Message from Chairman

Dear Stakeholders,

2025 has been a mixed year for our Company. Despite a slowdown in the Thai economy and consecutive quarters of bank credit contraction, we achieved a record high factored volume of Baht 35,754 million, an increase of 11% from 2024, primarily driven by new client acquisition and strategic partnerships. However, a small group of existing SME clients experienced business disruptions during the year, leading to difficulties in repayments. Based on our credit policy, we recognized provisions for impairment amounting to Baht 107.93 million upfront while we continue to collaborate with our clients to restructure payments.

We have navigated challenging market cycles since 1991, and we remain committed to providing Thai SMEs with responsible access to capital. While the Company is positioned for prudent growth, we will monitor the SME market carefully for signs of broader stress.

During the year, our new focus on strategic account management and greater adoption of technology enabled the Company to secure new business from partnerships and increase overall productivity. We will continue to reduce waste in spending so that we can invest in technology and our people. Our vehicle leasing joint venture has been careful in its growth given shifting market conditions and our fleet size reached 63 vehicles, achieving a full utilization rate. We will continue to adapt the fleet composition to meet the evolving needs of the market.

I am also glad to report that we continue to make progress in our environmental initiatives, achieving 13% lower emissions for Scope 1 and Scope 2 compared to 2024. Going beyond our own consumption, we are also actively looking for low-carbon projects that may require financing support within Thailand. In line with our continued focus on responsible lending, ethical practices, and transparency, the Company continues to maintain its certification with the Thai Private Sector Collective Action Against Corruption (CAC).

Despite the impact of the higher impairments, our Company’s equity grew by marginally to Baht 1,849 million in 2025 and we maintained a healthy balance sheet with a debt/equity ratio of 1.27 times and cash position of Baht 422 million as at 31 December 2025. Our financial position remains strong, enabling us to pursue sustainable growth while safeguarding stakeholder interest.

The Board is proposing a dividend payment of Baht 0.104 (10.40 Satang) per share for 2025, totalling Baht 51.32 million or 53.81% of the net profit, in line with the Company’s dividend policy to distribute not less than 50% of the net profit after provision for legal reserves. This will be subjected to the approval of the 2026 Annual General Shareholders’ Meeting to be held on 21 April 2026.

A planned leadership transition is also underway. Mr. Tan Ley Yen, our CEO who was instrumental in setting up our Company in 1991 as well as stewarding it faithfully over 35 years, will be retiring in 2026. He will be succeeded by Mr. Voon Ee Hui, who currently serves as our General Manager of Business Development and Head for Group Strategic Account Management. To ensure continuity, Mr. Tan Ley Yen will remain on the Board in his new role as Director and Advisor.

On behalf of the Company and the Board of Directors, I would like to express our sincere appreciation to Mr. Tan Ley Yen for his 35 years of commitment and valuable contribution to the Company and to congratulate Mr. Voon Ee Hui on taking over the leadership baton as the CEO of IFS Capital (Thailand) PCL.

As we look ahead to 2026, we will continue to elevate productivity and customer experience through technology, strengthen our risk management, and forge strategic partnerships that can strengthen our relevance and impact to SMEs in Thailand. I would like to thank our team members, shareholders, and all stakeholders for your continued trust and support in our Company.

Yours faithfully,

Randy Sim Cheng Leong
Chairman
19 February 2026