AS : Annual Report 2010

ANNU

AL R

2010 T R EPO

O N S A H S S E C C SU

Y R A D N U O B

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9 UM Tower, Room 9/283-5, 28th Floor, Ramkhamhaeng Road, Suanluang, Bangkok 10250

Contents

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dit Committee u A e th f o rt o ep R of the Company n io at rm fo In al Gener rs Board of Directo ittee Executive Comm Responsibility Corporate Social Highlight Events ht Financial Highlig s Nature of Busines Risk Factors d Management an re u ct u tr S g Shareholdin ing ctions Financial Report e th r fo es Connected Transa ti ili b onsi s f Directors’ Resp o d ar o B Operating Result e d th an f o s n t io en it d m n te o C ta S cial Analysis of Finan d an n io ss cu is D Management ent Financial Statem

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4 6 9 17 21 24 28 29 43 46 64 73 74 81

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Asiasoft Corporation Public Company Limited

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affected many provinces throughout the nation, Asiasoft still fostered our position in Thailand as an esteemed business leader

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2009. One of the successful factors that helped boost our constant growth was the launch of our new games comprising 12 46! ' 7 & * # ' 4 % # !

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organizational restructuring, and effective management in selling and administrative expenses.

In 2011, our marketing strategies will change at all, from local content to regional content, aiming to link together all the markets of Asiasoft in Southeast Asia. Additionally, we have worked on a plan for continuous investment in promising 6 * " ! ' ## %

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) ## % %# * As the worldâ&#x20AC;&#x2122;s fourth most populous nation, Indonesia has more than 150 million active mobile users, and approximately 35 million Facebook subscribers, ranking the second largest number of Facebook users after the United States. Nowadays, social network is an outstanding phenomenon in Indonesia. Thus, it can actually be a useful business tool for promoting our online enterprise. With such critical factors as practical strategies, competent professionals, more than 10 years of hands-on % ' # = ! '

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# ! for Asiasoft as it hopes to boost more growth and generate more surplus. Moreover, we are committed to building up the

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program, the social and environmental program, and the program to enhance government activities.

The next few years shall see momentous changes in the online entertainment industry. We are positive that Asiasoft, thanks to the full support of our customers, business alliances, and the government sector, plus the wide vision of Asiasoft Board of Directors, and the strong determination of our executives and employees, will be able to continue to position ourselves as a leader in new business segments, and play a key role in driving the nationâ&#x20AC;&#x2122;s economy to sustainable growth.

Tan T Tgow T Lim Li Chairman

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Chief Executive Officer 3

Report of the Audit Committee The Audit Committee of Asiasoft Corporation Public Company Limited consists solely of three independent directors

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of the Audit Committee, Mrs. Tanyaporn Manmee and Mrs. Monluedee Sookpantarat, 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 2010, the Audit Committee met totally 6 times together with the Management, the Account and Finance Department, Outsourcing Internal Audit and the external auditors every quarter depending on the relevant agenda which can be concluded as follows:

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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 Outsourcing Internal Audit.

The Audit Committee is of the opinion that the company has appropriate and adequate internal control and audit systems. # " "

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The Audit Committee is of the opinion that the company has complied with relevant rules and regulations that concerning company business. ( % %

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To propose the companyâ&#x20AC;&#x2122;s Board of Directors to recommend at the shareholdersâ&#x20AC;&#x2122; meeting the appointment of #

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4 $ ! # ! # ! $ ! 6 # ability and expert in the Company and its Subsidiaries business. )

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legislations and regulations.

To review process, practice, regulations and articles of association of the Company in order that the approved

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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.

6. Others: 6.1 Reviewing the information disclosed to the Stock Exchange of Thailand and the Securities and Exchange commission, as disclosed in the companyâ&#x20AC;&#x2122;s annual report year 2010 (Form 56-2) and in the annual information disclosure form as at December 31, 2010 (Form 56-1).

6.2 Reporting the Audit Committeeâ&#x20AC;&#x2122;s activities to the Board of Directors periodically.

6.3 Reviewing the Charter of Audit Committee for ensuring the Charter of Audit Committee is update and suitable for the Organization Environment. =*) "

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List of Audit Committee * * # % J 6

2. Mrs. Tanyaporn Manmee 3. Mrs. Monluedee Sookpantarat

Number of Attendance / Total Meeting (Times)

Year 2010 =^= 6/6 6/6

On behalf of the Audit Committee

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` Chairman of the Audit Committee ) j $ !

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General Information (As of 31 December 2010) Company Name Type of Business

Asiasoft Corporation Public Company Limited Providing online entertainment services with service emphasizing as an online game operator in Thailand, Singapore, Malaysia, and Vietnam

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No. 9, UM Tower, Room 9 / 283 â&#x20AC;&#x201C; 5, 28th Floor Ramkhamhaeng Road, Suanluang, Bangkok,10250 0107550000050 66 2769 8888 == } } ) ~ www.asiasoft.co.th and www.asiasoft.net 316,000,000 Baht divided into 316,000,000 ordinary shares with a par value of Baht 1 each. )' '&&&

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Registered Number Telephone Facsimile

Website Registered Capital Paid-up Capital

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(As of 31 December 2010) > !> $ ! ?

Company Name Type of Business <

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Web portals for online games and web advertisement services No. 9, UM Tower, Room 9 / 286 â&#x20AC;&#x201C; 7, 28th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250 66 2769 8888 == } } ) ~ www.playpark.com 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. ::*::+

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Company Name

Asiasoft International Company Limited

Type of Business <

Investment Arm (Holding Company) No. 9, UM Tower, Room 9 / 283 â&#x20AC;&#x201C; 5, 28th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250 66 2769 8888 == } } ) ~ 100,000,000 Baht divided into 1,000,000 ordinary shares with a par value of Baht 100 each.

All shares have been issued and fully paid up. ::*::+

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Telephone Facsimile

Website Registered Capital

Telephone Facsimile

Registered Capital & &

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Company Name

PlayPal Company Limited

Type of Business

Development of PC Games and Online Games which received <

Investment No. 9, UM Tower, Room 9 / 173, 17th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250 66 2769 8888 == } } ) ~ 25,000,000 Baht divided into 250,000 ordinary shares with a par value of Baht 100 each.

All shares have been issued and fully paid up. : * :&+

% #* The Company is in process of liquidation.

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Telephone Facsimile Registered Capital

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Noted

Company Name

A Capital Company Limited

Type of Business

Investment Arm (Holding Company) < No. 9, UM Tower, Room 9 / 283 â&#x20AC;&#x201C; 5, 28th Floor Ramkhamhaeng Road, Suanluang, Bangkok, 10250 Telephone 66 2769 8888 Facsimile == } } ) ~ Registered Capital 2,000,000 Baht divided into 20,000 ordinary shares with a par value of Baht 100 each.

The Paid-up Capital is 500,000 Baht. & &

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Company Name

Funbox Company Limited

Type of Business <

Providing Online Games No. 1168/15, 17, Lumpini " ' 7 ) 7 '

Tungmahamek, Sathorn, Bangkok, 10120 Telephone

== ) Facsimile 66 2679 8772 Registered Capital ) ' '

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a par value of Baht 100 each.

All shares have been issued and fully paid up. & &

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Company Name

Asiasoft Online PTE LTD.

Type of Business

Providing Online Games and distributing PC Games.

No. 5 Tampines Central

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4 % ~ :~) Telephone +65 6825 8506 Facsimile Â&#x192;=~ =}& })= Registered Capital 2,000,000 Singapore Dollar, all shares have been issued and fully paid up. & &

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by Asiasoft International Company Limited.

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Type of Business

Providing Online Games and distributing PC Games.

Suite 21.01, Level 21, Menara IGB, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia +603 2287 1503 +603 2287 1500 )' ' 7 *' ## been issued and fully paid up. +

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by Asiasoft International Company Limited.

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Reference Persons Registrar

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Thailand Securities Depository Company Limited The Capital Market Academy Building, 2nd j#

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Road, Thungsonghong, Laksi District, Bangkok 10210 0 2596 9000 & )::) Â&#x2C6; =

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7 ; 6 # * ~th Floor, 183 South Sathorn Road, Yanawa, Sathorn, Bangkok 10120 0 2676 5700 0 2676 5757

Financial Advisor DBS Vickers Securities (Thailand) Company Limited 989 Siam Tower, 9th' )th â&#x20AC;&#x201C; 15th Floor, Rama 1 Road, Pathumwan, Bangkok 10330 Telephone 0 2657 7902, 0 2658 1251 Facsimile 0 2657 7908

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F O S R D O R T A C BO DIRE ASIASOFT

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COMPANY C I L B U P PORATION

LIMITED

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Mr. Tan Tgow Lim Chairman

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Business Administration, Cambridge GCE Ordinary Level Presbyterian Boys School in Singapore

Q $ - Chairman Asiasoft Corporation Public Company Limited - Director Asiasoft Online Pte. Ltd. - Director Asiasoft International Company Limited - Director AS Online Sdn. Bhd.

