D[ 4Q[CN %QOOCPF QH * / the King, Foundation for the Better Life of Children, Foundation for Child Development, and Books for Children (QWPFCVKQP #NUQ VJG ICOGTU ECP UJQY VJG NQ[CNV[ D[ UKIPKPI VQ DNGUU *KU /CLGUV[ VJG -KPI XKC YGDUKVG (QT VJG FQPCVKQP VJG VQVCN QH VJG [GCT YCU $CJV CPF HTQO VJG UWEEGUU QH )COGTU .QXG &CF 2TQLGEV HTQO VJG Ă&#x152;TUV VQ VJG VGPVJ [GCT VJG VQVCN FQPCVKQP YCU $CJV PGV #UKCUQHV /QXKPI (QTYCTF In 2015, Asiasoft had the campaign for staff to exercise for health, with the running mission of 5 kilometers within an hour. The target was more than 80% of all the staff must be CDNG VQ VQWEJ VJG Ă&#x152;PKUJ NKPG CPF KV GZEGGFGF VJG VCTIGV YKVJ +P this mission, it was regarded as the cooperation of staff in each department that had training and suggested techniques to each other. 5PGCMGTU HQT %JKNFTGP From Asiasoft Moving Forward, 5 km TWPPKPI HQT JGCNVJ VQ CPQVJGT EQPVKPWCN CEVKXKV[ 9G YCU ICVJGTKPI VJG WUCDNG UGEQPFJCPF UJQGU VQ FQPCVG VQ the secondary school students at Krok Krak Municipal School, Krok Krak Subdistrict, Muang District, Samutsakhon. The children can use their new shoes, both school shoes and sneakers, to do many activities. This project made Asiasoftâ&#x20AC;&#x2122;s staff realize that giving and sharing to others are the starting point of the happiness, for both givers and receivers. #UKCUQHV 5JCTKPI )KXG .QXG 5JCTG *CRRKPGUU CPF /CMG %JKNFTGP 5OKNG 9G ICVJGT WUCDNG FQNNU FTCYKPI DQQMU CPF VQ[U then donate to the pediatric patients in Queen Sirikit National Institute QH %JKNF *GCNVJ %JKNFTGPÂżU *QURKVCN +V YCU TGICTFGF CU KPUVKNNKPI QWT staff with sharing without expecting anything in return. #5 8QNWPVGGT #EVKXKV[ Ă 5GNGEV -G[ 2CEMĂ&#x201A; This volunteer activity at The Mirror Foundation, was selecting the book types for giving the TGCFCDNG DQQMU VQ VJG FGĂ&#x152;EKGPV UEJQQNU CPF EQOOWPKVKGU (TQO OQTG than many hundreds of books, we had them selected into more than ECTFDQCTF DQZGU CPF VJG IQXGTPOGPV QHĂ&#x152;EGTU ENCUUKĂ&#x152;GF VJG DQQMU before sending to the schools for the underprivileged children who could have more books to read to increase and review their knowledge as needed, which was the target of contributing to nation project. 5JCTKPI 5GEQPFJCPF %QORWVGTU Our secondhand computers with full accessories could help supporting the education of the rural schoolsâ&#x20AC;&#x2122; children. In 2015, we submitted 10 sets of computer to Ban 6C )Q .CPI 5EJQQN 5WCPIRGWPI &KUVTKEV 4CVEJCDWTK HQT HCEKNKVCVKPI the education of the rural and underprivileged schools.

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#WFKVKQPÂżU VJ ;GCT %GNGDTCVKQP 2CTV[ 6CMKPI ICOGTU VQ OCMG C OGTKV CV 2CMMTGF $Q[U *QOG D[ IKXKPI the children utilities, educational materials, and 10,000 Baht donation, including sharing lunch. 9KPIU QH #WFKVKQP Audition supports the gamersâ&#x20AC;&#x2122; creativity by throwing the wings design contest. /CP[ KPVGTGUVGF RGTUQPU UGPV VJGKT YKPIU VQ LQKP RCVVGTPU CNVQIGVJGT 6JG YKPPGT IQV $CJV CPF VJG YKPIU YGTG UGPV VQ VJG FGXGNQRGT VQ ETGCVG VJGO CU C URGEKCN KVGO HQT VJG ECORCKIP Ă *CRR[ 0GY ;GCT 9KPIU 2CTV[Ă&#x201A; 6JG DGUV YKPIU VJCV YQP YCU PCOGF Ă 4GF $NWG 9KPIU Ă&#x201A; -GGR &TGCOKPI After the inspirations was created through clip videos from famous net idols such as Tar (GFHG $KG VJG 5MC *CRR[ 2QNNC $CO $CO $KY $CNNC ,WPQ &QWDNG 6CR CPF #OO 2CXKVTC #WFKVKQP DGNKGXGU VJCV everybody has dream and the dream was special with no expire date, and not everyone is dare to follow his dream. This activity supports everyone to follow the dream. )TCPF 7PNQEMKPI $CPPGF )COGTU This activity brought ID banned gamers back to play with the old user accounts again. The gamers got the same old characters, NGXGN KVGOU XCNKF CPF %CUJ KP ICOG DCEM YKVJKP VYQ etiquettes of choice : blood donation or 1,000 Baht FQPCVKQP HQT LQKPVN[ UWRRQTVKPI )COGTU .QXG &CF 6JG total unlocked IDs were 548 And the total donation was $CJV &QPCVKQP VQ 0GRCN 'CTVJSWCMG 4GNKGH On April 2015, Asiasoft donated 100,000 Baht net to Thai Red Cross to relieve the earthquake sufferers at Nepal, and also publicized several assisting channels via social medias. 'PXKTQPOGPV Asiasoft pursues in the conduction attending to the environment, focuses on prevention, and reduces pollution or other things affecting to or damaging the environment such as decreasing using power with saving to conserve environment, which is the policy that we have regularly conducted. 6JG GNGEVTKEKV[ UCXKPI RTQLGEV 4GFWEKPI VJG NKIJV FWTKPI VJG DTGCM CPF VWTPKPI QHH VJG CKT EQPFKVKQPGT minutes before the closing hour, could reduce the expense up to 18% when compared with the data of the year 9G UGV VJG VCTIGV CU Ă %QQRGTCVG CPF %QOG VQIGVJGT VQ GEQPQOKECNN[ WUG VJG GNGEVTKEKV[ Ă&#x201A; $[ VJKU YG could reduce the expense up to 20%. 6JG TGFWEKPI RCRGT RTQLGEV Started from 2014 by persuading every department to reduce the quantity of using document in form of paper and change to use electronic folder instead. In 2015, we could lower the paper use 4% of all departments. $KI %NGCPKPI &QPG GXGT[ OQPVJ HQT CUMKPI GXGT[ UVCHH VQ MGGR YQTMKPI RNCEG CPF UVWHH VKF[ YJKEJ EQWNF lower the unused document or unnecessary things for working.

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2NCPV /CPITQXG (QTGUV 6QIGVJGT More than 70 participants plant 200 mangrove in the area of Khlong Khon Mangrove Forest Preservation Center, Klong Khon Subdistrict, Muang District, Samutsongkhram. This project made all staff realize the importance and instilled conscious mind preserving Mangrove Forest natural resource, which was the versatile resource providing the advantages KP HQTGUV CPF Ă&#x152;UJGT[ CPF JGNRGF UWUVCKPCDN[ OCKPVCKP CPF TGKPHQTEG the ecology of our country. *QPQT #YCTF #WFKVKQP YQP 6JCKNCPF )COG #YCTF $GUV /WUKE )COG HTQO 6JCKNCPF )COG 5JQY $KI (GUVKXCN by continually getting award every year. 6JKU KU VJG VJ [GCT QH #WFKVKQP YJKEJ YCU QTKIKPCNN[ -QTGCP QPNKPG ICOG +V JCF VJG QHĂ&#x152;EKCNN[ Ă&#x152;TUV FGDWV KP Thailand in August 2007, which phenomenally affected to online games with the overwhelming response from ICOGTU 9KVJ VJG GNGOGPVU QH EQNQTHWN EJCTCEVGTU VJCV YGTG UQ CFQTCDNG RNWU HCUJKQP OCNN FGUKIPKPI VJG XCTKQWU styles to select, fashion and costumes plus 6,700 items, and more than 67 dance modes with over 400 Thai and international songs to dance, Audition has been the number one popular Club Dance of Thailand and had the COQWPV QH TGIKUVTCPVU WR VQ OKNNKQP +&U KP

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INTERNAL CONTROL AND RISK MANAGEMENT

The Companyâ&#x20AC;&#x2122;s Board of Directors and Audit Committee assessed the Companyâ&#x20AC;&#x2122;s internal control systems by following the internal control system adequacy assessment form. They concluded that the Companyâ&#x20AC;&#x2122;s internal control system is adequate and proper for the Companyâ&#x20AC;&#x2122;s business, free from any material defect and can prevent the Companyâ&#x20AC;&#x2122;s or the subsidiariesâ&#x20AC;&#x2122; properties from misuse or unauthorized use of the management. The Board of Directors and the Audit Committee also highlighted the Companyâ&#x20AC;&#x2122;s improvement in the practice of good corporate governance in accordance with the SETâ&#x20AC;&#x2122;s 2006 good corporate governance principles for listed companies. +PVGTPCN %QPVTQN The Company has strongly emphasized on the efficiency of its internal control systems at both the management and the operational levels with the aim to prevent or reduce possible risks. In this regard, the Company prepared a compliance manual to specify the duties, responsibilities and powers of staff and management, and to clearly separate the duties of operators, controllers and assessors from one another so as to create a proper system of checks and balances. Additionally, the Company hire Outsourcing Internal Audit to audit and assess the %QORCP[ÂżU KPVGTPCN EQPVTQN U[UVGOU CPF VQ GPUWTG VJCV VJG %QORCP[ÂżU OCLQT CEVKXKVKGU CPF UKIPKĂ&#x152;ECPV Ă&#x152;PCPEKCN CEVKXKVKGU CTG RGTHQTOGF KP CEEQTFCPEG YKVJ VJG UVKRWNCVGF TWNGU YKVJ OCZKOWO GHĂ&#x152;EKGPE[ CPF VQ EJGEM VJG %QORCP[ÂżU EQORNKCPEG YKVJ TGNCVGF NCYU CPF TGIWNCVKQPU %QORNKCPEG %QPVTQN 6Q GPUWTG VJCV VJG 1WVUQWTEGF +PVGTPCN #WFKV are independent and able to perform its supervisory duty, the Board of Directors requires that the Outsourced Internal Audit report the audit results directly to the Audit Committee and that the Outsourcing Internal Audit must be assessed its performance by the Audit Committee. In the Meeting of the Companyâ&#x20AC;&#x2122;s Board of Directors No. 12/2016 held on 26 February, 2016 and attended by all members of the Audit Committee, the Board considered and evaluated the internal control system and approved the Companyâ&#x20AC;&#x2122;s internal control system adequacy assessment form that was prepared by Management. #HVGT CUUGUUKPI VJG %QORCP[ÂżU KPVGTPCN EQPVTQN U[UVGO KP CTGCU YJKEJ CTG FKXKFGF KPVQ RTKPEKRNGU PCOGN[ %QPVTQN 'PXKTQPOGPV YJKEJ EQPUKUVU QH RTKPEKRNGU 4KUM #UUGUUOGPV YJKEJ EQPUKUVU QH RTKPEKRNGU %QPVTQN #EVKXKVKGU YJKEJ EQPUKUVU QH RTKPEKRNGU +PHQTOCVKQP CPF %QOOWPKECVKQP YJKEJ EQPUKUVU QH RTKPEKRNGU CPF

/QPKVQTKPI #EVKXKVKGU YJKEJ EQPUKUVU QH RTKPEKRNGU VJG $QCTF YCU KPHQTOGF VJCV VJG #WFKV %QOOKVVGG YCU QH the same opinion as the outsourced internal auditor. Both parties have stated that the Companyâ&#x20AC;&#x2122;s internal control systems are adequate and proper for its business. So far, the Company has not found any crucial defects KP VJG KPVGTPCN EQPVTQN U[UVGOU YJKEJ EQWNF OCVGTKCNN[ CHHGEV VJG %QORCP[ÂżU Ă&#x152;PCPEKCN EQPFKVKQP QT VJG CWFKVQTÂżU QRKPKQP QH VJG Ă&#x152;PCPEKCN UVCVGOGPVU 6JG %QORCP[ JCU CNUQ FGUKIPGF KVU KPVGTPCN EQPVTQN U[UVGOU VQ EQPHQTO YKVJ those suggested by the SET and with the international internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission or COSO. Summarized details of the Companyâ&#x20AC;&#x2122;s internal control system are set out as following :

