Investor FAQ

To provide an estimate, let's consider the figures from our Sakon Nakhon factory, since its cost structure is independent from the central expenses of the group. Our calculations indicate that the breakeven point is reached at about 60% of the total production capacity.

For the majority of our customers, who are international clients, once the company receives a product order, the delivery typically occurs within a 3-month period from the order date. Therefore, it can be said that the company is aware of orders roughly within the same timeframe.

The company has implemented the following strategies:

1. Establish a strong network of farmers near our factories to engage them, leading to farmers selling their products to our company.
2. Educate farmers by advising on cultivation methods and recommending crop varieties that yield high-quality produce with a high percentage of starch and disease resistance.
3. Set up a dedicated team to support our partner farmers, promptly addressing their problems and finding immediate solutions.
4. Utilize a network of middlemen who can collect cassava from various sources and sell it to our company.
5. Increase the production capacity of our factories to handle large volumes during peak seasons. This helps to compensate for lower production during the low season. Historically, the cassava harvest peaks from January to March and again from August to October.

Additionally, the company is expanding into the modified cassava flour business to add value to our existing cassava products. This modified cassava flour has a higher profit margin and helps offset the reduced profits from standard cassava flour during low production periods.

1. Modified starch is a form of tapioca starch that has been enhanced with additional properties as per individual customer agreements. Customers use modified starch in various products, making it a made-to-order item. This customization allows for higher profit margins compared to regular tapioca starch.
2. Our company produces modified starch in two forms:
   • We own certain formulas, which are mostly semi-finished products well-known within specific industries and are ready for immediate sale.
   • We also develop unique formulas in collaboration with clients, involving specific agreements and long-term contracts with each client.

For our modified starch products, in the initial phase, the company plans to enter the market in areas where we have marketing expertise, starting with China. Subsequently, we will expand to other countries. Initially, we will focus on customers in the paper and food industries.

Let's take the example of a new cassava flour production factory in Kalasin Province. The company plans to employ approximately 130-140 people, including both salaried and daily-wage workers. The daily-wage workers will be divided into three shifts. The increase in the number of employees will depend on the integration of technology into the production process.

In our manufacturing process, we utilize automation systems starting from the conveyance of raw materials to the washing pits, chopping and grinding of cassava roots, extraction and separation of water from starch, drying processes, all the way to the packaging stage.

With our extensive expertise and long-standing experience in business operations, coupled with our robust financial strength, our company is well-equipped to expand our investments to other areas. This is exemplified by our ongoing project of establishing a new factory in Kalasin Province.

Furthermore, in the context of the volatile raw materials market and intense competition in the procurement of cassava, some local operators who struggle with adapting, face capital shortages, or lack systematic management, decide to exit the business. In such scenarios, our company remains open to exploring the feasibility of acquiring assets or businesses from these operators.

Throughout our operation since 2005, our company has been recognized as a manufacturer with expertise in producing Tapioca starch. Our products are of high quality, meet standards, and are accepted by customers both domestically and internationally. We have received various quality standard certifications, including ISO9001:2015 for Quality Management System, ISO14001:2015 for Environmental Management System, and certifications from the United Kingdom Accreditation Service, which is internationally recognized, demonstrating fairness and operational and management standards of international quality.

Our company also meets the HACCP (Hazard Analysis Critical Control Point) standards for food and drug safety, GMP (Good Manufacturing Practice) for quality food production practices, Halal standards for products that comply with Islamic laws, and green industry standards.

Furthermore, to produce products that meet customer needs with quality and universally accepted standards, our company has defined the following marketing strategies:

1. Differentiation strategy in products, such as producing premium-grade Tapioca starch.
2. Strategy to find new customers and increase sales for existing customers.
3. Strategy to sell Tapioca starch focusing on fast and timely service.
4. Strategy to continually improve product quality and production efficiency.
5. Strategy to satisfy customers in terms of quality and service.
6. Strategy to build business partnerships to create competitive advantages.

The Northeast region is a significant cassava planting area in Thailand, accounting for more than 54% of the country's cassava cultivation area. The locations of our company's factories, which are in Mukdahan, Sakon Nakhon, and Kalasin provinces, as well as the surrounding areas, are considered regions where cassava is widely cultivated and have suitable raw material availability.