Training Program organized by Thai Institute of Directors Association (IOD) Director Accreditation Program (DAP 50/2006)

Illegal Record in past 10 years - none -

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Mr. Pramoth Sudjitporn Vice Chairman

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Bachelor of Business Administration, Bangkok University

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Executive Committee Asiasoft Corporation Public Company Limited - Director Asiasoft Online Pte. Ltd. - Director A Capital Company Limited

Training Program organized by Thai Institute of Directors Association (IOD) Director Accreditation Program (DAP 50/2006)

Illegal Record in past 10 years - none -

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Mr.Lertchai Kanpai Director

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Bachelor of Laws, Ramkhamhaeng University

Q $ Experiences - Director and Managing Director Asiasoft Corporation Public Company Limited - Director Asiasoft International Company Limited - Director PlayPal Company Limited - Director PlayPark Company Limited - Director A Capital Company Limited - Director Funbox Company Limited

Training Program organized by Thai Institute of Directors Association (IOD) Director Accreditation Program (DAP 51/2006)

Illegal Record in past 10 years - none -

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Mr. Surasak Khaoroptham Director

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Michigan Ann Arbor.

- Bachelor Degree, Electrical Engineering, King Mongkut Institute of Technology â&#x20AC;&#x201C; Ladkrabang.

Q $ - Director Asiasoft Corporation Public Company Limited - Director SNC Former Public Company Limited - Director Easy Buy Public Company Limited - Director Mermaid Maritime Public Company Limited - Chairman Asia Books Company Limited - Director and Compensation Committee Member Somboon Advance Technology Public Company Limited - Managing Director Altus Advisory Company Limited

Training Program organized by Thai Institute of Directors Association (IOD)

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Illegal Record in past 10 years - none -

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

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- Master of Laws, Cornell University, USA - Barrister at laws (Thai Bar) - Bachelor of Laws (Hons.), Chulalongkorn University Â

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Training Program organized by Thai Institute of Directors Association (IOD) - Director Accreditation Program (DAP 53/2006) - Understanding the Fundamental of Financial Statements (UFS 9/2007)

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Illegal Record in past 10 years - none -

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Mrs. Tanyaporn Manmee Independent Director and Audit Committee Member

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Bachelor of Business Administrative (Accounting), Ramkhamhaeng University

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Accounting

Illegal Record in past 10 years - none -

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Mrs. Monluedee Sookpantarat Independent Director and Audit Committee Member

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- B.B.A. in Accounting (Horn.), Thammasat University - Bachelor of Science in Accounting, Thammasat University  > $# X

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Q $ - Director, Independent Director and Audit Committee Member Asiasoft Corporation Public Company Limited - Director, Authorized Director, Investment Committee Member, 7 6

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Training Program organized by Thai Institute of Directors Association (IOD) Â

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Accounting, Reviewing Accounting and Internal Audit

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Group of Wave Entertainment Public Company Limited

Illegal Record in past 10 years - none -

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e e t t i m m o C e v i t u Exec ASIASOFT

COR

COMPANY C I L B U P PORATION

LIMITED

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narna r o p a n a an Patirt ector w a d d a Miss Ly Managing D Deput

aroon a s k c u r P ittiponagging Director Mr. K ty Man Depu

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BBA, Assumption University Q $ - Deputy Managing Director Asiasoft Corporation Public Company Limited - Assistant Vice President / Director MFEC Public Company Limited - Executive Director Advance Intelligence Modernity Company Limited - Deputy Managing Director Asys Computer Company Limited - General Manager Advanced Research Group Company Limited Training Program organized by Thai Institute of Directors Association (IOD) - none & S "

Business Management Illegal Record in past 10 years - none -

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- MBA, Assumption University - Bachelor of Accounting, Thammasat University Q $ - Deputy Managing Director Asiasoft Corporation Public Company Limited  X

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Co.,Ltd. Training Program organized by Thai Institute of Directors Association (IOD) - none & S "

- Accounting and Finance Illegal Record in past 10 years - none -

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porn it h c g n a nee T n a w irector u D S t . n s e r m M ss Develop Busine

lawatDhiraector u s o K g System dthapon

Mr. Aement Information Manag

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- Master of Business Administration, Mahidol University - Bachelor Degree - Computer, Khon Kaen University Q $ - Management Information System Director Asiasoft Corporation Public Company Limited - General Manager - IT Infrastructure Probiz Solution Company Limited - IT Infrastructure Manager GlaxoSmithKline Company Limited Training Program organized by Thai Institute of Directors Association (IOD) - none & S "

Information Technology Management Illegal Record in past 10 years - none -

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- MBA. (Marketing) , National Institute of Development Administration (NIDA) - Ms. Science (Medical Technology), Chulalongkorn University Q $ - Business Development Director Asiasoft Corporation Public Company Limited - E-Business Director Asiasoft Corporation Public Company Limited - E-Business Director Playpark Company Limited   J4 <

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E-Business Illegal Record in past 10 years - none -

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ee paersks Development H g n a S Mr. ational Busin Intern or Direct

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Bachelor of Arts in Economics, Kyonggi University, South Korea Q $ - International Business Development Director Asiasoft Corporation Public Company Limited - Director Big Sales Media Corporation Company Limited - Sale Manager Parks Toy Company Limited Training Program organized by Thai Institute of Directors Association (IOD) - none Illegal Record in past 10 years - none -

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- Master of Accounting, Thammasat University - Bachelor of Accounting (2nd Hons), Thammasat University Q $ - Finance Director Asiasoft Corporation Public Company Limited  j #

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Limited - Finance and Accounting Advisor One Stop Service Company Limited  X

j ; %# Â&#x152; % > $# Company Limited - Senior Vice President of Finance and Accounting Department EGV Entertainment Public Company Limited Training Program organized by Thai Institute of Directors Association (IOD) - none & S "

â&#x20AC;&#x201C; Finance and Accounting Illegal Record in past 10 years - none -

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Introduction

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$ " experience.â&#x20AC;? Such is the key notion of Corporate Social Responsibility of Asiasoft Corporation Plc . As the pioneer of online entertainment in Southeast Asia, we bear a wide range of experience and expertise in information technology to develop Thailand with new â&#x20AC;&#x153;Digital Lifeâ&#x20AC;?

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6 # for the community at large, in terms of offering advanced technology education, training effective time management, and raising social and

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V constant, sustainable growth and development. Working towards this goal, we have established three main approaches which consist of the education and youth program, the social and environmental program, and the program to enhance government activities.

Education and Youth Program Education development and learning capability enhancement are essential contributions to a better quality of life for our children.

With this notion in mind, Asiasoft has supported many activities that help enhance skills, knowledge and educational opportunities for children. We hope this will be the beginning of knowledge that leads to sustainable social development.

1. Gamers Love Dad Campaign The Gamers Love Dad campaign acts as a platform for

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Â&#x2039; ; ! Â? and express love and appreciation towards their dads. This campaign has been held annually since 2006 until the present time.

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Gamers Love Dad event, which this year featured the theme â&#x20AC;&#x153;Together More Powerâ&#x20AC;?, with an aim to offer great opportunities for online gamers

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occasion of His Birthday Celebration on 5th December.

Carrying out the concept â&#x20AC;&#x153;Together More Powerâ&#x20AC;?, the 5th Gamers Love Dad campaign was one of our annual Corporate Social 7 % $ # ! % ; * < %#

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appreciation towards their dads.

This year, the Gamers Love Dad campaign collected more than 7,000,000 million baht in sponsorship. All of the money raised went

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Â&#x2039; ; !V Principal Private Secretary for supporting some prestigious foundations under the Royal Patronage, including the Chaipattana Foundation, the X # j

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Dabos Foundation, The Distance Learning Via Satellite Foundation,

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nations for those reputable foundations that work for children, such as the Foundation for Children and Youth, the Foundation for the Better Life of Children, the Thairath Foundation, the Bangkok Post j

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# Foundation for promoting youth education and development.

2. 4th Pun Nam Jai Hai Nong Project

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Children in Need) is an annual event that Asiasoft has organized since 2007 until now. It aims to let Asiasoft Board of Directors, executives, employees and customers be part of social activities and volunteer work, such as repainting old school buildings, organizing school lunch feeding, conducting recreational activities, donating sports and school supplies, and granting scholarships. This year, we went to Baan Non Sao Ae School and Nikhom Songkroh School in Sa Kraw on 18 September.

