According to the International Monetary Fund (IMF) projections, global economic growth in 2024 is expected to reach only 3.2%, declining from 3.3% in 2023. Factors continuously impacting the global economy include geopolitical conflicts, high inflation levels, and delays in interest rate reductions by major central banks. Furthermore, in early 2025, the global economy entered a period of stagnation with increased volatility due to renewed uncertainties from trade wars between global superpowers, significantly affecting supply chains, investments, and global trade directions. Domestically, the situation faces challenges from protectionist trade policies pressuring exports and investments, automotive industry slowdowns, and Thai product competitiveness in both domestic and international markets.

As the Board of Directors, we have established targets, strategic plans, and business operation plans to enhance subsidiary production efficiency, create business growth opportunities, address overseas business challenges, and periodically review operational plans to align with evolving global circumstances. In fiscal year 2024/2025 (April 2024 – March 2025), the Company focused on Organic Growth while committing to research and development of innovative products, continuously creating New S-Curve offerings. Additionally, we collaborated in planning and improving joint venture operations in South Africa and managed energy usage efficiently while reducing greenhouse gas emissions.

For fiscal year 2024/2025 performance results, the Company achieved total sales revenue of 13,789.9 million baht, an increase of 4.7%, with total net profit of 808.4 million baht, a decrease of 33.2% compared to the previous year.

The Thermal Insulation Business saw sales growth in both domestic and international markets according to targets, with the U.S. business continuing its steady growth driven by demand for premium-grade products and new product lines that received positive customer response. However, the Company has prepared contingency plans to address uncertainties regarding U.S. tariff adjustments and mitigate potential future impacts. The Automotive and Accessories Business is facing a growth slowdown due to reduced production volumes, though the automotive parts and accessories business expanded its OEM customer base with new products such as “Flat Deck” manufactured for Japanese automotive manufacturers, with full-year revenue recognition in this fiscal year, and developed new lightweight Side Step models that are being gradually delivered to OEM customers. For Australian Operations, Aeroklas Asia Pacific Group Pty. Ltd. (AAPG) Australia ceased operations at TJM Off-Road Products Inc. USA due to high operational costs, particularly transportation expenses in the United States, and the company is currently reducing sales and administrative expenses while improving business operations for recovery. The Plastic and Packaging Business leveraged its technological strengths, manufacturing innovation, and various standards to expand its industrial customer base and increase packaging variety to comprehensively meet customer requirements. Additionally, the Company received reduced profit sharing from investments in associated companies and joint ventures due to automotive industry slowdowns.

During this fiscal year, the Company established expected credit loss reserves of 324.5 million baht, primarily from trade receivables of Aeroklas Co., Ltd., which supplies raw materials for joint venture production in South Africa. This joint venture received significant purchase orders of increased value from major automotive manufacturers, resulting in liquidity challenges. Recognizing these issues, the Company deployed management teams and personnel to address the joint venture problems beginning in Q3 of fiscal year 2023/2024 (October – December 2023) and kept the Board informed of problem-solving progress. The Company also faced impacts from foreign exchange rate volatility and increased sales and administrative expenses resulting from marketing investments and organizational expansion to support future growth. In response to these various factors, the Company implemented cost control measures and risk management strategies to maintain competitiveness and create long-term sustainable growth.

Based on past performance considerations, the Board of Directors resolved to pay interim dividends for operations ending September 30, 2024, at 0.06 baht per share, totaling 168 million baht, which was paid to shareholders on December 9, 2024. The Board also resolved to propose to the 2025 Annual General Meeting of Shareholders the approval of annual dividend payments at 0.08 baht per share, totaling 224 million baht. Combined for the full year, total dividend payments will be 392 million baht, representing 48.5% of net profit (payout ratio).

The Group’s success lies in its innovation leadership, global manufacturing and distribution capabilities for sustainable growth.

Creative Innovation Organization

The Company continues to prioritize research and development, focusing on innovation creation and work process development while promoting an organizational innovation culture. This fiscal year, the Company improved manufacturing processes to accelerate new product production and continuously create New S-Curve products, including heat-insulating ready-made metal roofing with integrated insulation sheets (Aero Metal Rooftop), Flat Deck systems, and new model side steps for pickup trucks. These innovative products comprehensively meet customer requirements and serve as crucial support for the Company’s continuous growth. Beyond developing innovative products for economic value enhancement, the Company considers environmental impact reduction. Examples include Aeroflex thermal insulation, which is energy-saving insulation with carbon footprint certification; Aeroklas automotive parts and components, developed using design concepts and polymer/plastic manufacturing to reduce vehicle weight and enhance energy efficiency with high safety standards; and EPP plastic packaging, with improved manufacturing processes to reduce energy consumption per unit, increase efficiency, and reduce environmental impact.

Global Market

The Company achieved success in expanding its thermal insulation rubber business in the United States, with sales growth from customer base expansion including wholesale customers and project customers requiring premium-grade Aeroflex rubber insulation. For Australian operations, Aeroklas Asia Pacific Group Pty. Ltd. (AAPG) achieved sales growth through TJM retail store merger acquisitions, but increased expenses led to ceasing TJM Off-Road Products Inc. USA operations due to high operational costs, particularly transportation expenses in the United States. Additionally, Aeroklas Co., Ltd. is preparing to establish a new subsidiary in South Africa to expand manufacturing operations for automotive parts and accessories for one of the world’s major automotive manufacturers, representing a new customer in South Africa. Aeroklas Co., Ltd. will hold 100% of the registered capital in this new subsidiary, with commercial operations expected to commence by 2026.

Creating Sustainable Growth

Eastern Polymer Group Public Company Limited’s growth adheres to the organizational vision of growth through creative innovation, developing quality products beneficial to society and improved living conditions, while creating business network stability that supports global market growth. To create sustainable growth, the Board of Directors upholds governance principles in business operations, supports environmental stewardship, and maintains social responsibility, resulting in the following fiscal year 2024/2025 achievements:

• 5-star “Excellent” Corporate Governance Rating in the 2024 Thai Listed Company Corporate Governance Survey project from the Thai Institute of Directors Association
• Certification as a member of the “Thai Private Sector Collective Action Coalition Against Corruption” (CAC) from the Thai Private Sector Collective Action Coalition Against Corruption Committee
• Selection for inclusion in “Sustainable Stocks” or SET ESG Ratings 2024 at “AA” level from the Stock Exchange of Thailand

On behalf of the Board of Directors, we extend our gratitude to employees, business partners, customers, shareholders, and supporters in all aspects who have consistently provided support and trust to the Company. Please be assured that the Company has the intention to conduct business growth based on governance foundations and sustainable development, including consideration of all stakeholder group interests as being of paramount importance.