Message From Chairman
Dear Shareholders and Stakeholders,
Over the past year, the electricity and energy industry has continued to face challenges arising from global economic volatility, energy costs, the energy transition, technological advancements, and increasingly stringent environmental policies and regulations; in response, the Board of Directors has focused its oversight on ensuring that the Company operates with stability and resilience while aligning its business direction with sustainable development, with emphasis on the formulation of strategies aligned with the energy transition, proactive risk management at both the enterprise and asset levels, robust internal controls, the development of personnel capabilities, strict compliance with applicable laws and regulations, and the continuous enhancement of environmental, social, and governance standards, in order to support the Company's ability to adapt and achieve sustainable long-term growth.
Business Direction Adjustment in Response to the Energy Transition and Emerging Opportunities
Over the past year, the Board of Directors conducted a comprehensive review of the Company's business strategy, taking into account changes in the external environment, trends in the electricity and energy industry, and future business risks and opportunities, while integrating Environmental, Social, and Governance (ESG) considerations into the strategic planning process, investment decision-making, and operations at all levels in order to strengthen the Company's competitiveness and long-term sustainability. The strategy focuses on both the growth of new assets, including power plants and electricity- and energy-related businesses, and the efficient management of existing assets, with the Board placing strong emphasis on comprehensive power plant asset management throughout the entire lifecycle (Lifecycle Asset Management), from development, operations, and maintenance to end-of-life planning and value enhancement of power plants whose power purchase agreements have expired or are approaching expiration, through the consideration of appropriate alternatives. Examples of actions already undertaken include the Townsville natural gas-fired power plant in Australia, where efficiency was enhanced and the business model was adjusted through the installation of synchronous condensers to provide grid stability services for the State of Queensland alongside normal electricity generation, as well as the Ratchaburi Power Plant, whose thermal power plant power purchase agreement expired in October 2025 and whose combined-cycle power plant agreement will expire in 2027, for which the Company has considered adjustments to its electricity generation business model in line with Thailand's Power Development Plan and the development of new projects aligned with national economic and industrial development priorities, reflecting the Company's commitment to efficient resource utilization, reduced environmental impacts, and the creation of long-term value.
Focused on Proactive Asset and Risk Management
The Board of Directors places strong emphasis on asset management at the regional level, covering Thailand, Australia, the Lao PDR, Indonesia, Vietnam, and the Philippines, with a focus on ensuring that asset management practices are aligned with the economic context, energy policies, and regulatory frameworks of each country, while at the same time strengthening operational stability and supporting sustainable long-term growth. Particular attention is given to maintaining availability and efficiency of power generation, extending asset life, implementing preventive and predictive maintenance planning, and applying artificial intelligence technologies and innovations to enhance operational efficiency, reduce costs, and mitigate environmental impacts, thereby increasing long-term asset value. During the past year, the Company initiated the deployment of artificial intelligence technologies for preventive and predictive maintenance planning at 5 power plants, with full implementation scheduled for completion in 2026.
Furthermore, the Board of Directors has overseen the implementation of a proactive risk management approach covering strategic, operational, financial, regulatory, safety, occupational health, environmental, climate change-related, technology and cybersecurity, and cross-border investment risks, by integrating ESG-related risks into the Company's Enterprise Risk Management (ERM) process to ensure that the Company is able to anticipate, prepare for, and respond to uncertainties, as well as effectively manage risks associated with investment decisions and asset management.
The Board of Directors closely monitored the Company's asset management and risk management performance and provided oversight to ensure that risk management approaches and measures are appropriate and aligned with the context and regulatory requirements of each country in which the Company operates.
Carbon Management toward Net Zero
The Company places strong emphasis on carbon management and the transition toward net zero greenhouse gas emissions by 2050, with the Board of Directors providing oversight to ensure the establishment of systematic greenhouse gas reduction targets and a decarbonization roadmap. This roadmap covers increasing the share of renewable energy, enhancing energy efficiency at power plants, adopting low-carbon technologies, implementing carbon offsetting, managing carbon across the value chain, and considering the use of appropriate financial mechanisms and instruments to support the achievement of these targets. Such carbon management has been integrated into the Company's strategic planning, investment decision-making, asset management, and risk management processes.
Furthermore, the Company has monitored and assessed climate-related risks and opportunities, including transition risks and physical risks, that may affect the operations of power plants in each country, in order to strengthen organizational resilience, competitiveness, and preparedness to respond to long-term energy and climate-related trends.
During the past year, the Company commenced studies on the development of new forms of clean energy with business potential, including green hydrogen, green ammonia, sustainable aviation fuel, and small modular reactors (SMRs), among others.
The Board of Directors has discharged its duties in accordance with the principles of good corporate governance and is confident that the Company's operations are conducted with transparency and accountability, and in alignment with its defined strategic and sustainability objectives. In the coming year, the Board remains committed to steering the Company in line with its vision of sustainable growth by balancing financial performance, social responsibility, and environmental stewardship, while enhancing long-term competitiveness and ensuring a smooth transition toward sustainable energy.
On behalf of RATCH Group Public Company Limited, the Board of Directors would like to express its sincere appreciation to shareholders, customers, business partners, employees, government agencies, and all stakeholders for their continued trust, support, and cooperation in driving the Company's steady growth, enabling it to meet the nation's energy needs while responsibly caring for the environment and society.
Mr. Warakorn Brahmopala
Chairman