Management Reports

Respected Shareholders,

We would like to express out utmost gratitude to the Almighty God, and may peace be upon us all. May we all remain under God’s protection and bless each of us with perfect health.

We are grateful that the Company was able to provide a relatively solid performance amidst the uncertainty in the global economy caused by the
lingering Covid-19 pandemic, the ongoing RussiaUkraine conflict, and rising inflation rates.

Strategic Initiatives

In carrying out daily operational activities, the Board of Directors plays a crucial role in formulating and implementing strategic decisions pertaining to the Company’s best interests. For this reason, the Board of Directors actively coordinates and communicates with relevant business units and carries out pertinent research in order to avoid making incorrect decisions.

The Company will continue to explore potential new markets throughout 2022, with a particular emphasis on the local market. To implement this strategy, the Company will adjust the property’s type and price accordingly.

The Company's Performance

To maintain its performance, the Company has taken a number of strategic measures, such as enhancing operational cost efficiency and preserving cash flow, as well as selling property inventories that do not produce the highest performance.

As a result of these sales, the Company has a new revenue stream to build future projects with a greater chance of returns.

The rising prices of the Company’s suppliers and providers of services and goods are among the few obstacles it faces. Therefore, the Company has implemented an effective strategy to mitigate the effects of this challenge by providing customers with suitable products and multiple convenient and flexible payment options.

In 2022, the Company’s financial performance showed a very good performance amidst the volatile global economic situation.

In general, the Company’s financial performance can be described as follows: The Company recorded its revenues amounted to Rp471.45 billion, increased by 753.15% compared to 2021 which was Rp55.26 billion. The increase was mainly due to the sales of one of the Company’s inventories, the Senopati Apartment, amounted to Rp425 billion in 2022.

The current assets and total assets also increased compared to 2021. The current assets increased by 66.03% from Rp231.73 billion in 2021 to Rp384.74 billion in 2022. Meanwhile, the amount of total assets increased by 32.39% from Rp492.00 billion in 2021 to Rp651.37 billion in 2022. The increase was due to the sales of the Company’s inventories.

The Company’s total liabilities decreased by (63.20%) from Rp190.55 billion in 2021 to Rp70.13 billion in 2022. This was due to the decrease of bank loans of (96.70%) from Rp158.55 billion in 2021 to Rp2.06 billion in 2022 because the Company settled all of its loans at Bank Mandiri, Bank CIMB Niaga, and some at Bank BCA in 2022.

The Company experienced an increase in gross profit and net income of the year. Gross profit increased by 764.69% from Rp41.15 billion in 2021 to Rp355.86 billion in 2022. Net income of the year also increased by 1,673.60% from net loss amounted to Rp17.73 billion in 2021 to net income amounted to Rp279.00 billion in 2022.

Even though the Company’s performance improved in 2022 in general, the Company still faced a few obstacles, such as rising prices for building materials which are quite high, hindering the planning from being executed fully, lengthy licensing bureaucracy and costs that are still relatively high, high-interest rates and the looming threat of a recession in 2023, which discourages potential buyers from investing in property.

Despite these remaining challenges, the Company believes that the property industry, which is the Company’s core business, will continue to grow positively in 2023 because in overall, the Indonesian economy has solid foundations.

Business Prospect

In our opinion, the real estate industry has significant growth potential for the foreseeable future. With the expanding and diverse needs of society, there are plenty of opportunities to maximize the property market.

We observe that people’s lifestyles have changed significantly over the past few years. To meet the needs and lifestyles of society, the Company
continues to conduct research and in-depth evaluations of the location for future property development.

We continue to investigate types of property and strategic locations in order to reach a broad market share and optimally capture consumer demand. In addition, we determine prices and marketing strategies that precisely match the profile of the Company’s target consumers. Multiple innovations and new programs will be launched to accommodate the demands of modern consumers.

Before determining the development of a project, the Company will also prioritize the Research and Market Survey process in order to mitigate any potential risks it may face. In addition to minimizing potential risks, the Company will seek out business partners to develop future projects of the Company.

Implementation of Good Corporate Governance Practices

The practice of Good Corporate Governance (GCG) is the Company’s main foundation in maintaining business continuity and its reputation as one of the leading property companies in Indonesia. We continue to promote internal control and evaluation of the performance of all employees on a routine basis because we believe it will have a substantial impact on the productivity of the Company’s performance.

In addition, the Company continues to develop employee competencies in terms of human resources by facilitating training, including the implementation of Standard Operating Procedures (SOP) and other proper system management.

Then, in terms of information technology, the Company will continue to maintain and update its information systems and will begin to implement
digitalization actively. The Company’s recording and reporting system utilizes the cloud to improve reporting precision, transparency, and accountability.

Implementation of Sustainability Practices

We are committed to leading the Company in constructing a sustainable and adaptable business that can respond to potential business opportunities. For this reason, the Company adopts sustainability values based on the Triple Bottom Line, namely People, Profit, and Planet.

We understand that issues and challenges that arise while building a sustainable business will always be present. The uncertain global economic conditions, the looming threat of a recession, as well as the adaptability of the business world to the rapid shift in consumer lifestyle and preferences, require the right strategies and measures.

Throughout 2022, the Company increased its energy, water, and fuel consumption efficiency in phases. This effort requires the participation of all employees in order to achieve consistency in system performance. Even though the Company does not set specific goals, we continue to manage risks comprehensively and capitalize on existing opportunities in order to grow the business sustainably.

Closing Remarks

We would like to thank the Board of Commissioners for supporting the Board of Directors in leading the Company synergistically. We also extend our sincere appreciation to all employees, business partners, guests, and customers who have contributed to the success of the Company.

To that end, the Company is grateful to be able to complete the year 2022 with improved performance results compared to the previous year. We are extremely grateful to God the Heavenly Father, whose mighty hand has aided the Company tremendously during difficult times. The Company would also like to thank all shareholders for their unwavering support, as well as all business partners, work partners, and employees who have fought faithfully together through difficult times. In the coming years, the company can grow steadily through harmonious cooperation and collaboration among all parties. Let’s greet the year 2023 with a hopeful heart.