Dear Valued Shareholders,

On behalf of the Board of Directors, I want to express our sincere thanks to our shareholders and investors for their continuous support during tough times.

In 2024, the global and domestic economies faced significant turbulence. Despite the beginning of monetary easing, many developed economies continued to grapple with stagnation. Although a global recession was avoided, economic activity remained below potential. Inflation, while easing compared to 2023, still exceeded targets in many countries. In Vietnam, government stimulus policies brought some positive momentum. However, the country also faced substantial headwinds, historic storms and floods led to heavy economic losses, workforce reduction from corporate downsizing affected many workers, and overall consumer demand declined significantly.

In 2025, the global economic landscape is expected to become even more volatile and unpredictable. A key new variable is the anticipated broad-based retaliatory tax policy from the U.S. administration (Trump 2.0), which, along with potential countermeasures from other nations, could deeply impact global growth. Disrupted supply chains, rising costs, inflationary pressures, and geopolitical tensions, including superpower rivalries will further complicate the outlook. At the same time, the Fourth Industrial Revolution and the digital age continue to reshape the global economy with unprecedented speed and impact.

Vietnam’s economy is likely to feel the impact of the new tariff policies, especially in the export sector, given that the U.S. market accounted for approximately 30% of the country’s total export value in 2024. In addition, a combination of ongoing internal restructuring, changes in corporate governance during this transitional phase, and the proposed provincial mergers coupled with the effects of new tax policies is expected to exert considerable pressure on domestic employment. These shifts may also lead to a strategic realignment among FDI enterprises, influencing pricing dynamics and weakening consumer purchasing power in the local market.

Amid these forecast challenges, we are setting our sights on a net revenue target of VND 13,000 billion and a pre-tax profit of VND 800 billion for 2025. However, achieving these goals in the current environment presents a formidable challenge. In addition to leveraging our existing strengths and solid foundation, KIDO is embarking on a comprehensive transformation - a major overhaul that spans internal operations and external market activities. We aim to enhance our competitive edge, expand our product portfolio in the food sector, accelerate digital transformation, and strengthen risk management capabilities. Above all, ensuring KIDO’s resilience and ability to overcome this difficult period remains our top priority.

Specifically:

Governance Structure and Operational Model

From 2015 to 2024, we operated under a three-team structure, with a strategic focus on building a solid foundation for expanding our presence in the essential food sector. Starting in 2025, the Group officially pivots toward a multi-business strategy within the essential food industry. Under the new model, each subsidiary will operate independently with its own organizational structure, based on two core pillars:

• Horizontal Axis - comprising major functional units such as Market Development, Sales, Corporate Governance, Planning & Services, and Manufacturing. These units work in close coordination to execute projects and initiatives.
• Vertical Axis - the Business Units (BUs) serve as coordination centers, working alongside functional units to manage project execution from inception to completion. In this model, BUs play a central role, ensuring operational continuity, alignment, and efficiency across all departments and functions.

 The model’s strengths are in its flexible operations, clearly defined authority structure, seamless information flow, and robust data systems that enable fast, accurate, and informed decision-making. It enhances cross-functional collaboration and optimizes performance, allowing the Group to adapt swiftly to market changes.

 With an optimized governance structure in place, the Group continues to leverage its core strengths by embracing digital transformation and advanced technologies across operations. Our focus remains on developing a high-caliber workforce and building an effective, forward-thinking leadership team to drive sustainable growth.

In which:

• Digital Transformation and Technology Integration: We continue to implement ERP and CRM systems across the entire organization to achieve integrated resource management and operational efficiency. Advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Cloud Computing are being applied in data analytics and enterprise management systems to ensure digital stability and seamless connectivity.
• Human Capital Management and Talent Development: People are at the heart of our long-term success. We are committed to building a high-performing workforce with strong technical capabilities, strategic thinking, and leadership acumen - individuals empowered to operate and make decisions independently, while upholding strong ethical standards aligned with our future development goals.

Our use of the Distribution Management System (DMS) and Sales Management System enables real-time performance tracking, KPI management, and ensures two-way communication between the Executive Board and the commercial teams. We are also leveraging Robotic Process Automation (RPA) to streamline and automate administrative tasks, enhancing overall productivity. Alongside this, digital marketing initiatives and continuous upgrades to IT infrastructure are being deployed to strengthen system resilience and drive digital connectivity at scale.

