Message from the Board of Directors

 

“Innovative Construction Materials for Quality of Life, Driving a Low-Carbon Society through Responsibility  and Care in Every Dimension”

To All Shareholders,

The year 2025 marks a pivotal year of structural development for the Company amid the evolving global cement and construction materials industry, which faces multifaceted pressures from climate change, volatile energy costs, and increasingly stringent ESG standards. The Company has established a strong foundation for strategic investment under the principles of Technology – Products – Innovation (T-P-I), transforming itself from a traditional construction materials manufacturer into a fully integrated leader in green innovation and clean energy.

Investment Strategy Toward Sustainability

The Company recognizes the importance of adapting to the dynamic business landscape and climate change. It has therefore established an investment strategy that balances environmental responsibility, social responsibility, good governance, and sustainable business returns. Over the past five years, the Company has allocated investments to ESG projects as strategic initiatives aimed at reducing energy costs, lowering electricity and transportation expenses, increasing the proportion of renewable energy usage, enhancing production efficiency and output, and optimizing natural resource utilization under a Zero Waste policy. These efforts are undertaken alongside the mitigation of environmental impacts, such as the reduction of CO₂ emissions and PM2.5 dust, etc.

In 2026, the Company has a policy to further invest in the Pyro-processing system project to upgrade machinery for cement production lines 1–4 in order to reduce heat consumption and power consumption, enhance production efficiency, increase production capacity, lower production costs, improve profit margins, and increase the capability to recover waste heat for electricity generation. This investment will strengthen the competitiveness of TPI Polene Group and TPI Polene Power Public Company Limited, as a subsidiary, while mitigating environmental impacts, including the reduction of PM2.5 dust and CO₂ emissions in the clinker and hydraulic cement production processes. Upon completion of the investment in early 2028, CO₂ emissions from the Company’s clinker production process are expected to decrease by a total of 73 kg/ton clinker (from the current level of 890 kg/ton clinker to 817 kg/ton clinker). In addition, CO₂ emissions from the hydraulic cement production process are expected to decrease by a total of 76 kg/ton hydraulic cement (from the current level of 718 kg/ton hydraulic cement to 642 kg/ton hydraulic cement). Furthermore, TPI Polene Group will be able to increase the recovery of waste heat from the cement production process for electricity generation. This represents a key investment strategy toward sustainability for TPI Polene Group.

 

Strong and Consistently Resilient Operating Performance

In 2025, the Company and its subsidiaries reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of Baht 9,150 million (after setting aside a provision for estimated litigation liabilities of Baht 479 million), compared to Baht 8,830 million in 2024, representing an increase of Baht 319 million.

The Company and its subsidiaries recorded a net profit in 2025 of Baht 2,673  million, comprising normal operating profit of Baht 3,791 million, provision for estimated litigation liabilities of Baht 479 million, foreign exchange loss of Baht 155 million, and income tax expense of Baht 484 million. In 2024, the Company reported a net profit of Baht 2,425 million, comprising normal operating profit of Baht 2,822 million, foreign exchange Gain of Baht 88 million, and income tax expense of Baht 485 million.

The increase in normal operating profit demonstrates the Company’s continued improvement in operating performance, resulting from the realization of benefits from ESG investment projects that have been continuously implemented and have begun to deliver tangible results. This has enabled the Company to reduce production costs and enhance profitability, leading to the TPI Polene Group’s consistently strong operating performance.

Production Process Innovation and Green Products

TPI Polene Group has elevated its production processes toward excellence in all dimensions, in line with its long-term mission to achieve Carbon Neutrality by 2043. TPI Polene Group has integrated the Green Management approach into every stage of its operations as follows:

1. Green Logistics & Mining: The Company has transitioned raw material transportation systems and mining machinery to electric systems, including the installation of electric conveyor belts to replace oil-based transportation. Electric forklifts are used in warehouses, and electric trucks (EV Trucks & Fleets) are deployed for product delivery to customers. These initiatives reduce transportation costs, lower CO₂ emissions, and decrease PM2.5 dust.
2. Green Manufacturing: The Company has upgraded cement plant machinery to utilize waste-derived fuel to replace 25% of coal, thereby reducing reliance on coal. Crushed stone (a by-product of the construction stone production process) has been sorted and supplied as raw material for the production of golden sand and shale, representing efficient resource utilization. Aggregate scrap, another by-product, has been used in the clinker production process, enabling the production of hydraulic cement, a low-carbon cement. In addition, the Company has invested in the Pyro-processing System project to reduce production costs, increase the recovery of waste heat from the cement production process for electricity generation, and lower CO₂ emissions and increase cement production efficiency, among others.
3. Green Products: The focus in on the production of clinker with reduced CO₂ emissions and hydraulic cement that lowers the clinker content, significantly reducing CO₂ emissions. These products respond to global market demand and public sector construction projects that emphasize sustainability standards.

