Message from Chairman

Dear Shareholders,
In the 2024/2025 production year, global raw sugar prices fluctuated based on market supply and demand. Prices declined from the high levels of the previous year due to increased output from major producers, particularly Brazil, which remains the world’s leading exporter. Nevertheless, the overall market was influenced by climate conditions, the global economy, and bioenergy policies, all of which impact the long-term direction of the sugar and sugarcane industry.

Regarding the Thai sugar industry in 2024/2025, the volume of sugarcane crushed remained below potential. This was due to weather impacts and farmers adjusting to higher production costs. The industry continues to face challenges in improving yield per rai and managing resources efficiently.

Furthermore, the group of companies continues to focus on building a business ecosystem to support the future changes in the sugarcane and sugar industry. This includes applying technology to production processes, developing product quality to meet the standards of large-scale global industries, and leveraging by-products from the production process to create maximum added value, especially biomass energy from bagasse, which is another key mechanism for the group's sustainable growth.

For the sugarcane and sugar industry outlook in the 2025/2026 production year, the global market is expected to remain volatile due to several factors, such as sugar production in major producing countries like Brazil, India, and Thailand, as well as the demand for sugar and ethanol in the energy market, particularly in Brazil, where the decision between sugar and ethanol production remains a crucial factor affecting the global sugar balance. Additionally, climate change from El Nino and La Nina phenomena continues to be a factor affecting sugarcane production in many countries in the future, as well as conflicts in the Middle East, making it necessary for the industry to adapt and manage risks carefully.

To accommodate the changes in the global sugarcane and sugar industry, Khonburi Sugar Group (KBS) has outlined its strategic business direction for the coming period as follows:

perational Excellence: Enhancing efficiency throughout the supply chain, from cultivation and raw material management to crushing and sugar production, to increase yield and recovery rates while using digital systems for cost management.
Sustainable Cane Development: Strengthening partnerships with farmers by providing modern agricultural knowledge and technology, and supporting fresh cane cutting for environmental sustainability.
Value-Added & Bio-Based Business: Utilizing by-products like bagasse and molasses to create value through biomass energy and bio-based products to diversify revenue streams.
Quality Refined Sugar & Market Expansion: Developing high-quality products under the "FIRST Quality Refined Sugar" concept to serve the global food and beverage industry and expanding into new regional markets.

On behalf of the Board of Directors and Management, we would like to thank our shareholders, farmers, partners, customers, and all stakeholders for your continued support and trust. KBS is committed to conducting business with transparency and good governance to ensure sustainable growth and to become a leading organization in the sugar and bioenergy industry.

Sincerely yours

Mr. Suthep Wongvorazathe

Chairman of the Board

Mr. Takon Tawintermsup

Chief Executive Officer