Remus Pharmaceuticals Ltd Management Discussions

Global Economy

After a period of strong growth, the global economy slowed down from 2023 to 2024. According to the IMF, global GDP growth decreased to 3.3% while inflation dropped to around 4.2%, thanks to falling commodity and energy prices. As inflation eased, banks began lowering interest rates, which led to more stable financial conditions and better environments for investment. Global trade rebounded, growing by 4% to reach $32.2 trillion, after a 2% contraction in 2023. This was driven by a modest 2% rise in goods trade and a significant 10% surge in services trade. As a result, services now make up 27.2% of all global trade, the highest share since 2005. Despite this recovery, risks remain due to ongoing uncertainty about trade policies and tariffs.

The global economic forecast for 2025 has improved, with growth now expected to be 3.0%, followed by a slight increase to 3.1% in

2026. This revised projection from the IMF is a result of several positive developments. These include proactive policy measures taken in anticipation of tariff changes, lower effective tariff rates, better financial conditions, and specific government spending in key areas.

However, even with this more optimistic outlook, significant risks remain. The potential for renewed trade conflicts, new tariffs, geopolitical instability, and general market uncertainty could all negatively impact this growth.

https://www.imf.org/en/Publications/WEO https://www.worldbank.org/en/publication/global-economic-prospects#:~:text=Growth%20is%20expected%20to%20 moderate,as%20the%20most%20pressing%20risks.

Indian Economy

India consolidated its position as the worlds fastest-growing major economy in FY25, with real GDP rising by 6.5%. This strong performance was anchored by resilient household consumption, contained price pressures, a healthy external sector, and sound macroeconomic fundamentals. The domestic growth story remained firmly intact, even as the global environment presented uncertainties.

A key highlight of the year was the sharp moderation in inflation. Headline CPI inflation eased to 4.6%, marking its lowest level since FY19, and by June 2025, it fell further to just 2.1%, well below the Reserve Bank of Indias (RBI) medium-term target of 4%. The Wholesale Price Index (WPI) slipped into negative territory, indicating widespread disinflation across input categories. In response, the Monetary Policy Committee of the RBI pivoted toward an accommodative stance, cutting the repo rate to support growth momentum.

Sectoral trends revealed broad-based strength. Food inflation subsided because of robust agricultural production and fewer supply constraints. Manufacturing continued its upward trajectory, powered by strong capital formation and a renewed cycle of private investment that is expanding industrial capacity.

Services, however, remained the mainstay of economic activity, fuelled by buoyant domestic demand and services exports of USD 387 billion. Infrastructure investments in transportation, energy, and digital connectivity provided an additional thrust, setting the stage for sustained productivity gains. Meanwhile, household demand proved robust, with Private Final Consumption Expenditure growing by 7.2%, up from 5.6% in the previous year, reflecting rising consumer confidence and purchasing power.

On the fiscal front, the government maintained a growth-supportive stance. The fiscal deficit widened modestly to 15.77 trillion, exceeding the target due to expansionary outlays on infrastructure and development.

Externally, Indias performance remained resilient: total merchandise and services exports hit a record USD 824.9 billion, with services alone expanding 13.6%. The current account deficit was kept under control at 0.6% of GDP, aided by a surplus in Q4. Foreign exchange reserves surged to USD 697.9 billion, providing more than eleven months of import cover. Foreign direct investment also remained a bright spot, rising 14% year-on-year to USD 81.04 billion, underscoring global investor confidence in Indias growth prospects. Looking forward, the outlook for FY26 is one of continued stability and resilience. Growth is expected to remain steady, supported by contained inflation, strong household consumption, and a favourable policy environment. Fiscal policy is expected to balance sustainability with targeted support, while the RBIs accommodative stance should reinforce investment and credit flows. Key drivers of the next growth phase will include accelerated infrastructure creation across transport, energy, and digital sectors; enhanced credit access for MSMEs to strengthen employment generation; and strategies aimed at boosting export competitiveness through market diversification and value-added trade.