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%QPVTQN 'PXKTQPOGPV 6JG %QORCP[ JCU UGV WR EQPVTQN U[UVGOU HQT VJG YQTM QH VJG Ă&#x152;PCPEG CPF CEEQWPVU operations, organization, and personnel departments based on the good corporate governance principles and policies. 2. Risk Assessment : The Company always takes into consideration the risk factors that are now encountered or expected to be encountered for analyzing and estimating impacts and chances of those risks as well as formulating countermeasures to prevent and manage those risks. The Company then prepares risk management reports to its management and follows up regularly. %QPVTQN #EVKXKVKGU 6JG %QORCP[ RTQXKFGU UWRGTXKUQT[ VQQNU VQ KVU OCPCIGOGPV VJTQWIJ KVU FGXGNQROGPV QH XCTKQWU U[UVGOU G I OCPCIGOGPV KPHQTOCVKQP U[UVGOU UGEWTKV[ +51 6JKU UWRGTXKUQT[ VQQNU GORJCUKU on informationâ&#x20AC;&#x2122;s reliability, the protection of Companyâ&#x20AC;&#x2122;s properties and compliance with internal and external rules and regulations as well as information security. 4. Information and Communication : The Company emphasizes on information systems and communication channels both inside and outside the Company by providing an intranet system and a website to serve all-level communication. 5. Monitoring Activities : The Company assesses staff performance twice a year. It also informs its operating results on a quarterly basis at an executive meeting and staff meeting. +PVGTPCN #WFKV 6JG 1WVUQWTEGF +PVGTPCN #WFKV JCXG DGGP GUVCDNKUJGF VQ DQNUVGT VJG #WFKV %QOOKVVGGÂżU EQPĂ&#x152;FGPEG KP VJG UWRGTXKUKQP CPF TGXKGY QH VJG CEEWTCE[ QH VJG Ă&#x152;PCPEKCN TGRQTVU VJG CFGSWCE[ QH KPHQTOCVKQP FKUENQUWTG VJG transparency of information, internal control and risk management. It focuses on having a preventive and creative audit policy and adheres to audit guidelines of international standard and good corporate governance principles. The audit system is developed in consistence with the fast pace environment of the Companyâ&#x20AC;&#x2122;s business in order for the Company to have a transparent, auditable and reliable image. (QT [GCT VJG #WFKV %QOOKVVGG EQPUKFGTU GNGEVU CPF CITGGU VQ PQOKPCVG 7PKSWG #FXKUQT %QORCP[ .KOKVGF CU VJG 1WVUQWTEGF +PVGTPCN #WFKV HQT VJG [GCT CPF $CMGT 6KNN[ /QPVGKTQ *GPI )QXGTPCPEG 5FP $JF CU the Outsource Internal Auditor to conduct an internal audit for CIB Development Sdn. Bhd., subsidiary in Malaysia. *QYGXGT VJG OQDKNG TGXGPWG JCU NQYGT VJCP EQORCP[ÂżU GZRGEVCVKQP HQT 7PKSWG #FXKUQT %QORCP[ .KOKVGF external consultant, to perform the audit. Therefore the Audit Committee has considered internal control relevant to HCKTN[ RTGRCTCVKQP CPF RTGUGPVCVKQP QH Ă&#x152;PCPEKCN UVCVGOGPVU CPF EQPENWFGF VJCV VJG UCKF KPVGTPCN EQPVTQN KU RTQRGT CPF CFGSWCVG 6JG %QORCP[ FKF PQV Ă&#x152;PF CP[ UKIPKĂ&#x152;ECPV FGHGEV QH VJG KPVGTPCN EQPVTQN U[UVGO YJKEJ YKNN KORCEV QP VJG XCNKFKV[ QH Ă&#x152;PCPEKCN UVCVGOGPVU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU The appointment, removal and transfer the head of internal audit or appointment external consultant to conduct internal audit shall be approved by the Audit Committee.

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CONNECTED TRANSACTIONS

2TQEGFWTG HQT #RRTQXCN QH %QPPGEVGF 6TCPUCEVKQPU QH VJG %QORCP[ CPF 5WDUKFKCTKGU 6JG %QORCP[ JCU UGV WR C RTQEGFWTG KP CEEQTFCPEG YKVJ VJG TGNGXCPV 5'% PQVKĂ&#x152;ECVKQPU VQ EQPVTQN VJG Connected Transactions between the Company or its subsidiaries and interested person in the present or in the future. The procedure requires the Audit Committee to comment on the necessity of the transaction and the appropriateness of the transaction price, taking into account that all the conditions must be considered in the QTFKPCT[ EQWTUG QH DWUKPGUU CPF EQORCTKPI VJG RTKEG YKVJ VJCV QHHGTGF D[ VJKTF RCTVKGU *QYGXGT KH VJG #WFKV Committee does not have expertise in the subject matter of the transaction, the Company must provide a comment of independent expert or the Companyâ&#x20AC;&#x2122;s auditor on the transaction to support the decision of the Companyâ&#x20AC;&#x2122;s Board of Directors, Audit Committee or shareholders, as the case may be. The interested person shall have no right to vote on the transaction. Additionally, the Company shall disclose information on the Connected Transactions and the acquisition or disposal of major assets of the Company and its subsidiaries, in accordance with the rules prescribed by the SEC and SET, including the accounting standard prescribed by the Federation of Accounting Professions WPFGT VJG 4Q[CN 2CVTQPCIG QH *KU /CLGUV[ VJG -KPI 6JG %QPPGEVGF 6TCPUCEVKQPU DGVYGGP VJG %QORCP[ QT KVU 5WDUKFKCTKGU QT 4GNCVGF %QORCPKGU CPF +PVGTGUVGF 2CTVKGU KP CPF 7PKV $CJV /KNNKQP

%QORCP[ QT +PFKXKFWCN 6[RG QH $WUKPGUU

0CVWTG QH 4GNCVKQPUJKR

6TCPUCEVKQP &GUETKRVKQP

#UKCUQHV +PVGTPCVKQPCN %Q .VF A subsidiary in â&#x20AC;˘ Revenue from

#5+ YJKEJ QH service the shares are â&#x20AC;˘ Dividend Income *QNFKPI %QORCP[ held by the Company and has common directors

102

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104

0.17 0.78 1.27 0.01 -

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1.02 -

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4GOCTMU #UKCUQHV )TQWR JCU C TGIKQPCN RWTEJCUKPI RQNKE[ 6JG %QORCP[ KU TGURQPUKDNG HQT RWTEJCUKPI CNN properties, including online game licenses, which enable the Company to purchase at better prices and on better condition than separate purchases by each company.

106

STATEMENT OF THE BOARD OF DIRECTORSâ&#x20AC;&#x2122; RESPONSIBILITIES FOR THE FINANCIAL REPORTING

The Board of Directors of Asiasoft Corporation Public Company Limited has managed to prepare EQPUQNKFCVGF CPF UGRCTCVG Ă&#x152;PCPEKCN UVCVGOGPVU VQ RTGUGPV VJG Ă&#x152;PCPEKCN RQUKVKQPU CPF QRGTCVKPI TGUWNVU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU CU YGNN CU Ă&#x152;PCPEKCN KPHQTOCVKQP EQPVCKPGF KP VJG %QORCP[ÂżU #PPWCN 4GRQTV QH YJKEJ CTG true and reasonable in accordance with all relevant regulations and legislations. Directors have their accountability and responsibility on behalf of directors of listed companies HQT IQXGTPCPEG CPF GPUWTKPI VJCV VJG %QORCP[ÂżU Ă&#x152;PCPEKCN TGRQTVKPI RTGUGPV HCKTN[ CEEWTCE[ EQORNGVGN[ VTCPURCTGPE[ CPF UWHĂ&#x152;EKGPE[ HQT OCKPVCKPKPI VJG %QORCP[ÂżU CUUGVU CPF HQT FGVGTOKPKPI VJG YGCM RQKPVU CPF OCVGTKCN KUUWGU 6JGTG YKNN CNUQ DG UWHĂ&#x152;EKGPV FKUENQUWTGU QH UKIPKĂ&#x152;ECPV KPHQTOCVKQP KP PQVGU VQ Ă&#x152;PCPEKCN UVCVGOGPVU EQORNKGF YKVJ proper and consistency accounting policies, as well as reasonable and prudent judgment and estimation in accordance with generally accepted accounting standards. +P QTFGT HQT VJG IQXGTPCPEG QH Ă&#x152;PCPEKCN TGRQTVKPI VQ DG GHĂ&#x152;EKGPV VJG %QORCP[ÂżU $QCTF QH &KTGEVQTU JCXG UGV up the Audit Committee, with three independent directors who do not hold any positions on the Executive Board, TGURQPUKDNG HQT UWRGTXKUKPI VJG SWCNKV[ QH Ă&#x152;PCPEKCN TGRQTVKPI CPF VJG KPVGTPCN EQPVTQN U[UVGOU 6JG #WFKV %QOOKVVGG is also in charge with overseeing preparations for the mandated adoption of International Financial Reporting Standards

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Mr. Tan Tgow Lim Chairman On behalf of the Board of Directors

107

FINANCIAL HIGHLIHT

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Cash and Cash equivalents

225.52

Current Investments

Trade and other receivables

170.18

180.15

Inventories

Prepaid License Fees

Other Current Assets

70.15

Total Current Assets

546.80

Total Non-Current Assets

6QVCN #UUGV

Total Current Liabilities

560.76

468.76

Total Non-Current Liabilities

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Registered

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Share premium

Retained Earnings

Equity Attributable to Owners of Company

1,114.00

Non-controlling interests of subsidiaries

-5.02

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218.97

108

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Revenue from Sales and Services

1,240.82

Other Income

27.72

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898.81

Cost of Sales and Services

842.52

Selling and Administrative Expenses

576.72

521.61

480.05

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475.15

Basic Earning Per shares

-1.55

-1.25

0.17

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Cash Flows from operating activities

56.62

Cash Flows from investing activities

-152.26

%CUJ (NQYU HTQO Ă&#x152;PCPEKPI CEVKXKVKGU

41.28

Net decrease in cash and cash equivalents

-27.14

Cash and cash equivalents at end of year

225.52

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109

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL

(KPCPEKCN 5VCVWU CPF 1RGTCVKPI 4GUWNVU 1XGTXKGY QH RCUV QRGTCVKPI TGUWNVU $WUKPGUU 5VTWEVWTG In 2015, The Companyâ&#x20AC;&#x2122;s main revenues are realized from online revenue, advertising, distribution of PC games, and payment channels in Thailand, Singapore, Malaysia, Indonesia, Vietnam, and Philippines. The Company had also launched mobile games in 2015. +PXGUVOGPV 'ZRCPUKQP FWTKPI Asiasoft Corporation Public Company Limited is a leading regional online entertainment service provider in Southeast Asia, with a dominating market share in the region, covering Thailand, Singapore, Malaysia, Vietnam, Indonesia, and Philippines. #U QH &GEGODGT VJG )TQWR QRGTCVGU QPNKPG ICOG VKVNGU KP EQWPVTKGU 6JCKNCPF ICOGU 5KPICRQTG ICOGU /CNC[UKC ICOGU +PFQPGUKC ICOGU 2JKNKRRKPGU ICOGU CPF 8KGVPCO ICOGU +P QH VQVCN TGXGPWG KU HTQO &QOGUVKE DWUKPGUU YJKNG QH VQVCN TGXGPWG KU HTQO 1XGTUGCU 6JG RTQEGGFU QH QPNKPG ICOG UGTXKEGU IGPGTCVGF VJG )TQWRÂ¿U OCKP KPEQOG CDQWV CPF FKUVTKDWVKQP IGPGTCVGF CDQWV CPF others about 11% of total revenue. 6QVCN TGXGPWG KP YCU 6*$ OKNNKQP FGETGCUGF 6*$ OKNNKQP QT HTQO VJG RTGXKQWU [GCT YKVJ TGXGPWG 6*$ OKNNKQP FWG VQ KPETGCUGF EQORGVKVKQP KP QPNKPG ICOGU DQVJ FQOGUVKE CPF QXGTUGCU KPENWFKPI the rapid growth of smartphones and internet, which increase mobile or smartphone games. The Companyâ&#x20AC;&#x2122;s games are mainly the PC games, resulting in the Companyâ&#x20AC;&#x2122;s revenue slow down, as changed in consumer behavior from PC games to mobile games. As mentioned above, the Company has change structure and business model to serve change in online game business by entering into mobile game, mobile service and mobile application business, both purchasing the rights from the game developers and developing by the Company itself. In addition, the Company has RTQXKFGF C RTQXKUKQP QP KORCKTOGPV QH KPXGUVOGPVU KP UWDUKFKCTKGU 6*$ OKNNKQP KORCKTOGPV QH UJQTV VGTO NQCPU VQ UWDUKFKCTKGU 6*$ OKNNKQP YJKEJ KU VJG QPG QHH KVGO KP VJCV OCFG EQORCP[ NQUU 6*$ OKNNKQP KP 6JG %QORCP[ KPXGUV KP PGY RTGHGTTGF UJCTGU QH 2QOGNQ 0GVYQTM 2VG .VF QT QH KUUWGF UJCTGU QH 2QOGNQ 0GVYQTM 2VG .VF CV VJG RCT XCNWG KP VJG VQVCN COQWPV QH 75& 6JG %QORCP[ EQPUKFGTGF VJCV

110

Pomelo Network Pte. Ltd. has the potential to carry on the developing of Mobile Application and Mobile Messenger. The Company believes that investment in Pomelo Network Pte. Ltd. will support the online gaming service which is VJG EQTG DWUKPGUU QH VJG %QORCP[ KP VJG HWVWTG CPF VQ GZRCPF )TQWRÂżU DWUKPGUU )TQWR 1RGTCVKPI 4GUWNV 6QVCN TGXGPWG KP YCU 6*$ OKNNKQP FGETGCUGF 6*$ OKNNKQP QT HTQO VJG RTGXKQWU [GCT QH 6*$ OKNNKQP 6JG RTQRQTVKQP QH TGXGPWG YCU HTQO QPNKPG ICOG KPEQOG CPF FKUVTKDWVKQP KPEQOG

1PNKPG )COG +PEQOG

81%

Distribution Income

Other Income

11%

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2. Distribution Income

115

114

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899

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111

4GXGPWG D[ )GQITCRJKE

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1. Thailand

805

572

2. Overseas

725

729

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Cost of sales and services

Selling expenses

Administrative expenses

-0%

-100%

Loss on impairment of goodwill

65%

Loss on impairment and write off of prepaid royalty fee and intangible assets

-25%

Total operation cost

-18%

Finance cost

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-28%

Loss from investments in associates

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112

The Companyâ&#x20AC;&#x2122;s cost and operating cost decreased from the previous year, subsequent to the decrease of revenue from both Domestic and Overseas companies. There was a reversal of loss on impairment of prepaid ryalty HGG COQWPV QH 6*$ OKNNKQP 0GV 2TQĂ&#x152;V 6JG %QORCP[ JCU PGV NQUU KP CV 6*$ OKNNKQP KPETGCUKPI HTQO 6*$ OKNNKQP KP mainly came from the decrease of online revenue, both in Domestic and Overseas, and the loss on impairment QH KPXGUVOGPV KP UWDUKFKCTKGU 6*$ OKNNKQP NQUU QP KORCKTOGPV QH NQCP VQ UWDUKFKCTKGU 6*$ OKNNKQP CU CP one-off items in 2015. This caused a loss from domestic operation, increased from loss 11% to 28%, and oversea operation loss increased from 20% to 25%