3. Asiasoft Opens House Project Asiasoft always opens house to welcome those interested, be it teenagers, students and teachers, or government

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# and website business. This knowledge center serves as a special platform for taking a look at ground breaking trends and visions, as well as in exchange of online business information and knowledge.

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increase educational opportunities for children in remote areas to gain basic knowledge in information technology.

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1. Flood Victim Aid Project

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#% the f lood victims, including our @CafĂŠ e outlets, throughout Thailand. At f irst, we donated 900,000 baht and 200 dozens of drinking water through the Friends in Need (of â&#x20AC;&#x153;Paâ&#x20AC;?) Volunteers Foundation, the NEWS Family for Help Flood Victims 53, and the MCOT in Help of Flood Victims . We also visited and aided our 500 @CafeĂŠ outlets in Kamphaengphet, Chiangmai, Trat, Nakhonsawan, Phichit, Phetchabun, Singburi, and Uthaithani, by extending their @CafĂŠe membership for 6 months without paying any fees.

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earthquake victims in Haiti with a contribution of 100,000 bath through Channel 3 at Maleenon Tower on 22 J !*

3. Gamers Can Do Project

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â&#x20AC;&#x153;Pub Kha Pa Ta Luiâ&#x20AC;? (Roll up Your Pant Legs, and Go out "

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executives, employees, and customers to take part in volunteer work for helping the students and schools that

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= ' bath through @Cash Payment Channel, together with all the necessities such as food, school supplies, clothes and blankets, and donated to the students and schools affected by flf looding in Nakhonratchasima, Nakhonsawan and Ayudhya.

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Highlight Events in Year 2010 Thailand  J

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" * Â&#x2018; $ X : _J ` - Launch of Rohan (August 2010) - Hosted Asiasoft Grand Sales (September 2010) - Asiasoft All Star Battle 2010 Brought to You by Sony (September 2010) - Launch of Dragon Oath (September 2010) Â X

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launch cash card (October 2010) - Hosted PlayPark FanFest 2010 (October 2010) - Launch of live chat service (October 2010) - Launch of 12 Sky2 (November 2010) Â J

7 < ! }th celebration of ragnarok in Thailand (November 2010) - Hosted Asiasoft Thanks Press Party (December 2010)

Malaysia - Asiasoft Online to Launch AIKASEA in 2011!! in December 2010 - Hosted the Win with @Global Games in December 2010 - Hosted Asiasoft Amazing Race 2010 - Hosted ASGH 2010

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- Asiasoft Online to Launch AIKASEA in 2011! in December 2010 - Win with @Global Games! in December 2010 - Asiasoft Amazing Race 2010 - ASGF 2010

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Vietnam  Y $ Â&#x2022; @ Â&#x2039; Â&#x2013; j $ !  # $ Â&#x2022;Â&#x2021; Y Â&#x2014; Â&#x2013;

)'~ ' ' Â&#x2021;Â&#x2020; in March 2010 - Launch of FOH online in April 2010

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ED H C N U A L D N MES A A G L I E A IN H L T ON IN

2010

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MITED OMPANY LI C C I L B U P RPORATION

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ASIASOFT

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COMPANY C I L B U P ORATION

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T R O P E R L 0 A 1 U 0 N 2 AN

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Financial Highlight k &

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w Revenue from Sales and service income-net Â&#x152; >

Net income before interest expenses and corporate income tax Â&#x2020; >

2010 1,512 718 367 =)

2009 ')): 626 276 178

2008 1,587 662 =) 185

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w Assets Liabilities Shareholdersâ&#x20AC;&#x2122; Equity

2010 1,770 ):} 1,273

2009 1,700 )= ' )

2008 1,713 )~} 1,261

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$ Paid-up Capital (Million Shares) Par Value (Baht) Earning per share (Baht) Dividend per share (Baht)

2010 ) 1 0.87 *&)

2009 308 1 0.60 0.58

2008 300 1 0.69 0.63

2010 }*):+ ~* )+ * ~+ 0.39

2009 * + *)=+ )* }+ 0.37

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28

Nature of Business History and Major Developments Asiasoft Corporation Public Company Limited (the â&#x20AC;&#x153;Companyâ&#x20AC;? or â&#x20AC;&#x153;ASâ&#x20AC;?) was formerly called B.M. Media (Thailand) Co., Ltd. The Company was incorporated on 20 September 2001, with the registered capital of Baht 5.0 million as a distributor of PC games. The

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software business.

In 2003, the Company began its online game service business in Thailand with the launch of the game â&#x20AC;&#x153;Ragnarok Onlineâ&#x20AC;? licensed from Gravity Corporation of South Korea. The Thai version was then developed to serve Thai gamers. This game was an immense success,

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" Company 1. Asiasoft Corporation Plc (â&#x20AC;&#x153;ASâ&#x20AC;?)

2. Asiasoft International Co., Ltd. (â&#x20AC;&#x153;ASIâ&#x20AC;?)

3. PlayPark Co., Ltd. (â&#x20AC;&#x153;PlayParkâ&#x20AC;?) )* X % # *' Y ** _Â&#x2022;X % #Â&#x2013;` 5. FunBox Co.,LTd. (â&#x20AC;&#x153;Fun Boxâ&#x20AC;?)

6. PlayPal Co., Ltd. (â&#x20AC;&#x153;PlayPalâ&#x20AC;?)

7. Asiasoft Online PTE LTD. (â&#x20AC;&#x153;ASOâ&#x20AC;?)

8. AS Online SDN. BHD. (â&#x20AC;&#x153;ASMâ&#x20AC;?)

Country Thailand Thailand Thailand

Main business Online game services business and distribution of games in Thailand Investment arm of the Company Web portals for online games and web advertisement services through its web site â&#x20AC;&#x153;www.playpark.comâ&#x20AC;?

Thailand Investment arm of the Company Thailand Online game services business Thailand # %

> # <

Investment Singapore Online game services and providing support to ASM in its online game service as well as its distribution of prepaid cards in Singapore Malaysia Online game services and providing support to ASO in its online game service as well as its distribution of prepaid cards in Malaysia

29

For the online game service in Vietnam, the Company has sub-licensed the right to operate online game business to CONG TY "Â&#x2020;Â&#x2039;Â&#x2039; Â&#x2039;XÂ&#x160; X _Â&#x2022; " Â&#x2013;`' Â&#x2021;

 % ! ;

'

%

# Â&#x2021; 6

trade name â&#x20AC;&#x153;Asiasoftâ&#x20AC;?, as the Company was unable to directly invest in Vietnam due to restrictions on foreign investment. Moreover, the Company lacked expertise in the online gaming business in Vietnam. The sub-license thus provides a means of testing the Vietnamese online 6 * Â&#x2039; '

% %

Â&#x2021; 6

J ! &'

% ! %#

6 a direct investment in the online game business in Vietnam and currently in process of setting up a new company and consider appropriate time to enter into Vietnam market.

30

"

| ) K @

| ) K

e-pay, terminals, mobile phones and the Groupâ&#x20AC;&#x2122;s online payment systems @Easy and @Shop. Payments may be made by cash, money transfer or credit cards. The @Cash prepaid cards can be used in all online games of each company within the Group in each country. Moreover, the prepaid @Cash cards can also be used in all online games of other companies that are the Groupâ&#x20AC;&#x2122;s business alliances. In addition, in order to provide support to the online game services, the Group has established game information center to answer technical questions and questions relating to playing

## Â # ) ! well as through the Counter Service â&#x20AC;&#x153;@Clubâ&#x20AC;?.

The Group is a Southeast Asiaâ&#x20AC;&#x2122;s leading provider of online entertainment service relating to online games, with the largest market share based on service income from online games in Thailand and Singapore and the third largest market share in Malaysia and the fourth largest market share in Vietnam in 2010 (Source: Internal Research). The Group launched its online game

" # } Â&#x2022;7 6 lineâ&#x20AC;?, which was an immense success, with the highest number of Peak Concurrent Users of over 110,600. As of 31st December '

# : # # $# )

] Thailand (20 games), Singapore (10 games), Malaysia (10 games) As of 31st J 5 5% | "

and Vietnam (11 games). During the past 3 years, the provision of online game services generated the Groupâ&#x20AC;&#x2122;s main income, the rights to service online games totalling 29 online game

(

%

"

& +

Â&#x152; %V

# * The provision of online game services in all of the above countries except Vietnam is operated through the company incorporated in that particular country. In Singapore and Malaysia, the services are provided through the Companyâ&#x20AC;&#x2122;s subsidiaries, ASO and ASM. Each of these companies has their own servers to %

!

#! modate a large number of gamers using the services simultaneously.

In Vietnam, the Group has sub-licensed the provision of online game services to CTCM while the Group provides advice relating to the system and marketing and receives remuneration from CTCM in the form of revenue sharing. However, after the opening up of the Â&#x2021; 6

J ! &' Â&#x152; % plans to undertake a direct investment in the online game business in Vietnam to increase growth opportunity of the Group in the future.

