Innovation and Technology

The Company recognizes the importance of risk management and long-term business opportunities. The Company adopts innovation and technology as key mechanisms to drive corporate strategy. This approach enables the Company to respond to changes in the economic, social, and environmental dimensions, as well as the behavior of stakeholders throughout the value chain. The Company promotes the development and expansion of new ideas and encourages the application of innovation and technology to operate businesses, create products and services, and develop new business models to enhance operational efficiency, reduce costs, optimize resource utilization, and mitigate potential environmental and social risks arising from production and service processes.

The Company utilizes innovation and technology to support the development of new products, services, and business models that meet the changing needs of customers and stakeholders. This is carried out with consideration for green design, product safety, and sustainable resource use to minimize adverse impacts throughout the product life cycle and create value for stakeholders. Furthermore, the Company places importance on innovative culture and fosters collaborative development with stakeholders across the supply chain to generate shared value and new business opportunities. Innovation and technology are essential to strengthening competitiveness, enhancing business resilience, and supporting long-term sustainable growth in accordance with the Company’s strategic direction.

Policies and Management Approach

The Company places significant importance on innovation and technology management, which are key drivers of sustainable growth and competitiveness. Innovation and technology have been incorporated into the Company’s sustainability policy framework, under the sustainable development policy, with the objective of promoting and supporting the development of innovative products, services, work processes, and new business models through the application of appropriate technologies, research and development (R&D). The Company fosters collaboration with both internal and external departments to systematically and continuously advance innovation while taking social and environmental sustainability into consideration. This approach is designed to meet changing consumer needs and strengthen the Company’s competitiveness. The Company’s innovation and technology management is as follows:

Vision and Strategic Roadmap

The Company aspires to become an innovative company. Therefore, an Innovation Strategic Roadmap with both short-term and long-term objectives was established to promote the Company’s capabilities in developing new technologies and innovations for sustainability. The Company provides continuous resources, budgets, and systematic knowledge management to foster a corporate culture that integrates innovative thinking into all areas of operations. This includes research and development of new products and services that generate economic value and deliver sustainable value and benefits throughout the Company’s value chain.

Five Strategies Toward Innovative Company

The Company has defined its innovation strategy through five key pillars to drive the organization toward an “Innovative Company,” as follows:

• Building Innovative Company
• Innovative Products 
• New Product Developments
• Open Innovation
• Digital Transformation

• Enable Innovation: Driving corporate innovation by establishing systems, environments, and mechanisms that empower employees and business partners, whether customers, suppliers, educational institutions, external government agencies, or national innovation networks, to think creatively, experiment, and develop new innovations. This approach aims to generate business value and sustainability under the core principle that innovation is not limited to a specific group but is a capability of the entire organization.
• Innovation Level Up: Leveling the corporate innovation by improving internal processes for the development of processes, services, and new business models. This strategy integrates digital technology with product and service innovation, along with customer needs, to create new value, enhance customer loyalty, and elevate the overall customer experience.

The Company is feasibly studying and adopting international innovation management standards to establish, maintain, and systematically develop an innovation management framework. This aims to transform the organization into an innovative company capable of developing products, services, processes, and new business models. The Company also commits to providing the necessary resources, including human capital, budget, time, and infrastructure, to effectively drive innovation across the organization.

Corporate Innovation & Technology Governance

KCG Corporation Public Company Limited prioritizes innovation and technology as key drivers for a transition strategy to achieve stable and sustainable growth. The Board of Directors has established a governance structure through subcommittees and specialized working teams to ensure that innovation and technology management are effective and aligned with the corporate governance code.

1) The Corporate Governance and Sustainability Committee plays a significant role in formulating policies, promoting research and development of new products and services that create value for the Company and contribute to sustainability, fostering a corporate culture, and encouraging creative thinking to enhance operational processes and efficiency. The committee emphasizes innovation and technology as corporate culture standards and oversees innovation and the application of digital technologies to align with the code of conduct and corporate governance code. In regard to innovation action plans, the Chief Executive Officer, Managing Director, and Deputy Managing Director Innovation & Sustainability are the primary responsible persons to lead the corporate innovation and appoint representatives and executives from relevant departments to form an Innovation Working Team. The Innovation Department coordinates and advances innovation activities across the organization through the annual KCG Innovation Contest and related activities.

2) The Information Technology Committee plays a key role in driving business by leveraging technology as an enabler of innovation. The Committee is responsible for formulating strategies for digital transformation, applying innovation to develop new business models, overseeing the use of information technology to create new products, enhancing operational processes, and supervising cybersecurity to safeguard digital innovation.

To advance technological development, the Chief Executive Officer and Managing Director have appointed a working team to oversee information and digital technology management. The Deputy Managing Director of Corporate Strategy serves as the primary lead, with the Information Technology Department responsible for coordinating and driving the management of digital and information technology projects.

Furthermore, significant programs and investment projects related to innovation and technology are subject to monitoring progress reporting and performance reviews by the relevant subcommittees to ensure effective execution and alignment with strategic objectives. Therefore, innovation and technology strategy create sustainable corporate innovation development.