Yet, risks remain. Global geopolitical tensions, rising trade protectionism, and domestic tariff rigidities could weaken external demand and disrupt supply chains. Addressing these challenges will require continued structural reforms, deeper private sector participation, and an unwavering focus on building an export-driven growth model. If managed effectively, India is well-poised to sustain its role as a pivotal driver of global economic growth in the years ahead.

https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154840&ModuleId=3 https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154660 https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154962 https://www.mospi.gov.in/sites/default/files/press_release/PRESS-NOTE-ON-SAE-2024-25-Q3-2024-25-FRE-2023-24-and-FE-2022-23-M1.pdf https://www.pib.gov.in/FactsheetDetails.aspx?Id=149209 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2132688#:~:text=Private%20Final%20Consumption%20Expenditure%20 (PFCE,Q4%2C%20FY%202024%2D25. https://www.livemint.com/economy/india-fy25-fiscal-deficit-govt-fiscal-defiit-target-gdp-tax-receipts-government-expenditure-rbi-dividend-11748607877858.html

Global Pharmaceutical Market

The global pharmaceutical industry, valued at USD 1.67 trillion in 2024, is set on a robust growth trajectory. Projections indicate the market will reach USD 1.77 trillion in 2025 and nearly double to around USD 3.03 trillion by 2034, reflecting a steady CAGR of 6.15% during 2025 2034. This expansion is being fuelled by multiple converging forces.

Rising incidences of chronic and age-related illnesses, coupled with a rapidly aging population, are significantly increasing the need for advanced and innovative therapies. Simultaneously, heightened demand for vaccines, specialty drugs, and customised treatment options is reshaping the market landscape. Strong government backing, higher healthcare spending, and sustained R&D investments particularly in biologics and biosimilars are also accelerating industry momentum.

Technology adoption has emerged as a key enabler, with pharmaceutical companies integrating artificial intelligence and digital health solutions to enhance efficiency and deliver precision medicine at scale. At the same time, strategic collaborations between pharma players, healthcare providers, and regulatory bodies are paving the way for faster development and approval of novel therapeutics. Collectively, these dynamics are positioning the pharmaceutical sector for transformative growth over the coming decade.

The global pharmacuetical market size is predicted to increase from USD 1.77 trillion in 2025 to approximately USD 3.03 trillion by 2023, 3xpanding at a CAGR of 6.15 from 2025 to 2034.

Key Growth Drivers

The global pharmaceutical markets growth is being propelled by a convergence of demographic, technological, economic, and policy-driven factors.

1. Demographics and Disease Burden:

Ageing Population: As the global population ages, the prevalence of age-related and chronic diseases like cancer, diabetes, and cardiovascular disorders is increasing, directly driving the demand for long-term medications and innovative therapies.

Rising Chronic Diseases: Lifestyle changes and a greater awareness of health issues are contributing to a higher incidence of chronic conditions, leading to a continuous need for drugs to manage these ailments.

2. Technological Innovation:

AI and Digitalisation: The integration of artificial intelligence and digital technologies is revolutionising the industry, accelerating drug discovery, enhancing research and development (R&D) efficiency, and streamlining manufacturing processes.

Personalised and Precision Medicine: Advances in genomics and biotechnology are enabling the development of tailored treatments based on a patients genetic makeup, leading to more effective therapies and better patient outcomes.

Growth of Biologics and Biosimilars: The expanding market for biologics (complex, large-molecule drugs) and their more affordable counterparts, biosimilars, is creating new treatment options and driving competition.

3. Economic and Policy Factors:

Increased Healthcare Spending: Both public and private healthcare spending is on the rise, particularly in emerging economies, which is improving access to medical treatments and increasing overall drug consumption.

Government Support and R&D Investment: Governments and pharmaceutical companies are investing heavily in R&D to develop novel drugs and therapies, with policies and initiatives designed to support and accelerate drug development and approval processes.

Patent Expirations: The expiration of patents on major blockbuster drugs is opening up opportunities for the production and sale of more affordable generic drugs, which in turn fuels market growth by making treatments more accessible to a wider population.

4. Evolving Market Dynamics:

Emerging Markets: Regions like Asia-Pacific are becoming key growth engines for the pharmaceutical market. They offer large, growing populations, an increasing disease burden, and improving healthcare infrastructure.

Strategic Collaborations: Partnerships between pharmaceutical companies, healthcare organisations, and research institutions are fostering a collaborative ecosystem that drives the development of new drugs and expands market reach.

Patient Empowerment: Consumers are becoming more informed about their health and treatment options, leading to a greater demand for a variety of products, including over-the-counter (OTC) medicines and digital health solutions.

Key Risks & Challenges

While the pharmaceutical market is experiencing significant growth, it is also grappling with a number of profound risks and challenges that can impact profitability, innovation, and public trust. These issues are often interconnected, creating a complex and volatile operating environment for pharmaceutical companies.