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1. Thailand

-11

-251

-28

2. Overseas

-22

-248

-20

-224

-25

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113

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129

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114

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116

service provider failure, cyber attack, and buggy game contents, that may disrupt our online services. Our information system team is striving to maintain adequate operational services, security and supporting infrastructure for the smoothest gaming experience. 5. Privacy Protection : One of Asiasoftâ&#x20AC;&#x2122; strengths is our massive amount of users from all across Southeast Asia CPF DG[QPF *GPEG CP[ NGCM QH EQPUWOGTÂżU FCVC D[ CPF VQ VJKTF RCTVKGU OC[ PGICVKXGN[ CHHGEV QWT TGNCVKQPUJKR YKVJ QWT WUGTU CPF QWT TGXGPWG *QYGXGT VJG )TQWR JCU KORNGOGPVGF UGEWTKV[ U[UVGO VQ UVQTG CPF VQ RTQVGEV QWT WUGT database. &KXGTUKH[KPI %JCPPGN 2CTVPGTU #UKCUQHV JCU DGGP OCKPVCKPKPI IQQF TGNCVKQPUJKR YKVJ EJCPPGN RCTVPGTU G I HQT RC[OGPV UCNGU FKUVTKDWVKQP UWEJ CU OQDKNG UGTXKEG RTQXKFGTU E[DGT ECHGU EQPXGPKGPV UJQRU ICOKPI UJQRU CPF QPNKPG ICOKPI PGYU RQTVCNU 1WT EJCPPGN RCTVPGTU JCXG UKIPKĂ&#x152;ECPV KPĂ?WGPEG QXGT VJG RTQFWEVU CPF UGTXKEGU VJCV YG QHHGT QP VJGKT RNCVHQTOU #U UWEJ VJG )TQWR YKNN OCKPVCKP VQ RTQXKFG CITGGOGPV VJCV DGPGĂ&#x152;EKCN VQ QWT EJCPPGN partners so they stay to serve us. 6CNGPVU KP 1PNKPG )COG +PFWUVT[ KP 5QWVJGCUV #UKC #UKCUQHV DGNKGXGU KP MGGRKPI CPF PWTVWTKPI VCNGPVU CU KPVGITCN RCTV KP )TQWRÂżU QXGTCNN ITQYVJ #U ICOG KPFWUVT[ KP VJG TGIKQP JCU ITQYP UKIPKĂ&#x152;ECPVN[ KP VJG RCUV FGECFG VJG FGOCPF HQT CPF SWCNKV[ QH VCNGPVU KP ICOG KPFWUVT[ JCU KPETGCUGF VQQ 6JG )TQWR YKNN UVC[ EQORGVKVKXG KP VGTOU of remuneration and advances in job environment, as well as maintaining the effort to draw top talents into Asiasoft. 8. Risk in Expanding Business Abroad : Asiasoft has expanded its investment in Southeast Asia since 2012. *QYGXGT KH VJG %QORCP[ FQGU PQV JCXG C GHĂ&#x152;EKGPV CPCN[\KPI U[UVGO +PVGTPCN EQPVTQN OQPKVQTKPI CPF ECPPQV FGXGNQR employee, the operating result might be affected. 4KUM KP %QR[TKIJV #OQTVK\CVKQP #UKCUQHV JCU C TKUM HTQO EQR[TKIJV EQUV HQT QDUQNGVG ICOG YJKEJ YKNN DG EQPUKFGTGF VQ VGTOKPCVGF QT GUVKOCVGF TGUGTXGU HQT KORCKTOGPV YJKEJ OC[ CHHGEV VJG QRGTCVKQP TGUWNVU *QYGXGT the Company has tried to revise the terms of contract and negotiate with the manufacturers or game developers to reduce the risk.

117

FINANCIAL STATEMENT

#WFKVQTÂżU 4GRQTV To the Shareholders and the Board of Directors of Asiasoft Corporation Public Company Limited + JCXG CWFKVGF VJG CEEQORCP[KPI EQPUQNKFCVGF CPF EQORCP[ Ă&#x152;PCPEKCN UVCVGOGPVU QH #UKCUQHV %QTRQTCVKQP Public Company Limited and its subsidiaries and of Asiasoft Corporation Public Company Limited, which comprise VJG EQPUQNKFCVGF CPF EQORCP[ UVCVGOGPVU QH Ă&#x152;PCPEKCN RQUKVKQP CU CV &GEGODGT CPF VJG TGNCVGF EQPUQNKFCVGF CPF EQORCP[ UVCVGOGPVU QH EQORTGJGPUKXG KPEQOG EJCPIGU KP UJCTGJQNFGTUÂż GSWKV[ CPF ECUJ Ă?QYU HQT VJG [GCT VJGP GPFGF CPF C UWOOCT[ QH UKIPKĂ&#x152;ECPV CEEQWPVKPI RQNKEKGU CPF QVJGT PQVGU /CPCIGOGPVÂżU 4GURQPUKDKNKV[ HQT VJG (KPCPEKCN 5VCVGOGPVU /CPCIGOGPV KU TGURQPUKDNG HQT VJG RTGRCTCVKQP CPF HCKT RTGUGPVCVKQP QH VJGUG Ă&#x152;PCPEKCN UVCVGOGPVU KP accordance with Thai Financial Reporting Standards, and for such internal control as management determines is PGEGUUCT[ VQ GPCDNG VJG RTGRCTCVKQP QH Ă&#x152;PCPEKCN UVCVGOGPVU VJCV CTG HTGG HTQO OCVGTKCN OKUUVCVGOGPV YJGVJGT FWG to fraud or error. #WFKVQTÂżU 4GURQPUKDKNKV[ /[ TGURQPUKDKNKV[ KU VQ GZRTGUU CP QRKPKQP QP VJGUG Ă&#x152;PCPEKCN UVCVGOGPVU DCUGF QP O[ CWFKV + EQPFWEVGF my audit in accordance with Thai Standards on Auditing. Those standards require that I comply with GVJKECN TGSWKTGOGPVU CPF RNCP CPF RGTHQTO VJG CWFKV VQ QDVCKP TGCUQPCDNG CUUWTCPEG CDQWV YJGVJGT VJG Ă&#x152;PCPEKCN statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in VJG Ă&#x152;PCPEKCN UVCVGOGPVU 6JG RTQEGFWTGU UGNGEVGF FGRGPF QP VJG CWFKVQTÂżU LWFIOGPV KPENWFKPI VJG CUUGUUOGPV QH VJG TKUMU QH OCVGTKCN OKUUVCVGOGPV QH VJG Ă&#x152;PCPEKCN UVCVGOGPVU YJGVJGT FWG VQ HTCWF QT GTTQT +P OCMKPI VJQUG TKUM assessments, the auditor considers internal control relevant to the entityâ&#x20AC;&#x2122;s preparation and fair presentation of the Ă&#x152;PCPEKCN UVCVGOGPVU KP QTFGT VQ FGUKIP CWFKV RTQEGFWTGU VJCV CTG CRRTQRTKCVG KP VJG EKTEWOUVCPEGU DWV PQV HQT VJG purpose of expressing an opinion on the effectiveness of the entityâ&#x20AC;&#x2122;s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made D[ OCPCIGOGPV CU YGNN CU GXCNWCVKPI VJG QXGTCNN RTGUGPVCVKQP QH VJG Ă&#x152;PCPEKCN UVCVGOGPVU + DGNKGXG VJCV VJG CWFKV GXKFGPEG + JCXG QDVCKPGF KU UWHĂ&#x152;EKGPV CPF CRRTQRTKCVG VQ RTQXKFG C DCUKU HQT O[ CWFKV opinion.

119

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Pisit Thangtanagul %GTVKÌGF 2WDNKE #EEQWPVCPV 6JCKNCPF 0Q PricewaterhouseCoopers ABAS Ltd. Bangkok 26 February 2016

120

Asiasoft Corporation Public Company Limited Statement of Financial Position As at 31 December 2015 Consolidated Restated 31 December 31 December 2015 2014 Notes Baht Baht

Company Restated Restated 1 January 31 December 31 December 2014 2015 2014 Baht Baht Baht

Restated 1 January 2014 Baht

Assets Current assets &DVK DQG FDVK HTXLYDOHQWV 6KRUW WHUP LQYHVWPHQWV 7UDGH DQG RWKHU UHFHLYDEOHV 6KRUW WHUP ORDQV WR UHODWHG SDUWLHV ,QYHQWRULHV 3UHSDLG UR\DOW\ IHHV FXUUHQW 2WKHU FXUUHQW DVVHWV

Total non-current assets

Total assets

Total current assets Non-current assets 5HVWULFWHG EDQN GHSRVLWV ,QYHVWPHQWV LQ VXEVLGLDULHV ,QYHVWPHQWV LQ DVVRFLDWHV ,QYHVWPHQW LQ MRLQW YHQWXUH (TXLSPHQW *RRGZLOO 2WKHU LQWDQJLEOH DVVHWV 3UHSDLG UR\DOW\ IHHV 'HIHUUHG WD[ DVVHWV 2WKHU QRQ FXUUHQW DVVHWV

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121

Asiasoft Corporation Public Company Limited Statement of Financial Position (Cont’d) As at 31 December 2015 Consolidated Restated 31 December 31 December 2015 2014 Notes Baht Baht

Company Restated Restated 1 January 31 December 31 December 2014 2015 2014 Baht Baht Baht

Restated 1 January 2014 Baht

Liabilities and shareholders’ equity Current liabilities Short-term borrowings from financial institution Trade and other payables Short-term loan from director Deferred revenue and license fees Income tax payable Other current liabilities

17 18 28 (e)

Total current liabilities

23,233,467 192,955,208 39,023,881 275,030,195 30,517,286

60,994,955 187,837,516 251,933,834 2,624,398 21,220,261

12,941,300 172,661,303 293,877,830 5,966,066 19,573,649

23,233,467 65,033,529 216,315,037 5,249,931

93,371,467 206,018,762 1,626,509 3,620,999

107,126,617 213,538,819 8,084,661 9,399,486

560,760,037

524,610,964

505,020,148

309,831,964

304,637,737

338,149,583

742,096 14,087,985 -

1,734,578 21,507,735 12,695,945 441,852

12,381,156 31,341,701 9,540,223 771,764

12,666,033 -

1,734,578 10,444,554 -

12,381,156 8,151,694 -

14,830,081

36,380,110

54,034,844

12,666,033

12,179,132

20,532,850

575,590,118

560,991,074

559,054,992

322,497,997

316,816,869

358,682,433

307,407,762

307,407,762 796,833,756

31,600,000 31,600,000 31,600,000 (53,159,045) (962,328,331) (302,649,617) (2,539,095) -

31,600,000 7,253,516 -

Non-current liabilities Provision arising from a call option agreement Deferred tax liabilities Employee benefit obligations Other non-current liabilities

19 20

Total non-current liabilities Total liabilities Shareholders’ equity Share capital Authorised share capital 307,407,762 ordinary shares of par Baht 1 each Issued and paid-up share capital 307,407,762 ordinary shares of paid-up at Baht 1 each Premium on share capital Retained earnings (deficits) Appropriated - legal reserve Unappropriated Other components of equity

21 22

31,600,000 31,600,000 (907,197,197) (436,076,955) (4,649,046) (949,486)

Equity attributable to owners of the parent Non-controlling interests

223,995,275 (5,016,381)

698,815,077 1,080,143,378 32,356,597 101,590,079

173,513,187 -

833,191,901 1,143,095,034 -

Total shareholders’ equity

218,978,894

731,171,674 1,181,733,457

173,513,187

833,191,901 1,143,095,034

Total liabilities and shareholders’ equity

794,569,012 1,292,162,748 1,740,788,449

The accompanying notes are an integral part of these consolidated and company financial statements.

122

496,011,184 1,150,008,770 1,501,777,467

Asiasoft Corporation Public Company Limited Statement of Comprehensive Income For the year ended 31 December 2015 Consolidated

Notes

31 December 2015 Baht

Restated 31 December 2014 Baht

Company 31 December 2015 Baht

Restated 31 December 2014 Baht

Revenues from sales and services Cost of sales and services

860,495,691 1,240,817,210 442,007,165 627,937,162 (637,395,015) (962,358,216) (292,564,639) (370,392,812)

Gross profit Other income 23 Selling expenses Administrative expenses Loss on impairment and write off of prepaid reyalty fee Reversal of loss on impairment of prepaid royalty fee 29 Loss on impairment and write off of intangible assets Loss on impairment of investments in subsidiaries 13 (a) Loss on impairment of investments in associates Loss on impairment of goodwill 15 Loss on impairment of short-term loans to subsidiaries 28 (d) Finance costs Share of (loss) profit from investments in associates 13 (b)

223,100,676 278,458,994 149,442,526 257,544,350 38,318,123 29,208,469 34,421,561 38,909,579 (97,924,235) (91,315,561) (46,206,439) (51,327,333) (323,147,066) (324,456,103) (148,694,325) (181,344,363)

Loss before income tax expense Income tax income (expense) Loss for the year Other comprehensive income: Items that will not be reclassified subsequently to profit or loss: Remeasurements of post-employment benefit obligations Income tax on items that will not be reclassified subsequently to profit or loss Total items that will not be reclassified subsequently to profit or loss

24 25

(49,853,378)

(47,970,161)

(36,306,230)

(47,508,515)

19,687,680

(174,955,352) (208,926,426)

(89,821,157)

(57,107,101)

(155,648,699) (1,718,549) (4,518,968)

- (366,667,937) (181,246,069) (11,631,049) (94,205,225) - (174,175,730) (1,599,840) (65,700) 1,398,562

(95,350,000) -

(526,659,768) (471,038,340) (658,385,751) (317,429,452) 13,592,064 18,994,582 (3,050,176) 6,010,935 (513,067,704) (452,043,758) (661,435,927) (311,418,517)

4,467,320

1,086,317

2,196,516

1,894,229

(439,303)

(378,845)

(439,303)

(378,845)

4,028,017

707,472

1,757,213

1,515,384

The accompanying notes are an integral part of these consolidated and company financial statements.

