Digital

The year 2024 remains a challenging year for the global economy and the Thai economy. We continue to face various fluctuations and uncertainties, both from the uneven recovery of the economy and the ongoing geopolitical conflicts. These factors directly impact overall economic growth, including our rubber industry.

Additionally, climate change and stricter environmental regulations are also significant factors affecting the industry, particularly this year. The El Niño phenomenon has severely impacted the rubber industry, with decreased rainfall and drought occurring in many areas, resulting in a significant decline in rubber production. This has led to rubber prices rising by about 40% compared to 2023, as demand for rubber remains high, especially in the automotive industry, which is recovering and increasing its demand for rubber. The enforcement of international environmental standards (European Union regulations on products free from deforestation (EUDR)) is another factor that has caused rubber prices to increase sharply compared to the previous year. Various factors directly affect the raw material costs of the company.

However, despite facing challenges from various external factors, the company remains committed to continuous adaptation and development. In 2024, the company continues to maintain satisfactory performance, having seen continuous growth since it was listed on the stock exchange in 2018. The company has achieved consistent revenue growth, with an average annual growth rate of 18.22%, and has maintained profitability every year with a growth rate of 22.61%. This demonstrates financial stability, profitability, and the ability to sustainably provide valuable returns to shareholders.

The company is well aware that sustainable growth must be accompanied by the creation of value for society and the environment. Over the years, the company has undertaken various projects focusing on community development, promoting the use of clean energy, and continuously reducing environmental impacts. Such as the NER project supporting sustainable agricultural practices, NER for sustainable supply chain development, green markets, health checks for vulnerable community groups, and supporting and enhancing the education of schools in nine communities, among many others. Additionally, the company has encouraged partners to participate in the Low Emission Support Scheme (LESS) and has invited them to join in the declaration of intentions with the anti-corruption coalition, demonstrating that the company values good governance practices that are transparent and accountable, which are fundamental to building trust with shareholders and all stakeholders.

Through its commitment to responsible business operations concerning social and environmental impact, as well as adherence to principles of good governance, the company has received prestigious awards such as being listed in the SET ESG Ratings for sustainable stocks at an “A” level for three consecutive years, obtaining the Excellent CG Scoring in corporate governance for four consecutive years, and receiving certification as a member of the Anti-Corruption Coalition (CAC Certification) in 2024, reflecting transparent and ethical business practices grounded in sustainable operational principles. The company has also been rated at the bronze level by EcoVadis, a globally recognized evaluator of sustainability in business value chains, for five consecutive years, and has received several environmental awards. These accolades affirm the company’s commitment to conducting business sustainably.

On behalf of the Board of Directors, I would like to thank all shareholders for their trust and support of the company throughout. We pledge to continue our efforts with full capability to create valuable returns for shareholders and to provide enduring value to society and communities.

The year 2024 has proven to be exceptionally challenging for the global business sector, including Thailand’s rubber industry. The fluctuating global economic conditions driven by external factors such as trade wars, inflation, and rising interest rates have significantly impacted demand for rubber and caused volatility in selling prices. Additionally, domestic drought conditions have affected rubber production volumes, putting pressure on the company’s operations.

However, through effective cost management, innovative product development, and strategic market expansion, the company has achieved a sales revenue target of 27.448 billion baht, a 10% growth, and a net profit of 1.652 billion baht, a 7% increase compared to 2023, which is a satisfactory result under unfavorable market conditions.

Looking ahead to the economic outlook for 2025, uncertainties are expected to persist; however, with government economic stimulus policies and the recovery of the global automotive industry, demand for rubber is anticipated to gradually improve, with an expected average price of 70 baht per kilogram, which will contribute to ongoing revenue growth for the company.

Regarding the impact of the trade war between the U.S. and China, some Chinese manufacturers have moved their production facilities to Thailand, presenting an opportunity to expand the domestic customer base. Nonetheless, the company remains vigilant regarding various risk factors, including outbreaks of emerging diseases, changes in government policies, exchange rate fluctuations, and regulations related to agriculture and international trade. The company has meticulously planned and managed risks to ensure long-term business sustainability.

To support future growth, the company has investment plans to expand rubber production capacity by an additional 320,000 tons from 2025 to 2026, bringing total production capacity to 835,600 tons per year, up from the current 515,600 tons, representing a growth rate of 62%. This will strengthen the company’s competitiveness in the global market.

In addition to business growth, the company is committed to sustainable growth alongside society, adhering to the mission "NER creates more value than rubber" and the vision "We are a leading global producer of natural rubber committed to creating value and a sustainable future for every community we are part of." The company aims to be a leader in the production of high-quality natural rubber that is internationally recognized, conducting its business with integrity, transparency, and fairness while considering the impact on the environment and society.

I firmly believe that "sustainable growth can only occur when all sectors collaborate to create a better society," and I promise that "the company will grow sustainably and provide valuable returns to all shareholders while simultaneously creating value for society."

"The management team and employees of the company would like to thank our shareholders and all stakeholders for traveling with us in trust and support. We will strive to continue our vision to deliver outstanding returns and create sustainable value for society and communities."