1. Regulatory Hurdles and Compliance:

Strict and Evolving Regulations: The industry is one of the most heavily regulated in the world. Companies must adhere to complex and frequently changing regulations from agencies like the FDA (U.S.), EMA (Europe), and others. Non-compliance can lead to severe penalties, fines, product recalls, and reputational damage.

Lengthy and Costly Approval Processes: The drug development and approval process is notoriously long (often over a decade) and expensive. Theres no guarantee of success, and a single clinical trial failure can result in the loss of billions of dollars in R&D investment.

Regulatory Divergence: Different countries have their own unique and often conflicting regulatory requirements, which creates fragmentation and increases the cost and complexity of global market entry.

2. Pricing Pressure and Affordability:

Government and Payer Pressure: Governments and healthcare payers are under increasing pressure to control healthcare costs. This leads to aggressive negotiations and policies aimed at lowering drug prices, such as price caps, reference pricing, and value-based pricing models.

Competition from Generics and Biosimilars: As patents on blockbuster drugs expire, they face intense competition from generic and biosimilar manufacturers. This "patent cliff" leads to a rapid decline in sales and revenue for the original innovator company, forcing them to continuously invest in new drug pipelines.

Public Scrutiny: The high cost of prescription drugs is a major public and political issue.

3. R&D and Innovation Risks:

High R&D Costs and Failure Rates: Research and development is the lifeblood of the industry, but its also a high-risk, capital-intensive endeavour.

Shifting Scientific Landscape: The focus is shifting towards more complex and personalised medicines, such as cell and gene therapies, which require new manufacturing processes, regulatory frameworks, and business models.

4. Supply Chain and Operational Vulnerabilities:

Globalised and Complex Supply Chains: The pharmaceutical supply chain is extensive and often relies on a small number of suppliers for active pharmaceutical ingredients (APIs). This concentration creates vulnerabilities to geopolitical tensions, trade restrictions, and natural disasters, which can lead to drug shortages.

Counterfeit Drugs: The global trade in counterfeit and substandard drugs poses a significant threat to patient safety and the reputation of legitimate pharmaceutical companies.

Cybersecurity Threats: Pharmaceutical companies hold vast amounts of sensitive data, including proprietary R&D information, clinical trial results, and patient data. This makes them prime targets for cyberattacks, intellectual property theft, and data breaches. https://www.precedenceresearch.com/pharmaceutical-market#:~:text=The%20global%20pharmaceutical%20 market%20size%20accounted%20for%20USD%201.67%20trillion,6.15%25%20from%202025%20to%202034.

Indian Pharmaceutical Market

Indias pharmaceutical sector has entered FY2025 on a robust footing, with industry revenues for April 2025 rising 7.8% year-on-year, as reported by the Department of Pharmaceuticals. This momentum is being fuelled by expanding global demand, the steady roll-out of new therapies, and a series of government-backed programmes designed to position the country as a world-class source of affordable and reliable healthcare.

Today, India ranks as the third-largest producer of medicines by volume and fourteenth by value, commanding a remarkable global presence. Supplying nearly one-fifth of the worlds generics and a dominant share of vaccines, the country is central to international health security, meeting 55 60% of UNICEFs vaccine needs and a major share of WHOs requirements.

On the infrastructure front, the Strengthening of Pharmaceuticals Industry scheme ( 500 crore) is upgrading labs and R&D facilities, sharpening Indias global competitiveness.

Indias vaccine leadership remains unmatched. The country delivers 99% of WHOs DPT supply, over half of BCG vaccines, and nearly 45% of measles vaccines to countries spanning Africa, Asia, and the Americas.

These capabilities have also strengthened global investor confidence.

As the nation progresses through its Amrit Kaal, the pharmaceutical industry is increasingly being seen as more than an economic driver, it is a cornerstone of national resilience and a guarantor of public health. India is steadily advancing toward a future where quality healthcare is accessible to every citizen while simultaneously consolidating its place as a trusted global health partner.

Government Initiatives

Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): With over 15,000 stores, this program makes generic medicines dramatically cheaper up to 80% less than their branded versions.

Production Linked Incentive (PLI) Schemes: These schemes, with a total budget of over 25,000 crore, support the domestic production of advanced drugs, key raw materials, and medical devices. This reduces reliance on imports and strengthens the local manufacturing base.