123

Asiasoft Corporation Public Company Limited Statement of Comprehensive Income &RQWuG

For the year ended 31 December 2015 Consolidated

Note Other comprehensive income: &RQW G

Items that will be reclassified subsequently to profit or loss: ([FKDQJH GLIIHUHQFHV RQ WUDQVODWLRQ RI ILQDQFLDO VWDWHPHQWV LQ IRUHLJQ FXUUHQFLHV 7RWDO LWHPV WKDW ZLOO EH UHFODVVLILHG VXEVHTXHQWO\ WR SURILW RU ORVV

Company

31 December 2015 Baht

Restated 31 December 2014 Baht

31 December 2015 Baht

Restated 31 December 2014 Baht

Other comprehensive income for the year, net of tax Total comprehensive expense for the year

Loss attributable to: 2ZQHUV RI WKH SDUHQW 1RQ FRQWUROOLQJ LQWHUHVWV

Total comprehensive expense attributable to: 2ZQHUV RI WKH SDUHQW 1RQ FRQWUROOLQJ LQWHUHVWV

Loss per share

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124

125 31,600,000 31,600,000 31,600,000

Opening balance as at 1 January 2015 307,407,762 796,833,756 (as previously reported) Cumulative effect of retrospective adjustmen 4 307,407,762 796,833,756 Balance after adjustments Change in parent's ownership interests in subsidiaries Total comprehensive expenses for the year 307,407,762 796,833,756 Closing balance as at 31 December 2015

The accompanying notes are an integral part of these consolidated and company financial statements.

(949,486) (949,486) (3,087,942) (4,037,428)

1,589,609 (949,486)

- (382,917,910) 31,600,000 (436,076,955)

(409,979,271) (26,097,684) (436,076,955) (471,120,242) (907,197,197)

(2,539,095) (2,539,095) -

(19,298,816) (33,860,229) (53,159,045) -

31,600,000 31,600,000 -

1,589,609 (381,328,301) (949,486) 698,815,077

- (949,486) 724,912,761 - (26,097,684) - (949,486) 698,815,077 (611,618) (611,618) (611,618) - (3,087,942) (474,208,184) (611,618) (4,649,046) 223,995,275

Total shareholdersâ&#x20AC;&#x2122; equity Baht

(3,800,968)

34,522,449 759,435,210 (2,165,852) (28,263,536) 32,356,597 731,171,674 609,493 (2,125) (37,982,471) (512,190,655) (5,016,381) 218,978,894

(68,932,514) (450,260,815) 32,356,597 731,171,674

(3,800,968)

103,991,243 1,217,994,850 (2,401,164) (36,261,393) 101,590,079 1,181,733,457 3,500,000 3,500,000

Total owners Non-controlling of the parent interests Baht Baht

- (2,539,095) 1,114,003,607 - (33,860,229) - (2,539,095) 1,080,143,378 -

Consolidated Attributable to owners of the parent Other components of equity Other comprehensive income Exchange differences Change in Retained earnings (Deficits) on translation of parent's Total other Premium on Appropriated financial statements ownership interests components share capital - Legal reserve Unappropriated in foreign currencies in subsidiaries of equity Baht Baht Baht Baht Baht Baht

Opening balance as at 1 January 2014 307,407,762 796,833,756 (as previously reported) Cumulative effect of retrospective adjustmen 4 307,407,762 796,833,756 Balance after adjustments Additional investments in subsidiary Dividend paid by subsidiary to non-controlling interests Total comprehensive expenses for the year (as restated) Closing balance as at 31 December 2014 (as restate 307,407,762 796,833,756

Issued and paid-up share capital Note Baht

Asiasoft Corporation Public Company Limited Statement of Changes in Shareholdersâ&#x20AC;&#x2122; Equity For the year ended 31 December 2015

126

Closing balance as at 31 December 2014 (as restated)

Opening balance as at 1 January 2015 (as previously reported) &XPXODWLYH HIIHFW RI UHWURVSHFWLYH DGMXVWPHQWV

Balance after adjustments 7RWDO FRPSUHKHQVLYH H[SHQVH IRU WKH \HDU

Closing balance as at 31 December 2015

7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH FRQVROLGDWHG DQG FRPSDQ\ ILQDQFLDO VWDWHPHQWV

Balance after adjustments 7RWDO FRPSUHKHQVLYH H[SHQVH IRU WKH \HDU DV UHVWDWHG

Note

Premium on share capital Baht

Issued and paid-up share capital Baht

Opening balance as at 1 January 2014 (as previously reported) &XPXODWLYH HIIHFW RI UHWURVSHFWLYH DGMXVWPHQWV

Asiasoft Corporation Public Company Limited Statement of Changes in Shareholdersâ&#x20AC;&#x2122; Equity &RQWuG For the year ended 31 December 2015

Company Retained earnings (Deficits) Appropriated - Legal reserve Unappropriated Baht Baht

Total shareholdersâ&#x20AC;&#x2122; equity Baht

Asiasoft Corporation Public Company Limited Statement of Cash Flows For the year ended 31 December 2015 Consolidated

Company

2015 Baht

Restated 2014 Baht

2015 Baht

Restated 2014 Baht

(526,659,768)

(471,038,340)

(658,385,751)

(317,429,452)

165,325,446 861,470 (2,140,416) -

171,359,843 3,808,264 6,755,969 -

97,382,052 55,000 (413,646) 174,175,730

83,272,955 (13,220,497) 2,929,408 95,350,000

4,518,968 155,648,699 49,853,378

(1,398,562) 11,631,049 94,205,225 47,970,161

366,667,937 36,306,230

181,246,069 47,508,515

(19,687,680) 174,955,352 344 534,294 1,259,323 (799,417) (1,734,578) 5,419,806 1,718,549

208,926,426 2,491 977,069 (2,201,832) 142,841 13,102,636 (10,646,578) 3,083,322 1,599,840

(19,687,680) 89,821,157 (1,440,551) 190,735 1,292,200 934,783 (1,734,578) 4,417,995 65,700

57,107,101 (781,781) 1 (2,156,270) (6,118,232) (150,672) 13,102,636 (10,646,578) 4,187,088 -

9,073,770

78,279,824

89,647,313

134,200,291

25,660,562 8,957,443 26,435,125 (1,060,414) (2,666,406) (26,767,108) 23,096,361 10,090,293 (9,889,424)

58,100,250 (6,867,475) (45,597,482) 19,999,440 21,246,418 (26,584,334) (41,943,996) (6,797,361) 3,748

33,471,254 1,710,392 16,618,403 (2,328,767) 3,410,285 (53,543,989) 10,296,275 1,628,977 -

91,165,855 (3,383,356) (28,110,530) 5,167,976 6,931,318 (14,868,502) (7,520,057) (5,698,366) -

Cash generated from operations Interest paid Income tax paid

62,930,202 (1,718,549) (4,591,743)

49,839,032 (1,599,840) (16,646,098)

100,910,143 (65,700) (2,305,742)

177,884,629 (14,712,569)

Net cash generated from operating activities

56,619,910

31,593,094

98,538,701

163,172,060

Cash flows from operating activities Loss before income tax expense Adjustments for: Depreciation and amortisation Doubtful accounts (reversal) Loss on net realisable value of inventories (reversal) Impairment loss on short-term loans to subsidiaries Share of loss (profit) from investments in associates Loss on impairment of investments in subsidiaries Loss on impairment of investment in associate Loss on impairment of goodwill Loss on impairment and write-off of prepaid royalty fees Reversal of allowance for impairment on prepaid royalty fees Loss on impairment and write-off of intangible assets Loss (gain) from sales of equipment Loss from write-off of equipment Loss from revaluation of short-term investments Dividend income from subsidiaries Unrealised (gain) loss on exchange rate Provision for loss from tax assessment Reversal of provision arising from a call option agreement Employee benefits Finance costs Changes in operating assets and liabilities Trade and other receivables Inventories Prepaid license fees Other current assets Other non-current assets Trade and other payables Deferred revenue and license fees Other current liabilities Other non-current liabilities

Notes

14, 16 28 (d) 13 (b) 13 (a) 15 29 16 9

The accompanying notes are an integral part of these consolidated and company financial statements.

127

Asiasoft Corporation Public Company Limited Statement of Cash Flows &RQWuG

For the year ended 31 December 2015 Consolidated

Company

2015 Baht

Restated 2014 Baht

2015 Baht

Restated 2014 Baht

Net cash (used in) generated from financing activities

Translation adjustment of cash and cash equivalents

Net decrease in cash and cash equivalents &DVK DQG FDVK HTXLYDOHQWV DW WKH EHJLQQLQJ RI WKH \HDU 8QUHDOLVHG H[FKDQJH JDLQ ORVV RQ FDVK DQG FDVK HTXLYDOHQWV

Cash and cash equivalents at the end of the year

Cash flows from investing activities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

Notes

Net cash used in investing activities Cash flows from financing activities &DVK UHFHLYHG IURP ORDQ IURP GLUHFWRU ,QFUHDVH GHFUHDVH IURP VKRUW WHUP ERUURZLQJV IURP ILQDQFLDO LQVWLWXWLRQ 5HSD\PHQW RI OLDELOLWLHV XQGHU ILQDQFH OHDVH DJUHHPHQWV 'LYLGHQG SD\PHQW 'LYLGHQG SDLG E\ VXEVLGLDU\ WR QRQ FRQWUROOLQJ LQWHUHVWV &DVK UHFHLYHG IRU VKDUH VXEVFULSWLRQ IURP QRQ FRQWUROOLQJ LQWHUHVWV

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7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKHVH FRQVROLGDWHG DQG FRPSDQ\ ILQDQFLDO VWDWHPHQWV

128

Asiasoft Corporation Public Company Limited Notes to the Consolidated and Company Financial Statements For the year ended 31 December 20ř5 1. General information Asiasoft Corporation Public Company Limited (“the Company”) is a public limited company incorporated and resident in Thailand. The address of the Company’s registered office is as follows: 9/283-5, 28th floor, UM Tower Building, Ramkhamhaeng Road, Suanluang, Suanluang, Bangkok. The Company’s ordinary shares are listed on the Stock Exchange of Thailand. For reporting purposes, the Company and its subsidiaries are referred to as “the Group”. The Group is principally engaged in the distributor and provider of both online and offline game services. The consolidated and company financial statements were authorised for issue by the Board of Directors on 26 February 2016. 2. Accounting policies The principal accounting policies adopted in the preparation of these consolidated and company financial statements are set out below: 2.1

Basis of preparation The consolidated and company financial statements have been prepared in accordance with Thai Generally Accepted Accounting Principles under the Accounting Act B.E. 2543, being those Thai Financial Reporting Standards issued under the Accounting Profession Act B.E. 2547, and the financial reporting requirements of the Securities and Exchange Commission under the Securities and Exchange Act. The consolidated and company financial statements have been prepared under the historical cost convention, except as disclosed otherwise in the accounting policies. The preparation of consolidated and company financial statements in conformity with Thai Generally Accepted Accounting Principles requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated and company financial statements are disclosed in Note 5. An English version of the consolidated and company financial statements have been prepared from the consolidated and company financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language consolidated and company financial statements shall prevail.

129

1HZ ILQDQFLDO UHSRUWLQJ VWDQGDUGV DQG UHYLVHG ILQDQFLDO UHSRUWLQJ VWDQGDUGV 2.2.1 New financial reporting standards, and revised financial reporting standards are effective on 1 January 2015. These standards are relevant to the Group. Financial reporting standards with major changes are as follows: TAS 1 (revised 2014) TAS 19 (revised 2014) TAS 27 (revised 2014) TAS 28 (revised 2014) TAS 34 (revised 2014) TFRS 10 TFRS 12 TFRS 13

Presentation of financial statements Employee benefits Separate financial statements Investments in associates and joint ventures Interim financial reporting Consolidated financial statements Disclosure of interests in other entities Fair value measurement

TAS 1 (revised 2014), the main change is that a requirement for entities to group items presented in ‘other comprehensive income’ (OCI) on the basis of whether they are potentially re-classifiable to profit or loss subsequently (reclassification adjustments). The amendments do not address which items are presented in OCI. As a result, the statement of comprehensive income has been presented to comply with the revised standard. TAS 19 (revised 2014), the key changes are (a) actuarial gains and losses are renamed ‘remeasurements’ and will be recognised immediately in ‘other comprehensive income’ (OCI). Actuarial gains and losses will no longer be deferred using the corridor approach or recognised in profit or loss; and (b) past-service costs will be recognised in the period of a plan amendment; unvested benefits will no longer be spread over a future-service period. The impact on the financial statements of the Group are described in Note 4. TAS 27 (revised 2014) provides the requirements relating to separate financial statements. This standard has no impact to the Group’s financial statements. TAS 28 (revised 2014) provides the requirements for investment in associates and joint ventures accounted by equity method. This standard has no impact to the Group’s financial statements.

130

TAS 34 (revised 2014), the key change is the disclosure requirements for operating segment. An entity shall disclose information of a measure of total assets and liabilities for a particular reportable segment if such amounts are regularly provided to the chief operating decision maker and if there has been a material change from the amount disclosed in the last annual financial statements for that reportable segment. This standard has no impact to the Group’s financial statements. TFRS 10 has a single definition of control and supersedes the principles of control and consolidation included within the original TAS 27, ‘Consolidated and separate financial statements’. The standard sets out the requirements for when an entity should prepare consolidated financial statements, defines the principles of control, explains how to apply the principles of control and explains the accounting requirements for preparing consolidated financial statements. The key principle in the new standard is that control exists, and consolidation is required, only if the investor possesses power over the investee, has exposure to variable returns from its involvement with the investee and has the ability to use its power over the investee to affect its returns. This standard has no impact to the Group’s financial statements. TFRS 12 require entities to disclose information that helps readers of financial statements to evaluate the nature of risks and financial effects associated with the entity’s interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities. This standard has no impact to the Group’s financial statements except for disclosures. TFRS 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across TFRSs. This standard has no impact to the Group’s financial statements except for disclosures.

