Creating A World In Harmony With Technology & Innovation

During fiscal year 2025/2026, the global economy continued to face challenges and uncertainties arising from various factors, including geopolitical tensions, volatility in energy prices, persistently high interest rates in many countries, and the escalating impacts of climate change affecting industries and global supply chains. At the same time, the world is entering a rapid technological and energy transition, particularly through the adoption of artificial intelligence (AI), automation systems, and the transition toward a low-carbon economy. These developments are becoming increasingly significant in shaping competitiveness, enhancing operational efficiency, and driving sustainable growth across industries worldwide.

Amid such circumstances, the Board of Directors recognizes the importance of sustainability governance and risk management by closely monitoring economic, technological, and Environmental, Social, and Governance (ESG) trends. This enables the Company to formulate strategic directions that strengthen resilience, competitiveness, and long-term sustainable growth. The Company remains committed to advancing technologies and innovations in polymer and plastic processing solutions to create value for customers, stakeholders, and society as a whole under its commitment of “Creating A World in Harmony with Technology and Innovation.”

In fiscal year 2025/2026 (1 April 2025 – 31 March 2026), the Company focused on driving sustainability through three key strategies as follows:

1. Take a Lead in Creating Innovative Products and Services

The Company places strong emphasis on continuous research and development to further enhance innovative products in response to global industrial trends focusing on energy efficiency, sustainability, and environmental impact reduction. The Company has developed innovative products to create new S-Curves while integrating technologies to improve manufacturing efficiency and operational flexibility.

During this fiscal year, the Company registered 13 new patents and petty patents, launched 1 innovative product to the market, and implemented 34 innovation projects across all business groups.

• The insulation business under the Aeroflex brand continuously developed energy management solutions for buildings. Its AERO-ROOF insulation products further expanded collaboration with metal sheet roofing partners to develop prefabricated insulated roofing systems (EPDM cool rubber) under the “Smart Cool Roof System” concept, enhancing energy efficiency and supporting Green Building initiatives. In addition, the Company developed the innovative “AEROCOUSTIC-SP” sound absorption insulation product, which helps improve indoor environmental quality and enhances safety in building applications.
• The automotive parts and accessories business under the Aeroklas brand focused on developing Lightweight Polymer Solutions to support the transition toward the electric vehicle industry. During this fiscal year, the Company developed the innovative “New Sidestep” pickup truck side step, which enhances strength while reducing product weight. This innovation improves energy efficiency, reduces greenhouse gas emissions, and supports the development of environmentally friendly automotive industries.
• The plastic packaging business under the EPP brand invested in manufacturing technologies and automation systems to improve operational efficiency, enhance product quality, and increase production flexibility to better respond to customer demands.

2. Strive for an Innovative Organization

The Company believes that long-term competitiveness is driven by fostering an innovative organization and continuously developing employee capabilities to create value for stakeholders throughout the value chain while preparing for future industrial transformation.

During this fiscal year, the Company advanced toward becoming a Data-Driven Organization through the application of digital technologies and AI to enhance operational efficiency and internal knowledge management. In collaboration with the Institute of Field Robotics (FIBO), King Mongkut’s University of Technology Thonburi, the Company developed a Retrieval-Augmented Generation (RAG) system for knowledge management, enabling employees to access critical information more quickly and accurately while improving operational effectiveness. Aeroklas has been selected as the pilot company for the development and implementation of the RAG system, with plans to expand across the Group in the future.

In addition, the Company continues to promote an innovation-driven corporate culture through the “EPG Innovation Seeds Award,” now organized for the fourth consecutive year, providing employees at all levels with opportunities to participate in developing innovations that support business operations and the Company’s sustainability objectives.

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

The Company places importance on conducting business responsibly toward the environment, society, and stakeholders throughout the supply chain. During this fiscal year, the Company collaborated with suppliers and business partners on Circular Economy and material recycling initiatives to promote efficient resource utilization and reduce environmental impacts. Furthermore, the Company encouraged suppliers to participate in the Thai Private Sector Collective Action Against Corruption (CAC) to strengthen governance standards and promote transparent business practices together.

The Company has reviewed and identified 19 material sustainability topics covering the entire value chain to align with the business context, stakeholder expectations, and global sustainability trends. Most environmental, social, and governance performance results achieved the Company’s targets, and there were no significant violations of laws, regulations, or material complaints related to governance, social, or environmental matters. The Company also remains committed to ethical business conduct while fostering an inclusive and non-discriminatory organizational culture that respects employee rights and freedoms and supports diversity, equality, and fair treatment of all personnel.

In addition, Aeroflex Co., Ltd., the Company’s subsidiary, continues to pursue its greenhouse gas emissions reduction targets and its commitment to achieving Net Zero Emissions by 2042 through improving energy efficiency, developing innovative products, and managing resources effectively to support long-term sustainable growth.

On behalf of the Board of Directors, we would like to express our sincere appreciation to all stakeholders for their continued trust and support. The Company remains committed to conducting business under the principles of good corporate governance while creating balanced economic, social, and environmental value to ensure stable and sustainable growth in the long term.