The Group generates income from the online game business from the sales of @Cash prepaid cards to gamers who use the cards to add air time, to exchange for points or virtual money to buy in-game items. There are 2 types of prepaid @Cash cards. "

!% %# ' # $! $

' <

cafes and convenient stores. The second type is the electronic cards, which are sold electronically via various systems such as

Online game

Type of game a

Type of revenue model b

1. Ragnarok Online 2. Maple Story 3. Yulgang )* Â&#x152; % 5. The Legend of 3 Kingdoms 6. CABAL 7. Ghost Online 8. Huang Yi Online 9. Dekaron 10. WFFM 11. Rappelz 12. 12 Sky 2 13. Atlantica )*

j

MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG MMORPG

Hybrid Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale

31

Online game 15. 3 Kingdoms Warriors 16. Rohan 17. 8inw 18. Might and Hero 19. Chosen 20. Audition 21. GetAmped 22. Grand Chase 23. Freestyle Street Basketball )* 4

# 25. Richman Online 26. GetAmped 2 27. Sudden Attack 28. Filed of Honor 29. Vanilla Cat

Type of Type of revenue game a model b MMORPG Hybrid Sale MMORPG Item Sale MMORPG Item Sale MMORPG Item Sale MMORPG Item Sale Casual Item Sale Casual Item Sale Casual Item Sale Casual Item Sale Casual Item Sale Casual Item Sale Casual Item Sale FPS Item Sale FPS Item Sale Web Game Item Sale

U $ {

Type of Revenue 1.Revenue from online game service

2008 Baht ; Million 1,166 72

2009 Baht ; Million 1,195 81

2010 Baht Million 1,360

; 88

2.Revenue from distribution business

358

22

217

15

)

8

3.Other income

88

6

60

)

56

)

Total Revenues

%}

100

%(~#

100

%*(5

100

' | ) !

!

" Type of Revenue by geographical areas 1. Revenue from operation in Thailand

2008 Baht ; Million 1,027 =)

2009 Baht ; Million 1,000 68

2010 Baht ; Million 1,083 70

2. Revenue from operation abroad

585

36

)}

32

)~}

30

Total

1,612

100

')}

100

'~)

100

a

MMORPG is a game which can serve a large number of gamers playing simultaneously.These gamers can have spontaneous interaction with each other through the server system/ Casual Game is a game with cute, colorful characters, which gamers do not have to spend a lot of time and develop skills to play the games. b Air Time Sale is a revenue model charging of game services according to playing time, Item Sale is a revenue model charging of game services through the sale of in-game items and hybrid sale is a combination of above revenue models.

The Groupâ&#x20AC;&#x2122;s income also comes from @Cafe membership fees collected from Internet cafes in Thailand for the right to provide the Groupâ&#x20AC;&#x2122;s online and PC game services to their customers in the shops. Moreover, the Group also operates related businesses such as the advertising in online game website and website game portals www.playpark.com

&

| ) k

The Groupâ&#x20AC;&#x2122;s main income by type of business can be divided into 3 main types, as follows.

>

& The Group engages in the business relating to online entertainment services. The Groupâ&#x20AC;&#x2122;s business is divided into 2 main types, namely the provision of online game services and game distribution detail as follows: Online Game Operator Online game is computer game which is served on the Internet and gamers can compete and chat with other gamers in the game spontaneously through the server system on which the main game programme and gamersâ&#x20AC;&#x2122; information are stored. Online game operators shall provide services to gamers whose computers have the client programme installed and are connected to the Internet and the gamers register to play games through the online gamesâ&#x20AC;&#x2122; web site. However, online games do not include games which operate on LAN system only.

32

The online game business is the main source of the Â&#x152; %V '

& +

Â&#x152; %V total income in the past 3 years. The Group operates its business

% $

$#

%

# game services to gamers in each country, from acquiring game licenses, marketing and publicity, establishing game information center and payment channels. Another important task is to prepare the computer system for the provision of services, including the server system, computer equipment and software, client programmes as well as creating web sites for online games.

Each company in each country has its own separate server system, except Malaysia, which uses the server system in Singapore (in 2009, ASM install its own server system to provide online game services to gamers in Malaysia and commercial within 2009). As of 31st December 2010, the Group provides online game services in

# : )

' ## * & countries Thailand

Number (games)

Singapore

10

Malaysia

10

Vietnam

11

21

" provided as of 31st December 2010 Ragnarok, Maple Story, Yulgang, Audition, Granado Espada, Huang Yi online Grand Chase, Cabal, Ghost Online, Sudden Attack, FreeStyle Street Basketball, The Legend of 3 Kingdoms, Richman, WFFM, Rappelz, 12 Sky 2, Atlantica, Monster Master Online, Vanilla Cat, Rohan and 8 inw Maple Story, Yulgang, Audition, Getamped, Cabal, Monster Forest, Ray City, Sudden Attack, Warrior of the 3 Kingdoms and Battle of Immortal Maple Story, Yulgang, Audition, Getamped, Cabal, Monster Forest, Ray City, Sudden Attack, Warrior of the 3 Kingdoms and Battle of Immortal Ragnarok, Getamped, The Legend of 3 Kingdoms, Huang Yi Online, Richman, 12 Sky 2, Monster Forest, GetAmped 2, Might and Hero, Filed of Honor and Chosen

In Vietnam, the Group has sub-licensed the right to provide online game services to CTCM while the Group provides advice relating to the system and marketing and receives remuneration from CTCM in the form of revenue sharing.

In order to support the online gamers, the Group has established game information center to answer technical questions %# !

## Â # ) hours a day as well as through the Counter Service â&#x20AC;&#x153;@Clubâ&#x20AC;? for customers who wish to contact in person. This service allows

; ! %# ! % #!

#!* The close contact between the Group and gamers through such information center allows the Group to follow the gamersâ&#x20AC;&#x2122; playing behaviour on a continuous basis, thereby enabling the Group to understand and provide services to target customers to promptly satisfy their individual needs.

In the year 2010, the company set goals and plan to increase latency of @Club.

The Group plans to open @Club at the Esplanade Ratchada, which is expected to be open within the year 2011.

The Group also operates related businesses to support the online game services. For example, www.playpark.com, a game portal web site which is a game center and allow to connect to other games, including online and PC games. Moreover, it is a venue for downloading games and a center for the web community to exchange data, pictures and opinions. It is also a source of information relating to technology and lifestyle products as well as a platform for the launch of new games. The Groupâ&#x20AC;&#x2122;s other businesses include online advertisement in online game website and www.playpark.com

Details of Online Games Currently Available 1. Types of Online Games The Group is Southeast Asiaâ&#x20AC;&#x2122;s leading online game

%

' %

# : )

as of 31st $ * " $

) types, as follows: The types of online games which the Company operated as of 31st December 2010 are as follows:

33

Type of games

Online Game

Revenue Model

U $ { Air Time Sale is a revenue model charging of game services

Ragnarok Online Maple Story Yulgang Granado Espada

according to playing time, Item Sale is a revenue model charging of game services through the sale of in-game items, Hybrid Sale is a combination of above revenue models.

CABAL Ghost Online Huang Yi Online Dekaron WFFM Rappelz 12Sky2 Atlantica Monster Forest Warrior of the 3 Kingdoms Rohan 8inw Might and Hero Chosen

Hybrid Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale

Type of games

Online Game

Revenue Model

2. Casual Game

Audition GetAmped Grand Chase Freestyle Street Basketball Summoner Master Online Richman Online GetAmped 2

Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale Item Sale

Type of games

Online Game

Revenue Model

3. First Person Shooting (FPS)

Sudden Attack

Item Sale

Filed of Honor

Item Sale

Type of games

Online Game

Revenue Model

)* Â&#x2018; $Â $ Game

Vanilla Cat

Item Sale

1. MMORPG

The Legend of 3 Kingdoms

a.1 Massively Multiplayer Online Role Playing Game (â&#x20AC;&#x153;MMO RPGâ&#x20AC;?)

MMORPG is an online game which can serve a large number of gamers simultaneously and every gamer can have interaction with each other in real time (Real Time Interaction), which enables the gamers to compete or be friend with others as in real life. The story of the games is mostly about action adventures to defend oneself or war adventure, with the following general characteristics: Â&#x2DC; Â&#x152; %# !

simultaneously, using the Multi Character Control System: MCC).

