Creating A World In Harmony With Technology & Innovation

In 2024, the global economy experienced a slowdown in growth and continued to face high levels of uncertainty from multiple risk factors, including geopolitical conflicts that impacted supply chain stability and stringent monetary policies in major economies. These factors affected global financial costs and consumption patterns, including Thailand, which experienced moderate economic growth of approximately 2.7% while continuously confronting external pressures. Furthermore, climate change has generated severe natural disasters such as heat waves, floods, and droughts, directly impacting ecosystems, agriculture, and manufacturing sector risks that businesses must carefully manage.

As the Board of Directors, we recognize challenges across economic, social, and environmental dimensions, adhering to principles of good governance and effective risk management. The Company has continuously monitored relevant situations and data, incorporating them into organizational policy formulation and strategic planning to enhance long-term sustainability and stability.

In fiscal year 2024/2025 (1 April 2024 - 31 March 2025), the Company focused on sustainable operations through three core strategies:

1. Take a Lead in Creating Innovation Products and Service

The Company allocated approximately 2% of sales revenue, both directly and indirectly, to support research and development. We utilized technology and innovation to continuously create New S-Curve products across all business units. In fiscal year 2024/2025, the Company achieved innovation results with 13 patents and utility patents registered, successfully launched 7 new innovative products to market, and developed 38 additional innovations in various areas. Notable innovative products include Aero Metal Rooftop from Aeroflex Co., Ltd., a ready-made heat-insulating metal roofing system with integrated insulation sheets that is currently in the preparation phase for market launch and the "Flat Desk" product from Aeroklas Co., Ltd., supplied to Japanese automotive manufacturers with full-year revenue recognition expected this fiscal year. These include new automotive components manufactured from polymers developed to be lightweight yet flexible, strong, and durable, which are continuously delivered to customers. Eastern Polypack Co., Ltd. improved manufacturing process technology to achieve higher efficiency.

2. Strive for Innovative Organization

The Company encourages employee participation at all levels in product development and work process improvement to create pride, affection, and organizational commitment, while recruiting "innovation champions" as key drivers for long-term organizational advancement. In fiscal year 2024/2025, the Company continued implementing innovation capability development plans by organizing the EPG Innovation Seeds Award for the third consecutive year under the theme "Sustainable Development Goals (SDGs)" to encourage employees to collaboratively think and create innovations that address organizational sustainability needs. This competition received 37 project submissions, with 15 projects advancing to the selection round for final championship competition.

3. Enhance Partnership to Establish Co-Value Creation for Sustainable Business

The Company emphasizes building strong relationships with business partners and suppliers to jointly create shared value and promote benefits for all stakeholders, forming the foundation for long-term sustainable growth. In fiscal year 2024/2025, Aeroklas Co., Ltd., a subsidiary, organized partner meetings to strengthen cooperation, exchange information, and update ESG requirements, including data security standards according to TISAX certification, while promoting partner growth through financial support and renewable energy promotion initiatives.

The Company has established a Sustainability Growth Commitment under the concept "Creating A World In Harmony with Technology and Innovation", focusing on business development alongside creating value for society and the environment through continuous application of modern innovation and technology in product development and operational system improvements to align with organizational vision. Beyond business growth objectives, the Company has adopted the United Nations Sustainable Development Goals (SDGs) as a framework for target setting, focusing on issues directly related to operations, specifically Goals 8, 9, 12, 13, and 16. In fiscal year 2024/2025, the Company reviewed and identified 19 material sustainability issues covering activities throughout the entire value chain. Environmental, social, and governance performance results were largely achieved according to established targets, with no violations of laws, regulations, or stakeholder complaints regarding governance, social, or environmental issues. The Company prioritizes creating an open and non-discriminatory organizational culture by promoting diversity, gender equality, and respect for employee rights and freedoms, including fair employment practices without restrictions based on race, skin color, gender, religion, nationality, background, or disability. Additionally, the Company has assigned Aeroflex Co., Ltd. to establish Net Zero Emission targets and develop concrete strategic operational plans.

To elevate sustainability and governance operations for greater efficiency, on May 29, 2024, the Board of Directors resolved to establish the Sustainability and Corporate Governance Committee with responsibilities to supervise, monitor, and evaluate organizational sustainability performance, including formulating good corporate governance policies and business ethics to support the Board of Directors in driving the organization toward comprehensive sustainability goals.

On behalf of the Board of Directors, we extend our gratitude to all stakeholders who have consistently placed their trust in and supported the Company's operations. The Company commits to conducting business with stable and sustainable growth under good corporate governance principles, alongside creating value for stakeholders, society, and the environment in a fair and balanced manner.