In 2022, in addition to the two major challenging situations that the Company has encountered, namely the spread of the Coronavirus 2019 (COVID-19) and the escalating trade war between the United States and the People’s Republic of China, there was another new situation that affected the global economy, which is the sudden Russian-Ukrainian war in the first quarter of 2022. Those situations put pressure on energy prices to rise rapidly, which is the main factor that affects the economy and causes global inflation. Many countries had to announce a sharp increase in interest rates. All of these impacts increased the cost of raw materials and products in every item, as well as shipping fees. Some kinds of raw materials endured a sudden shortage which significantly affected the sales and expenses of the Company. These critical situations were all obstacles to the Company’s operations and financial results. However, these situations tended to improve a lot at the end of the year. The prices of commodities, energy, and many kinds of raw materials have started to stabilize and go on a downward trend. Domestic and international travel has been increasing. Nearly twelve million foreign tourists began to flow into the country, faster than expected and more than targeted. As a result, it stimulates the economy and tourism. Purchasing in hotels, restaurants, shops, etc. has returned to normal as can be seen from the food service sales channel that has grown significantly compared to the past two years.

The Company has focused on growth both in the Branded Business and the Contract Manufacturing Business (CMG). In the higher- margin Branded Business, the Company will accelerate the growth both domestically and internationally with an emphasis on hero products (high sales and profit margins) by strengthening staff and marketing funnel, and focusing on more marketing activities both domestically and internationally. As for the Contract Manufacturing Business (CMG), the Company has been looking for more sales both domestically and internationally from existing clients who want to release new products and new clients. The Company set a goal to adjust the ratio of these two businesses to 50:50 in the future. In addition, the Company is also looking for new channels and products that meet the needs of consumers in new markets with large sizes and focusing on increasing the gross profit margin by constantly looking for ways to reduce costs so that the Company can grow profitably and can create more profitable brands at the same time.

However, the Company has not focused only on solving financial performance issues but has also taken this opportunity to prepare for the upcoming economic recovery. The Company has expanded its business group structure and management, that is, the Company acquired 97.73% of all issued and paid-up shares of Abico Holdings Public Company Limited (ABICO), which used to be the largest shareholder of the Company. Its main business is contract manufacturing of beverage and processed dairy products with long experience, a good quality system at the regional level, and many large national clients. The acquisition creates more synergy among the Company group in terms of establishing a business model that combines the capabilities between organizations in terms of raw materials, personnel, and technology to increase productivity. The acquisition offers the opportunity to make more profits and reduce the overall cost. Moreover, the Company has appointed a new Chief Executive Officer (CEO), namely Mr. Rajdev Narula, who has experience in managing domestic and international organizations as well as the beverage industry to support the changing management.

As for our awards and pride, the Company has had a policy of conducting business with responsibility and integrity. The Company values corporate governance and good management and realizes the importance of operating a business with social and environmental responsibility while adhering to good corporate governance. (Environment, Social and Governance: ESG), that is, managing with fairness and transparency while being able to be checked to increase competitiveness and management efficiency. The Company has initiated many projects with a focus on sustainability. Our efforts are widely recognized by clients, consumers, and society. The distinctive examples are the disclosure of our non-financial information and a more proactive adjustment of the Board of Directors leadership has been. The Company deals with various risk management matters and strictly complied with anti-corruption policy including disclosing this matter to third parties and receiving cooperation from all suppliers to declare their intentions to fight against corruption together with the Company. This marks a significant step in the development of the CG (Corporate Governance) standard. As a result, in 2022, the Company was certified for the renewal of its membership of the Thai Private Sector Collective Action Coalition Against (CAC) and still achieved the CG top score of “5 stars” (Excellent CG Scoring) for the fourth consecutive year, certified by the Thai Institute of Directors Association (IOD) in 2022.

Finally, I, on behalf of the Board of Directors and the Company, would like to show our gratitude to all employees and stakeholders for your support of our business operations. The Company still adheres to good corporate governance and the development of common values with stakeholders, with consideration to the corporate social and environmental responsibility. The Company is ready to become a leading entrepreneur in global innovation and sustainability.

Mrs. Chintana Boonyarat

Chairman of the Board of Directors, Malee Group Public Company Limited