Promotion of Bulk Drug Parks: This 3,000 crore initiative is establishing pharmaceutical hubs in Gujarat, Himachal Pradesh, and Andhra Pradesh to boost manufacturing capacity.

Key Growth Drivers

The Indian pharmaceutical markets growth is being driven by a combination of domestic and global factors. The industry is not only leveraging its traditional strengths but also adapting to new trends and government support, positioning itself for significant future expansion.

1. Rising Domestic Demand

Growing Population and Urbanisation: Indias large and expanding population, coupled with increasing urbanisation, creates a substantial and continuous demand for healthcare products.

Increasing Prevalence of Chronic Diseases: The rise of lifestyle-related ailments like diabetes, cardiovascular diseases, and cancer is fueling the need for long-term medication and innovative therapies.

Improved Healthcare Access: Government programs like Ayushman Bharat are expanding health insurance and access to healthcare for millions, which directly translates into higher consumption of pharmaceuticals.

2. Global Competitiveness and Exports

Free Trade Agreement: The India-UK Free Trade Agreement (FTA), signed in July 2025, drives growth for the Indian pharmaceutical industry by granting zero-duty access for 99% of exports to the UK. Enhanced market access, streamlined regulations, and increased competitiveness bolster generics exports, fuelling revenue growth and global expansion.

Generic Drugs Powerhouse: India remains the worlds largest supplier of generic medicines by volume. Its ability to produce high-quality, low-cost drugs has made it a crucial player in global healthcare, especially in addressing the needs of developing nations.

Cost-Effective Manufacturing: Lower labour costs, efficient manufacturing processes, and a strong pool of skilled professionals give Indian pharmaceutical companies a significant cost advantage over their counterparts in developed markets.

Focus on High-Value Segments: The industry is moving beyond basic generics and increasingly focusing on complex, high-value segments like biosimilars, biologics, and specialised APIs (Active Pharmaceutical Ingredients). This shift is helping India increase its share in the global market by value.

3. Digital Transformation and Innovation

AI and Data Analytics: Indian pharma companies are increasingly adopting AI and machine learning to accelerate drug discovery, optimise clinical trials, and personalise patient treatments.

Rise of E-pharmacies and Telemedicine: Digital health platforms are improving access to medicines and healthcare consultations, particularly in remote areas. This is creating new distribution channels and expanding the market reach.

Increased R&D Investment: A growing number of Indian companies are increasing their investments in research and development to move up the value chain and develop new drugs and therapies, a key step in transitioning from a volume-driven market to a value-driven one.

4. Skilled Workforce and Infrastructure

Talented Scientific Pool: India has a large and well-educated pool of scientists, chemists, and engineers, which is a major asset for the knowledge-intensive pharmaceutical industry.

Robust Manufacturing Base: The country has a vast number of US FDA and WHO-GMP approved manufacturing plants, which attest to its adherence to global quality standards and strengthen its reputation as a reliable supplier.

Key Risks & Challenges

While the Indian pharmaceutical market is on a strong growth trajectory, it is not without its share of significant risks and challenges. These issues, both domestic and global, could impact its long-term competitiveness and stability.

1. Regulatory and Compliance Issues

Stringent International Standards: As a major exporter to developed markets like the US and Europe, Indian companies face increasing scrutiny from regulatory bodies such as the US FDA and the European Medicines Agency (EMA).

New US tariff: The new US tariffs of 50% on Indian effective August 2025, pose a significant risk to the pharmaceutical companies. These steep duties threaten export competitiveness, particularly for generics, potentially reducing market share and profitability. Strategic diversification and trade negotiations are critical to mitigate this economic challenge.

Domestic Regulatory Hurdles: The domestic regulatory landscape can also be complex. Companies often face procedural delays, inconsistent enforcement, and a lack of specific timelines for drug approvals.

Price Controls: The Indian governments Drug Price Control Order (DPCO) caps the prices of essential medicines to ensure affordability. While beneficial public health, this policy can squeeze profit margins and limit the ability of companies to invest in research and development.

2. Supply Chain Vulnerabilities

Dependence on China for APIs: A significant portion of Indias pharmaceutical manufacturing is heavily reliant on China for Active Pharmaceutical Ingredients (APIs) and other key raw materials.

Counterfeit Drugs and Quality Concerns: Despite efforts to curb it, the issue of counterfeit or substandard drugs persists, both in domestic and international markets.

