Supply Chain Management

Management Approach

The Company has categorized its supply chain business partners and contractors (Tier-1 Suppliers) by screening and identifying key suppliers that directly support the Company's core business operations, are difficult to replace with alternative suppliers, and have procurement or contracting values of significant importance to business operations. In fiscal year 2025, the Tier-1 Supplier details are as follows:

The Company places strong emphasis on sustainable supply chain development, with an operational framework focused on the systematic selection, evaluation, and management of business partners to reduce business risks and ESG impacts, while simultaneously strengthening supplier capabilities for shared responsible growth. In fiscal year 2025, the Company conducted analysis and categorization of Significant Suppliers based on criteria covering business importance and sustainability risk levels, comprising:

• Critical Tier-1 Suppliers that conduct and support the Company's core business operations, or
• Critical Tier-1 Suppliers with critical and high potential ESG risks (Critical Tier-1 and High Potential ESG Risk Suppliers)

The Company analyzed its supplier base to identify and rank Critical Tier-1 Suppliers that transact with and support the Company's core business operations, using the Supplier Code of Conduct (SCoC) (Supplier Code of Conduct: Supplier Code of Conduct ) as the primary governance framework for supplier operations. A Self-Assessment Questionnaire (SAQ) is used to survey compliance with the Supplier Code of Conduct for self-assessment purposes, verify requirement compliance, and monitor risks across all 3 dimensions — economic, social, and environmental — as defined in the Supplier Code of Conduct. The Company also drives suppliers toward continuous sustainability standard development to elevate efficiency and transparency in the supply chain. The process comprises 8 steps as follows:

1. Compile a list of current contractual suppliers.
2. Analyze and prioritize suppliers with significant business importance (Significant Suppliers).
3. Communicate and acknowledge the Supplier Code of Conduct.
4. Suppliers conduct sustainability performance self-assessments (SCoC Online Self-Assessment) to review individual supplier risk assessment results.
5. Summarize supplier rating assessment results.
6. Conduct On-site ESG Audits and report results to suppliers.
7. Define the Company's management approaches and plans.
8. Establish and promote collaboration between the Company and suppliers.

Self-Assessment Questionnaire (SAQ) results for 6 Critical Tier-1 Suppliers — representing 100 percent — met the defined target. In fiscal year 2025, the Company distributed the Supplier Code of Conduct compliance survey to 20 suppliers, selected based on total payment value representing 90 percent of the Company's total supplier payments.

In addition to emphasizing responsible environmental, social, and governance operations, the Company upholds fair business practice principles and promotes sound financial management for both the Company and its suppliers. The Company has set a supplier payment target of no more than 60 days, requiring suppliers to submit invoices by the 5th of each month. Payments are transferred to suppliers via bank account through the Smart system, with suppliers receiving funds within the defined payment cycle. In fiscal year 2025, the average supplier payment period was 67 Days — within the defined payment target.

Procurement Process and New Supplier Registration

The Company has established procurement and supplier/contractor selection regulations and procedures under the ISO 9001 Quality Management System, comprising the Procurement Regulation (QP-CO-005) and the Supplier and Contractor Selection Regulation (QP-CO-004), to ensure that procurement processes are transparent, auditable, and aligned with good corporate governance principles.

For new supplier selection, the Company conducts comprehensive preliminary qualification screening and performance reviews. For procurement with a value of 100,000 baht or more, and contracting with a value of 200,000 baht or more, at least three quotations must be compared to select the most suitable supplier or contractor based on quality, price, product warranty, after-sales service, and delivery capability criteria, prior to submission for procurement approval. The Company has established the following qualification criteria that suppliers and contractors must meet before registration:

• At least one year of relevant work experience with expertise matching the scope of work
• Registered capital of no less than 500,000 baht
• Ownership of required tools and equipment
• Commitment to quality improvement of products and services
• Operations with due regard for environmental impact and conservation of resources and energy

The Company places strong emphasis on environmental and social responsibility, and accordingly gives preference to business partners that prioritize environmental and social sustainability. Sustainability policies published by suppliers through sustainability reports or company websites are considered, covering the following topics:

Supplier and Service Provider Evaluation

All new suppliers must complete a post-delivery performance assessment covering the quality of goods and services provided, with results recorded in the supplier/contractor profile prior to registration approval. Key evaluation criteria include:

• Quality of goods and services
• Environmental standards, such as ISO 14001 and Green Label certification
• Corporate Social Responsibility (CSR) standards
• Safety standards, such as TIS 18001 and OHSAS 8001-2020
• Product and service safety
• Delivery timeframes
• Coordination and customer service
• Delivery quantities
• Defective goods or delivery errors
• Completeness of accompanying documentation

Suppliers with more than 24 purchase orders per year or an evaluation score of 80 points or above are registered as Company suppliers, with the supplier register reviewed annually. Suppliers with no procurement or contracting activity within three years, or with an evaluation score below 80 points, will be considered for removal from the supplier/contractor register.

Promoting Supplier Collaboration

The Company places strong emphasis on developing business partners to achieve shared sustainable growth, encouraging suppliers to conduct business in accordance with the Supplier Code of Conduct, which prioritizes environmental, social, and governance (ESG) responsibilities alongside their own economic growth. In addition to evaluating supplier Code of Conduct compliance, the Company provides developmental recommendations to help suppliers improve their sustainability performance, with an ESG improvement framework as follows: