Message from Chairman

In respect of the operating results: Despite the fact that the Company has encountered challenges from numerous major global crises that have an impact on its business, most notably the El Niño phenomenon in Southeast Asia, the Company can effectively navigate through numerous uncertainties related to its operations, as evidenced by the Company’s ability to make a net profit attributable to equity holders of the Company in 2023 amounting to Baht 1,462 million while also consistently maintaining its stable financial position, with a low net interest-bearing debt to shareholders' equity ratio of 0.53 times and constant cash flows resulting from the long-term Power Purchase Agreements entered into by the Company’s power plants and Electricity Generating Authority of Thailand (EGAT), as well as other customers. These have demonstrated the Company’s efficient management guidelines which maximize returns for shareholders and stakeholders. Moreover, Xayaburi Power Company Limited (XPCL), a CKPower’s associated company, has issued additional Green Bonds in 2023 worth Baht 3,500 million in accordance with the Green Bond Principles 2021 and ASEAN Green Bond Standards 2018. The issuance of such Green Bonds has assisted XPCL in lowering its financial cost in the midst of an increase in global interest rates in 2023.

With regard to Risk Management: The Company has prepared Reports on Climate Change Risk Impact Assessment and Human Rights Risk Impact Assessment in compliance with the International Finance Corporation (IFC)’s Performance Standards on Environmental and Social Sustainability and Equator Principles; has strengthened its information security system in order to handle anticipated rises in cyber threats; and has enforced the Personal Data Protection Policy (PDPA) in order to respect the privacy rights of the Company’s stakeholders, executives, and employees.

With regard to Sustainability: In 2023, the Company established a Materiality Assessment procedure which must be annually reviewed in accordance with the Global Reporting Initiative (GRI Standard). This year, the new procedure, namely Double Materiality, has been established in accordance with GRI Standard 2021, by taking into account how the organization impacts on society and the environment (Inside-Out) and how the organization is impacted by external factors (Outside-In), with an emphasis on looking at both positive and negative impacts while also evaluating the financial impact, including considering the importance of creating value for all groups of stakeholders. In 2023, the Company received the Asset ESG Corporate Awards 2022, Gold Level, from The Asset, which was the Asia’s leading financial magazine, in recognition of the Company’s excellence in sustainable business operations and priority given to stakeholders in all dimensions in accordance with international standards.

On top of that, CKPower has won SET Awards 2023 in the Sustainability Excellence category for Commended Sustainability Awards organized by the Stock Exchange of Thailand in association with Sasin Graduate Institute of Business Administration of Chulalongkorn University; and was assessed as one of 34 listed companies which were awarded the 'AAA' SET ESG Ratings for 2023, the highest achievable level, by the Stock Exchange of Thailand and included in the THSI list for the 4th consecutive year. Furthermore, the Company was selected to be on the list of “Sustainability Operating Companies” or ESG100 for 2023 by Thaipat Institution for the 2nd consecutive year, whereby the Company was shortlisted among 8 companies having the highest score in the Electric Utilities & Power Generators sector out of 67 companies.

With regard to Social and Community Care: CKPower won the first-place Social Empowerment at the Asia Responsible Enterprise Awards 2023 as presented by the leading private development organization with its aim to support the potential of responsible enterprises in Asia. Moreover, Bangpa-in Cogeneration Power Plants have been awarded the CSR-DIW Award 2023 by the Department of Industrial Works, Ministry of Industry, for the 2nd consecutive year, in recognition of their standing as the organization with sustainable business operations together with responsibility for Environment, Social, and Governance (ESG). These accomplishments have demonstrated the commitment to developing business management to ensure the sustainable growth, constantly generating long-term, stable returns, as well as adhering to ethical business practices. Additionally, the Company was awarded The Asset ESG Corporate Awards 2023 in the Best Initiative – Social Responsibility category for the Hing Hoi Project with its excellence in adding value and creating a good quality of life for society and communities.

CKPower won the first-place Social Empowerment at the Asia Responsible Enterprise Awards 2023 as presented by the leading private development organization with its aim to support the potential of responsible enterprises in Asia. Moreover, Bangpa-in Cogeneration Power Plants have been awarded the CSR-DIW Award 2023 by the Department of Industrial Works, Ministry of Industry, for the 2nd consecutive year, in recognition of their standing as the organization with sustainable business operations together with responsibility for Environment, Social, and Governance (ESG). These accomplishments have demonstrated the commitment to developing business management to ensure the sustainable growth, constantly generating long-term, stable returns, as well as adhering to ethical business practices. Additionally, the Company was awarded The Asset ESG Corporate Awards 2023 in the Best Initiative – Social Responsibility category for the Hing Hoi Project with its excellence in adding value and creating a good quality of life for society and communities.

Long-term growth goal: The Company has invested in and developed the clean-energy power plants as well as simultaneously laying the foundation for energy production on a national and international scale. Currently, clean energy sources account for 93% of the Company's 3,633 MW installed capacity; and the Company aims to increase production capacity from clean energy to no less than 95% in order to become one of the largest renewable energy power producers with the lowest corporate carbon footprint in the region; to achieve good performance in sustainable development in terms of economic, social and environmental aspects, with the stable operating results conforming to the Company’s vision of operating sustainable business and creating balance for the world, with net zero greenhouse gas emissions by 2050.

On behalf of all directors, executives, and employees, I would like to extend my gratitude to shareholders, financial institutions, alliances, and stakeholders of all sectors for their trust and great sustained support in the Company’s business operations in the pursuit of the economic development of the country and the ASEAN region, by creating sustainable value. Ultimately, the Company is committed to conducting its business operations in a way that upholds integrity, transparency, based on good corporate governance, while also playing a part in contributing to social, community and environmental development in order to collaboratively drive for stable, sustainable growth across all sectors.