Innovation Beyond Industry Competitors

The Company’s Specialty Polymers business group serves as a key driver, leveraging advanced technology to create a competitive advantage that is difficult for competitors to access. The focus is on high value-added products. Its global distinction is reflected in being the only producer in Southeast Asia, enabling access to premium markets that are difficult for other competitors to replicate in the short term.

In addition, the Company offers environmentally friendly fiber cement products developed through research and in accordance with global safety standards. These products serve as a substitute for wood and promote efficient energy conservation. The Company is committed to achieving stable growth alongside environmental stewardship, delivering sustainable value to all stakeholders.

Enhancing the Quality of Life of Thai People through Bio-Organic and Healthcare Products

                TPI Polene Group recognizes the importance of enhancing the quality of life and promoting good health and hygiene among Thai people. TPI Polene Group is therefore committed to developing its organic agricultural business and environmentally friendly healthcare products. The products are categorized into four main groups as follows:

1. Bio-Organic Agricultural Products: Comprising bio-organic fertilizers, soil conditioners, and natural pest control products to support safe cultivation, free from chemical residues, and to replace the use of harmful agricultural chemicals.
2. Bio-Livestock & Fishery Products: Biological microbial innovations (Probiotics) and anti-viral agents for terrestrial and aquatic animals to promote strong animal health without the use of antibiotics and chemicals.
3. Bio-Healthcare & Hygiene Products: Covering products that support both external and internal health, including:

• Food Supplement and Beverage Group: Probiotic drink mixed with vitamins (Pro Vita) and probiotic supplements combined with Calcium and Vitamin C.
• Oral Care Group: Bio Knox mouthwash, which helps inhibit bacteria and prevent viruses from entering the body, and Viknox Throat lozenges for relieving sore throat, licensed by the Food and Drug Administration (FDA).
• Cleaning and Personal Care Group: Liquid bath soap, liquid hand soap, dishwashing liquid, laundry detergent, stain remover, and vegetable washing liquid.

4. TPIPL Drinking Water: Producing clean, standard-quality drinking water to enable consumers to access good-quality drinking water at a reasonable price.

Offering Debentures with a Total Value of Baht 18,900 Million

During 2025 to early 2026, the Company and its subsidiaries raised funds through the issuance of debentures totaling Baht 18,900 million, (comprising Baht 6,500 million in Green Bonds). The debentures were assigned a credit rating of “BBB” with a “Stable” outlook by TRIS Rating Co., Ltd. The debenture offerings of TPI Polene Group have consistently received strong investor interest.

 

 

Strengthening Cash Flow and Liquidity to Enhance Business Flexibility

                TPI Polene Group remains committed to maintaining financial stability and strength by directing investments toward projects with a payback period of approximately 3–5 years, in order to keep the Net Debt / EBITDA ratio at an appropriate level. TPI Polene Group closely monitors its financial position through the preparation of forward-looking financial projections, both in the short and long term, to effectively manage net cash flow and ensure prudent financial planning. Supported by strict financial discipline, TPI Polene Group maintains financial stability, strong cash flow, adequate liquidity, and business flexibility to respond effectively to market volatility.

 

Honorary Awards in 2025 and Membership in the United Nations Global Compact (UNGC)

                TPI Polene Group’s commitment to sustainable business practices has been recognized both internationally and nationally. In 2025, the Company received several prestigious awards, including The Global Economics Award 2025 in the category of Sustainable Cement Manufacturing (Excellence in Sustainable Cement Production), the 3G Excellence Award for Green Innovation 2025 from the United Kingdom (supporting the United Nations Sustainable Development Goals), the Industrial Energy Efficiency Award – Thailand (Excellence in Energy and Environment), the Green Industry Award (Level 4), the Green Mining Award, the Goodness of Repaying the Land’s Grace Award, the Outstanding Environmental Management Organization Award, and the Organization of the Year Award. In addition, the Company was assessed at the “Very Good” level (4 stars) in the Corporate Governance Report (CGR).

In addition, the Company has officially become a member of the United Nations Global Compact (UNGC), elevating its organizational sustainability standards. The UNGC is the world’s largest corporate sustainability platform, encompassing ten (10) fundamental principles in the areas of human rights, labor standards, environment, and anti-corruption. Membership enhances international credibility and reinforces the Company’s image as a responsible business operator, while building trust among customers, employees, and investors, particularly in markets with high ESG awareness, such as Europe and the United States.

The Company firmly believes that establishing a strong foundation in innovation and environmental stewardship, demonstrating care for society in all dimensions, and upholding good corporate governance will serve as key drivers in advancing TPI Polene Group’s business toward stable and sustainable growth, creating genuine value for shareholders, society, and all stakeholder groups.

On behalf of the Board of Directors, I would like to express our sincere appreciation to our shareholders, investors, financial institutions, business partners, employees, and all stakeholders for their confidence in our vision and for being an integral part of TPI Polene Group’s success today. This collective support forms a strong foundation for a sustainable future ahead.

Sincerely yours,

       (Mr. Khantachai Vichakkana)                                     (Mr. Prachai Leophairatana)

      Chairman of the Board and Independent Director               Chief Executive Officer