SNC

To our esteemed shareholders,

Over the past year, Thailand's industrial sector across various areas has faced intense competition and declining demand. The increase in foreign manufacturers investing in Thailand, coupled with the dumping of diverse imported goods from countries with low production costs and rapid response capabilities, has led to a recession in the business and industrial sectors. This has resulted in closures, layoffs, or downsizing, a situation that also affects foreign-owned businesses operating in Thailand.

Regarding the overall economic situation, although exports increased by 5.8 percent compared to 2023 and the number of tourists reached 35.5 million visitors, a 26.2 percent increase, Thailand's GDP expanded by only 2.5 percent in 2024. This reflects the low purchasing power of the population, as seen in the domestic car sales, which dropped to just 550,000 units, compared to the past when sales were around 1 million units per year.

In the 2024 operating results, the company also experienced increased competition from foreign entrants in the business, resulting in sales of 8,730 million Baht, a 6.4 percent decrease compared to the previous year, and an operating loss of 94 million Baht. This decline was primarily due to the contraction in the Original Equipment Manufacturing (OEM) business for air conditioners and electrical appliances, in line with the company's adaptation strategy.

However, I would like to inform you that SNC's future business direction has shifted towards new businesses that are expected to have positive trends. These include the industrial estate development project, with an initial area of 1,230 rai; the Yala Fah Saard waste-to-energy power plant project, which will commence operations in early 2025; the Industrial Solution business, which provides automation and robotics system development, areas where SNC possesses expertise; as well as our existing strong businesses in the air conditioning, electrical appliance, automotive, and OEM industries. We anticipate that these initiatives will revitalize our business and enable us to achieve sustainable long-term growth.

On behalf of the Board of Directors and the management team, I would like to express my sincere gratitude to our shareholders, business partners, and all stakeholders for their continuous support.