SET-listed Nex Point, a commercial electric vehicle (EV) assembler under Energy Absolute Plc (EA), expects to escape losses this year thanks to increasing sales and a fundraising plan.
Last year the company posted a loss of 2.76 billion baht, attributed to delays in delivering EVs to customers and the impact of its financial and administration restructuring process.
Nex Point plans to rack up revenue this year from EV sales, particularly 500 vehicles in the second half of this year, said Thanapat Suksuthamwong, the new chief executive.
The company's main products are electric buses, pickups, trucks and tractors.
Mr Thanapat said the commercial EV market has the potential to grow because many companies are focusing more on an environmental, social and governance (ESG) framework, with entrepreneurs emphasising ethical business standards and eco-friendly practices.
The state and private sectors are working to embed ESG principles in daily operations, he said.
Officials have improved relevant laws, promoted access to ESG funding sources for companies, and supported technologies that promote ESG, said Mr Thanapat.
Battery-powered commercial vehicles are becoming a more popular choice for organisations looking to reach a goal of zero carbon dioxide emissions, he said.
Another positive factor for Nex Point's business is fundraising, said Mr Thanapat.
The company sold shares worth 3.72 billion baht under a rights offering to its major shareholder EA, a renewable energy firm and EV developer.
The additional share purchase increased EA's ownership to 77.77% from 49.99%.
EA later decided to restructure Nex Point's management team to improve the business's operational efficiency.
Nex Point also synergised its business with EA's EV charging and battery businesses, allowing it to offer a wider range of products to companies eager to shift to EVs, he said.
Nex Point continues to seek new business partners specialising in EV-related businesses, said Mr Thanapat.
"We want to synergise our strengths with partners to develop new products and services, with deals expected to be concluded by the end of this year," he said.