Nature of business operations

Characteristics of the Group's Products and Services

(1)     Product and Service Management Business

The product and service management business is operated under TVD Broker Co., Ltd. (TVDB), which plays a key role as the central hub for driving and managing commercial business for the group. This includes product selection and development, utilizing the expertise of a professional team to ensure products and services meet current market and target group needs (Consumer Behavior), and the production of advertising and public relations media that aligns with consumer trends. It also involves leveraging digital TV and online media channels to reach a large audience. With a Direct sales enable services strategy, the company has established a Tele Sales unit with experienced personnel to provide accurate and useful product information to customers, enabling the company to distribute its products and services efficiently.

Core Mission and Inspiration

This business is considered the core mission of the group of companies, to generate profits and revenue for the group. The inspiration focuses on developing high-quality and effective products, prioritizing consumer needs and safety.

Excellent Product Management Process

Every product is meticulously cared for and managed at every stage to ensure the highest quality, from upstream to downstream, including:

• Formula Research and Development: A detailed formula development process.

• Raw Material Selection: Choosing high-quality raw materials from reliable sources.

• Production Standards: Selecting manufacturing facilities that meet standards and utilize modern innovations.

• Product Evaluation: Thorough testing and evaluation of product results from sample groups before market launch.

• Design and Pricing: Designing beautiful and modern packaging and pricing products to offer excellent value for money, making them easily accessible and maximizing consumer satisfaction.

• These strategies aim to cultivate customer liking, perceived value, and brand loyalty towards the products, brand, and organization, leading to sustainable repeat purchases. All product and service development are carried out with the knowledge and experience of a professional team to align with current market demands and consumer behavior.

Enhancing Sales and Growth Capabilities

The Group of Companies continuously enhances its sales capabilities through its Direct Sales Enable Services strategy, as follows:

• Integrated Marketing: Producing advertising and public relations materials that align with consumer behavior and preferences through widely accessible channels such as digital TV and e-commerce, etc.

• Tele Sales Unit: Establishing a Tele Sales unit comprised of experienced and skilled personnel to provide accurate and informative product information and advice to customers.

• Corporate Goals: The Group of Companies aims for sustainable growth, reducing duplication of effort to ensure strong and sustainable long-term revenue.

Product Distribution Group

The company distributes consumer goods through its main channels and leading online marketplace platforms such as Shopee, Lazada, TikTok, Amaze, Facebook, and LINE. The products are categorized into four main groups:

• Agricultural Product Group: These products help increase agricultural productivity and provide plant nutrients (plant supplements) using natural ingredients, free from chemicals. They can be used on all types of plants and offer farmers a sustainable long-term production option. Examples include: "Good Soil, Good Plants" products, soil improvement kits, "Hardened Plants" supplements, soil nutrients, plant performance enhancers, etc.

• Household Appliances: These include electrical appliances designed to facilitate daily life, such as:

- Kitchen appliances: such as rice cookers, air fryers, multi-purpose pots.

- Appliances found in every household: such as Sanichiro fans, folding beds, mosquito and insect traps.

- Household chores: such as vacuum cleaners, mops.

• Modern Innovation Products: Products that meet the lifestyle needs of modern people to improve their quality of life, such as air purifying fans, air purifiers, and energy-saving solar-powered light bulbs.

• Food Supplements: Offering a new approach to comprehensive health care, combining valuable nutrients from premium ingredients with modern manufacturing innovations to create safe and highly effective products.

TVD Broker, in collaboration with the Government Pharmaceutical Organization (GPO) under the PLANTXGPO project, serves as a distribution channel or marketing partner for products developed under the GPO's PLANTXGPO strategy. This aligns with GPO's policy of collaborating with the private sector.

GPO collaborates with various sectors, including the government, private sector, and educational institutions, to promote the development of herbal products under the concept of "GPO Plant-Based Medicine." This focuses on research and development of health products from Thai herbs and plant extracts to increase the value of Thai herbs and meet the needs of consumers both domestically and internationally. Products under this strategy are divided into three main categories: medicines and dietary supplements, cosmetics (plant-based cosmetics), and herbal spa products.

Because TVD Broker operates a multi-channel retail business and has expertise in the distribution and marketing of health products and innovations, this partnership is well-suited for collaboration. This includes dietary supplements primarily derived from plant-based substances (plant-based drugs and supplements). Examples include herbal products used in sports medicine, such as muscle-relaxing sprays and balms, turmeric extract supplements for bone and joint strength, and other herbal health supplements.

Strategic Partnership with the Government Pharmaceutical Organization (GPO)

The Group places the highest priority on product quality and reliability. Therefore, it has established a strategic partnership with the Government Pharmaceutical Organization (GPO), a key organization in the production of medicines and health products in the country. This collaboration is a crucial mechanism for driving the company's product standards, focusing on three main dimensions:

Manufacturing: Collaboration in knowledge transfer and manufacturing processes based on GMP (Good Manufacturing Practice) guidelines to ensure consistent quality and high safety for all products.