Innovative Company

The Company aims to cultivate a corporate innovation culture and utilizes technology across the organization by prioritizing the application of innovation to enhance business operations in order to respond to stakeholder needs and take into account social and environmental impacts in accordance with the Company’s sustainability goals.

The Company drives innovation as an integral part of its corporate culture under the guiding motto, “Data-Driven, Innovative, and Sustainable Culture” through the following mechanisms:

• KCG Innovation Contest is an innovation competition that provides an opportunity for employees at all levels to participate and submit creative ideas to maximize business value for the organization. The contest encourages innovation in products, processes, services, and business models, ultimately generating economic value for the Company. The KCG Innovation Contest has been conducted continuously since 2016. Innovation projects are categorized into two types:

1. Creator Projects: Projects that are in the conceptual or development stage and have not yet been implemented to deliver tangible benefits to the organization.
2. Innovation Projects: Projects that have been implemented and are generating value and benefits for the organization.

• Process improvement projects, such as KCG Kaizen Projects and Business Process Improvement (BPI) Projects, are projects that promote a culture of continuous work improvement within the organization. These projects encourage the development of ideas, enhancement of work methods to reduce waste, lower costs, improve quality and efficiency, and exchange of improvement ideas across departments.
• Communication and Training are essential to building a strong foundation for all employees. The Company prioritizes the development of creative thinking, knowledge, and skills, while fostering a mindset that integrates innovation and technology into the work of employees at all levels.

Research and development of new and innovative products

The Company prioritizes research and development of new products, along with continuous innovation development to strengthen its competitiveness and respond to the rapidly changing needs of customers and consumers in the food industry. The Company has a Research & Development and Innovation (RDI) Department that is primarily responsible for systematically researching, developing, and enhancing products. The Research & Development and Innovation Department focuses on both the development of new products and the continuous improvement of the quality and value of existing products. Its operations integrate customer insights, consumer behavior, food industry trends, and technological advancements with the Company’s expertise in raw materials and production processes to develop products that meet current and future market demands.

Furthermore, the Company prioritizes product development that aligns with sustainability trends in the food industry, including health-oriented products, reformulated products with less sugar, fat, or sodium content, and the use of eco-friendly raw materials and production processes. This supports new product development and drives continuous product innovation. The Company has established corporate KPIs to measure the success of new products, one of the Company’s key growth strategies, as well as the number of innovation projects that generate economic value for the organization. These are categorized as follows:

1. Innovative Products: The Company focuses on developing products that align with the lifestyle needs of the new generation, with an emphasis on health, convenience, and sustainability trends. This includes the development of health and nutrition products.
2. New Product Development: The Company has established a systematic process for the research and development of new products and services. This process follows a new product development stage-gate, whereby each project undergoes screening and must meet defined quality and financial evaluation criteria prior to market launch. Risk management measures are also incorporated to mitigate potential delays and other factors that may hinder the successful development of new products.

The Company has established the KCG Excellence Center to enhance its research and development capabilities. The Center serves as a hub for developing new products and innovations, particularly within the dairy product segment, as follows:

• Engaging consultants and specialists with extensive knowledge and experience in dairy products.
• Developing products and tailored solutions to meet the needs of both B2B and B2C customers.
• Collaborating with customers to create new menus that generate added value and business opportunities.

In addition, the KCG Excellence Center has a quality testing laboratory with ISO/IEC 17025 certification, the international standard for testing and calibration laboratories. The laboratory provides comprehensive testing services for product quality, safety, and performance in accordance with relevant standards, ensuring product consistency and reliability. The Company also promotes knowledge sharing by collecting insights, research findings, and innovation performance from internal activities, including projects submitted through the KCG Innovation Contest and employee-driven innovations. This approach fosters a strong corporate innovation culture, encouraging employee participation at all levels and supporting the continuous and sustainable development of new products and solutions.

Process Enhancement with Digital Technology & AI

The Company prioritizes the improvement and enhancement of operational procedures to achieve maximum efficiency. This includes the application of digital technologies and Artificial Intelligence (AI) to enhance accuracy, reduce complexity, and minimize operational errors. This will contribute to improved customer satisfaction and support future business expansion.

In the manufacturing sector, the Company is accelerating the adoption of automation technologies to increase production efficiency, reduce costs, and enhance product quality in accordance with sustainable business guidelines.

Furthermore, the Company seeks to empower employees as key drivers of digital transformation by promoting the adoption of digital tools and technologies to enhance and streamline work processes in response to the rapidly changing digital age. The Company provides ongoing training and communication activities to foster awareness and understanding of AI and digital transformation. This foundation supports improved operational performance, responsiveness to customer needs, and long-term organizational competitiveness. At the same time, this helps reduce uncertainty and resistance to change, encouraging employees to adapt and work effectively with the new model.