Striking a balance between experienced leaders and a dynamic, tech-savvy younger generation, we are actively investing in talent development to stay ahead of the curve in the digital and knowledge-based economy. Our Group Training Center plays a pivotal role in providing continuous professional training and leadership development programs, ensuring our human capital is fully equipped to lead through change and drive sustainable growth.

2025 Business Strategy by Business Unit

Edible Oil Business Unit

    Edible Oil (Retail Channel)

The edible oil business unit continues to face significant challenges, most notably from fluctuations in raw material supply, rising input costs, and foreign exchange volatility. In addition, the decline in overall market demand is placing further pressure on growth. With 48 years of experience in the industry, we remain steadfast in our commitment to maintaining and expanding this core business amid market headwinds. Our strategic focus for the coming year includes:

• Unlocking growth potential by expanding sales coverage in areas with untapped demand.
• Strengthening our portfolio of key products, both in regional markets and nationwide.
• Proactively upgrading existing SKUs to enhance product appeal and earn a greater share of the consumer basket.
• Diversifying product lines by researching and introducing new offerings with health-oriented benefits.
• Continuing to grow brand presence across digital platforms and strengthening distribution in modern trade (MT), general trade (GT), and key accounts (KA).

    Edible Oil (Commercial, Industrial and Export Channels)

We continue to capitalize on our extensive infrastructure advantages - including large-capacity factories, seaports, storage tanks, and warehousing systems to actively seek and attract high-potential international partners.

In parallel, we are proactively optimizing our business model by enhancing operational efficiency and expanding collaboration with businesses to boost production capacity, market penetration, and territorial coverage. These efforts are centered around KIDO Nha Be, our dedicated B2B unit, which plays a key role in growing our presence in the industrial and commercial sectors.

For Vocarimex, the strategic roadmap remains aligned with the Group’s overall direction. This includes accelerating investment activities, streamlining the organizational structure, and laying the foundation for long-term business transformation in the next phase of development.

Margarine Business Unit

Our leadership in the margarine business unit has been reaffirmed with market share expanding from 74.9% to over 77% in the past year. This sustained dominance reflects the strength of our brand and operations in the category.

Moving forward, KIDO will continue to enhance the quality of our existing margarine product lines, while pursuing a strategy of diversifying cooking and baking experiences. We are actively investing in R&D to introduce new butter variants tailored to evolving consumer needs in terms of packaging and segmentation.

At the same time, we are leveraging our strong presence in the retail channel to deliver better customer service and elevate consumer experience. Our approach includes consumer education and guidance on product usage, reinforcing the brand message: “The secret to unlocking buttery flavor.”

Spice Business Unit

Following edible oil, the spice business unit stands as one of our strategic pillars. This is a vast and high-potential category - and more importantly, it is the key for KIDO to realize our vision of “Enriching Vietnamese Kitchen”. Our product portfolio in this business unit has been gradually expanding, with key offerings such as fish sauce, dipping sauces, and seasoning powders. In 2025, we will focus on the following priorities to accelerate growth:

• Launch new products within the spice business unit - including soy sauce, monosodium glutamate, chili sauce, frying mixes, satay, oyster sauce, and dried food products…to offer a more comprehensive and diverse range of household cooking essentials.
• Leverage the strong reputation and brand equity of Tuong An to accelerate market penetration and consumer acceptance of our new product launches.
• Commercialize and localize high-quality, internationally acclaimed products by identifying and distributing flavorful, premium items in the Vietnamese market.

These strategic directions will not only strengthen our position in the seasoning category but also play a pivotal role in delivering a complete, high-quality culinary experience to every Vietnamese household.

Bakery Business Unit (Fresh Cakes, Long-Lasting Cakes, and Mooncakes)

Since its return to the market, our Fresh Cake Business Unit has consistently introduced new products tailored to a wide range of consumer tastes. The enthusiastic response from diverse customer segments affirms our direction. In 2025 and beyond, we will continue to capitalize on our strong R&D capabilities to launch innovative offerings. Simultaneously, we will proactively manage and secure raw material sources; focus on developing our core product lines; and optimize channel structures to ensure broader product availability and stronger consumer reach.

