Board of Directors' Message

DEAR SHAREHOLDERS, PARTNERS, AND STAKEHOLDERS,

As we conclude 2024, we are pleased to report that our Group has successfully maintained a profitable position despite the various challenges posed by global markets and the unique circumstances in each of our operating regions. This success has been driven by our commitment to prudent cost control initiatives, operational enhancements, and a strategic focus on adapting to future growth trends, particularly in the rapidly emerging electric vehicle (EV) sector.

GLOBAL MARKET CHALLENGES

The global market environment in 2024 has been characterized by significant volatility, driven by a combination of economic, geopolitical, and technological shifts. Inflationary pressures, fluctuations in commodity prices, and the ongoing impact of geopolitical tensions have created a climate of uncertainty, especially in emerging markets.

In particular, in Southeast Asia, where we maintain a strong operational footprint, has experienced a range of challenges that have influenced both our business operations and broader market dynamics. These challenges, though considerable, have also presented opportunities for adaptation and innovation, which we have diligently pursued to maintain our competitive edge.

SOUTHEAST ASIA AND INDIA: COUNTRY-SPECIFIC CHALLENGES THAILAND

In Thailand, the economic environment has been marked by political instability and slower-than-expected recovery in domestic consumption. These challenges have affected both consumer confidence and industrial output. In response, we have implemented stringent cost control measures and optimized our local operations to minimize the impact of these challenges. Despite the headwinds, our Thai operations have managed to maintain a reasonable profit position through focused operational improvements and stronger partnerships with key local stakeholders.

Despite these challenges, our operations in Thailand have been focused on diversifying our portfolio and strengthening our local partnerships to mitigate risks.

MALAYSIA

The Malaysian market has faced a combination of external and internal pressures, including global supply chain disruptions and a fluctuating Ringgit. These factors have put a strain on our margins and operational costs. However, we have proactively addressed these challenges through the rationalization of our product portfolio and investments in automation to boost efficiency. As a result, we have been able to mitigate risks and improve our profitability in Malaysia, ensuring that we are well-positioned for future growth.

INDONESIA

Indonesia, one of our important markets, faced significant challenges in 2024. The country experienced inflationary pressures, a slowdown in industrial production, and supply chain disruptions, all of which impacted our operations. While these challenges have constrained our performance in Indonesia, we have responded with targeted cost reduction measures and operational adjustments. We are optimistic that, as the market stabilizes, our strong local presence will allow us to capitalize on future growth opportunities. We continue to view Indonesia as an important market and are committed to refining and improving our operations to navigate its dynamic business environment effectively.

INDIA

India, while maintaining its status as one of the world’s fastest-growing economies, has not been immune to global inflationary trends, supply chain challenges, and interest rate hikes. Despite these hurdles, our operations in India have demonstrated resilience due to our continued focus on cost optimization and operational efficiency. We have made significant strides in enhancing our local capabilities and are particularly excited about India’s growing potential in the EV market, which aligns with our broader growth strategy.

PROFITABILITY AND DIVIDEND DECLARATION

In light of the positive performances in Malaysia and Thailand and despite the challenges in Indonesia and India, we are pleased to announce that the Group has posted a profitable position for the financial year ended 2024. This result has been achieved through careful cost control initiatives, enhanced operational efficiencies, and strategic decisions made to strengthen our competitive position in the market.

As a testament to the Group’s solid financial performance, the Board is pleased to declare a dividend for the financial year 2024. This dividend reflects our commitment to delivering value to our shareholders while ensuring the sustainability of the business in the years ahead.

FOCUS ON EV EMERGENCE AND FUTURE SUSTAINABILITY

Looking ahead, one of the most significant opportunities we see is the rapid emergence of the electric vehicle (EV) sector. This transformation is set to reshape industries globally, and we have already begun to position ourselves to ride the wave of this significant shift. In line with this, we are actively rationalizing our product portfolio, ensuring that we are well-aligned with the growing demand for EV-related products and services.

Our strategic focus includes investing in sustainable technologies, rethinking our supply chains, and exploring partnerships that will accelerate our entry into the EV market. We believe that our early commitment to EV innovation will allow us to not only capitalize on new market opportunities but also ensure our continued relevance and competitive positioning in the years to come.

CONCLUSION

Despite the challenges encountered in 2024, we are proud to report that our Group has remained profitable, thanks to our strong commitment to operational excellence, cost control, and strategic adaptation. Our efforts to optimize operations, streamline our product portfolio, and invest in emerging technologies such as electric vehicles have positioned us for sustainable growth in the future.

We would like to take this opportunity to thank our employees, shareholders, and partners for their unwavering support and dedication. Together, we will continue to build a future-focused organization, driven by innovation and a deep commitment to long-term success.