131

2.2.2 New financial reporting standards, and revised financial reporting standards are effective on 1 January 2016. These standards are relevant to the Group and are not early adopted: Financial reporting standards with major changes are as follows: TAS 16 (revised 2015) TAS 19 (revised 2015) TAS 24 (revised 2015) TAS 27 (revised 2015) TAS 36 (revised 2015) TAS 38 (revised 2015) TFRS 3 (revised 2015) TFRS 8 (revised 2015) TFRS 10 (revised 2015) TFRS 12 (revised 2015) TFRS 13 (revised 2015)

Property, plant and equipment Employee benefits Related party disclosures Separate financial statements Impairment of assets Intangible assets Business combinations Operating segments Consolidated financial statements Disclosure of interests in other entities Fair value measurement

TAS 16 (revised 2015),‘Property, plant and equipment’ clarifies how the gross carrying amount and the accumulated depreciation are treated where an entity uses the revaluation model. TAS 19 (revised 2015), ‘Employee benefits’ is amended to apply to contributions from employees or third parties to defined benefit plans and to clarify the accounting treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and those linked to service in more than one period. TAS 24 (revised 2015), ‘Related party disclosures’ includes as a related party an entity that provides key management personnel services to the reporting entity or to the parent of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. TAS 27 (revised 2015) allows an investment entity that is exempted from consolidating its subsidiaries presenting separate financial statements as its only financial statements. It requires the investment entity to measure its investment in subsidiaries at fair value through profit or loss.

132

TAS 36 (revised 2015), ‘Impairment of assets’ is amended to provide additional disclosure requirement when the recoverable amount of the assets is measured at fair value less costs of disposal. The disclosures include 1) the level of fair value hierarchy, 2) when fair value measurement categorised within level 2 and level 3, disclosures is required for valuation technique and key assumption. TAS 38 (revised 2015), ‘Intangible assets’ is amended to clarify how the gross carrying amount and the accumulated amortisation are treated where an entity uses the revaluation model. TFRS 3 (revised 2015), ‘Business combinations’ clarifies i) an obligation to pay contingent consideration which meets the definition of a financial instrument as a financial liability or equity, on the basis of the definitions in TAS 32, ‘Financial instruments: Presentation’ (when announced) or other applicable standards. It also clarifies that all non-equity contingent consideration is measured at fair value at each reporting date, with changes in value recognised in profit and loss, and ii) TFRS 3 does not apply to the accounting for the formation of any joint venture under TFRS 11. TFRS 8 (revised 2015), ‘Operating segments’ requires disclosure of the judgements made by management in aggregating operating segments. It is also amended to require a reconciliation of segment assets to the entity’s assets when segment assets are reported to chief operating decision maker. TFRS 10 (revised 2015), ‘Consolidated financial statements’ is amended to define an investment entity and introduce an exception from consolidation. These amendments mean that many funds and similar entities will be exempt from consolidating most of their subsidiaries. Instead, they will measure them at fair value through profit or loss. TFRS 12 (revised 2015) introduces disclosures that an investment entity needs to disclose.

133

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134

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognise and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or loss. Intercompany transactions, balances and unrealised gains or loss on transactions between Group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. In the Companyâ&#x20AC;&#x2122;s separated financial statements, investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of investment. (b) Transactions and non-controlling interests The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. (c) Disposal of subsidiaries When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.

135

(d) Associates Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The group’s investment in associates includes goodwill identifies on acquisition. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of its associates’ post-acquisition profits or losses is recognised in the profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to share of profit or loss of associates in profit or loss. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. Dilution gains and losses arising in investments in associates are recognised in the profit or loss. In the Company’s separated financial statements, investments in associates are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of investment.

136

(e) Joint arrangements The Group has applied TFRS 11 to all joint arrangements as of 1 January 2015. Under TFRS 11, investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group’s net investment in the joint ventures), the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint ventures. Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group. The change in accounting policy has been applied as from 1 January 2015. The change in accounting policy has no impact to the Group’s financial statements. )RUHLJQ FXUUHQF\ WUDQVODWLRQ (a) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated and company financial statements are presented in Thai Baht, which is the Company’s and the Group’s functional and presentation currency.

137

(b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. When a gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange component of that gain or loss is recognised in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognised in profit or loss in the statement of comprehensive income, any exchange component of that gain or loss is recognised in profit or loss. (c) Group companies The results and financial position of all the Group entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: â&#x20AC;˘ Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position; â&#x20AC;˘ Income and expenses for each statement of comprehensive income are translated at average exchange rates; and â&#x20AC;˘ All resulting exchange differences are recognised in other comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. &DVK DQG FDVK HTXLYDOHQWV Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less from the date of acquisition and are not pledged as security. 7UDGH DFFRXQWV UHFHLYDEOH Trade accounts receivable are carried at the original invoice amount and subsequently measured at the remaining amount less any allowance for doubtful receivables based on a review of all outstanding amounts at the end of year. The amount of the allowance is the difference between the carrying amount of the receivable and the amount expected to be collectible. Bad debts are written-off during the year in which they are identified and recognised in the statement of comprehensive income within administrative expenses.

138

,QYHQWRULHV Inventories are stated at the lower of cost and net realisable value. Cost is determined by the first-in, first-out method. The cost of purchase comprises both the purchase price and cost directly attributable to the acquisition of the inventory. Net realisable value is the estimate of the selling price in the ordinary course of business less applicable variable selling expenses. Allowance is made, where necessary, for obsolete, slow moving and defective inventories. ,QYHVWPHQWV Investments other than investments in subsidiaries, associates and joint arrangements are classified into the following three categories: (1) trading investments, (2) held-to-maturity investments; and (3) general investments. The classification is dependent on the purpose for which the investments were acquired. Management determines the appropriate classification of its investments at the time of the purchase and re-evaluates such designation on a regular basis. 1. Investments that are acquired principally for the purpose of generating a profit from short-term fluctuations in price are classified as trading investments and included in current assets. 2. Investments with fixed maturity that the management has the intent and ability to hold to maturity are classified as held-to-maturity and are included in non-current assets, except for maturities within 12 months from the statement of financial position date which are classified as current assets. 3. Investments in non-marketable equity securities are classified as general investments. All three categories of investment are initially recognised at cost, which is equal to the fair value of consideration paid plus transaction cost. Trading investments are subsequently measured at fair value. The fair value of investments is based on quoted bid price at the close of business on the statement of financial position date by reference to the Stock Exchange of Thailand and association of investment management companies. The unrealised gains and losses of trading investments are recognised as profit or loss in the statement of comprehensive income. Held-to-maturity investments are carried at amortised cost using the effective yield method less allowance for impairment. General investments are carried at cost less allowance for impairment.

139

A test for impairment is carried out when there is a factor indicating that an investment might be impaired. If the carrying value of the investment is higher than its recoverable amount, impairment loss is charged to the statement of comprehensive income. On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the profit or loss. When disposing of part of the Group’s holding of a particular investment in debt or equity securities, the carrying amount of the disposed part is determined by the weighted average carrying amount of the total holding of the investment. (TXLSPHQW Equipment is stated at cost less accumulated depreciation and allowance for impairment of assets (if any). Historical cost includes expenditure that is directly attributable to the acquisition of items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Depreciation of equipment is calculated to write down the cost of equipment to their residual values on the straight-line basis over estimated useful lives are as follows: Building improvements Server Furniture & fixture and equipment Vehicles

5 years 5 years 3 years and 5 years 5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The asset’s carrying amount is written-down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (note 2.12). Gains or losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

140

*RRGZLOO Goodwill represents the excess of the cost of an acquisition over the fair value of the Groupâ&#x20AC;&#x2122;s share of the net identifiable assets of the acquired subsidiary undertaking at the date of acquisition. Goodwill on acquisitions of subsidiaries is separately reported in the consolidated statement of financial position. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose, identified according to operating segment. ,QWDQJLEOH DVVHWV *DPH OLFHQVHV Purchased game licenses are carried at cost less accumulated amortisation. Amortisation is calculated using straight-line basis over their estimated useful lives of 2 - 4 years. &RPSXWHU VRIWZDUH Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised using straight-line basis over their estimated useful lives of 3 and 5 years. Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the criteria are met. 5LJKW IRU XVH RI JROI FOXE Right for use of golf club are carried at cost less allowance for impairment (if any). Right for use of golf club is not amortised as it deems to have indefinite useful life.

141

&XVWRPHU UHODWLRQVKLS Customer relationship acquired in a business combination are recognised at fair value at the acquisition date. Customer relationship have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using straight-line basis over their estimated useful lives of 3 years and 7 years. 7UDGHPDUN Trademark acquired in a business combination are recognised at fair value at the acquisition date. Trademark has a finite useful life and are carried at cost less accumulated amortisation and allowance for impairment. Amortisation is calculated using straight-line basis over its estimated useful life of 20 years. ,PSDLUPHQW RI DVVHWV Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is the higher of an assetâ&#x20AC;&#x2122;s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows. Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. /HDVHV ZKHUH WKH *URXS LV WKH OHVVHHV Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. The Group leases certain equipment. Leases of equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in finance lease liabilities. The interest element of the finance cost is charged to profit or loss over the lease period so as to achieve a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant or equipment acquired under finance leases is depreciated over the shorter period of the useful life of the asset and the lease term.

142

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143

(PSOR\HH EHQHILWV (a) Defined contribution plan A defined contribution plan is a post-employment plan which the Group pays fixed contributions into a separate entity and management by fund manager. The fund has received contributions from employees and the Group. The contributions are recognised as employee benefit expense in statements of comprehensive income when they are due. (b) Post-employment benefit obligations The Group provides for post-employment benefits to or retirement indemnity employees under the labor laws applicable in Thailand depends on basis of salary and service year of staff until the future last working day. The Group has recorded the liabilities in respect of employee benefits which are the present value of the defined benefit obligations calculated by an independent actuary in accordance with the actuarial technique, and discounted benefit by the projected unit credit method. The present value of the defined benefit obligations are determined by discounting estimated future cash flows using yields on the government bonds which have terms to maturity approximating the terms of related liability. The estimated future cash flows shall reflect employee salaries, turnover rate, mortality, length of service and other. The Group recorded provision of employee benefit as non-current liabilities. Actuarial gains and losses arising from experience adjustments or changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past-service costs are recognised immediately in profit or loss. 3URYLVLRQV Provisions, which exclude the provision relating to employee benefits, are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate assets but only when the reimbursement is virtually certain. 6KDUH FDSLWDO Ordinary shares are classified as equity. Other shares including mandatory redeemable preference shares are classified as liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax from the proceeds.

144

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146

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The following table presents the Groupâ&#x20AC;&#x2122;s financial assets that are measured at fair value at 31 December 2014. /HYHO %DKWu

&RQVROLGDWHG /HYHO %DKWu

7RWDO %DKWu

7UDGLQJ ILQDQFLDO DVVHWV Equity securities Debt securities

5,486 -

56,346

5,486 56,346

Total assets

5,486

56,346

61,832

/HYHO %DKWu

&RPSDQ\ /HYHO %DKWu

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7UDGLQJ ILQDQFLDO DVVHWV Equity securities Debt securities

5,486 -

53,720

5,486 53,720

Total assets

5,486

53,720

59,206

There were no transfers between levels 1 and 2 during the year. Financial instruments in level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an armâ&#x20AC;&#x2122;s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Financial instruments in level 2 The fair value of financial instruments that are not traded in an active market (for example, over-thecounter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The fair values of financial assets and liabilities measured at amortised cost approximate their carrying amounts.

148

149

1 January 2014 31 December 2014 Reclassification Reclassification Previously increase After Previously increase After Presented (decrease) Reclassification Presented (decrease) Reclassification Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000

1 January 2014 Reclassification Previously increase After presented (decrease) reclassification Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000

Company

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31 December 2014 Reclassification Previously increase After Presented (decrease) reclassification Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000

Consolidated

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Reclassification

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4.1

4. Reclassification / change in accounting policies and correction of errors

4.2

Change in accounting policy The Group made retrospective adjustments due to a change in accounting policy of actuarial gains and losses to conform with the change in accounting standards. As a result, the effects from change in accounting policy to the statement of comprehensive income as of 31 December 2014 are as follows; Company Consolidated Adjustments Adjustments Previously increase Previously increase presented (decrease) Restated presented (decrease) Restated Baht’000 Baht’000 Baht’000 Baht’000 Baht’000 Baht’000

(2) Cost of sales and services Selling expenses Administrative expenses Remeasurements of postemployment benefit obligations Income tax on items that will not be reclassified subsequently to profit or loss

961,336 91,232 324,475

1,022 83 19

962,358 91,316 324,456

369,371 51,243 180,555

1,022 84 789

370,393 51,327 181,344

1,086

1,894

379

(379)

(2) The Company and the Group retrospectively adjusted prior year financial statements (Note 2.2.1) to comply with TAS 19 (revised 2014), “Employee benefits” which is effective on 1 January 2015.

150

151

Company

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31 December 2014 1 January 2014 31 December 2014 1 January 2014 Adjustments Adjustments Adjustments Adjustments Previously increase Previously increase Previously increase Previously increase presented (decrease) Restated presented (decrease) Restated presented (decrease) Restated presented (decrease) Restated Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000

Consolidated

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Correction of errors

5HYHQXHV IURP VDOHV DQG VHUYLFH 'HIHUUHG UHYHQXH DQG OLFHQVH IHHV 5HWDLQHG HDUQLQJV XQDSSURSULDWHG 1RQ FRQWUROOLQJ LQWHUHVWV

4.3

The effects of the above on basic loss per share for the year ended 31 December 2014 are as follows:

Previous presented Adjustments arising from change in accounting policy (Note 4.2) and correction of errors (Note 4.3) Restated

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(1.27) 0.02

(1.01) -

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(1.01)

&ULWLFDO DFFRXQWLQJ HVWLPDWHV DVVXPSWLRQV DQG MXGJHPHQWV Estimates, assumptions, and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. (a)

Estimated impairment of goodwill, intangible assets and prepaid royalty fees The Group tests annually whether goodwill has suffered any impairment and considers impairment of intangible assets and prepaid royalty fees when indicators of impairment exist, which are in accordance with the accounting policy stated in Note 2.12. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. As at 31 December 2015, the Group considered to provide full allowance for impairment of goodwill (Note 15).