Logistical Challenges: The supply chain is fragmented, with a wide network of distributors and retailers. Challenges like inadequate cold chain infrastructure for temperature-sensitive drugs and a lack of skilled personnel in logistics can lead to product wastage and delivery delays.

3. Intense Competition and Pricing Pressure

Generic Market Competition: The Indian pharmaceutical market is highly competitive, especially in the generics segment, with thousands of companies vying for market share.

Consolidation and Bargaining Power: The consolidation of distributors in key export markets has increased their bargaining power, further squeezing the profit margins of Indian generic manufacturers.

4. Intellectual Property (IP) and Innovation Challenges

Patent Disputes: Indian companies, primarily generic manufacturers, frequently face legal battles with multinational pharmaceutical companies over patent rights.

Limited R&D Focus: While some companies are investing in R&D, a significant portion of the industry still focuses on generic drug manufacturing.

Talent Shortage: The industry faces a shortage of skilled talent, particularly in advanced fields like biotechnology, data science, and clinical research. https://www.cnbctv18.com/india/healthcare/indias-pharma-sector-grows-7-8-in-april-2025-supplies-20-of-the-worlds-generic-medicines-pharma-ministry-19606308.htm https://www.imarcgroup.com/india-pharmaceutical-market

Company Overview

Remus Pharmaceuticals Limited, established in 2015, is one of the fastest growing pharmaceuticals Companies, specializing in branding, marketing, and distribution of complex specialty and niche off -patent formulations in various countries.

With a diversified portfolio of 2000+ products with 620+ approved products, 640+ products submitted to MOH and 745+ readily available dossiers for major geographies, Remus offers a wide range of formulations across key therapeutic segments, including oncology, cardiology, dermatology, diabetes, rare diseases and more.

Operating on an asset-light model, we leverage a rapid go-to-market strategy by identifying high-potential off-patent drugs and undertaking R&D and dossier filings in relevant countries.

Remus has established a robust marketing and distribution network through local distributors in 35+ Rest of World and 7+ semi-regulated markets across Latin America, Southeast Asia, the Middle East, CIS, Africa and Caribbean islands. We also maintain a direct presence for last mile distribution through our subsidiaries in Bolivia and Guatemala. In addition, we are expanding our market reach through channel partners for large government and institutional tenders.

In 2024, Remus entered the U.S. market through the acquisition of Espee Global Holdings LLC "Espee"), one of the largest distributors of Reference Listed Drugs (RLDs). Espee is a recognized leader in sourcing and supplying hard-to-access REMS, specialty, orphan, and biosimilar drugs, serving over 300 customers across 30+ countries through an FDA-approved facility.

We offer an extensive portfolio covering diverse dosage forms such as tablet , hard and soft gelatine capsules , liquid and Lyophilized injections as well as pre-filled syringe, infusions, inhalers, nasal sprays, eye drops, creams, gels, ointments, suspensions, oral solutions, sachets, and other specialised and complex formulations.

Financial Performance

Financial Highlight

( in crores except EPS)

Particulars	FY 2024-25	FY 2023-24*
Revenue from Operations	620.36	212.94
Other Income	4.98	2.83
Total Revenue	625.34	215.77
Expenses:
Cost of materials consumed	-	-
Purchases of Stock-in-Trade	541.31	164.14
Changes in inventories of finished goods work-in-progress and Stock-in-Trade	(8.44)	(0.77)
Employee benefit expenses	13.11	7.32
Finance costs	1.46	0.50
Depreciation and amortization expenses	1.87	1.12
Other expenses	28.69	13.29
Total expenses	578.00	185.60
Profit/(Loss) before Tax	47.34	30.17
Less: Tax Expenses
Current Tax	8.85	6.57
Tax of earlier years (Net)
Deferred Tax liability	0.07	-0.68
Profit for the period	38.42	24.28
Other Comprehensive Income	70.13	72.73
Total Comprehensive Income for the period	108.55	97.01
Minority Interest	9.17	4.48
Profit for the period after Minority Interest	99.38	92.52
Earnings Per Share (EPS)
(Equity Shares of 10/- each)
Basic & Diluted	65.21	42.97

* The Company voluntarily adopted IND- AS for the first time w.e.f. April 01, 2024, hence the financials for FY 2023-24 have been restated.

