Sri Trang Agro Industry : Management Discussion and Analysis Quarter 3 Ending 30 Sep 2025

Performance Overview

The US Reciprocal Tariff continued to create uncertainty in the

global market, prompting buyers to adopt a more cautious approach and delay new orders. At the same time, the decline in global rubber prices since the previous quarter continued to pressure the Company's performance during the period.

Nevertheless, the Company maintained its resilience with strong operating cash flow, delivering EBITDA of THB 449.4 million. The Company also preserved a solid financial position, with a net debt-to-equity ratio remaining low at 0.6 times.

Profit and Loss Statement

Revenue from Sales and Services

• Sri Trang Group recorded sales and service revenue of THB 21,574.0 million in Q3 2025, down 30.0% QoQ and 31.8% YoY, mainly due to lower natural rubber sales volume following softer demand. The decline was further pressured by a decrease in average selling prices, pressured by prolonged uncertainty surrounding the US Reciprocal Tariff, which has persisted since the previous quarter.

  Revenue by Product (THB million)

  Products 3Q25 3Q24 %YoY 2Q25 %QoQ

  TSR*	13,858.9	23,201.6	-40.3%	22,935.1	-39.6%
  %	64.2%	73.4%		74.4%
  Glove*	6,063.2	6,389.0	-5.1%	5,970.1	1.6%
  %	28.1%	20.2%		19.4%
  RSS	1,538.0	1,834.0	-16.1%	1,392.8	10.4%
  %	7.1%	5.8%		4.5%
  LTX	99.3	159.3	-37.6%	529.5	-81.2%
  %	0.5%	0.5%		1.7%
  Other**	14.6	34.8	-58.1%	13.9	4.7%
  %	0.1%	0.1%		0.0%

  Total 21,574.0 31,618.5 -31.8% 30,841.4 -30.0%

  Note:

  * Revenue from TSR and Gloves is net from hedge accounting.

  ** Comprised revenue from the provision of certain services (such as logistics research and development and information technology services) to our associates and a joint venture entity as well as other third parties. In addition, natural rubber revenue includes TSR, RSS and LTX products.

  Revenue by Product (THB million)

  -31.8% YoY

  -30.0% QoQ

  Sales Breakdown by Product

  
  
  

  -34.6% QoQ

  Natural Rubber NR Sales Volume (Tons)

  -31.7% YoY

  
  
  

  • Revenue from the natural rubber business in Q3 2025 was THB 15,496.1 million, accounting for 71.8% of total revenue, down 37.7% QoQ and 38.5% YoY. The decline was mainly attributed to lower sales volume and a drop in average selling price by 4.6% QoQ and 9.9% YoY, respectively.

  • Total sales volume in Q3 2025 was 259,752 tons, down 34.6% QoQ and 31.7% YoY, following weaker demand amid prolonged uncertainty surrounding the US Reciprocal Tariff and a broader global economic slowdown. EUDR-compliant rubber sales totaled 49,722 tons, representing 19.1% of total sales volume, down 5.3% QoQ and 20.8% YoY, as customers had accelerated purchases last year in preparation for the previously scheduled EUDR enforcement by the end of 2024.

  • By geography, China remained the largest market, accounting for 50.7% of total revenue, followed by Thailand (20.4%), other Asian countries excluding China and Thailand (12.3%), Europe (8.8%), the Americas (7.5%), and other markets (0.3%).

  • The utilization rate of all natural rubber production facilities, including TSR, RSS, and latex concentrate, averaged 53.6% in the first nine months of 2025, down from 57.7% in 2024.

    Gloves Gloves Sales Volume (Million pieces)

    +4.9% YoY

    +10.7% QoQ

    
    
    

  • Revenue from the glove business in Q3 2025 was THB 6,063.2 million, accounting for 28.1% of total revenue, up 1.6% QoQ but down 5.1% YoY.

  • The QoQ increase was mainly driven by a 10.7% rise in sales volume, supported by the return of orders from customers who had previously postponed purchases. However, the average selling price declined 7.6% QoQ to THB 598 per 1,000 pieces (USD 18.60), reflecting continued intense competition in the industry, together with the appreciation of the Thai Baht against the US Dollar.

  • On a YoY basis, revenue decreased due to an 8.6% drop in average selling price, despite a 4.9% increase in sales volume in line with the global demand recovery. The Company's diversified customer base helped support sales expansion amid industry competition.

  • The utilization rate of glove production facilities averaged 77.3% in Q3 2025, up from 75.8% in the previous quarter and 77.1% in Q3 2024.