For the long-lasting cake business unit, our priorities in 2025 will include: commercializing core SKUs; expanding the product portfolio via trading and partnership models; customizing offerings to fit various distribution formats and regional preferences, and leveraging our Group’s omnichannel ecosystem - including miniBAO and E2E platforms to enhance brand visibility across both online and offline channels.

The Mid-Autumn Festival season remains a key revenue driver for the entire bakery business unit. Beyond introducing a broader range of flavors and elevating packaging sophistication, we will maximize the power of our retail distribution, particularly the miniBAO chain, to boost market presence.

Our strategy is to build KIDO’s Bakery into a premium brand featuring elegant, gift-worthy designs, while reinforcing Tho Phat as a traditional brand, widely accessible and beloved by the mass market. In parallel, we are strengthening B2B partnerships to bring festive offerings with breakthrough flavors and best-in-class service to consumers nationwide, making each Moon Festival a season of joy, unity, and meaningful experiences.

Frozen Steamed Buns and Dumpling Business Unit (Tho Phat)

For Tho Phat, our core strategic direction centers on brand restructuring and repositioning with a younger, more modern identity, anchored by the message: “Delicious – Safe – Nutritious.” We aim to maintain strong product visibility across both Modern Trade (MT) and General Trade (GT) channels, especially within store chains. Product portfolio planning will be tailored to suit the characteristics of each distribution channel, as well as the specific demands of each region and locality. We will also focus on seasonal and festive offerings and continue to diversify our product lines to meet evolving consumer demands for flavorful, convenient, safe, and nutritious meals.

At the heart of our distribution strategy is miniBAO - a unique retail model that blends franchise concepts with the shared economy. miniBAO not only serves as a primary sales channel for Thọ Phát products but also represents the broader KIDO ecosystem. It offers a platform for distributing goods from both our Group and our strategic partners, including domestic and international brands. More importantly, miniBAO allows us to engage directly with end consumers, listen to their needs, understand their preferences, and respond with tailored experiences. As the KIDO ecosystem accelerates its entry into the e-commerce space, miniBAO is poised to become a nationwide "last-mile hub," delivering products swiftly, optimizing logistics, and reducing costs through flexible, responsive operations.

Internally, we continue to upgrade production capabilities, investing in modern manufacturing lines and enhancing quality control. Considering growing public concerns around food safety, especially for daily-consumed items, our commitment to quality and brand development is expected to strengthen trust among agents and distributors. We aim to foster win-win relationships that encourage collaboration, drive market expansion, and reshape the steamed food sector, much like our successful transformation of Vietnam’s ice cream market in previous years.

 E2E - Entertainment to E-Commerce Platform

In addition to its core role in trade promotion, the E2E platform has also sustained its online sales operations, contributing to revenue growth not only for the Group but also for our partner businesses. Looking ahead, the key challenge is to broaden product sourcing and diversify the merchandise portfolio so that the channel moves beyond its breakeven point to become a profitable revenue generator for the Group. This will be a critical focus in the upcoming period as we enhance the platform’s role within our broader commercial strategy.

M&A Strategy

Mergers and Acquisitions (M&A) will remain a core strategic pillar in KIDO’s 2025 action plan. We continue to actively seek out businesses that share our vision and mission, with the goal of integrating them into the KIDO ecosystem. Together, we aim to drive stronger growth in the essential foods sector, leveraging collective strengths to unlock long-term value and sustainable development.

Dear Valued Shareholders,

The year 2025 will be a challenging year for all businesses, including the KIDO Group.

Throughout our journey, KIDO has set ambitious goals to assert itself as a leading group in the essential food industry in Vietnam and expand its reach globally. However, our top priority in this period is to adapt, survive, and grow amidst such a volatile and unpredictable market. This is a time when every decision, every expense must be calculated carefully to ensure that we can develop our product lines, generate revenue from both external business activities and internal management costs, and strive to meet our set goals.

We are confident that with our strong internal resources, flexibility, and the right strategies, the Group will successfully navigate this challenging period. As the Founder and Chairman of the Board, I sincerely hope that KIDO will continue to receive the unwavering support and cooperation of our shareholders, investors, customers, and the dedicated and talented team of employees.

I wish you all

HEALTH - HAPPINESS - SUCCESS! 

TRAN KIM THANH 

Chairman of The Board of Director