The Board of Directors of NEP Realty and Industry Public Company Limited meeting held on December 24th, 2021 resolved to approve the entering into the connected transactions with VAVA Pack Company Limited ("VAVA Pack") with transactions as follows: To provide a plastic sack printing service to VAVA Pack for a period of 1 year starting from January 1st, 2022 until December 31st, 2022 at the rate of not less than THB 1,325,000 per month (exclusive of VAT), no more than THB 15,900,000 (exclusive of VAT) for the whole agreement period. In this case, the Company provided both machine renting and plastic sack printing service because the Company has a continuous operating loss from plastic sack printing production and service. This is primarily caused by the production which do not reach the breakeven point, so the Board of Directors' resolution is to dismiss the production of plastic sack and plastic sack printing machine renting with plastic sack printing service.

These are profitable to the Company in terms of operating loss reduction and actual primary profit increasing. However, due to the Company's location which is far from VAVA Pack, it is inconvenient for the employees to provide the service according to the service agreement, and they no longer wish to continue working with the Company. Therefore, the Company would like to arrange an early retirement project and provide compensation to the employees working in the field of plastic sack production.

According to the Board of Directors' policy to dismiss plastic production, there is currently no employee in the field of plastic sack production. Referring to the Board of Directors' meeting No. 3/2022 held on March 17th, 2022, there is a unanimous resolution to cancel the resolution of the Board of Directors' meetings No.

12/2021, by which there is a report of agreement cancellation on machine renting and plastic sack printing service with VAVA Pack. In addition, another unanimous resolution is to trade all plastic sack printing machines as there is no employee in this field. As a consequence, the Company will obtain revenues after all machines were traded, which could be Company's turnover.

Therefore, the Company will no longer be impacted by the cancellation of agreement as according to renting and service agreement, the Company can cancel the agreement before an expiration of renting. In addition, the Company is still able to trade plastic sacks to the customers without any impact on revenue structure. To manipulate the capital, the Company will no longer produce but hire instead.

Because the Company always remains good relationship with the customers and is well-connected to the sack producers for such a long period. Moreover, the sale teams and marketing database are compatible. Therefore, in terms of future direction, the Company's goal is to increase production and trading of Flexible Packaging, in which the revenue proportion of Flexible Packaging and plastic sacks will be responsible for approximately 55: 45 increased from 45: 55.

This enhances the Company to grow its profits since Flexible Packaging is more profitable than plastic sacks. In addition, once the plastic sack productions are hired, the capital manipulation will be more productive than self-productions.