Key Financial Indicators
Particulars	Numerator	Denominator	As at March 31, 2025 ( in Crores)	As at March 31, 2024* ( in Crores)	Variation	Reasons
Current Ratio	Current Assets	Current Liabilities	4.87	3.28	48.51%	Due to decrease in the Current Liabilities as a result of increased cash inflows
Debt Equity Ratio	Borrowings	Share Holders Funds	0.0088	0.0094	-5.80%	Reason for change not applicable
Debt Service Coverage Ratio (DSCR)	Earnings available for debt Service	Debt Service	60.89	48.35	25.93%	Due to increase in Profit from Business operations
Return on Equity (ROE)	Net Profit after Taxes	Average Shareholders Equity	10.06	19.26	-47.78%	Due to substantial Increase in fair valuation of Financial Instruments held by the company which led to increase in Equity
Inventory Turnover Ratio	Cost of Material Consumed + Changes in WIP/ FG	Average Inventory	17.48	24.50	-28.66%	Due to growth in the business operations of the company.
Trade receivable Turnover Ratio	Revenue from Operations	Average Trade Receivables	5.24	6.64	-21.08%	Due to growth in the business operations of the company.
Trade Payable Turnover Ratio	Purchases	Average Trade Payables	6.69	6.49	2.98%	Reason for change not applicable
Net Capital Turnover Ratio	Revenue from Operations	Working Capital	1.85	1.88	-1.84%	Reason for change not applicable
Net Profit Ratio	Net Profit	Revenue from Operations	25.14	25.99	-3.29%	Reason for change not applicable
Return on Capital Employed (ROCE)	Earnings Before Interest and Tax	Capital Employed	11.06	14.64	-24.47%	Due to substantial Increase in fair valuation of Financial Instruments held by the company which led to increase in Capital employed

Particulars	Numerator	Denominator	As at March 31, 2025 ( in Crores)	As at March 31, 2024* ( in Crores)	Variation	Reasons
Return on Networth	Net Profit	Average	10.06	19.26	-47.78%	Due to substantial
	after Taxes	Shareholders Equity				Increase in fair valuation of Financial Instruments held by the company which led to increase in Equity

* The Company voluntarily adopted IND- AS for the first time w.e.f. April 01, 2024, hence the financials for FY 2023-24 have been restated.

Risk Management

Our company is committed to a robust and comprehensive approach to risk management, which is integral to our strategic planning and operational decision-making. We have established a structured framework for identifying, assessing, and mitigating potential risks that could impact our business, financial performance, or reputation.

With the pharmaceutical industry being subject to evolving regulatory requirements, global market dynamics, and supply chain uncertainties, we adopt a proactive approach by strengthening compliance practices, diversifying markets, and maintaining strong relationships with suppliers and customers.

We continuously monitor our risk profile and adapt our mitigation strategies, including implementing strong internal controls, diversifying our geographical and product portfolios, and maintaining robust legal and compliance oversight. This proactive and integrated approach to risk management is designed to protect shareholder value and ensure the long-term sustainability and growth of our business.

Internal Financial Control Systems and Their Adequacy:

Effective internal controls are crucial to our companys structure and operations. Our system is carefully designed to fit the size nature of our business, promoting fairness, transparency, and accountability. We have a dedicated team of qualified and experienced professionals who are responsible for implementing and monitoring this control environment.

Management is committed to maintaining a robust internal control system that aligns with the scale and complexity of our business.

This ensures we comply with internal policies, legal requirements, and protect our companys resources and assets.

Material Developments in Human Resources

Our company considers our employees our most valuable asset and a key driver of our growth. We believe that the companys success is directly tied to the success of our employees.

To support this, we prioritise continuous training and development to enhance the skills and knowledge of our staff. We are committed to maintaining the healthy, cordial, and harmonious employee relations that weve enjoyed at all levels.

CAUTIONARY STATEMENT

The Companys goals, forecasts, expectations, and other information are included in the Management Discussion and Analysis sections, some of which may be deemed forward-looking statements under relevant laws and regulations. The statements made in this management discussion and analysis report may not be exactly what is implied or expressed. Numerous uncontrollable internal and external factors have an impact on the companys operations. Consequently, even though the expectations are supported by reasonable hypotheses, the actual outcomes could significantly diverge from what was predicted or indicated. The Company disclaims any duty to revise any publicly available forward-looking statements to reflect any new knowledge, unanticipated events, or other circumstances