    Gross Profit (THB million) and Gross Profit Margin (%)
    
    

  • Gross profit in Q3 2025 was THB 866.9 million, down 36.4% QoQ and 73.7% YoY, representing a gross profit margin of 4.0%, compared to 4.4% in the previous quarter and 10.4% in the same period last year.

    • For natural rubber, the gross profit margin was 2.5%, down from

      3.8% in the previous quarter and 11.8% in Q3 2024. The decline was mainly due to higher production costs resulting from a significant drop in production volume during the low-season tapping period, when limited raw material supply entered the market. Additionally, uncertainty surrounding the US Reciprocal Tariff continued to weigh on buying sentiment and global rubber prices since early Q2 2025, while the cost of goods sold declined at a slower pace.

    • For gloves, the gross profit margin was 7.2%, down from 8.6% in the previous quarter, primarily due to a sharper drop in average selling prices compared to production costs, coupled with the appreciation of the Thai Baht against the US Dollar. However, the margin improved by 5.1 percentage points YoY, as Q3 2024 had been pressured by both lower average selling prices and a sudden strengthening of the Thai Baht.

      Other Income

• Other income in Q3 2025 was THB 54.1 million, up 4.7% QoQ but down 14.2% YoY.

  Selling, General & Administrative Expenses (SG&A)

• Selling and administrative expenses (SG&A) in Q3 2025 totaled THB 1,726.1 million, down 15.5% QoQ and 15.7% YoY, mainly due to lower selling expenses, particularly the rubber CESS contribution, which

  declined in line with reduced rubber export volume. The SG&A-to-sales ratio stood at 8.0%, rising from 6.6% in the previous quarter and 6.5% in the same period last year. The increase was primarily due to lower sales revenue, while SG&A expenses decreased at a slower rate. In addition, there was a one-time expense of approximately THB 80 million incurred by a subsidiary during the quarter.

  EBITDA
  
  

• EBITDA in Q3 2025 was THB 449.4 million, down 30.6% QoQ and 76.1% YoY. The EBITDA margin stood at 2.1%, remaining broadly in line with the previous quarter but declining from 5.9% in the same period last year.

  Share of Profit from Associates and Joint Ventures

• Share of profit from investments in associates and joint ventures in Q3 2025 was THB 25.9 million, which remained within the normal range. The figure declined 52.8% QoQ, due to a high base in the previous quarter when the high-pressure hydraulic hose business recorded exceptionally strong orders. On a YoY basis, the share of profit rose 196.2%, supported by improved performance from both the natural rubber and high-pressure hydraulic hose businesses.

  Finance Costs

• Finance costs in Q3 2025 were THB 325.1 million, down 13.8% QoQ due to lower interest expenses following a decrease in outstanding loans. On a YoY basis, finance costs declined 28.1%, driven by both lower borrowings and reduced interest rates.

  Net Loss

• The Company reported a net loss of THB 841.9 million in Q3 2025, representing an increase of 7.0% QoQ and a reversal from a net profit in the same period last year, declining 262.7% YoY. The net loss margin widened to 3.9%, compared to 2.6% in the previous quarter and a net profit margin of 1.6% in Q3 2024.

  Sri Trang Agro-Industry Public Company Limited

  Management Discussion and Analysis Q3 2025 I 7 November 2025

  STA: The World's Leading Fully Integrated Green Rubber Company

  
  
  