(b)

Estimated impairment of investments in subsidiaries, associates and joint ventures The Group tests annually whether investments in subsidiaries, associates and joint ventures have suffered any impairment, in accordance with the accounting policy stated in Note2.12. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates (Note 13).

152

(c)

Equipment and intangible assets Management determines the estimated useful lives and residual values for the plant, equipment and intangible assets of which are mainly considered by technical ability and economic useful lives. The management will revise the depreciation charge where useful lives and residual values are significantly different to previously estimated, or it will write off or write down technically obsolete or assets that have been abandoned or sold.

(d)

Allowance for doubtful accounts The Group maintains an allowance for doubtful accounts to reflect impairment of trade receivables and loans including interest receivables relating to estimated losses resulting from the default or inability of customers to make required payments. The allowance is based on consideration of historical collection experience, known and aging of outstanding debt of each customer. The management will fully set up allowance for long outstanding amounts and without any collateral.

(e)

Employee benefit obligations The present value of the employee benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the pensions include the discount rate. Any changes in these assumptions will have an impact on the carrying amount of employee benefit obligations. The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related employee benefit liability. Other key assumptions for employee benefit obligations are based in part on current market conditions. Additional information is disclosed in Note 20.

&DSLWDO ULVN PDQDJHPHQW The Groupâ&#x20AC;&#x2122;s objectives when managing capital are to safeguard the Groupâ&#x20AC;&#x2122;s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

153

2SHUDWLQJ VHJPHQWV Board of Directors is the Groupâ&#x20AC;&#x2122;s chief operating decision-maker. Management has determined the operating segments based on the information reviewed by Board of Directors for the purposes of allocating resources and assessing performance. Board of Directors considers the business from both a geographic and product and service perspective. Geographically, management considers the performance in Thailand, Singapore, Malaysia, Philippines and other countries. From a product and service perspective, management separately considers the online game services and distribution activities in these geographies. The Group derives their revenue primarily from the online game services. Board of Directors assesses the performance of the operating segments based on a measure of adjusted EBITDA. This measurement basis excludes discontinued operations and the effects of non-recurring expenditure from the operating segments such as restructuring costs, legal expenses and goodwill impairments when the impairment is the result of an isolated, non-recurring event. The measure also excludes the effects of equity-settled share-based payments and unrealised gains/losses on financial instruments. Interest income and expenditure are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the Group. Sales between segments are carried out at armâ&#x20AC;&#x2122;s length. The revenue from external parties reported to Board of Directors is measured in a manner consistent with that in profit or loss. Operating segment information is reported in a manner consistent with the internal reports that are regularly reviewed by the chief operating decision maker in order to make decision about the allocation of resource to the segment and assess its performance. The chief operating decision maker has been identified as the Chief Executive officer of the Group. For management purposes, the Company and its subsidiaries are organised into business units based on its products and services and have 2 reportable segments as follows: x The online game segment is a business segment which provides online game services through internet using servers of the Group; and x The distribution segment is a business which distributes PC offline games and provides payment channel services.

The chief operating decision maker monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and assessing performance. Segment performance is measured based on operating profit or loss and total assets and on a basis consistent with that used to measure operating profit or loss and total assets in the financial information. The basis of accounting for any transactions between reportable segments is consistent with that for third party transactions.

154

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155

*HRJUDSKLF LQIRUPDWLRQ Revenue from external customers for the years ended 31 December 2015 and 2014 based on locations of the Company and subsidiaries are made up as follows: &RQVROLGDWHG %DKWu %DKWu Thailand Singapore Malaysia Others

499,396 209,499 1,844 149,757

643,722 302,180 180,475 114,440

Total

860,496

1,240,817

&DVK DQG FDVK HTXLYDOHQWV &RQVROLGDWHG

&RPSDQ\

%DKWu

Cash on hand Deposit held at call with banks Fixed deposits less than 3 months

186 121,007 -

214 132,832 20,000

36 49,389 -

72 60,050 20,000

Total cash and cash equivalents

121,193

153,046

49,425

80,122

As at 31 December 2015, deposits held at call with banks and fixed deposits less than 3 months bore interests at rates from 0.05% - 2.50 % per annum. (2014: from 0.05% - 2.30% per annum).

156

6KRUW WHUP LQYHVWPHQWV &RPSDQ\

&RQVROLGDWHG %DKWu

%DKWu

80,578

11,790 909

56,346 5,486

9,132 909

53,720 5,486

93,277

61,832

10,041

59,206

Deposits at financial institutions Investments in trading securities Debt securities, fair value Equity securities, fair value

'HSRVLWV DW ILQDQFLDO LQVWLWXWLRQV The deposits at financial institutions of the Group represent fixed deposits at financial institutions with maturities over three months but not later than one year. As at 31 December 2015, deposits at financial institutions bore interest at rates from 0.07% to 0.33% per annum. ,QYHVWPHQWV LQ WUDGLQJ VHFXULWLHV The movement of trading investments is as follows: &RPSDQ\

&RQVROLGDWHG

Book value-beginning balance, net Addition Disposal Change in fair value Book value-ending balance, net

%DKWu

61,832 24,726 (72,598) (1,261)

209,596 32,670 182,636 2,202

59,206 24,726 (72,598) (1,293)

169,141 32,670 144,761 2,156

12,699

61,832

10,041

59,206

157

7UDGH DQG RWKHU UHFHLYDEOHV &RQVROLGDWHG %DKWu %DKWu

&RPSDQ\ %DKWu %DKWu

Trade accounts receivable - Third parties Less Allowance for doubtful accounts

99,644 (5,735)

115,761 (5,588)

54,423 (2,136)

81,500 (2,136)

Trade accounts receivable, net

93,909

110,173

52,287

79,364

56,197

69,887

37,277

28,068

(20,966)

(19,400)

(26,218)

(22,894)

35,231

50,487

11,059

5,174

Trade accounts receivable - net Amounts due from related parties (Note 28) Less Allowance for doubtful accounts - Related parties (Note 28) Interest receivable - third parties Interest receivable - related parties (Note 28) Less Allowance for doubtful accounts - interest receivable-related parties Accrued income from third parties Accrued income from related parties Other receivables from third parties Less Allowance for doubtful accounts - Third parties

129,140 213

160,660 70

63,346 24,259

84,538 21,278

3,320 152

465 -

(19,206) 89 6,559

(9,685) 465 3,467

4,512 5,502

3,972 5,859

6,559

3,878 -

3,893 -

(887)

(850)

Trade and other receivables, net

141,952

170,176

72,366

103,956

Trade accounts receivable - Related parties (Note 28) Less Allowance for doubtful accounts (Note 28) Trade accounts receivable, net

158

Outstanding trade accounts receivable can be analysed as follows: &RQVROLGDWHG %DKWu %DKWu

&RPSDQ\ %DKWu %DKWu

7KLUG SDUWLHV Trade accounts receivable Current Overdue less than 3 months 3 - 6 months 6 - 12 months Over 12 months

69,573 22,723 149 7,199

61,551 46,472 2,048 120 5,570

36,329 15,914 19 5 2,156

46,275 33,089 91 2,045

Total Less Allowance for doubtful accounts

99,644 (5,735)

115,761 (5,588)

54,423 (2,136)

81,500 (2,136)

Trade accounts receivable - third parties, net

93,909

110,173

52,287

79,364

5HODWHG SDUWLHV Trade accounts receivable Current Overdue less than 3 months 3 - 6 months 6 - 12 months Over 12 months

4,052 10,012 634 6,530 34,969

2,112 3,645 1,877 17,298 44,955

1,655 9,351 276 3,052 22,943

1,096 2,392 1,687 3,493 19,400

56,197 (20,966)

69,887 (19,400)

37,277 (26,218)

28,068 (22,894)

35,231

50,487

11,059

5,174

Total Less Allowance for doubtful accounts Trade accounts receivable - related parties, net

159

2WKHU FXUUHQW DVVHWV &RQVROLGDWHG %DKWu %DKWu

&RPSDQ\ %DKWu %DKWu

Account receivable - Revenue department Withholding taxes refundable Prepaid expenses Undue input vat Others

1,621 17,078 16,834 14,530 20,084

1,579 11,202 15,232 2,279 33,346

298 3,955 4,388 270 7,545

298 4,457 453 8,974

Total other current assets

70,147

63,638

16,456

14,182

5HVWULFWHG EDQN GHSRVLWV These represent fixed deposits which have been pledged with the banks to secure credit facilities and with the Revenue Department as collateral for the appeal on value-added tax assessment lawsuit.

160

13. Investments in subsidiaries, associates and joint ventures 13 (a) Investment in subsidiaries The Group had the following subsidiaries as at 31 December 2015 Country of incorporation and place of business

Name

Nature of business

Proportion of ordinary shares directly Proportion of ordinary Proportion of shares held by parent shares held by the held by non-controlling (%) interests (%) Group (%)

Direct Subsidiaries which held by Asiasoft Corporation Public Company Limited A Capital Co., Ltd. Asiasoft International Co., Ltd. Funbox Co., Ltd. (Formerly known as Playpark Co., Ltd.) Playcybergames Co., Ltd. CIB Development Sdn. Bhd. Thinkplus Digital Co., Ltd.

Thailand Thailand Thailand Thailand Malaysia Thailand

Level Up! Inc. Miryn Innovation Co., Ltd.

Philippines Thailand

Playpark Co., Ltd. (Formerly known as Funbox Co., Ltd.)

Thailand

Investment Investment Entertainment services on websites Publisher of online games Publisher of online games Providing internet marketing and advertising media services Publisher of online games Developer of game application on mobile phone Publisher of online games

100.00 100.00 100.00

99.99 61.68 59.99

0.01 38.32 40.01

100.00 65.00

35.00

99.99

0.01

100.00 100.00

79.90

20.10

100.00

Indirect Subsidiaries which held by Asiasoft International Company Limited Asiasoft Online Pte. Ltd. Singapore Publisher of online games AS Online Sdn. Bhd.and its subsidiary Malaysia Publisher of online games (Trilight Cove Enterprises Ltd.) PT. Asiasoft Indonesia Publisher of online games Subsidiaries which held by CIB Development Sdn. Bhd. CIB Net Station Sdn. Bhd. and its subsidiary (Chinesego Sdn. Bhd.)

Malaysia

Publisher of online games

All subsidiary undertakings are included in the consolidation. The proportion of the voting rights in the subsidiary undertakings held directly by the parent company do not differ from the proportion of ordinary shares held. The parent company further does not have any shareholdings in the preference shares of subsidiary undertaking included in the Group.

161

The total non-controlling interest is Baht (5.02) million. The non-controlling interest in respect of subsidiaries is not material. Movements of investment in subsidiaries can be analysed as follows: For the year ended 31 December

Company 2015 2014 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000

Opening net book amount Acquisitions Disposals Impairment charge

396,166 102 366,668

433,065 144,347 (181,246)

29,600

396,166

584,714 555,114

584,612 (188,446)

29,600

396,166

Closing net book amount As at 31 December Cost Less Allowance for impairment Net book amount

On 23 April 2015, the Group has registered to close Funbox Co., Ltd. (formerly known as Playpark Co., Ltd.), a subsidiary in Thailand, which operates entertainment services on website. The net assets of the subsidiary as at 23 April 2015 was Baht 674,198 and the operating loss for the period then ended was Baht 50,950. Such subsidiary is in process of liquidation. The Company invested in ordinary shares of Playpark Co., Ltd. (formerly known as Funbox Co., Ltd.) on 9 June 2015 in proportion of 99.99% of issued shares and paid-up capital of Playpark or 399,998 shares, par value of Baht 100, total amount of Baht 100,000. The seller of ordinary shares is A Capital Co., Ltd., a subsidiary in which 99.99% of the shares are held by the Company. The Company invested in ordinary shares of Playcybergames Co., Ltd. on 27 November 2015 in proportion of 39.99% of issued and paid-up capital of Playcybergames or 8000,000 shares, par value of Baht 10, total amount of Baht 2,125. The seller of ordinary shares is the non-controlling interests.

162

Investments accounted for using equity method The amounts recognised in the statement of financial position are as follows: Consolidated 2015 2014 Baht’000 Baht’000

At 31 December

Associates Joint ventures

Company 2015 2014 Baht’000 Baht’000

29,756 -

5,881 -

25,073 -

- -

29,756

5,881

25,073

The amounts recognised in profit or loss are as follows: For the year ended 31 December

Associates Joint ventures

Consolidated 2015 2014 Baht’000 Baht’000

Company 2015 2014 Baht’000 Baht’000

(4,519) -

1,399 -

- -

(4,519)

1,399

13 (b) Investment in associates

Name of entity Direct Pomelo Network Pte. Ltd.

Indirect Thaiware Communication Company Limited Cybergames Corporation Company Limited Playpark Inc.

Place of Business/ country of incorporation

% of ownership interest 2015 2014

Nature of the relationship

Developer of mobile applications and mobile messenger

Measurement method

Taiwan/Singapore

11.01

Equity

Thailand

40.00

40.00 Services on website

Equity

Thailand

30.00

30.00 Services on network

Equity

Philippines

40.00

40.00 Publisher of online games

Equity

The Group considers that investment in Pomelo Network Pte. Ltd. is investment in associate because the Company has significant influence through voting rights despite the ownership interest is only 11.01%.

