Message from Chairman & President

Fortunately, the price of raw materials used by our company remained relatively stable during most of the year and as such was a positive factor enabling an efficient cost management. In order to manage the energy cost, our company installed solar energy units resulting in a significant decrease in energy payment. While interest rate might have a declining trend, it was not strong enough to support the effort of raising new capital through the bond market. The investment market also faced continuous pressure from investors’ lack of confidence resulting in stock indices not fully reflecting the true performance potential of listed companies.

Although the Thai economy remained relatively stable, there was a clear sign of an expansion of fast-moving consumer goods (FMCG) and growth in the demand for soft plastic packaging. This reflected the strength of basic demand and the change in consumers’ behavior. However, during the last half of the year, the border conflict between Thailand and Cambodia unfortunately caused a decrease in demand for packaging of one of our main customers due to its inability to export goods at a usual level. The conflict did not end quicky and our company had to adjust its earnings projection while searching to find new markets for the lost sale.

Within this context, we have proceeded to adjust our business strategy continuously and carefully in order to increase our competitive ability and risk mitigation. Our company has coinvested in a factory for producing high quality paper packaging in Vietnam to expand our business opportunity and income base. During the past year, more investment was made to increase production area, machinery and the production system in order to meet future market expansion. As for our domestic investment with a leading food manufacturing group, commercial production started during the third quarter. This has expanded our ability to produce soft packaging for food for export which is a market with high growth potential.

Concerning the improvement of our competitive ability, the company has bought new machinery, improved existing ones and adjusted production processes to make sustainable products and in response to ever-changing customers’ requirement. All of these have resulted in such outstanding development and performance that our company received two awards in 2025, namely the Outstanding Company Performance Awards and the Outstanding CEO Awards, from the Stock Exchange of Thailand (SET). In addition, in an assessment for company governance, our company has received a score of five stars or Excellent CG Scoring. In terms of sustainability assessment, the Company received an ESG Rating of “AA,” reflecting its strong commitment to conducting business with due consideration for environmental, social, and governance impacts at a very good level. In addition, the Company was elevated to Change Agent CAC 3-Star status for its role in advancing Thai society toward greater transparency and sustainable anti-corruption practices. This achievement reflects the dedication, commitment, and strong corporate governance demonstrated by the Board of Directors, management, and employees at all levels, as well as the trust and confidence placed in the Company by customers, investors, and all stakeholders.

Finally, STARFLEX would like to reaffirm our commitment to conduct our business under the concept of sustainable growth together with responsibility to the society, environment and all stakeholders. For our stockholders, we emphasize building long term growth. We would like to express our gratitude to our stockholders, customers, suppliers, business partners and all stakeholders for their continuous support and trust. In the future, we sincerely hope that this support and trust will continue so that our company can face and overcome challenges and continue to grow with stability and sustainability.

Mr. Pakorn Malakul Na Ayudhya

Chairman of the Board of Directors