Dear Shareholders and Stakeholders,

With utmost gratitude to Almighty God for His blessings and guidance, the Company was able to navigate through 2025 smoothly amid a still challenging global economic conditions, marked by slowdown in global growth and heightened uncertainty in global financial markets.

Global economic growth in 2025 is projected on moderating trend at around 3.3%, relatively stable compared to 2024. Persistently high global geopolitical tensions, including the unresolved Russia-Ukraine conflict in Europe and escalating tensions in the Middle East, along with the trade tensions initiated by the United States, have continued to increase uncertainty in global financial markets and prolong disruptions in global supply chains. Amid these conditions, Indonesia’s economy continued to demonstrate solid performance and strong resilience and recording growth of 5.11%, driven primarily by domestic demand and supported by sustained investment activity.

In line with these conditions, we report that in 2025 the Company’s financial performance also recorded solid growth compared to previous year, with consolidated revenue of USD 400.56 million, an increase of 16.21% from the previous year, which was USD 344.68 million, driven by higher sales volume in line with increased market demand for the Company’s products. The Company’s net profit in 2025 was USD 36.81 million, an increase of 79.50% from 2024 which was USD 20.51 million.

This improvement in performance reflects the Company’s continuous efforts to maintain operational efficiency and manage cost dynamics amid fluctuations in crude oil prices, which directly impact profitability. Moving forward, the Company will continue to enhance efficiency, strengthen competitiveness, and pursue sustainable development initiatives to maintain optimal performance amid global uncertainties.

Strategy and Policy of Strategy 

W In line with population growth, increasing public awareness of hygiene and healthy living, as well as improving purchasing power, demand for the Company’s products is expected to continue rising. To anticipate this, the Company is currently expanding its production capacity, with completion targeted in 2027.

In the meantime, the Company will continue to maximize utilization of its production facilities and ensure smooth distribution channels to guarantee products availability for our loyal customers, while also exploring new market opportunities both domestically and internationally.

In carrying out business activities, the Company implements standard operating procedures to ensure readiness in handling potential operational disruptions, so that the Company’s business activities will run smoothly and effectively.

Directors’ Role in Formulating Strategy and Policy 

The Company’s Directors play a key role in formulating the Strategy and Policy, as well as exploring the Company’s business prospects to achieve its goal and to deliver the optimal value to all stakeholders.

All strategy and policy have been formulated through review and in-depth discussions. The Directors were assisted by the management, Internal Audit unit, and the Corporate Secretary in analyzing financial and non-financial risks, as well as monitoring and evaluating the implementation of approved strategy and policy, and making necessary adjustments in line with evolving economic and business conditions. The end results were then presented to the Board of Commissioners for direction and consideration.

Comparison between Result and Target 

In 2025, global crude oil prices were lower compared to 2024. Although relatively strong at the beginning of the year, prices gradually weakened from the second quarter through yearend. The fluctuation of crude oil prices greatly affected the raw material costs and the Company’s product selling price, where the downtrend effect puts pressure on the Company’s margin.

Nevertheless, the increased market demand for the Company’s products enabled the Company to record consolidated revenue of USD 400.56 million, exceeding 2025 target of USD 371.82 million by 7.73% and improving the Company’s margin in 2025, whereas gross profit reached USD 63.20 million, surpassing the target of USD 46.91 million.

Obstacles 

Significant fluctuations in crude oil prices, influenced by global geopolitical dynamics, particularly rising tensions in the Middle East, may exert pressure on the Company’s margins. Risks of disruptions in global distribution channels, including potential blockades in the Strait of Hormuz, may also affect raw material availability. In addition, increasing competition from imported products and substitute products may cause a decrease in demand for the Company’s products.

Overview of Business Prospects 

In 2026, global economic growth is projected to remain on a moderating trend at around 3.2%. Amid these conditions, Indonesia’s economy is expected to remain solid, growing within the range of 4.9%–5.7%, in line with Bank Indonesia’s projections. This outlook is supported by resilient domestic demand and continued economic recovery built over previous years.

Along with continued solid economic growth and supported by Indonesia’s population size and growth, relatively low per capita detergent consumption compared to developed countries presents positive growth prospects for the detergent and cleaning industries. Increasing people awareness of hygiene further supports of increasing consumption of the Company’s products. Taking these factors into account, the Company remains optimistic about its future business prospects.

In 2025, the Company initiated a production capacity expansion project targeted for completion in 2027, adding 120,000 MT of Linear Alkylbenzene per year. This expansion is expected to strengthen the Company’s position domestically and internationally to provide supply reliability, and to ensure timely delivery to customers.