163

Movements of investment in associates can be analysed as follows: Consolidated Bahtâ&#x20AC;&#x2122;000

Company Bahtâ&#x20AC;&#x2122;000

Share of profit (loss)

5,881 25,073 (202) (4,519)

25,073

Closing net book amount

26,233

25,073

37,864 (11,631)

25,073 -

26,233

25,073

For the year ended 31 December 2015 Opening net book amount Additions Dividend received

As at 31 December 2015 Cost Less Allowance for loss on impairment Net book amount

Set out below is the associate of the Group, which is material to the Group, in the opinion of the directors. The associate as listed below has share capital consisting solely of ordinary shares, which is held directly by parent. Summarised financial information for associates Set out below are the summarised financial information for Pomelo Network Pte. Ltd. which is accounted for using the equity method. Summarised statement of financial position (Unaudited) As at 31 December 2015 Bahtâ&#x20AC;&#x2122;000 Current Cash and cash equivalents Other current assets (excluding cash)

2,450

Total current assets Financial liabilities (excluding trade payables) Other current liabilities (including trade payables)

2,450 (654)

Total current liabilities

(654)

Non-current Assets

91,187

Net assets

92,983

164

6XPPDULVHG VWDWHPHQW RI FRPSUHKHQVLYH LQFRPH 8QDXGLWHG )RU WKH \HDU HQGHG 'HFHPEHU %DKWu 5HYHQXHV 6HOOLQJ DQG DGPLQLVWUDWLYH H[SHQVHV 'HSUHFLDWLRQ DQG DPRUWLVDWLRQ ,QWHUHVW LQFRPH ,QWHUHVW H[SHQVH /RVV EHIRUH LQFRPH WD[ H[SHQVHV ,QFRPH WD[ H[SHQVH 3RVW WD[ SURILW IURP FRQWLQXLQJ RSHUDWLRQV

2WKHU FRPSUHKHQVLYH LQFRPH 7RWDO FRPSUHKHQVLYH LQFRPH 'LYLGHQGV UHFHLYHG IURP DVVRFLDWH

7KH LQIRUPDWLRQ DERYH UHIOHFWV WKH DPRXQWV SUHVHQWHG LQ WKH ILQDQFLDO VWDWHPHQWV RI WKH DVVRFLDWHV DQG QRW 7KH *URXSuV VKDUH RI WKRVH DPRXQWV DGMXVWHG IRU GLIIHUHQFHV LQ DFFRXQWLQJ SROLFLHV EHWZHHQ WKH *URXS DQG WKH DVVRFLDWHV

165

5HFRQFLOLDWLRQ RI VXPPDULVHG ILQDQFLDO LQIRUPDWLRQ Reconciliation of the summarised financial information presented to the carrying amount of its interest in associates: 6XPPDULVHG ILQDQFLDO LQIRUPDWLRQ 8QDXGLWHG )RU WKH \HDU HQGHG 'HFHPEHU %DKWu 2SHQLQJ QHW DVVHWV ř -DQXDU\ Loss for the year Other comprehensive income Foreign exchange differences &ORVLQJ QHW DVVHWV

142,947 (41,552) (8,412) 92,983 10,237 10,260 20,497

Interest in associates (11.01%) Goodwill &DUU\LQJ YDOXH

The Company invested in 750,000 new preferred shares of Pomelo Network Pte. Ltd. in June 2015 at the par value, in the total amount of USD 750,000 and the Company has already paid USD 750,000 or Baht 25,072,500. There are no contingent liabilities relating to the Group’s interest in the associates. ,QGLYLGXDOO\ LQVLJQLILFDQW DVVRFLDWHV In addition to the interests in associates disclosed above, the Group also has interests in a number of individually insignificant associates that are accounted for using the equity method. %DKWu Aggregate carrying amount of individually insignificant associates Aggregate amounts of the reporting entity’s share of: Profit/(loss) from continuing activities Post-tax profit or loss from discontinued operations Other comprehensive income 7RWDO FRPSUHKHQVLYH LQFRPH

166

9,259 57 57

F ,QYHVWPHQW LQ MRLQW YHQWXUHV

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1DWXUH RI WKH UHODWLRQVKLS

'HYHORSHU RI JDPHV

0HDVXUHPHQW PHWKRG

(TXLW\

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167

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168

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Company Furniture & fixture and eTXLSPHQW Vehicles Baht’000 Baht’000

Assets under installation Baht’ŘŘŘ

Total Baht’ŘŘŘ

14,901 (11,387)

3,068 -

241,041 (167,684)

12,698

3,514

3,068

73,357

44,373 5,226 (14,834)

12,698 4,303 (40) (6,413)

3,514 (1,368)

3,068 100 (1,612) -

73,357 9,629 (40) (25,929)

8,002

34,765

10,548

2,146

1,556

57,017

20,814 (12,812)

150,242 (115,477)

51,338 (40,790)

12,211 (10,065)

1,556 -

236,161 (179,144)

Net book amount

8,002

34,765

10,548

2,146

1,556

57,017

For the year ended 31 December 2015 Opening net book amount Additions

8,002 -

34,765 -

10,548 1,373

2,146 -

1,556 -

57,017 1,373

(189) (3,184)

(12) (12,662)

(60) (4,775)

(948)

(1,556) -

(1,556) (261) (21,569)

4,629

22,091

7,086

1,198

35,004

18,304 (13,675)

141,676 (119,585)

48,431 (41,345)

8,050 (6,852)

216,461 (181,457)

4,629

22,091

7,086

1,198

35,004

At 1 January 2014 Cost Less Accumulated depreciation Net book amount For the year ended 31 December 2014 Opening net book amount Additions Transfer in (out) Disposals/write off, net Depreciation charge Closing net book amount At 31 December 2014 Cost Less Accumulated depreciation

Reclassification to intangible assets Disposals/write off, net Depreciation charge Closing net book amount At 31 December 2015 Cost Less Accumulated depreciation Net book amount

Building improvements Baht’000

Server Baht’000

19,202 (9,498)

153,561 (109,188)

50,309 (37,611)

9,704

44,373

9,704 1,612 (3,314)

169

15. Goodwill Consolidated 2015 Bahtâ&#x20AC;&#x2122;000

2014 Bahtâ&#x20AC;&#x2122;000

At 1 January Cost Less Allowance for impairment

249,854 (94,205)

164,855 -

Net book amount

155,649

164,855

155,649 (155,649)

164,855 84,999 (94,205)

155,649

155,649 (155,649)

249,854 (94,205)

155,649

Year ended 31 December Opening net book amount Acquisition of subsidiary Impairment charge Closing net book amount At 31 December Cost Less Allowance for impairment Net book amount

The carrying amount of the segment has been reduced to its recoverable amount through recognition of an impairment loss against goodwill. This loss has been included in the statement of comprehensive income for the years.

170

16. Other intangible assets

At 1 January 2014 Cost Less Accumulated amortisation Less Allowance for impairment Net book amount Year ended 31 December 2014 Opening net book amount Exchange differences Acquisition of subsidiary Additions Transfer Disposal/write-off, net Amortisation charge Impairment charge Closing net book amount At 31 December 2014 Cost Less Accumulated amortisation Less Allowance for impairment Net book amount

Consolidated Right for use Customer of golf club relationship Baht’000 Baht’000

Game licenses Baht’000

Computer software Baht’000

822,494 (353,549) (44,964)

39,238 (36,169) -

3,930 (372)

423,981

3,069

423,981 (3,552) 22,964 96,587 2,633 (113,822) (97,603) (98,833)

Trademark Baht’ŘŘŘ

Total Baht’ŘŘŘ

55,538 (13,080) -

51,133 (4,214) -

972,333 (407,012) (45,336)

3,558

42,458

46,919

519,985

3,069 1 6,966 (80) (871) -

3,558 (105) (1,084)

42,458 (7,931) -

46,919 104 10,005 (2,962) -

519,985 (3,552) 32,969 103,553 2,633 (113,902) (109,367) (99,917)

232,355

9,085

2,369

34,527

54,066

332,402

810,378 (436,646) (141,377)

46,125 (37,040) -

3,780 (1,411)

55,538 (21,011) -

61,245 (7,179) -

977,066 (501,876) (142,788)

232,355

9,085

2,369

34,527

54,066

332,402

171

Consolidated Right for use Customer of golf club relationship Baht’000 Baht’000

Game licenses Baht’000

Computer software Baht’000

Year ended 31 December 2015 Opening net book amount Exchange differences Additions

232,355 (2,178) 92,658

9,085 2,268

2,369 60 -

Reclassification from equipment Disposal/write-off, net Amortisation charge Impairment charge

(60,027) (101,767) (36,841)

1,556 301 (1,563) -

124,200

Closing net book amount At 31 December 2015 Cost Less Accumulated amortisation Less Allowance for impairment impairment Net book amount

Trademark Baht’ŘŘŘ

Total Baht’ŘŘŘ

34,527 -

54,066 787 -

332,402 (1,331) 94,926

(7,931) (26,596)

(3,060) (51,793)

1,556 (59,726) (114,321) (115,230)

11,647

2,429

138,276

726,660

51,421

3,875

55,538

61,674

899,168

(426,910)

(39,774)

(28,942)

(9,881)

(505,507)

(175,550)

(1,446)

(26,596)

(51,793)

(255,385)

124,200

11,647

2,429

138,276

172

Game licenses Baht’000

Company Computer software Baht’ŘŘŘ

Total Baht’ŘŘŘ

429,021 (150,787) (22,284)

40,631 (37,339) -

469,652 (188,126) (22,284)

Net book amount

255,950

3,292

259,242

Year ended 31 December 2014 Opening net book amount Additions Transfer Disposal/write-off, net Amortisation charge Impairment charge

255,950 61,066 4,835 (19,974) (56,474) (44,999)

3,292 6,966 (871) -

259,242 68,032 4,835 (19,974) (57,345) (44,999)

Closing net book amount

200,404

9,387

209,791

443,415 (175,728) (67,283)

47,597 (38,210) -

491,012 (213,938) (67,283)

Net book amount

200,404

9,387

209,791

Year ended 31 December 2015 Opening net book amount Additions Reclassification from equipment Disposal/write-off, net Impairment charge Amortisation charge

200,404 60,018 (71,669) (18,153) (74,247)

9,387 2,268 1,556 (1,564)

209,791 62,286 1,556 (71,669) (18,153) (75,811)

96,353

11,647

108,000

343,768 (161,980) (85,435) 96,353

51,421 (39,774) 11,647

395,189 (201,754) (85,435) 108,000

At 1 January 2014 Cost Less Accumulated amortisation Less Allowance for impairment

At 31 December 2014 Cost Less Accumulated amortisation Less Allowance for impairment

Closing net book amount At 31 December 2015 Cost Less Accumulated amortisation Less Allowance for impairment Net book amount

173

6KRUW WHUP ERUURZLQJV IURP ILQDQFLDO LQVWLWXWLRQ Movement of short-term borrowings from financial institution during the year are as follows; &RQVROLGDWHG %DKWu )RU WKH \HDUV HQGHG 'HFHPEHU Beginning balance Additions Repayments Exchange rate differences Ending balance

%DKWuŘŘŘ

&RPSDQ\ %DKWuŘŘŘ

%DKWuŘŘŘ

60,995 23,233 59,768 (1,227)

12,941 48,054 -

23,233 -

23,233

60,995

23,233

174

The interest rate exposure on the borrowings of the Group and the Company is as follows: &RQVROLGDWHG

&RPSDQ\

%DKWu

%DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC;

- at floating rates

23,233 -

60,995 -

23,233 -

Total borrowings

23,233

60,995

23,233

Borrowings: - at fixed rates

The short-term borrowings from financial institution as at 31 December 2015 bore interest at rates from 2.85% - 4.00% per annum and are due within 4 months (2014: interest at rate from 1.71% - 2.24% per annum). &UHGLW IDFLOLW\ In August 2014, the Company was granted short-term loan facility of Baht 150 million by a bank for investment in game licenses and repayment of license fee. This short-term loan facility was reduced from Baht 150 million to Baht 25 million on 14 August 2015. The remaining unused facility was Baht 1.8 million. 7UDGH DQG RWKHU SD\DEOHV &RQVROLGDWHG %DKWu %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; Trade account payables - third party Trade account payables - related parties (Note 28) Amounts due to related parties (Note 28) Other payables - third party Accrued license fee Payables for prepaid license fees Payables for purchases of equipment and intangible assets Accrued expenses Total trade and other payables

&RPSDQ\ %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC;

55,427

41,566

249

453

315 35,868 15,913 -

193 46 21,593 44,816 26,491

5,328 4,926 -

11,300 5,164 14,038 26,491

44,456 40,976

11,843 41,290

38,656 15,875

11,843 24,082

192,955

187,838

65,034

93,371

175

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&RPSDQ\ %DKWuŘŘŘ %DKWuŘŘŘ

176

The movement in deferred tax assets and liabilities is as follows:

As at 31 December

Deferred tax assets Allowance for doubtful accounts Allowance for obsolescence of inventories Allowance for impairment of prepaid license fees Allowance for impairment of other intangible assets Deferred revenue and license fees License costs relating to deferred revenue Unutilised taxable expenses Accumulated depreciation - equipment Employee benefit obligations

Deferred tax liabilities Accumulated depreciation - equipment Intangible assets arise from business combination

Deferred tax assets, net

177

Consolidated Charged (credited) 2014 to profit or loss Baht’000 Baht’ŘŘŘ

2015 Baht’ŘŘŘ

6,943 740 9,670 13,498 35,602 (10,482) 2,164 846 2,089

(6,505) (83) (3,660) 2,043 4,615 (1,557) (1,386) 882 444

438 657 6,010 15,541 40,217 (12,039) 778 1,728 2,533

61,070

(5,207)

55,863

(2,019) (19,489)

1,277 19,489

(742) -

(21,508)

20,766

(742)

39,562

15,559

55,121

As at 31 December

Deferred tax liabilities Accumulated depreciation - equipment Intangible assets arise from business combination

Deferred tax assets, net

2014 Baht’000

Company Charged (credited) to profit or loss Baht’ŘŘŘ

2015 Baht’ŘŘŘ

6,943 740 9,670 12,648 32,709 (9,955) 2,164 846 2,089

(6,505) (83) (3,660) 4,439 4,615 (1,557) (1,386) 882 445

438 657 6,010 17,087 37,324 (11,512) 778 1,728 2,534

57,854

(2,810)

55,044

57,854

(2,810)

55,044

Deferred income tax assets are recognised for tax loss and carry forward only the extent that realisation of the related tax benefit through the future taxable profits is probable.