R&D: Supporting and participating in research and development projects for new product formulas, especially those using Thai herbs, to create effective and scientifically validated health innovations.

Quality Control: Applying GPO's regulatory standards to the selection, storage, and distribution of products to provide consumers with maximum confidence that the products they receive are authentic, of high quality, and safe.

Consumer-Centric Vision & Mission

The Group's vision is to create and distribute products that are recognized for their highest quality and value, aligning with its marketing strategy. Its core mission is to drive strong profits and revenue for the Group. Operating a business under a Direct Sales Enabled Services strategy and meticulously controlling product quality will be key factors in building consumer trust and achieving sustainable long-term growth.

Marketing and Competitive Environment

A Strategic Analysis of Marketing and Competitive Environment of TVD Broker Co., Ltd. (TVDB) – a product and service management business. This analysis summarizes the marketing and competitive environment in a strategic context as follows:

Core Marketing Strategy Analysis

TVD Broker operates under a business model that emphasizes partial vertical integration and a consumer-centric approach, with the following key components:

1. Quality-Centric Product Management Strategy

•  Excellence in Product Management Process

The company meticulously manages the value chain from upstream to downstream, encompassing formula research and development, sourcing high-quality raw materials from reliable suppliers, manufacturing in standardized and innovative factories, and evaluating results with sample groups before market launch.

• Value Proposition

Product pricing based on Value for Money, coupled with modern design, focuses on meeting consumer needs and fostering long-term brand loyalty and sustainable repeat purchases.

2. Direct Sales Enable Services Strategy

• Integrated Omnichannel Marketing: Utilizing advertising and public relations media production that aligns with consumer behavior and preferences.

• Integrating communication channels that reach a large audience, including Digital TV, online media (E-Commerce), and leading online marketplace platforms (Shopee, Lazada, TikTok, Facebook, LINE), is a key mechanism for expanding the customer base in the digital age.

• Effective Direct Sales: Establishing an experienced and skilled Tele Sales team creates a competitive advantage in communicating accurate and useful product information, and helps in closing sales effectively (Enable Services).

Competitive Landscape Analysis

TVD Broker operates in a diverse range of product categories, facing intense competition in several dimensions.

1. Challenges from Market Saturation and Fragmentation

The Fast-Moving Consumer Goods (FMCG), dietary supplement, and household goods markets have numerous players, ranging from major global manufacturers to small online retailers. The company's challenge lies in creating product differentiation and brand credibility.

• Dietary Supplements: Competition is very high, especially in terms of safety certification and efficacy. The company needs to employ strategies emphasizing "high quality from premium raw materials" and "modern manufacturing innovations" to gain a competitive advantage.

• Household Goods/Innovative Products: Competition focuses on price and innovation/function. Utilizing a "Value for Money" strategy and offering lifestyle-oriented products (e.g., air purifiers, solar-powered lights) focuses on targeting market niches that modern consumers are interested in, and these products contribute to sustainability.

2. Strategic Competitive Advantages

The company leverages the group's mechanisms to create advantages as follows:

• Rigorous quality control: The end-to-end management process acts as a superior quality barrier compared to smaller businesses that lack control at every stage.

• Access to mass communication channels: The simultaneous use of Digital TV and E-commerce combines the power of mass communication with direct transactions, creating a robust model for selling consumer goods.

• Customer relationship building: The Tele Sales unit not only performs sales functions but also serves as a mechanism for building relationships and providing information that reduces uncertainty in consumer purchasing decisions (Information Asymmetry Reduction).

Visionary Conclusion:

The Group's vision is to create and distribute products that are recognized for their highest quality and value, aligning with its implemented marketing strategies. Its core mission is to drive strong profitability and revenue for the Group. Operating under a Direct Sales Enabled Services strategy and meticulous product quality control will be key factors in building consumer trust and ensuring sustainable long-term growth in this dynamic market.

(1) Integrated Program Production and Advertising & Public Relations Planning Business

This business aims to make marketing and sales more efficient by creating media that clearly stimulates consumer interest in the company's various products. With the capability to provide comprehensive marketing, communication, and advertising services (One Hub Service), the company has consistently attracted partners and collaborators. This is a strength of integrated marketing that has created stable opportunities for business growth for the company over the years.

Production and Service Capabilities (One Hub Service)

The company has a professional team with extensive experience and high capabilities in producing a variety of advertising and public relations media. Furthermore, we have invested in modern equipment, studios, and tools capable of producing high-quality digital content. This integrated management approach enables the company to gain a competitive advantage and support the entire supply chain, from:

• Marketing and Sales: Content creation and sales strategies.

• Media: Production and distribution of advertising media.

• ​​Logistics: The group of companies selects high-quality service providers to ensure customer satisfaction, such as DHL.

With these capabilities, the company has been well-known for more than 25 years and is considered a "One Hub Service" that is ready and efficient in providing comprehensive services to businesses across all aspects and communication channels.

Channels for creating marketing materials and reaching consumers: The company employs a multi-channel marketing strategy to increase reach and enhance interest in its products and services. The main channels are divided into four groups as follows:

Television channel: Digital TV channels and satellite television.

The company utilizes mainstream media to build credibility, focusing on diverse program formats such as infomercials, TV shopping programs, standard advertising spots, and talk tie-ins to seamlessly integrate products into program content.

Basic online channels: Website, Line and YouTube

The company supports consumer behavior that demands speed and convenience by utilizing a platform with a large dataset and easily accessible search engine optimization (SEO).

Social Commerce Channels: Shopee, Lazada, TikTok, Amaze, Facebook, and other platforms.

The company leverages leading e-commerce and social media platforms to facilitate instant sales at points of interest and meet the needs of social listening and engagement marketing.

Telephone sales channel (Call Center): Reaching customers directly through phone calls.

The group of companies is a leader in call center services, leveraging its capabilities in personalized communication and providing comprehensive, in-depth product information. Communicating directly with customers is a highly effective channel for generating consistent sales and successfully closing deals.

Consumer-Centric Vision & Mission:

The group of companies aims to create a sustainable cycle by producing high-quality, safe, and value-for-money products that ultimately foster consumer loyalty and repeat purchases.

(1)     Investment and Loan Services Business

The investment and loan services business is the core business of the holding company management structure. The group of companies plans investments efficiently through the establishment and management of specialized subsidiary companies to ensure financial stability and sustainable long-term growth. The detailed business operations of each group of companies are as follows:

1. TVD ALPHA Co., Ltd.

Scope of work: A holding company focused on strategic investments.

Characteristics: It does not directly engage in commercial business, but acts as the owner and controller of its subsidiary companies.

Revenue generation mechanisms: The primary source of income is investment returns, comprising: 1. Dividend income from the profits of subsidiaries, and Capital gains from the sale of investments when investment assets are restructured or sold.

• Systemic role

• It serves as the core of the group's capital management, responsible for allocating financial resources to the most promising subsidiaries and managing risk in the overall investment portfolio.

2. TVD C Co., Ltd.

Scope of work: The lending service business, especially secured lending.

Characteristics: The company provides loans to customers requiring liquidity, requiring real estate (such as land or buildings) or movable property (such as vehicles or machinery) as collateral.

Revenue generation mechanisms: The primary source of revenue is interest income and loan management fees, which are designed to generate consistent and predictable cash flow.

Systemic role: The collateralization of all loans significantly reduces the company's risk of default, as it has the right to seize the collateral to compensate for financial losses.

3. TVD M Co., Ltd.

Scope of work: Investing in telecommunications and technology infrastructure.

Characteristics: The focus is on investing in strategically important assets in the digital age, particularly fiber optic distribution systems projects.

Revenue generation mechanisms

Revenue is generated from: 1. Network leasing from telecommunications operators or other businesses, and 2. Long-term asset appreciation, as fiber optic networks are considered a high-demand asset and a fundamental necessity for the digital economy.

Systemic role: This is an investment aimed at diversifying risk away from trading activities and creating stable, long-term assets for the group of companies.

4. Capital Group Asset Management Co., Ltd.

Scope of work: Asset management company (AMC)

Characteristics

The company operates in two parts: 1. Investing in non-performing assets (NPLs) by purchasing bad debts from financial institutions, and 2. Managing non-performing assets and properties held for sale (NPAs).

Revenue generation mechanisms: The primary profit comes from the profit margin generated by acquiring distressed debt at a reduced price and the ability to collect the debt or sell those assets at a higher price after debt negotiation or restructuring.

Systemic role: Expertise in negotiation and mediation, collateral valuation analysis, and legal procedures related to litigation and enforcement is required to restore assets to their maximum value.

The establishment of these four companies provides the group with a robust capital management structure, encompassing businesses generating recurring income (lending), businesses creating long-term value (fiber optics), businesses generating profit from economic opportunities (asset management), and a leading wealth management entity (holding company).

(2)     Other businesses

TVD link Co., Ltd.

Scope of work: It operates in radio and television broadcasting businesses and generates revenue for TVD Broker Co., Ltd.

Characteristics

- Engaged in the business of broadcasting audio and video via radio and television, by producing or providing audio, video, or data services.

- Engaged in the business of providing satellite TV channels, airtime rental services, and media production services.

- A business that has received a broadcasting license from the National Broadcasting and Telecommunications Commission (NBTC).

Edutransformer Group Co., Ltd.

Scope of work: The company operates in the education and learning media development sector, aiming to cultivate a skilled workforce to support future technological growth.

Characteristics

- Engaged in businesses related to educational development to enhance educational capabilities, creating educational media using modern technology, and providing training services.