[Non-English content] [Non-English content] [Non-English content] We will answer in English as your question English. Yes. Okay. Start for the first one. Yes. What is the rationale for having manufacturing facilities in Indonesia, Vietnam, and Myanmar? I just explained that to you. They have rules, regulations, imports are not allowed. That is the rationale. Imports are not allowed in Indonesia. You have no choice but to locally manufacture if you want to be in the country. Very simple as that. Burma, I explained to you foreign exchange import licenses. If you want to have products available in the country, you have to be there. Otherwise you can be out very easily. Since we have been there 30 years, it is a very important market for us. Where else would we go rather than going to new markets? Vietnam has the same philosophy. They are upgrading their standards to PIC/S EU GMP. If there are three companies making there, the fourth company cannot compete in the local tenders, et cetera. There are very simple reasons. It is not that we want to build more factories and we are happy to have more factories there, but also for a reason. Strategically also Thailand, Australia is a center for tablets, powders, and probiotics, et cetera, which creates its own strength doing certain things there. Very specialized, which we do not do in Thailand. Thailand does something very different, very specialized products, soft gelatins and some few other technologies which we do not do in other countries, which is the largest part. Indonesia is very Indonesia-focused. Vietnam is going to be largely pharma-focused, drug-focused, Rx-focused and Myanmar is going to be largely local OTC and local product-focused for the Myanmar market and being an LDC country also developing new patented drugs in Myanmar for early development, early registration, early supply. They all have strategic reasons and they all have a local reason to do business in the country they are in. What is the current utilization rate of Indonesia and with these investments, what will be the future utilization once we reach the capacity? Investments are made to keep the plant updated up to EU standard. It is a requirement. I think in pharma business, there is very little utilization. They do not work at 99.9% because you have 300 SKUs, you have product development going on, you have different demand fluctuations. Generally, if you use 60%-70% of your capacity, you are very good because you keep free availability to respond to demand changes in the market. A registration takes you three years. Capacity expansion means if you start today, you will not get three years till you apply, develop, register and then you have to get GDP, GMP, all these things done and then you have to do batches make on the new site and get site variation. I mean, it is a very long process. In pharma businesses, you do not measure capacity by utilization that much. If you are doing well, you can run a second shift or a third shift as well. Generally in pharma businesses, people run one shift, right? We have the ability to expand into two and three shifts as well and then by improving the size of the machine, higher productivity, higher speed lines, et cetera, by design. A lot of it is the ability to develop and be in the market quickly. That is very important and be able to produce competitively in the market as the product that we are very successful with. Some product we still import because it is not very lucrative to start production immediately in the country. I think it is a necessity to be in the business and that is very important and we run it very efficiently. It is a requirement to continue doing business in these markets. Why doesn't Mega produce broad spectrum of multivitamins? Is it due to low margin production difficulties or high market? Broad spectrum? Of multivitamins. We produce what we believe in. We produce, this is a strategy. People produce a lot of multivitamins. Yeah, that's one option. We also produce a lot of multivitamins. You'd be surprised we produce Ginseng, Nutrivita Plus, Vitacap, Multilives. If I give you a list of multivitamins, we have a long list, but we don't position them as one multivitamin. So they are targeting woman health, pregnancy and a general vitamin we have is a Vitacap or Biotone or Nutrivita and things like that. Also we produce product with science behind them. We are not just a food company. We target health conditions, vitamin B deficiency, C deficiency for immunity, scurvy and other application which are high strength, full dose registered like medicine with clinical evidence and that's been our direction. That's where we want to be placed in. So that's what we do. It's not that big of a difficulty. When we produce drugs, registering a multivitamin with 27 ingredients like a pharmaceutical needs a lot of work. If ever you have a chance, come visit our plant. 