Page 214 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

4.1 Operating and Financial Position

for the year ended 31 December 2021

Overview of Operating Performance

The overall Thai economy in 2021 expanded with a slow growth, mainly due to the outbreak of COVID-19 situations
with new heights of the infected cases as the virus mutated. The government periodically implemented
more stringent control measures, especially at the beginning of the year and in 2Q through to 3Q 2021, leading
to a halt in economic activities in many sectors and affecting private consumption. In addition, international travel
restrictions were still applied in the first half of the year, slowing down the tourism sector in recovering.
However, as the crisis eased in the late 3Q 2021, together with accelerated rolls out of vaccination, the government
has relaxed various strict measures and welcomed international tourists from 1 July 2021 onwards under the Phuket
Sandbox Project while at the beginning of November, international tourists (only from countries specified by
the government) could enter Thailand under the scheme of Test & Go without any quarantine required, resulting
in gradual recovery in economic activities. Private consumption was supported by remedial measures, economic
stimulus measures, and measures to stimulate domestic tourism. The global economy tends to constantly be at
its positive turn thanks to rapid distribution of vaccinations in each country that expanded overall economic activities.

Current Business Environment in 2021

The Company has been aware of the ongoing COVID-19 situations that incessantly pose challenges. In 2021,
new waves of the contagious disease were triggered periodically, but were limited to some areas within Thailand,
Vietnam, and Italy. The Company has cooperated very well in strictly complying with relevant control measures
implemented by the government in each country to strengthen confidence towards safety to the fullest extent
and the control of the disease, as well as making its suppliers to get recovered and commercially return to normal.
This will help encourage the retail sector to move forward and support employment of the entire community.

• Thailand: New surges of COVID-19 has affected Company’s business operations throughout the past year,
resulting in the Company temporarily closed some stores of its non-food business segment in certain areas,
e.g., Samut Sakhon, Rayong, and Chachoengsao, during January. In addition, some non-food stores
were temporarily closed in July through to August 2021 when the epidemic situation became more severe,
causing the government to implement more stringent control measures, especially within the Dark Red Zone.
In the meantime, the Company’s food business segment continued to operate as usual with limits on service
hours. However, as the government has relaxed some measures since September, together with accelerated
vaccine rolls out and various economic stimulus measures, it continuously brings traffic and improved sales
direction. In 4Q 2021, the Company’s sales were able to turn around and achieved the highest growth
compared to the other quarters. In addition, the Company has omnichannel platforms that enabled customers
to shop from various channels, which helped support sales during the past quarters as well. In this regard,
the omnichannel sales grew 108% from last year, or equivalent to 24% of the Company’s total sales of Thailand.

• Vietnam: The outbreak of COVID-19 periodically occurs in Vietnam. A new wave took off in April and
got more severe in July. The virus spread to cover several key economic cities such as Ho Chi Minh City,
Hanoi, and neighboring cities. As a result, the lockdown measures were implemented throughout 3Q 2021.
The Company has well cooperated and complied with official announcements of the Vietnamese government
to help prevent the epidemic. Even though non-food business segment at certain stores had been temporarily
closed in some areas, since the end of September, the government began to ease some of its strict measures
in Hanoi (and early October for Ho Chi Minh City), resulting in a recovery of traffic and sales.
The Company’s businesses in Vietnam have been hit by the above measures; however, with the availability
of omnichannel channels, the Company was still able to cater customers with a wide range of shopping
channels, including GO! App, Social Media platforms, Marketplace, and Quick Commerce thanks to
its cooperation with business partners, determination to thrive. Omnichannel sales grew by 131% from
last year, or equivalent to 10% of the Company’s total sales in Vietnam.

214 Annual Report 2021 (Form 56-1 One-Report)