Message from the Board

Dear Valued Shareholders

Between 2016 and 2019, before the COVID-19 pandemic, SiS Distribution (Thailand) Public Company Limited (the “Company”) generated an average annual revenue of 20,086 million Baht and an average annual net profit of 354 million Baht.

Mr.Lim Kiah Meng Chairman	Mr.Somchai Sittichaisrichart Managing Director

During 2020-2021, the COVID-19 outbreak led to increased consumer demand for IT products, driven by travel restrictions that necessitated remote work and online learning. Additionally, after the government introduced the "The half-half co-payment scheme (Khon La Khrueng)", demand for smartphones surged as they were required for transactions. As a result, in 2021, the Company's total revenue rose to 32,425 million Baht, with net profit increasing to 792.6 million Baht.

However, after the country reopened in early 2022 and control measures were eased, demand for previously high-selling pandemic-era products declined. This led to a revenue drop, reaching a new low of 27,710 million Baht in 2023. The Company, however, experienced a rebound in 2024, with revenue recovering to 28,833 million Baht and net profit reaching 697.6 million Baht, as illustrated in the graph below.

Comprehensive service delivery is one of the Company's key missions, ensuring that customers have widespread access to technology. Over the years, the Company has expanded its distribution channels nationwide, resulting in a continuous increase in the number of distributors purchasing products from the Company. In 2024, the Company supplied products to a total of 10,392 distributors, as illustrated in the graph below.

The Company distributes a wide range of products through diverse distribution channels. To enhance operational efficiency, the Company has categorized its products into 12 groups and manages them under a Business Unit model. These products are classified into 2 main categories:

1. Volume Products This category includes products designed for ease of use and widespread adoption, resulting in high sales volumes. However, the market has started to reach saturation, leading to slower growth. This category is further divided into 3 subgroups:

• 1.1 Consumer Products: IT products for household use, such as personal computers, printers, and IoT devices.
• 1.2 Commercial Products: IT products for enterprise use, including personal computers, servers, and uninterruptible power supplies (UPS).
• 1.3 Phones and Accessories
  Over the past year, sales in this category declined slightly compared to the previous year due to market saturation and reduced household purchasing power caused by rising household debt. However, both sales and gross profit remain slightly higher than pre-COVID-19 levels.

2. Value Products This category consists of products that are in the development stage or have recently been introduced to the market. While their sales volume is not yet high, they are experiencing rapid growth. The Company reports sales for this category in 2 sub-groups:

• 2.1 High-Value Solutions: This includes advanced solutions such as cybersecurity systems, Private Cloud infrastructure, data storage and backup systems, network solutions, etc.
• 2.2 Other Products: This sub-group comprises various products that individually contribute less than 10% of total sales, including CCTV systems, annual cybersecurity service fees, public cloud services, video conferencing/large-scale display systems, and solar energy solutions.

Over the past year, sales in this category grew by 16.7%, while profits increased by 14.5%, reflecting the strong market expansion potential for these products.

The sales and gross profit chart for the two product categories indicates that the gross profit of the Value category has exceeded that of the Volume category since 2023, accounting for 54.2% of total gross profit. This share further increased to 55.1% in 2024. Given the continued market expansion of the Value category, the company is expected to sustain its growth in the future.

Cloud services represent one of the Company’s key new business ventures (reported under Other Products). This segment has been prioritized due to its significant value to users and its transition from an emerging technology to an essential service. The Company offers both SiS Cloud, a proprietary cloud system, and serves as an authorized reseller for global providers such as AWS, Azure, and Wasabi. With a comprehensive range of services, an extensive distribution network, and a recurring revenue model, the Company is confident in its ability to sustain business growth, as illustrated in the following graph.

Beyond business expansion, the Company remains committed to good corporate governance, adhering to the principles set forth by the Organization for Economic Cooperation and Development (OECD). This commitment to sustainable growth has earned the Company the highest level of corporate governance recognition for another consecutive year.

On behalf of the Company, we extend our sincere appreciation to our partners, financial institutions, customers, management team, and employees for their continued support. Moving forward, the Company will continue to operate with a focus on sustainable development and strong corporate governance, reinforcing its vision of advancing technology adoption in Thailand.