Each character has a continuous role and different strengths and weaknesses. Â&#x2122; Â&#x2DC; Â&#x152; # # ##

as weapons or points to increase the strength of the character and differentiate itself from other characters and can also exchange and trade in-game items. Â&#x2DC; " #

## $ $

occur in real life such as weddings, accepting other characters as %#

'

%

%%

* Â&#x2DC; "

#

$

## continue its story endlessly. Â&#x2DC;

# ! #

' % #!

the game which requires a considerable amount of time to move to the next level in the game. a.2 Casual Game Casual Game is an online game with cute, colourful cartoon characters. A Casual Game is normally relatively easy to play. Gamers do not need a large amount of time or skills to play ##!

%

'

making the game suitable for relaxation online Game Service Fee. At present, the Group charges fee for the online game services through the following 2 methods: # H ' & Gamers pay fee for the online game service according to playing time in the game, mainly used for MMORPG. Currently, )

only Rangnarok Online game is under this model which contributes *=+

# *

Internet cafĂŠes to create understanding among distributors and Internet cafes about online games, services and pricing strategies of the Group.

In 2010, the Group set goal and plan to increase latency of @Club. The Group plans to open the @Club at Esplanade Ratchada, which is expected to open within the year 2011, which is greater than customerâ&#x20AC;&#x2122;s service. New @Club has more space to support marketing activities, launch of new products and new games including being a training center for playing online game. In addition, it can be arranged for marketing activities with business partners such as Coca-Cola, Nokia and 3BB.

( k & This method usually allows gamers to play the game for free of charge 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. The sold items are considered the Groupâ&#x20AC;&#x2122;s income. However, their price will vary depending on the country in which services are provided, marketing policies in the relevant period and the number of offered items. Items offered in packets will be at a lower price.

At present, revenue model of online game services around B. Distribution In providing online game services, the Group distributes 2 the world are changing from Air Time sale to Item Sale due to the $ #

##

%# !

## types of goods: 1) @Cash prepaid cards for the payment of online game attract both existing and new gamers to try and play the games, and thus will increase the opportunity of the Group for higher service fee and 2) Client programmes, which gamers have to install on income through the sale of in-game items

% $

%# ! * " Â&#x152; % $ #

effective distribution provides an important channel to access the Distribution and distribution channels Groupâ&#x20AC;&#x2122;s target customers.

H $

The Group has been operating under the trade name b.1 Distribution of @Cash prepaid cards â&#x20AC;&#x153;Asiasoftâ&#x20AC;? from the beginning of its operation in 2001. The name The Group distributes @Cash prepaid cards which are has become widely known among gamers throughout the region as used for paying the online game service fees. When gamers buy a leader in the online game market both in terms of the selection of card, they will receive a serial number and password for registration leading games, the marketing activities for maintaining its customer for air time, exchange for points or to be used as virtual money to base as well as the reliability of its server system in providing buy in-game items in every game of each country. Each card will services. have a maximum lifetime. Moreover, the virtual money in the card Marketing activities are an important strategy for effective can also be used to play and buy items from other game publishers communication with customers regarding the services and online that are the Groupâ&#x20AC;&#x2122;s alliance. The distribution of @Cash is operated games offered by the Group. Moreover, they provide a means for through 2 channels as follows: causing awareness among the customers regarding the availability of online games as an inexpensive and convenient option for their (1) Through the distributors Most prepaid plastic @Cash cards are distributed through daily entertainment. In addition to the launch of new games, the Groupâ&#x20AC;&#x2122;s marketing activities also include activities aimed at the distributors. strengthening the Groupâ&#x20AC;&#x2122;s market status, organisational image and Â&#x2122; Â&#x2DC; }Â

] " # #! social responsibility. Furthermore, the Group regularly conducts a to customers at the 7-11 stores located throughout the country. market survey in order to understand the needs and behaviour Â&#x2122; Â&#x2DC; %

% ] %

of gamers, which are the basis for effective marketing strategies network of shops to sell game products, game products wholesalers leading to highest customer satisfaction. In addition, the Group and computer product wholesalers. Such distributors may sell @Cash

6

;

$

35

cards directly to gamers through their own network of shops or resell to retailers who then sell the cards to gamers. Â&#x2DC; <

] ##

%

provide Internet connection service. The @Cash cards are sold to gamers to play games in the Internet cafes.

(2) Through electronic means The Group began selling electronic @Cash cards in the past 2-3 years. Electronic @Cash cards can be purchased by cash, money transfer or credit cards through the electronic system, as described below.

Thailand: Â&#x2122; Â&#x2DC; Â&#x2018; $ ] # Â&#x152; %V $ Â&#x201C;4 % Â&#x201C; Online (for @Cafe members only). Â&#x2122; Â&#x2DC; $ # % ] Â&#x201C;

$ # # #

@Cash cards via mobile phones and gamers pay by sending an SMS through AIS network for prepaid system Â&#x2DC; Â&#x201C; Â > !] " #

% ! ! * Gamers make payment through the terminal and receive vouchers for using in the online registration to pay online game service fee. Â&#x2122; Â&#x2DC; Y Â > ] " #

% ! ! # % $!

Malaysian Company. Gamers make payment through MOL e-points for using in the online registration to pay online game service fee. " %

J #! * Â&#x2122; Â&#x2DC; Â Â ## ] "

$

#

% ! ;

X<4' # $ # %

%

* Gamers can buy 1-2-Call prepaid card which â&#x20AC;&#x153;@â&#x20AC;? symbol at the Conner. The card can be used the same as @ Cash card. The group started this service in September 2010. & ! { Â&#x2122;Â&#x2DC; # ] " # #

Â&#x201C; through www.passport.asiasoft.net where payment is made through credit cards. Â&#x2DC; Y Â > ] % ! ! # ! ' can purchase electronic @Cash prepaid cards through MOL e-Points at the authorized shops. Â&#x2DC; 4*X* * Â?

6 Â > ] " % ! !

4 % ' which gamers can purchase electronic @Cash prepaid cards through the automatic S.A.M. machines.

Â&#x2DC; X Â&#x152;# $ # Â&#x152; % ] Â&#x201C;Â&#x152;# $ # Â&#x152; ## ># ! # in South East Asia to play in the same server, encourages inter-countries friendships and competition in online gaming, by holding SEA Online Games Tournaments and Players are also able to purchase @Cash in South East Asia with Asiasoftâ&#x20AC;&#x2122;s wide range of payment top up systems.

J "

Â&#x20AC; cards Gamers can pay for the online game service fees by purchasing @Cash prepaid cards either in a form of plastic cards from the distributors or in electronic form from the various electronic systems as shown in the diagram below.

J "

\ \ Card prepaid cards In 2010, the company added a new channel of payment through 1-2 call cash card, which allows gamers to pay for online game service as shown in the diagram below.

36

Competition strategies J

"

"

potential

X % ' Â&#x152; %

# $ ) 4

X

' #! " # ' Singapore, Malaysia and Vietnam, in order to reduce risks associated with investing in Thailand or one particular country. The Group deploys regional management strategies which help to reduce

%

;

?

#

# ' computers and related equipment, as well as sharing human resources, knowledge technology and expertise transfer. All of which could increase the chance of success of the Groupâ&#x20AC;&#x2122;s business.

well as out-of-game activities such as meetings and parties among gamers, letters introducing new games and the Groupâ&#x20AC;&#x2122;s support of social activities etc. c.3 Increasing the number of and expanding the distribution channels The Group plans to increase the number of distributors of @Cash prepaid cards and online products, such as guide book and item package, to cover more wide-ranging distribution channels. In 2010, the company also added new distribution channel as mentioned above and this would increase the Groupâ&#x20AC;&#x2122;s advantages over its competitors in maintaining the Groupâ&#x20AC;&#x2122;s existing customer base and increasing new customer base. In addition, the Group also improved the electronic distribution channels in order to reduce the b. Increasing the number of online games and updating Groupâ&#x20AC;&#x2122;s operating cost in the future. Moreover, the expanded existing games As of 31st December 2010, the Group provides online distribution network can promote marketing activities including

# : )

' " Â&#x152; % distribution of posters and advertisement for penetrating to end cooperated with game developers and game publishers in improving customers. the features and contents of the Groupâ&#x20AC;&#x2122;s online games to make them $

\

always updated. In addition, the Group plans to provide services for Most of online games service operated by the Group new games in each country to satisfy customersâ&#x20AC;&#x2122; needs in terms of through the sale of in-game items, the Group focuses on direct design, graphics, and technology. marketing activities with gamers to encourage them to purchase in-game items regularly such as selling in-game item package in &

$

The Group uses 3 main strategies to strengthen its market each month, establishing Item Shop and Item Mall on web sites and position, differentiate it from competitors and maintain its market sending newsletter and SMS to gamers etc. leadership in the region. c.1 Offering top online games which are well-known and popular in foreign markets The Group believes that online games that are well-known and popular in foreign markets have outstanding features both in terms of design and contents, which would increase the chance for the Groupâ&#x20AC;&#x2122;s success in marketing such games to customers in each target country. c.2 Direct marketing activities with target customers By using registered user base, the Group has a strong starting point for its direct marking activities to continuously maintain and expand the Groupâ&#x20AC;&#x2122;s customer base. Such direct marketing activities include the launch and introduction of new games, the promotion of online game playing through various in-game activities such as in-game competition and special seasonal activities as

Online game information center provides an important service which enables gamers to play games smoothly and continuously, resulting in game loyalty and increased playing time and opportunity to buy item sales. Currently, the Group provides game information through its call center, e-mail and Live Chat

) ##

4 Â&#x201C; # $ for customers who contact the information center in person. The Group 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. The group obtained ISO9001: 2008 for service.

37

f. Development of the server system for the online game service The Group believes that a good server system enables gamers to interact with one another smoothly, continuously and rapidly, which is the important part of online game playing. Therfore, the Group has continuously improved the server systemâ&#x20AC;&#x2122;s capability and increased the size of its communication circuit to accommodate the increasing number of gamers. As a result, the Group is able to provide

? %

6

'

# ' consequently reduces the chance of service disruption. In addition, the Group has constantly improved the information security system to prevent gamersâ&#x20AC;&#x2122; information and secrets from being stolen. The group obtained ISO/IEC 27001:2005 (Information Security Management System: ISMS).

<4 ^< } ] ~ $!

# $#

# <4 _" <

# \

Standardization) and IEC (The International Electrotechnical Commission), which defined as the management security to intelligence that organizations be provided with customers inside and outside the organization. '

k& Â k ~55 { 55*{ Â&#x2DC;

!

%

$ # ! # $# '

* Â&#x2DC;

%

% !

$

#! $

$

business partners. g. Appropriate and competitive online game service fee

<

Â&#x152; %V % # !

#

%% %

!* j

of its services, the Group allows customers to play games for free and charges for its service through the sale of in-game items to increase the competitiveness of the Group with other operators both in the same industry and in different entertainment industries. At the same time, such rates must produce a good return for the Group. However, the Group does not have a price war policy.

38

ASIASOFT

CORP

COMPANY C I L B U P ORATION

LIMITED

s s y e l r s g u o o Pr Continu

39

Industry Trends and Competition

Â&#x201A; ? " !

The piracy problem of music, PC games, computer pro | $

%

;

# " &

H | problem for operators in this region and has so much impact $

on their operations that some operators have been driven out of The Southeast Asian region is the target market for the business. On the other hand, there is less piracy problem online entertainment services of the Group, which consist of 6 for online game operators because the main components of online countries: Thailand, Singapore, Malaysia, Vietnam, Philippines and games programme are contained in the servers of the operators, Indonesia. Niko Partners, a leading research house specializing in which gamers cannot access. Moreover, the client programme, online game in China and South East Asia estimated that the CAGR which is a programme for installing on the gamersâ&#x20AC;&#x2122; computers before

6 #

) ! ## $ :*}+ % !

%# ! ' % * " ' % ! % $# the regionâ&#x20AC;&#x2122;s total market value of Baht 12,577 million in 2010 and of online game is not as severe as in the case of other copyrighted

) 6 #

~'&)~ ## *

# work in the form of CDs, DVDs or cartridges, which can be easily network fever such as Facebook, Twitter push number of internet copied and distributed. user to grow rapidly in this year. However, number of internet users Â&#x201A; k >

" $ and number of gamers support the online game market in Southeast Currently, the PC price is not high and a lot of people can Asian which has huge potential growth. afford to buy it and higher Internet and broadband penetration rates

%

# ! ; ! $

continued to expand the pool of gamers in the region. Thailand also advantages over operators in other online entertainment industries moves toward this trend, in addition the Internet service providers such as PC games, arcade games, movies, music and karaoke, as compete on internet speed which results in decreasing Internet cost follows. when the speed increases. Â&#x201A; !

Online games can be played anywhere that has "

! ' %

<

* " ;

!

%# ! & % ! _

online games in Internet cafes, as it is inexpensive, convenient and

" Â&#x152; % %

# )

] is a meeting place for gamers. However, in Singapore, most Thailand, Singapore, Malaysia and Vietnam. The online game induspeople play online games from their own computer due to the adtry in these countries is growing rapidly. In the past, most online vanced Internet network in Singapore. In comparison to other online game operators were small operators which offered a limited number entertainment services, the cost of playing online games is still low. of online games, mostly MMORPG games, and charged for their Â&#x201A; ' ]

!

services through air time sale. Currently, the competition in the continuous basis industry is growing rapidly due to the entrance of large operators Due to the nature of online game playing, which promotes and the continuous launch of new online games. Furthermore, the group relationships through competition or contact with other gamers change in the revenue model from air time sale to free playing but who are in different places at the same time, especially MMORPG paid for in-game items, has contributed to the greater intensity of games, in which each game plays a different role in a team and helps competition in the online game market.

%#

' # The online game licensing fees are an important operating games more entertaining and interesting. Moreover, gamers have to cost for operators in this business. At present, most game operators take time to develop skills in the games in order to be the winner, in the above countries normally acquire licenses of online games that thereby increasing gamersâ&#x20AC;&#x2122; relationship to the games. are popular and/or successful in other countries from Game

)

Developers or game Publishers in foreign countries rather than developing the games themselves. However, online game operators began to develop their own games in order to reduce the increasing cost of licensing.

The industry trends and competition in the online game markets in Thailand, Singapore, Malaysia, Vietnam and Indonesia can be summarised as follows.

a. Industry trends and competition in the online game $

' The online game market value was 3 billion baht in 2010 (source: from Kasikorn Research). In 2010, the competition was high

$ % $# ~ :

) 2010 when the number of games increased from 86 games in 2009 to 111 games in 2010. MMORPG still maintain its popularity among

)&*}+ ## j>4

% % # !

}*:+

# * # $

}*=+ ~*&+ % #!* X

Thailand including Funbox is a market leader with market share of %%

#! ) +

# # 6 * ]

"

business in Thailand Â&#x201A; | "

k

In the past 2-3 years, the broadband Internet service business has been growing rapidly due to intense competition among the service providers both in terms of the services and price.

Currently, the service fee for the 6.0 Mbits/second speed is around Baht 600 per month, which is quite low. Therefore, the broadband Internet service has become very popular. As online game playing requires speed for downloading data and to make the game more ; ! $# ' # $ # ! $ $ <

the interest in online game playing as well as the accessibility of online games to new customers. Â&#x201A; _ !

In the recent period, online game operators have launched new online games which have variety of both features and contents. " ! ; !

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In the past, playing games on computers are often viewed negatively or thought of causing problems for teenagers.

Currently, sports categories, called Electronic Sports or E-Sports, according to the opinion of the International Olympic Committee (IOC) with the idea that playing computer games about sports is helping to develop an athlete. It encourage for the arrangement of the competition among gamers both in Thailand and international.

This originated the ideas in the formation of the Association of sports games in Thailand. To effectively manage Control and supervision, as well as to promote and encourage athletic games in Thailand as it occurred in South Korea. It will eventually stimulate the online game market in Thailand to further expand. Especially when youth or others who are interested in playing game like to develop their skills to enter into game competitions. It will eventually expand the game players base in Thailand.

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industry in Indonesia is not so competitive as there are currently 16 publishers, operated 39 games. In comparison to Thailand, Singapore and Malaysia, the number of games are relatively low. The j>4 6 ;

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The government promote the usage of internet, therefore, this market. If a game publisher obtains a successful game, then It Internet adoption in Vietnam is growing at a robust pace. The is not hard to be a leader in the Indonesian market. broadband connections with higher transfer speeds and stable quality have become increasingly widespread to cover most area in Vietnam with lower cost of internet. In the past 2-3 years, the number of internet users for both working and entertaining increased rapidly, which will continue to expand the online gaming market in Vietnam.

In 2011, the company plan to expand business into a new market in Indonesia, currently the online games

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Currently, online game business in Thailand is regulated by the Ministry of Culture, Department of Intellectual Property, the Ministry of Information and Communication Technology, and the Ministry of Commerce. The Ministry of Culture governs on the game operating license and examines the game content before the launch of the game into the market. Department of Intellectual Property, the Ministry of Commerce also governs an issuance of copyright code (DIP code) to copyright owner for game disc production. Ministry of Information and Communication Technology released Computer Related Crime Act. B.E. 2550 (2007) for the regulation and computer related crime protection. The Ministry of Culture is working on the game credit rating for the appropriateness of the game. Last year, â&#x20AC;&#x153;the white % ; Â&#x2013;

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relating to online game industry in Singapore is not as strictly as or regulated as much as in Thailand. The online game market in Malaysia is relatively new; therefore, government regulation affecting online game industry and internet cafes is not clearly stated to regulate the internet cafe for internet using or providing online game service. However, changes in government regulation relating to online game industries

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of operations in the future. In Vietnam, government still control over the media sector and the law strictly governs the online game business, especially for the restriction for foreign investment in Vietnam. Currently, the company is in the process of setting up a company in Vietnam and considers on the appropriate time to enter into the Vietnamese market.