  Statement of Comprehensive Income

  Statement of Comprehensive Income (Unit: THB million)	3Q25	3Q24	%YoY	2Q25	%QoQ	9M25	9M24	%YoY
  Revenues from sales of goods and services	21,574.0	31,618.5	-31.8%	30,841.4	-30.0%	86,800.5	81,116.9	7.0%
  Cost of sales and services	(20,707.1)	(28,326.5)	-26.9%	(29,477.8)	-29.8%	(81,431.8)	(72,806.5)	11.8%
  Gross Profit	866.9	3,292.0	-73.7%	1,363.6	-36.4%	5,368.7	8,310.4	-35.4%
  SG&A	(1,726.1)	(2,047.0)	-15.7%	(2,043.6)	-15.5%	(5,716.5)	(5,832.0)	-2.0%
  Other income and dividend income	54.1	63.1	-14.2%	51.7	4.7%	176.8	176.2	0.3%
  Gain (loss) on exchange rates	(37.3)	(279.9)	-86.7%	(171.4)	-78.3%	(448.3)	(45.9)	875.6%
  Other gain (loss)	70.2	(198.1)	NM	236.3	-70.3%	501.0	(675.5)	NM
  Profit from operating activities	(772.1)	830.1	-193.0%	(563.3)	37.1%	(118.3)	1,933.3	-106.1%
  Share of profit (loss) from investments in associate and JV	25.9	8.7	196.2%	54.8	-52.8%	107.6	70.9	51.8%
  EBITDA	449.4	1,881.1	-76.1%	647.6	-30.6%	3,467.2	4,946.5	-29.9%
  EBIT	(746.3)	838.8	-189.0%	(508.5)	46.7%	(10.7)	2,004.2	-100.5%
  Finance income	54.5	95.8	-43.1%	66.9	-18.6%	196.9	318.7	-38.2%
  Finance cost	(325.1)	(452.2)	-28.1%	(377.2)	-13.8%	(1,179.5)	(1,278.7)	-7.8%
  Income tax (expense)	62.4	(17.6)	-454.7%	112.6	-44.6%	155.5	(70.7)	NM
  Net profit (Loss) for the period	(954.6)	464.8	-305.4%	(706.2)	35.2%	(837.8)	973.5	-186.1%
  Attributed to equities holders of the Company	(841.9)	517.3	-262.7%	(786.8)	7.0%	(940.0)	816.0	-215.2%
  Attributed to non-controlling interests of the subsidiaries	(112.7)	(52.5)	114.7%	80.6	-239.8%	102.2	157.5	-35.1%

  Key Financial Ratio

  Financial Ratio 3Q25 3Q24 2Q25 FY24

Gross Profit Margin 4.0% 10.4% 4.4% 9.5% EBITDA Margin 2.1% 5.9% 2.1% 6.8% Net Profit Margin -3.9% 1.6% -2.6% 1.5% Current Ratio (Times) Net D/E Ratio (Times) Fixed Asset Turnover (Times)* Collection Period (Days)* Payment Period (Days)*

2.38

0.55

2.31

27

6

1.82

0.73

2.08

26

6

2.56

0.54

2.58

26

5

1.62

0.77

2.21

26

6

Note:

* Annualized

** Adjusting for (reversal) allowance of inventory cost and realized items from hedging

Liabilities and Shareholders' Equity

131,208

6,028

108,393

4,477

66,928

69,695

26,482

1,621

26,966

8,402

1,931

27,071

Statement of Financial Position

Asset

131,208

108,393

31 December 2024

Cash and Cash equivalents Other current asset

Other non-current asset

25,946

4,892

30 Sebtember 2025

Inventory

Property, Plant and Equipment

7,921

41,072

15,591

48,374

18,250

11,909

46,469

19,177

31 December 2024

Shareholders' equity

LT Loan and Bond (incl. current portiion) Other current liabilities

30 Sebtember 2025

ST Loan

Other non-current liabilities

The Company maintained a strong financial position, as reflected in a stable structure of assets, liabilities, and shareholders' equity, along with key financial ratios that demonstrate effective liquidity management and the ability to meet financial obligations. Details are as follows:

• Total assets as of 30 September 2025 stood at THB 108,393.0 million, down 17.4% from year-end 2024. The decline was mainly due to a decrease in inventories, following the drop in global rubber prices and seasonal factors. The rubber harvesting season typically enters the wintering period from February and resumes tapping in Q3, before reaching the peak production season during Q4 through January.

  Non-current assets also declined, primarily due to impairment losses on old buildings and machinery of subsidiaries that have ceased operations, as part of the plan to upgrade production with new technology to enhance efficiency and reduce costs, as well as depreciation of property, plant, and equipment in line with their useful lives.

• Total liabilities as of 30 September 2025 were THB 41,465.4 million, down 32.6% from year-end 2024. The reduction was mainly attributable to the repayment of short-term borrowings from financial institutions, in line with the Company's liquidity management strategy during the period of lower rubber prices and before entering the main harvesting season in Q4.

• Total shareholders' equity as of 30 September 2025 was THB 66,927.6 million, representing a 4.0% decrease from year-end 2024.

  Key Financial Ratios

• The Company maintained healthy liquidity and a strong capital structure. As of 30 September 2025, the current ratio stood at 2.38 times, improving from 1.62 times at year-end 2024. This reflects the Company's efficient working capital management, supported by lower inventories and the repayment of short-term borrowings, in line with the seasonal liquidity management plan for the natural rubber business.

• The Company continued to maintain a high level of current assets relative to current liabilities, ensuring effective support for operations and short-term obligations. At the same time, the net debt-to-equity ratio decreased to 0.55 times at the end of Q3 2025, down from 0.77 times at year-end 2024, underscoring the Company's strong capital structure and solid financial position. The Company remains committed to prudent debt management to reduce financial burden and sustain its long-term growth capacity.