27 ingredients have to be analyzed in every batch, and to make sure that when we write two years, that they are going to have 90% of the ingredient in the product for two years' time. That's how we give you stability data. Foods are different. Drugs require that what you say has to be in it. Every ingredient has to come from a DMF, drug master file ingredient. They have to go through a stability process. It's a very tough job. Whatever we make, we make them very well, like a drug. Because we believe what we are giving you and goes into your mouth has to be what we claim has to be in it. Till the time we say two years expiry, three years expiry, it should meet the standards. That's our commitment, and for that, we select and do things that actually we believe in, and we can guarantee the quality. That's very important for Mega. What's the growth expected in the second half of 2026 and 2027? It's the same. I think we have been growing, as you saw, 11%, 12% we have seen for first half. We believe we should also be in that low double digit in the second half as well, which is a good number. We were only talking about eight, nine over the next five years so that we'll reach the target of our bottom line. But if we continue growing at this 12%, 13%, 12%, 10%-13% range, we should be doing very well in this kind of a market. I think that's what we still believe will happen this year. Next year also, we are still saying high single digits to low double digits in that range. It's a range, eight to 12, and depending on product get launch on time, how things happen. This is not a perfect science. On a longer period, we expect to get by 2030 to the double of that bottom line. That's the big picture. Quarter- to- quarter, very difficult. Things change sometimes. There's X loading last quarter. There's carry hangover from the last year. It can happen. I think on a longer horizon, we should be there. Gross margin in the first half improved to 65% for Mega We Care and 24% for Maxxcare. What is the sustainable gross margin in second half 2027 and from a long-term perspective? I think 62.5% is what we always talk about. It varies a little bit plus, minus. In spite of fuel prices being up, cost of goods going up, sometimes we are carrying old stock, so you'll see some effect on that this quarter, next quarter, that will come down by 1%. This plus-minus 1% can happen because of many reasons really. Partly carrying older stocks, could be also some price changes and some impact of dollar in some countries where things have happened. But this plus-minus 1% is not a variability, I think. It's within the range we call it, 62%-64%, I think that range. 60%-65%. 65%, sorry. Mega We Care business, generally we guide in 63%-65%, and distribution generally over 22%. We have been remaining in that range for the last 70, 80 quarters. You can look at the historic financials. Maybe this figure, you had some principle mix, is not purely CDS. Agency business sales have gone up, so you get a little bit better margins. Next quarter, again, if we have more CDS, then it will probably come down a little bit. So it is still in that range, 22, 24. What will be the SG&A expenses on a full year basis? Na just mentioned 32.5 in that range. It is coming down. We have a campaign in this quarter, last quarter. First half, second half, there will be no campaign, so it could come down. I think we do not work by quarters when we make plans. We do work by direction and strategy, and we invest money for the future. Because we are trying to build a strong business that will remain profitable for many years to come, and build a brand that is going to survive all of us. That is the idea, and beyond which we are spending that money sensibly. So it is in that range. What will be the contribution of Indonesia in 2027, and will it be operationally profitable from 2027? We are not giving 2027 figures. I think 2030, we have planned $50 million out of Indonesia, and I think we are moving in the right direction. We are growing over 20%, 30% in Indonesia. With the right product, right direction, 2028 is what we are looking at, breakeven and then moving forward. Operationally already. Operationally, yeah, already. By 2028, I think we are looking at 2017 as a growth investment area to grow further because now we are launching many new brands, so there will be a lot of work happening in 2028 as well. Team structure, vendor team, OTC team. We have three teams in place. All this work is going on. We should see. Let 2027 be a year of hard work, and 2028 we should see good results. By 2030, we want to get to that as close as possible to the $50 million level. The total CapEx for the future is THB 2.6 billion- Yeah -as mentioned between 2026 - 2028. What is the breakdown between 2026, 2027, and 2028? Very difficult to say because if we can speed it up faster, if the machinery is coming in 2027, then more money will be spent in 2027. We are seeing Vietnam plant getting ready faster. The faster, the better because we have less pre-operating. We can be in the market quicker. It's a plan is based on when the factory building, construction side, equipment coming in, then the pre-operating cost involved in it. It'll be a little bit here and there, but it'll be spent over the next three years between 2027 and 2028. Yeah. What will be the normal working capital cycle for the future? Because in the first half, we had 76% of the operating cash flow as net profits. What is the normal cash cycle for the future? It hasn't changed very much, but when you are manufacturing, you have a little bit longer cash cycle because you're also not only carrying, but shouldn't be very much because we are carrying finished product, importing from somewhere else. We'll be carrying also stocks locally, raw material, but we'll be at raw material cost, at lower cost inventory and material cost. There will be working capital tire depending on the lead times to import and bring it in. But the variability may not be very high, because if you look at the total, if 