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In order to increase its opportunity for operational success, the Group will use its experience as well as carefully study game content and do market analysis of target gamers before making a decision to invest in new online games. In addition, the Group has a clear policy to diversify its source of revenue into various licensed online games by launching more online games in each country. Currently, the Group has

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and results of operations may be adversely affected in the future.

However, various characters and features in online games will encourage gamers to buy in-game items in order to differentiate playing feature, appearance and competition from other gamers. Thus, the Group believes that the offensive marketing and direct activities to target gamers group will stimulate and attract online gamers to buy in-game items continuously.

Limited, a large mobile phone operator introduced 1-2 call cash card for playing games as another channel to penetrate to the area where the other channel cannot reach and also reduce the dependency on

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In providing online game services, the Group buys copyrights of games from the copyright owners who are developers or distributors of online games in foreign countries to provide online game services in a specific territory for approximately 2-3 years from the commencement of its commercial launch at the fee rate agreed upon with the copyright owners. The copyright owners provide support in various aspects of the game services such as improve

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In order to reduce such risks, the Group has a policy of distributor The Group currently distributes the @Cash prepaid cards procuring copyrights from various developers or distributors of online through convenience stores (CP7-11) of C.P. All Public Company games, whose reputation is widely recognized. The agreement with Limited (â&#x20AC;&#x153;CPALLâ&#x20AC;?) via outright sale with credit terms. If CPALL the copyright owners will specify a renewed term and conditions as discontinues its business or stops ordering @Cash prepaid cards, the

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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 the Groupâ&#x20AC;&#x2122;s network. Therefore, there are only a limited number of players in the community on such illegal network.

Furthermore, operators violating copyright cannot solve the bugs in the game programs or technical problems that arise and therefore their services are not popular amongst game players. Therefore, the Group believes that the loss of part of income from such copyright viola

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are outsiders to scrutinise the management of the executives and to look after the interest of the minority shareholders.

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As of 31 December 2010, the Companyâ&#x20AC;&#x2122;s registered capital was Baht 316,000,000, divided into 316,000,000 ordinary shares with % #

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Baht 1.00 each. The remaining registered capital of Baht 1,689,112, which is divided into 1,689,112 ordinary shares with a par value of Baht 1.00 each, will be reserved for exercises of warrants that the Company has issued and allocated to its directors and employees as detailed below.

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On 3 May 2007, the Companyâ&#x20AC;&#x2122;s Extraordinary General Meeting of Shareholders No. 1/2007 passed a resolution approving the Companyâ&#x20AC;&#x2122;s issue and offering of warrants (â&#x20AC;&#x153;Warrantsâ&#x20AC;?) to directors and employees of the Company and subsidiaries as a reward for their work and as further motivation to work for Asiasoft Group in the long term. Up to 16 million units of the Warrants will be offered at the price of Baht 0 per unit with an exercise ratio of 1 warrant: 1 ordinary share. The exercise price will be at par value of Baht 1 per share. The Warrantsâ&#x20AC;&#x2122; term is up to 3 years commencing from the date of issue and offering (on 16th May 2008) and the exercise period is 3 years as detailed below.

Exercisable Warrants / Total Number of Allocated Warrants + + ) +

Exercise period from the date of issue and offer of Warrants 12 months 18 months )

The directors and employees of the Company and subsidiaries may exercise their rights under the Warrants on the last business day of May and November throughout the term of the Warrants except the last exercise which will be on 15th May 2011. These Warrants will not be listed on the Stock Exchange of Thailand.

According to the Annual General Meeting of Shareholders for 2009 of Asiasoft Corporation Public Company Limited (the â&#x20AC;&#x153;Companyâ&#x20AC;?) held on April 23, 2009 passed a resolution to approve the dividend payment. The dividend shall be paid from the retained earnings and net %

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Moreover, the new exercise price above is Baht 0.98 that is lower than par value of the Companyâ&#x20AC;&#x2122;s ordinary shares and in accordance with the regulation of the rights and duties of the issuer and the holders of warrants to purchase new ordinary shares of the

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3. The repurchase period will be started from December 1, 2008 to May 31, 2009.

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Independent Director and the Audit Committee Member

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Independent Director and the Audit Committee Member

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financial reports.

Miss Nuntaporn Sangduen is the Secretary to the Board.

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governance principles, and ensuring that action taken is in line with the rules and regulations prescribed by the SET and the SEC. 2) Determining or revising the list of authorized directors to bind the Company.

3) Setting policies, strategies and direction for the Companyâ&#x20AC;&#x2122;s operations and supervising the management to ensure effective and

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5) Appointing any sub-committee(s) or individual(s) e.g. Executive Committee, Audit Committee and Managing Director, to help in

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Mr. Chalermchai Duphatsakul is Secretary to the Audit Committee. *Mrs.Tanyaporn Munmee resigned from the position of the Audit committee Member with effective since 1 March 2011 and the Board of

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1) Planning and determining policies, direction and strategies for the Companyâ&#x20AC;&#x2122;s operations to keep them in line with the targets set by the Board for further submission to the Board for approval.

2) Determining business plans, budgets and principles governing the operations to keep them in line with the targets set by the Board. It is also authorised to supervise and monitor the Companyâ&#x20AC;&#x2122;s operations to ensure that they are in line with the policies, business plans $

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3) Determining the Companyâ&#x20AC;&#x2122;s organizational structure, management authority, remuneration policy and salary structure, as well as appointing, employing, re-locating, terminating, and determining salaries, remuneration and bonus for employees at executive levels.

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8) Carrying out other duties as may be assigned from time to time by the Board.

In no circumstance will the above authorisation empower the Executive Committee or its authorised representative to authorise any transaction between the Company or any of its subsidiaries and the Executive Committee or their authorised representative with a possible

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Moreover, the Board may revise, where necessary or appropriate, any of the Executive Committeeâ&#x20AC;&#x2122;s duties and responsibilities.

Management _

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Deputy Managing Director Deputy Managing Director International Business Development Director Finance Director Management Information System Director E-Business Director

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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.

3) Taking any action in the normal course of the Companyâ&#x20AC;&#x2122;s business or that of its subsidiaries such as the 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 to purchases, contractual hire/employment for properties and services for the benefit of the Company and its subsidiaries.

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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.

The CEO will report directly to the Executive Committee. He or she must act in accordance with the guidelines and policies set by the Executive Committee.

52

Moreover, the CEO will have no authority to take any action or be involved in any transaction or matter between the Company or !

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The Board of Directorsâ&#x20AC;&#x2122; Meeting No. 5/2008 held on 13th August 2008 has the resolution to appoint Mr. Chalermchai Duphatsakul as the Company Secretary with effective on 13th August 2008 and has the rights, duties and responsibilities in accordance with the laws.

53

Mr. Chalermchai Duphatsakul passed Training Program organized by Thai Institute of Directors Association (IOD) i.e. Company Secretary Program (CSP27/2008) and Effective Minute Taking Program (EMT11/2008).

Recruitment of Directors and Executives Currently, the Company has no Nominating Committee for selecting directors. This matter is therefore left to the Board, which will select individuals and propose them to the shareholders based on a variety of factors such as their educational background, competencies $ % * " ! # $ ? # > $# Y

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If there is more than one vacancy, the persons with the most votes in descending order will be selected as directors. Where there is a tie, the Chair of the shareholder meeting has a casting vote.

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Executive Remuneration (1) Monetary Remuneration

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5. Mrs. Tanyaporn Manmee 6. Mrs. Monluedee Sookpantarat 7. Mr. Surasak Khaoroptham

Remuneration 360,000.00 ) ' * ) ' * ) ' * ) ' * ) ' * 360,000.00

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(b) Remuneration of Executive Committee and Management 2010 Unit : Baht Executive Committee Member Executives b

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Remuneration a 175,000.00 17,801,696.82

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(2) Other Remuneration As compensation for their work and incentive for them to work with due diligence in the Company in the long-term, a resolution was adopted at the Extraordinary Meeting of Shareholders No. 1/2550 on 3 May 2007 to issue and allocate warrants on the Companyâ&#x20AC;&#x2122;s ordinary shares to its directors and employees and those of its subsidiaries. Warrants to be issued and offered for sale will be valid for up to 3 years from the date of issue. Up to 16 million units will be offered at the exercise ratio of 1 warrant to 1 ordinary share at the exercise price of

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55

Human Resources The number of employees and remuneration for the Group of Company (excluding directors and executives) as of the end

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Including ASO, ASI, PlayPal and PlayPark, ASM, Funbox.