Good Corporate Governance Implementation 

The Company views the implementation of Good Corporate Governance (GCG) as a fundamental aspect of business management to protect stakeholder interests and enhance shareholder trust and value in achieving sustainable growth.

Accordingly, the Company consistently applies GCG principles, which consists of Transparency, Accountability, Responsibility, Independence, and Fairness, across all aspects of the business operations and organizational levels, in accordance with prevailing laws and regulations. The Company also ensures that its governing bodies, such as the General Shareholders Meeting (GSM), the Board of Commissioners, the Directors, as well as other GCG supporting organs such as the Audit Committee, the Internal Audit Unit, and the Corporate Secretary, function properly so that the Company’s GCS can be fully enforced.

In 2025, the Company fulfilled all reporting and disclosure obligations in a timely manner in accordance with prevailing laws and regulations.

On 20 May 2025, the Company held its Annual GSM for 2024 financial year, in which the Shareholders approved the 2024 Annual Report and Financial Statements. In the said GSM, the Shareholders also decided to distribute cash dividends on 2024 net income amounting to USD 10.39 million, which was paid on 12 June 2025. Additionally, on 21 October 2025, the Directors, with approval from the Board of Commissioners, distributed an interim cash dividends on 2025 net income amounting to USD 5.01 million to Shareholders.

Policies & Implementation of Sustainability Strategy Fulfillment

As a company committed to sustainable growth, the Company not only focuses on economic aspects but also consistently prioritizes Environmental, Social, and Governance (ESG) aspects as key pillars in achieving sustainable business growth. The Company strives to uphold excellence, mutual respect, professionalism, and integrity, guided by a code of ethics in its interactions with stakeholders.

To support environmental sustainability, the Company has established a dedicated Health, Safety, and Environment (HSE) unit and continues to enhance its competencies through relevant training. The Company’s environmental commitment has been demonstrated since 2004 through ISO 14001:2015 certification from SGS System & Services Certification and further renewed in June 2025 by Global Certification Indonesia accreditation agency. In 2023, the Company also obtained ISO 45001:2018 certification for Occupational Health and Safety Management from AMTIVO accreditation agency.

In 2025, the Company received a Blue rating in the PROPER program by the Ministry of Environment and Forestry and was also recognized for its participation in Indonesia Tree Planting Day at the Banten Province level.

On the social aspects, the Company maintains good working relationships and communication with the employees and surrounding communities. The Company guarantees freedom of association, equality, fairness, and fulfillment of employees’ rights, while ensuring a safe, healthy, and environmentally friendly workplace.

The Company also actively participates in community development initiatives in coordination with regional governments. The Company’s commitment to delivering high-quality products is demonstrated by ISO 9001:2015 international quality standard certification which has been obtained by the Company since 2003 from SGS Systems & Services Certification.

The key challenges faced by the Company in applying sustainable finance include the significant costs required, particularly investments in environmentally friendly technologies (such as solar panels and waste management systems), as well as employee training costs. In addition, limited understanding and constraints in obtaining accurate and consistent ESG data metrics often make it difficult for the Company to measure ESG performance quantitatively and to ensure transparent reporting.

The Company recognizes the importance of risk management, including financial and economic risks, environmental risks, as well as social risks. The Company periodically conducts identification, analysis, evaluation, monitoring, and communication of operational risks that may hinder the achievement of business sustainability and affect the Company’s reputation.

The Company will continue to strengthen its existing business by improving product quality and developing products that meet customer needs, while accelerating technological capabilities in line with industry developments. The Company also faces challenges from external factors, such as increasingly uncertain global geopolitical conditions, which lead to fluctuations in commodity prices and foreign exchange rates, declining purchasing power, rising energy costs, and other pressures. In response, the Company implements various strategies to mitigate the adverse impacts of these external factors, including conducting regular evaluations of market trends, government policies, and socio-economic conditions to anticipate changes, fostering strong relationships with suppliers and customers, and ensuring distribution efficiency to navigate market fluctuations effectively. 

Appreciation

We extend our appreciation to all employees for their dedication and contribution, enabling the Company to overcome 2025 challenges with positive solid performance. We also thank all our customers, suppliers, creditors and business partners for the support, cooperations and trust provided to us. We will continue to put our best efforts to strengthen our cooperation based on mutually beneficial partnership.

We also expressed our respects and gratitude to the Board of Commissioners for their guidance oversight, and to our Shareholders for their trusts. We are optimistic that the Company will continue to advance and achieve optimum results in the future.

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