178

(PSOR\HH EHQHILW REOLJDWLRQV The amounts recognised in the statement of financial position are determined as follows: &RQVROLGDWHG %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; %DKWu

&RPSDQ\ %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC;

Present value of post-employment benefit obligations

14,088

12,696

12,666

10,445

Liability in the statement of financial position

14,088

12,696

12,666

10,445

Movements in the retirement benefit obligations over the year are as follows: &RQVROLGDWHG %DKWu %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; Retirement benefit obligations at the beginning of the year Less Unrecognised transitional provision Opening book amount Addition from investment in subsidiaries Current service costs Interest costs Gain on remeasurement of retirement benefit obligations Decrease in obligation due to employee transfer Translation differences Unrecognised transitional provisions Closing book amount

&RPSDQ\ %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC;

14,223 (1,527)

12,701 (3,161)

11,972 (1,527)

11,207 (3,005)

Ĺ&#x2122;Ĺ&#x161; Ĺ&#x17E;ĹĄĹ&#x17E; 3,306 587

ĹĄ Ĺ?Ĺ&#x153;Ĺ&#x2DC; 1,130 3,504 636

Ĺ&#x2122;Ĺ&#x2DC; Ĺ&#x153;Ĺ&#x153;Ĺ? 2,412 479

Ĺ Ĺ&#x2122;Ĺ?Ĺ&#x161; 2,211 448

(4,467)

(1,086)

(2,197)

(1,894)

Ĺ&#x153;Ĺ&#x203A;ĹĄ Ĺ&#x2122; Ĺ?Ĺ&#x161;Ĺ&#x;

(2,690) 2ĹĄ Ĺ&#x2122; Ĺ&#x17E;Ĺ&#x203A;Ĺ&#x203A;

Ĺ&#x2122; Ĺ?Ĺ&#x161;Ĺ&#x;

1,527

14,088

12,696

12,666

10,445

179

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180

6HQVLWLYLW\ DQDO\VLV IRU HDFK VLJQLILFDQW DFWXDULDO DVVXPSWLRQ Consolidated and Company Impact on defined benefit obligations Change in assumption Increase in obligations Decrease in obligations % Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 'LVFRXQW UDWH 'LVFRXQW UDWH 6DODU\ LQFUHDVH UDWH 6DODU\ LQFUHDVH UDWH

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ess than a year Bahtâ&#x20AC;&#x2122;000 At 31 December 2015 5HWLUHPHQW EHQHILWV 7RWDO

At 31 December 2015 5HWLUHPHQW EHQHILWV 7RWDO

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Between 1-2 years Bahtâ&#x20AC;&#x2122;000

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181

Company Between 2-5 years Over 5 years Total Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000 Bahtâ&#x20AC;&#x2122;000

6KDUH FDSLWDO DQG SUHPLXP RQ VKDUH FDSLWDO 1XPEHU RI DXWKRULVHG ,VVXHG DQG ,VVXHG DQG 3UHPLXP RQ RUGLQDU\ SDLG XS SDLG XS VKDUH VKDUHV VKDUHV VKDUHV FDSLWDO 6KDUHV %DKWu %DKWu 6KDUHV

7RWDO %DKWu

At 1 January 2014 Issue of shares

307,407,762 307,407,762 -

307,408 -

796,834 -

1,104,242 -

At 31 December 2014 Issue of shares

307,407,762 307,407,762 -

307,408 -

796,834 -

1,104,242 -

At 31 December 2015

307,407,762 307,407,762

307,408

796,834

1,104,242

The total number of authorised ordinary shares is 307,407,762 shares (2014: 307,407,762 shares) with a par value of Baht 1 per share (2014: Baht 1 per share). All issued shares are fully paid.

/HJDO UHVHUYH &RQVROLGDWHG %DKWuŘŘŘ %DKWu

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At 1 January

31,600

At 31 December

31,600

Under the Public Limited Company Act., B.E. 2535, the Company is required to set aside as a legal reserve at least 5% of its net profit after accumulated deficit brought forward (if any) until the reserve is not less than 10% of the registered capital. The legal reserve is non-distributable.

182

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&RQVROLGDWHG %DKWu %DKWuŘŘŘ

&RPSDQ\ %DKWuŘŘŘ %DKWuŘŘŘ

ŚŘŝ řŚř

řşŜ řşŞ

183

,QFRPH WD[ &RQVROLGDWHG 5HVWDWHG %DKWu %DKWuŘŘŘ &XUUHQW WD[ Current tax on profit for the year

&RPSDQ\ %DKWuŘŘŘ

5HVWDWHG %DKWuŘŘŘ

1,744 662

Ş,87š (563)

679

8,ŠŚŘ (566)

2,406

Ş,śřŞ

679

Š,ŚŝŜ

- Deferred tax liabilities

4,767 (20,76ŝ)

(1ŝ,Ŝşş) (9,834)

2,371 -

(1Ŝ,ŚŞŝ) -

Total deferred tax (income) expense

(15,99Š)

(2ŝ,śřř)

2,371

(1Ŝ,Ś6ŝ)

Total income tax (income) expense

(13,59Ś)

(18,995)

3,050

(6,011)

Adjustment in respect of prior year Total current tax 'HIHUUHG WD[ Origination and reversal of temporary differences: - Deferred tax assets

The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the basic tax rate of the home country of the Group as follows: &RQVROLGDWHG 5HVWDWHG %DKWu %DKWuŘŘŘ

%DKWuŘŘŘ

5HVWDWHG %DKWuŘŘŘ

Loss before income tax

(526,660)

(471,0śŠ)

(658,386)

(317,429)

Tax rate Tax calculated at tax rate Tax effect of: Adjustment in respect of prior year Income not subject to tax Expenses not deductible for tax purpose Write-off deferred tax assets Used tax benefit from deferred tax assets Tax loss not recognised as deferred tax assets

0 - 30% (162,975)

0 - 30% (153,436)

20% (131,677)

20% (63,486)

662 (3,743) 124,963 8,870 -

(563) Ŝ,ŘŚŚ

136,789 2,630 (393)

679 (3,743) 112,783 6,505 -

(566) (3,353) 59,157 2,630 (393)

18,631

18,503

(13,592)

(18,995)

3,050

(6,011)

Tax charge

Weighted effective tax rate is -2.58% (2014: -4.03%).

184

&RPSDQ\

/RVV SHU VKDUH Basic loss per share is calculated by dividing the loss attributable to shareholders of the parent company by the weighted average number of ordinary shares in issue during the year. &RPSDQ\ &RQVROLGDWHG 5HVWDWHG 5HVWDWHG Loss attributable to ordinary shareholders of the Company (Baht’000)

(475,148)

(383,598)

(661,436)

(311,419)

Weighted average number of ordinary shares outstanding (Shares’000)

307,408

(1.55)

(1.25)

(2.15)

(1.01)

Basic loss per share (Baht per share)

There are no potential dilutive ordinary shares in issue during the years 2015 and 2014. &RPPLWPHQWV DQG FRQWLQJHQFLHV D

/LFHQVH DJUHHPHQWV The Group has entered into software license agreements, agreements licensing it to provide online game services and distribution rights agreements with several local and overseas companies. Under the agreements, the Company and subsidiaries are committed to pay initial license fees, minimum guarantee based on agreements and royalty fees based on revenue as stated in the agreements. The minimum guarantee payment are due according to the payment terms in the agreements. As at 31 December 2015 and 2014, the Company and subsidiaries are committed to pay initial license fees and minimum guarantee as follows:

Initial license fees Minimum guarantee

&RQVROLGDWHG %DKWuŘŘŘ %DKWu

&RPSDQ\ %DKWuŘŘŘ %DKWuŘŘŘ

243,350 251,293

198,297 203,165

185

195,177 200,004

167,412 172,354

2SHUDWLQJ OHDVH FRPPLWPHQWV ZKHUH WKH *URXS LV WKH OHVVHH The Group entered into operating lease agreements related to the rental of office space, warehousing and server storage space, and other agreements. The agreements have 1 - 5 years terms and are renewable. As at 31 December 2015 and 2014, the Company and subsidiaries have future minimum lease payments required under these non-cancellable operating lease contracts are as follows. &RQVROLGDWHG %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; %DKWu Not later than 1 year Later than 1 year but not later than 5 years

&RPSDQ\ %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC; %DKWuĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2DC;

47,700

58,858

29,942

25,608

45,433

28,992

28,887

5,929

93,133

87,850

58,829

31,537

5HODWHG SDUW\ WUDQVDFWLRQV Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiaries and fellow subsidiaries are related parties of the Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the enterprise, key management personnel, including directors and officers of the Company and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form. The Companyâ&#x20AC;&#x2122;s shares are held by Mr. Pramoth Sudjitporn in the proportion of 43%. The remaining of 57% are widely held. The significant investments in subsidiaries, associates and joint ventures are set out in Note 13.

186

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187

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(c)

Outstanding balances arising from sales/purchases of goods/services and others Consolidated 2015 2014 Baht’ŘŘŘ Baht’000 Trade accounts receivable Subsidiaries Associates Related parties

Company 2015 2014 Baht’ŘŘŘ Baht’ŘŘŘ

śř,řřŞ 25,081

89 69,798

13,025 37 24,215

4,433 43 23,592

5Ş,19ş (20,966)

69,887 19,400

37,277 26,218

28,068 22,894

3ŝ,2śř

50,487

11,059

5,174

Amounts due from and accrued interest from related parties Subsidiaries - other receivables - accrued interest Associates Related parties

3Şŝ -

70 -

24,046 6,559 213 -

21,278 3,467 -

Total Less Allowance for doubtful accounts

365 -

70 -

30,818 (25,765)

24,745 9,685

365

5,053

15,060

252 63

239 -

5,013 252 63

11,079 221 -

315

239

5,328

11,300

Total Less Allowance for doubtful accounts

Trade and other payables Subsidiaries Associates Related parties

188

6KRUW WHUP ORDQV WR UHODWHG SDUWLHV &RQVROLGDWHG %DKWuŘŘŘ %DKWu 6KRUW WHUP ORDQV WR UHODWHG SDUWLHV Subsidiaries Less Allowance for impairment

&RPSDQ\ %DKWuŘŘŘ %DKWuŘŘŘ

328,841 (269,526)

179,467 95,350

59,315

84,117

The movements of short-term loans to related parties are shown below: &RPSDQ\ %DKWu )RU WKH \HDU HQGHG 'HFHPEHU Opening balance Loans advanced during the year Loans repayments received during the year Allowance for impairment Unrealised gain on exchange rate

84,117 167,494 20,602

174,175

2,481

Closing balance

59,315

Short-term loans to related parties are loans without collateral, repayable at call and bore interest at rate from 1.88% - 3.05% per annum.

189

6KRUW WHUP ORDQ IURP GLUHFWRU &RQVROLGDWHG %DKWuŘŘŘ %DKWu 6KRUW WHUP ORDQ IURP GLUHFWRU Key management

&RPSDQ\ %DKWuŘŘŘ %DKWuŘŘŘ

39,024

The movements of short-term loan from director are shown below: &RQVROLGDWH %DKWuŘŘŘ )RU WKH \HDU HQGHG 'HFHPEHU Opening balance Loans received during the year Loans repaid during the year Unrealised loss on exchange rate Closing balance

36,435 2,589 39,024

Short-term loan from key management bore interest rate at 3.00% per annum and is repayable within six months. I

.H\ PDQDJHPHQWuV FRPSHQVDWLRQV Key management includes directors (executive and non-executive), members of the Executive Committee, the Company Secretary and the Head of Internal Audit. The compensation paid or payable to key management for employee services is shown below: &RQVROLGDWHG %DKWuŘŘŘ %DKWu Short-term employee benefits Retirement benefits

22,499 582 23,081

190

24,628 582 25,210

&RPSDQ\ %DKWuŘŘŘ %DKWuŘŘŘ 17,529 582 18,111

15,023 582 15,605

29. Reversal of loss on impairment of prepaid royalty fees On 20 April 2015, the Company has entered into an agreement with MGame Corporation to waive the prepaid minimum guarantee amount of USD 0.6 million or equal to THB 19.69 million. Therefore, the Company reversed allowance for impairment of prepaid minimum guarantee as fully provided previously in the statement of comprehensive income for the year. 30. Financial assets and liabilities denominated in foreign currencies The significant outstanding balances of the Company and its subsidiaries’ financial assets and liabilities denominated in foreign currencies are as follows: Financial assets Foreign currency

USD EUR MYR SGD PHP IDR

2015 Baht’000

2014 Baht’000

2015 Baht’000

2014 Baht’000

5,593 Ŝś 4 1,681 168

6,789 ŚŜŚ 1,048 115 3 -

5,595 578 197 13,399 30,054

1,690 1,296 322 641 30,054

Financial assets Foreign currency

USD EUR MYR SGD PHP IDR

Consolidated Financial liabilities

Company Financial liabilities

2015 Baht’000

2014 Baht’000

2015 Baht’000

2014 Baht’000

5,093 20 1,659

5,213 191 96 -

1,157 75 ŜŞ śŘ,ŘŝŜ

1,287 1,227 310 30,054

Average exchange rate 2015 2014 Baht Baht Baht per 1 unit of foreign currency 36.0886 39.4388 8.4280 25.5195 0 7691 0 0026

32 9630 40.0530 9.4251 24.8959 0 7324 0 0027

Average exchange rate 2015 2014 Baht Baht Baht per 1 unit of foreign currency 36.0886 39.4388 8.4280 25.5195 Ř şŞšř Ř ŘŘŚŞ

32 9630 40.0530 9.4251 24.8959 Ř şśŚŜ 0 0027

In addition, the Company and its subsidiaries are exposed to foreign exchange risk on their investments in overseas subsidiaries. These investments are currently not hedged by derivative financial instruments.

191

THE NEXT STEP OF ASIASOFT To head into the mobile game market and to keep the base of online PC players are our next target to go into the level of mobile game leading providing. Currently, being the leading mobile game provider is not easy to reach, but our more-than-15-year experience in online PC game provider would make us better understand the market and the PC game players, which is our advantage, including that Asiasoftâ&#x20AC;&#x2122;s human resources are particularly skillful. It is safe to say that with the pursuit and the power of everyone in Asiasoft that is ready to walk hands in hands, including the structure adaptation within our corporate and the alliances, it does not beyond our ability to make our working brief and real-time in accordance with returning to be the leading online entertainment service provider in the Southeast Asia, which prevails every part of service, including PC online and mobile games, applications, and mobile platforms. These mentioned points are our goal to reach for.

193