Comprises of contributions to the social security funds and provident funds, social welfare, overtime, commissions and allowances.

Since it commenced operations, there has been no labour dispute within the Group.

Policy on Human Resources Development The Company places great importance on personnel development with a view to equipping its 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 arrange training for employees by providing both in-house and external training courses, particularly with its suppliers, who are online # % * " ## #% %# ! V 6 # <"' %

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is the Companyâ&#x20AC;&#x2122;s policy to transfer knowledge and skills among its employees while they work.

56

Corporate Governance 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 guidelines have been set, in line with Principles of Good Corporate Governance of the SET to support the Good Corporate Governance in practice. Moreover, the Company 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.

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Companyâ&#x20AC;&#x2122;s direction, and revisions of the Companyâ&#x20AC;&#x2122;s Memorandum and Articles of Association.

It is the Companyâ&#x20AC;&#x2122;s policy to promote and facilitate the shareholdersâ&#x20AC;&#x2122; exercise of their various rights, by such means as the following: Â&#x2DC; $

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on the rights of shareholders in attending the meeting and voting. Â&#x2122; Â&#x2DC; Â&#x2018; #

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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 % '

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to them. These independent directors will give appropriate consideration to each issue. For example, in the case of complaints, they will

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impact on 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&#x2122; Â&#x2DC; 4 # ## $

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57

agenda items before the scheduled meeting date or to nominate directors. The agenda, however, may not be expanded without prior notice to shareholders. Â&#x2DC; "

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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 stakeholdes 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 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. Â&#x2020; Â&#x201A; & { 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&#x2020; Â&#x201A; ' !) K

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Employees are a valuable asset of the Company. Therefore the Company recruits people with the relevant skills and experience to ensure the Companyâ&#x20AC;&#x2122;s growth and satisfy its requirements. Human 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 a-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 employees, arrangements for  ## ' %

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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.

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The Company functions within a framework of fair competition and has always avoided dishonest measures that try to eliminate competitors.

58

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Fully cognizant of its role as a part of society with a commitment for its wellbeing, public activities are supported in the interest of developing communities and the Environment. Its on-line games 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.

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also makes a Game Master available for each game in order to 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 on-line 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 addi

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compliance with the law, the Company shall also make the following disclosures to show the transparency of its operations: Â&#x2DC; #

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The vision outlined by the Group is that: â&#x20AC;&#x153;We are determined to maintain our leadership in Online Entertainment Services involving online games in the South East Asian Region, with a focus on providing eff icient services, developing our personnel to support the services and expanding investment to other high potential countries in the Region, under a transparent and accountable management pursuant to the principles of Good Corporate Governanceâ&#x20AC;?. To realize this vision, the Board strives to maintain the highest ethical standards within the

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The Companyâ&#x20AC;&#x2122;s Board of Directors comprises of people who have knowledge, skills and experience drawn from a variety of %

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groups, which together constitute the Companyâ&#x20AC;&#x2122;s founders.

Remuneration for Directors and Executives The Company has a policy of determining remuneration for its directors, both in monetary and non-monetary 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&#x2DC; X%% %

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# !_ `* 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.

Board Meetings 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 SET with special meetings to be convened, where necessary.

The Chairman of the Board, as chairman of the meeting, will support the exercise of prudent discretion and will allow enough time for

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performance and will enable them to exchange opinions, on a regular basis, with Board members and senior executives of other organisations.

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such as Thai Institution of Directors. It is an SEC requirement that directors of listed companies attend at least one of these courses, e.g.

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Investor Relations 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 pursuant to Good Corporate Governance principles. It must include # %

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securities. Information and various newsletters will be distributed, through channels set up by the SET and the SEC including the Companyâ&#x20AC;&#x2122;s own website (www.asiasoft.co.th or www.asiasoft.net) and will help ensure that investors, shareholders and related parties can use the information in their investment decisions. The Company plans to set up an Investor Relations Unit to monitor and provide information and newsletters, and to answer queries raised by shareholders, investors, analysts and the public in general.

Monitoring the Use of Inside Information (Inside Trading) The Company has introduced a policy and measures to prevent the use of inside information which has not yet been disclosed to the public, for personal gain and securities trading: _ `

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information about the Group, or use it for their own gains or those of others, whether directly or indirectly, and whether or not it is for compensation. (c) Directors, executives, employees and workers within the Group may not buy or sell, transfer or accept the transfer of the

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61

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 followed by salary cut(s), unpaid temporary suspension 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

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1. Internal Control

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(Compliance Control). To ensure that the Outsourcing Internal Audit are independent and able to perform its supervisory duty, the Board of Directors requires that the Outsourcing 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. 1/2010 held on 25 February 2010 and attended by all members of the Audit Committee, the Board considered and prepared the Companyâ&#x20AC;&#x2122;s internal control system adequacy assessment form. After assessing the Companyâ&#x20AC;&#x2122;s internal control system in 5 areas, namely (1) organization and environment, (2) risk management, (3) management supervision, _)`

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opinion as the extenal auditor and the auditor. Both parties have opinion that the Companyâ&#x20AC;&#x2122;s internal control systems are adequate and proper for its business. So far, neither the Company nor the auditor has found any crucial defects in the internal control systems which could materially

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1) Organization and Environment

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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.

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The Company provides supervisory tools to its management through its development of various systems, including an application of ISO 9001:2000 quality management system for online game service provider to the Companyâ&#x20AC;&#x2122;s quality management system, customer service and other activities. This supervisory tools emphasis 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.

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2. Internal Audit

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Connected Transactions >

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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 ordinary course of business and comparing the price with that offered by third parties. However, if the Audit

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Asiasoft Group has a regional purchasing policy. The Company is responsible for purchasing all properties, including online game licenses enabling the Company to purchase at better prices and on better condition than separate purchases by each company.

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duty of the Outsourcing Internal Audit that elected by the Audit Committee which report directly to the Audit Committee whose opinions on the aforementioned matters are detailed in the Companyâ&#x20AC;&#x2122;s Annual Report.

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Management Discussion and Analysis of Financial Conditions and Operating Results "

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the previous year to 920 million baht in 2010, which resulted from the success of both old and new game. In 2010, the company launched ) 46! st quarter, Rohan and 8inw in 3rd ?

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ASIASOFT

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The Companyâ&#x20AC;&#x2122;s registered address is at 9/283-5, 28th ( #

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Presentation of Financial Statements Inventories Statement of Cash Flows Accounting Policies, Changes in Accounting Estimates and Errors Events after the Reporting Period Construction Contracts Property, Plant and Equipment

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TAS 17 (Revised 2009) TAS 18 (Revised 2009) "X4 :

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3.7 Equipment Equipment is stated at cost less accumulated depreciation.

Depreciation is calculated by the straight-line method over their estimated useful lives of 3 to 5 years.

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3.11 Foreign currency transactions Transactions in foreign currencies occurring during the year are converted into Baht at the rates of exchange prevailing on the transaction dates. Monetary assets and liabilities in foreign currencies outstanding at the end of the year are converted into Baht at the exchange rates prevailing on that date as determined by the Bank of Thailand. Gains or losses on conversion are included in statements of income.

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Sales are recognized upon the delivery of goods to the customers and after deduction of discounts.

Revenues from publishing distribution are recognized at invoice value once delivered, after deduction of goods returned and discounts.

Revenues from licensing game services to game shops are recognized by the straight-line method over the license period of 1 year.

Revenues from advertisements on subsidiaryâ&#x20AC;&#x2122;s website are recognized by the period of agreements with the advertisers.

3.13 Taxation Income tax expenses represent the sum of the tax currently payable and deferred tax.

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The subsidiaries paid no dividends during 2010.

On March 27, 2009 Asiasoft International Co., Ltdâ&#x20AC;&#x2122;s Board of Directorsâ&#x20AC;&#x2122; Meeting held unanimously approved of dividend payment for the quarter ended March 31, 2009 for 1,000,000 shares at Baht 13.83 per share, totalling approximately Baht 13.83 million.

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25. LITIGATION A subsidiary has a litigation case regarding the copyright with total claims of Baht 15.37 million. The Companyâ&#x20AC;&#x2122;s lawyer believes

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ASIASOFT

CORP

COMPANY C I L B U P ORATION

LIMITED

p e t S t x e N Our

As Southeast Asiaâ&#x20AC;&#x2122;s online entertainment leader providing a reliable and vibrant online gaming community, Asiasoft is striving

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to continuously developing the new online services that will completely satisfy the demands of our customers in the digital age. With visionary management and dedicated professionals, we aim to become number one in the region.

We, at Asiasoft, are moving forwards in our quest for leadership in Asia.

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