65% is gross margin, that means 35% is cost of good. Not only cost. In that you have OE, electricity, other costs. The material cost is only about 20% then. On 20%, if it varies also by 3%, 4%, how much is it going to be? 1%, 2% variability. If it's 10% higher storage, so it will become 22%. We don't see a very major impact because of this. If you look at mathematically, it doesn't look like there're going to be a major impact unless there's something serious. Sometime we even have now, because the license expiring, you have to carry stocks for a year. Even some product, because license expiring, with some countries renewal, you have to import before renewal. That may go away. At the end of the day, I think we may not see a very big difference, I feel. But again, Mr. Manoj, Francis can tell you a bit more about it. Yeah, if you look at the history also, we have been in the range of 140-150 days. So 156 days is within the norm. As explained by Mr. Vivek, there are reasons behind it. Going forward from a normalized perspective, 150-155 days is a normal working capital, which you can expect for the future as well. The next question is on 2030 goal. Will it be achievable without M&A? This is without M&A. If M&A comes and help us, then we won't tell you about it, but this is without M&A. I think we have not factored any M&A into this growth. This is what we have in hand, whatever we have already done, and this is organically now working and making and growing the business, with all the investment. The factory investments may not kick in by then in Myanmar and Vietnam. This is without them, I believe so. They will only be talking about in the 2030 - 2035 period. We'll talk again in 2030 about the next five years, but this is without these two factories kicking in. But it includes Indonesia manufacturing site. Indonesia, Australia, Thailand, three sites are included. What is the dividend guidance for the future, and whether this investment of THB 2.6 billion will impact the dividend payout in the future? It shouldn't. I think if we are making that, we are seeing if we are making that EBITDA of THB 2.7 billion and THB 3.2 billion a year, and we have cash, as you have seen, and what we are paying, building and spending THB 2.6 billion, we carry cash of THB 3.6 billion, THB 3.8 billion. So with that happening, and if the business keeps growing and throwing out this kind of money, dividend should not change. We used to say 50% and above 55%, but we've been consistently at 72%, but this year has been higher. So that 70%, I believe, is achievable. Even with the investment that we are making in the branded side, front-end marketing, acquiring new product, licensing new product. We are investing in a lot of these new technologies, new licensing, so we are up ahead. And the building of the facility. All this will take time and cost money, Rego. But in spite of that, I think it's sustainable, that 70%. Looking at all these facts, we should be able to sustain and keep paying that dividend. Southeast Asia grew at 5.3% and Africa on 29%, and other markets on 40%. Do you think this mix will continue for the future? And whether Southeast Asia will return to double-digit growth rate in the future? I think Southeast Asia is growing, but there has been some delay in Southeast Asia. We had some first good quarter. Second was a little bit change. Some changes happened in some countries where we are operating. We are confident Southeast Asia still has potential to grow. Myanmar is growing. Philippines has to grow. Indonesia has to grow. Vietnam has to grow. Thailand has been a little bit more flatter. Some part of the Consumer Health business in Thailand has been a little bit more flatter because people are fighting here on price war. All the other issues have also come up in the last quarter because of payment issues with hospitals. Other than that, I think we are confident that they should not be very far away in the high single digit in Asia. Africa is a bit faster, but then the base is smaller. If you look at the base, it's 66% is Indochina, 76% is Southeast Asia. Then even if Africa grows at high digital, there's only 18%, 20% of the market. Yes, Africa will grow faster because a lot of work we have done, a lot of products we have launched, so I think we'll probably be a little bit faster in Africa, but it still has a long way to catch up with Southeast Asia. So if Southeast Asia grows between highest single digit, we are doing very well. Excluding Cambodia, we are growing at highest single digit. Yeah, sorry. That is also true. We missed the point because outlier, you have to take out Cambodia also, because if you add this up, then you will see, oh, it is very low. But if you take that out and see, they are still growing at high single digits. That is true. Yeah. Correct. Sorry. Myanmar business, will it grow in 2027? Whether there are any FX and cash repatriation risks which should be factored in the forecast? Well, I am not a crystal ball astrologist, but looking at situation, when it was tough, very difficult, we still managed to grow. I think now things are a bit better. Maxxcare also, the distribution business has also improved a little bit, especially pharma. I think a lot of focus is on pharma and also our model. We have got consumer companies who are locally manufacturing and supplying us product locally. So we are able to also grow that part of our business. So strategically local purchases, local