The Company has established business plan and investment strategy by following diversification strategy guidelines; nonetheless such development or investment shall be under prudent and careful consideration with appropriate diversification of risks, in order for the Company to develop with quality, stability and sustainability in long term. In addition, the Company places importance on business operations with good corporate governance with social and environment responsibility. Currently, the Company’s core business is in the coal business, having two existing coal mining concessions in Indonesia and has recently invested in the third coal mining concession in 2021, in which the concession period of these three coal mines shall last for than 10 years with large amount of good quality coal reserves that can earn revenues and income continuously for a long time into the future. Nonetheless, current global trend has negative view on fossil fuels, namely oil, natural gas and coal, which are regarded as important factor for creating greenhouse gases, which cause global warming condition, seriously impacting climate conditions, by which there have been attempts to reduce and replace fossil fuels with renewable energy. However, in reality, fossil fuels are currently still the main energy sources and there are still a lot of limitations for switching to alternative energy or renewable energy for the main energy sources. Thus, fossil fuels remain necessary during this transitional period, including coal, which is still required for electricity generation and industrial process, especially with higher demand from countries in the Asia Region, albeit with declining rate of demand in the future. In any case, the Company, with knowledge and expertise in the coal business, is still looking for more investment opportunities in coal concessions in Indonesia in order to compensate for the reduction in coal reserves resulted from continuous production and distribution of coal every year.
The Company realizes about the climate change issues and places importance on the effective utilization of resources by giving priority to environmental care and endeavor, to develop and achieve Company’s goal toward carbon neutrality in the near future. The Company has established plan to create balances in its investments by focusing on future investments in the clean or renewable energy businesses, which are environmental friendly and have continued to expand; for instance, projects involving solar energy, wind energy, hydro energy and biomass energy, etc. Especially at present, the government sector has encouraged and increased its support for renewable and clean energy projects. Accordingly, the Company is looking for business opportunities or investment channels in order to achieve another round of business growth or a new s-curve by trying to think outside the box from previous energy business development concept, being more creative in order to develop a new business, which is non-coal, albeit without knowledge or expertise in such business. Such investment can be undertaken through business takeover, merger and acquisition or joint venture partnership deal, etc. The objective is to find opportunity or channel for investment in the other business to supplement revenues and income from the Company’s existing coal business and ethanol business, which should contribute to Company’s growth with stability, quality and sustainability in long term according to established guidelines and objectives.
RENEWABLE ENERGY BUSINESS ACTIVITIES
Lanna Power Generation Co., Ltd. (“LPG”), a subsidiary company registered in Thailand in year 2016, with Lanna Resources Public Co., Ltd. directly holds shares at 99.99985 percent of the paid-up capital, having objectives to study and prepare for an investment in renewable energy business both domestically and overseas such as biomass energy business, electricity generation from biomass fuels, etc., including investment and development of other energy businesses such as solar energy, wind energy, electric charging station (EV Charging) or related projects, etc., which should bring in more revenues and profit in the future.
SRT Power Pellet Co., Ltd. (“SRT”), a subsidiary company registered in Thailand, with Lanna Power Generation Co., Ltd. (“LPG”), a Company’s subsidiary, having invested in the acquisition of ordinary shares and preferred shares of SRT at 99.9998 percent of the paid-up capital, conducting commercial business in the production and distribution of wood pellet, having manufacturing plant in Khian Sa subdistrict, Surat Thani Province, with production capacity of 60,000 metric tons per year. The raw material is mainly from agricultural product wastes such as wood chips, wood slabs from furniture industry, and rubber wood roots, being fed through production process and compressed into wood pellets, which are suitable as biomass fuel for the boilers and furnaces in the electricity power and steam generation and several industries. During 2020-2021, SRT has been affected by the pandemic situation of COVID-19, with a decline in furniture exports causing shortages of wood raw materials, which is the main raw material for wood pellet production, and thus the prices were increased considerably, thereby affecting SRT’s operations and resulting in a net loss. Therefore, the Company has decided to restructure the investment in SRT, by having SRT to transfer its business to LPG, and SRT will proceed to register the dissolution and liquidation after completing the business transfer to LPG. LPG will explore the feasibility of producing biomass fuel from alternative raw materials for further distributing to customers. On July 20, 2023, the Extraordinary General Meeting of SRT’s shareholders unanimously approved the dissolution of SRT. Subsequently, the dissolution of the business was officially registered on the same day, and currently undergoing the liquidation process.