distribution, local partners when Mega is over manufacturing local supply. All this should help Myanmar in the long run. Short run, one or two years, there can be ups and down. But pharma, if we can continue what we are doing, at least it will be stable. At the moment we are seeing growth this year and we are hoping that they will be continued. At least we are not saying we will be double digit or 20%-25%. We are still saying high single digits to lower double digit growth. That is what we are still projecting from Myanmar in 2027. There are 80 products launched in 2025 and 100 more in the product pipeline and the existing 40 products constitute 75% of the turnover. What will be the revenue contribution of new products in 2027 - 2030 in the revenue growth in Mega We Care? There are some very important products in the remaining five years that can have a serious impact in 2029, 2030 after launching in the last two years. We have a few categories where we have strong teams, where we already have products and we are adding new products that are coming off patent. When we launch now and we have two years, we see potential upside in the last two years of 2029 and 2030. That's the model. The others are added to the existing range. Either there's a line extension to the existing range or there is some new product we are investing in. New products do contribute in the range of what? 4% 3%-4%. 3%-4% in our turnover. I think that will happen in the period for going forward as well. Out of that we'll have one or two after three, four years, one or two you get stars. You have stars and you have added on not stars, but they are party to the same existing range line extension. We have a few stars we see in our pipeline which will add serious growth and the other one will add to the existing business. That's the way it is. We are a generic company. We have brand, we have product category, we have strong presence we add there. Some other product where we are investing money we may see some growth and phenomenal growth because we are focusing on certain area Derma, Ortho, Urology. There are certain areas we have very strong focus on in the years to come, next five years to come. We are going deeper in with product pipeline activities, work we are doing. We expect those categories to grow with multiple products that we have. What is the criteria for M&A strategy for Mega? Keeping in view, do you take into consideration targets like ROIC payback period to the earnings? Targets. I think the most important target is it a fit in Mega? If we acquire the company, can we actually grow that business wherever we are? When we look at target, we see in the markets where we have presence. If we add those products to our or that company or that brand, can we then grow that business as a joint, as a combination and make it far bigger than it is? We are not acquiring to just milk the brand. We are looking at growing that brand. Then what is the potential of taking that brand out of only that country to other markets? You have seen some of our acquisition, they are fitting into our existing. We have a team in Malaysia, we fit it in the business and it's a very easy and it was combined and it actually helped us to build and grow the Malaysian business. Same is true for our Vietnam acquisition. We keep looking things that fit into not for the sake of just acquiring just to grow, but to put things together that we can create valuable brands, sizable brands. It's just not having more. It's having brands that actually rank one or two in the category in the country where we are buying or by adding it to our existing brand, our existing brand and theirs can become sizable number one, two, three in that category. That's very critical. Just acquiring more and making that turnover bigger and managing it is not what we are looking for. We are very strong, narrow focus now. We are very focused on a few areas where we want to develop and grow and become stronger and bigger. Less is more is now what we are doing a lot of work on. This is the last question which is in Thai. [Non-English content] AI. [Non-English content] AI [Non-English content] Mega [Non-English content] AI [Non-English content] Claude ChatGPT [Non-English content] we have to think about how AI can help and create value [Non-English content] organization [Non-English content] Token [Non-English content] Token [Non-English content] Mega AI Team [Non-English content] Mega AI Team [Non-English content] process development [Non-English content] create [Non-English content] AI [Non-English content] that's not the only objective. If you look at our OE and all expenses to sales is still very low. We are not a very high OE company. I think the biggest advantage [Non-English content] create value [Non-English content] process [Non-English content] supply chain. we are spending time and we have created teams [Non-English content] create value [Non-English content] And that's what we are doing now. Studying, looking at it seriously. Not running because everybody is running [Non-English content] AI [Non-English content] AI [Non-English content] But what is it that it will do to us in the future [Non-English content] Mega [Non-English content] project it's a next two year project in Mega [Non-English content] create [Non-English content] create new initiative [Non-English content] Mega [Non-English content] That's the plan. [Non-English content] investor@megawecare.com [Non-English content]