Accounting Automation Development with AI OCR

The Company is implementing an accounting automation project utilizing AI-OCR technology to convert data from business documents, such as tax invoices, purchase orders, delivery notes, receipts, and other accounting records, into digital data for automatic integration into the ERP system. This significantly reduces reliance on manual data entry. The system is designed to process a wide variety of document formats without requiring predefined templates. It supports accurate data extraction in both Thai and English and includes functionalities such as document classification, data validation, and API integration with the Company’s core systems. This project reduces costs and document management workload, enhances data accuracy and availability within the accounting process, improves workflow efficiency, and supports the Company’s sustainable long-term growth.

Performance

KCG Innovation Contests 2024 - 2025

The Company's innovation and technology development activities in 2025 are as follows:

The KCG Innovation Contest 2024 - 2025, themed "Think Green, Think Digital, Innovation Beyond Tomorrow," opened for applications between December 2024 and January 2025. The competition results will be announced in March 2025. The judging criteria this year include sustainability benefits and technology integration. This aims to incorporate technology into creative ideas, extending effective innovations while emphasizing the importance of the environment and society.

In 2025, 51 projects were submitted to the competition, with 26 Innovation Projects providing added value and tangible benefits to the organization and 25 Creator Projects showcasing creative ideas. A total of 480 participants attended the event, both onsite and online.

KCG Innovation Contest 2024–2025 Final Day Award Ceremony

The KCG Innovation Contest 2025-2026, under the theme “Data Driven for Sustainable Innovation,” accepted project submissions from December 2025 to February 2026. The judging and awards announcement will be held in March 2026. This year, the judging criteria have been expanded to include sustainability impacts and the effective application of customer insights to project development, aiming to drive product development, foster creative ideas, and build upon effective innovations that genuinely meet customer needs, while prioritizing environmental and social responsibility.

Outstanding Innovation from KCG Innovation Contest

At the KCG Innovation Contest 2024-2025, 6 outstanding projects were selected. These cross-functional projects demonstrate strong potential for further development into tangible economic value while promoting sustainability. The projects are as follows:

1. Dairygold Cheese 2 Slices IWS Development Project:

A product innovation project that resulted in a new product, DairyGold Mozzarella-Cheddar Cheese Mixx. This project was a collaboration between the Research & Development and Innovation (RDI), the Marketing Department, and the Production Department. Furthermore, the packaging design was changed from horizontal to vertical to increase sales opportunities, improve product visibility for consumers, and make it easier for retailers to display products. The expansion of this project has consistently generated significant, long-term revenue for the Company. The project demonstrates effective cross-functional collaboration and inspires employees to innovate and improve existing products to increase the Company's competitiveness and support sustainable growth.

2. IMPERIAL Butter Preparation Project:

A Product Innovation project developed a dairy-free butter oil or margarine as an alternative for dairy-allergic consumers. This product's texture and taste are very similar to real butter and butter blends, making it suitable for a variety of applications. This was a cross-functional project between the Research & Development and Innovation Department, Sales Department, and Production Department.

3. Machine Efficiency Enhancement Project:

This process innovation project aims to improve machine efficiency in the Buttercup production line to reduce production losses and increase product yield. This project builds upon the award-winning KCG Innovation 2023 project. The project was a cross-functional collaboration between the Production Department, Engineering Department, and Research & Development and Innovation (RDI) Department. As a result, the project reduced raw material costs for the product group by more than 4.2 million baht in 2025.

4. Cracker Cream Automation System Project:

This Process Innovation project aims to improve the 165g Cracker Cream packaging line by implementing a new workflow supported by machinery designed to optimize product performance. Previously, crackers were manually placed on trays; this process is now automated, allowing for a continuous production workflow. The project increased the level of automation in the production process while also improving employees' knowledge and skills in using new technologies. As a result, the production rate for Cracker Cream increased to 100 kg per hour and reduced cost by 1.3 million baht in 2025.

5. PC Application Project:

A service innovation project that uses artificial intelligence (AI) to automatically organize and convert product sales reports from LINE chat messages submitted by product consultants (PCs), sales personnel stationed at department stores and retail outlets, into structured databases. Robotic Process Automation (RPA) is then used to create real-time dashboards, allowing the sales team to accurately and quickly monitor sales performance and in-store stock levels, as well as make timely replenishment decisions. The project has been expanded into a PC web application, which provides a more systematic platform for recording sales data (input) and analyzing and making decisions (output). The system will be expanded in the next phase to include PCs that manage consignment products, which will improve inventory management efficiency, reduce errors, and establish standardized data across the organization.

6. Supplier Collaboration Project on Packaging Development

The Company continues to innovate packaging in collaboration with suppliers, with the goal of increasing cost efficiency while creating sustainable value. One of the key actions is to develop parchment packaging for 1-kilogram butter products that were previously acquired from overseas; the original packaging had logistical flexibility constraints. As a result, in 2024, the Company began to seek potential domestic manufacturers to create a more agile supply chain and reduce import risks. In 2025, the Company pursued alternative materials from potential domestic suppliers. This project not only increased cost efficiency but also helped to reduce waste, lower greenhouse gas emissions from transportation, and improve procurement agility.

This project indicates the Company's application of sustainability principles to practical operations, resulting in long-term economic and environmental value. The project resulted in cost savings of approximately 7 million baht in 2025.

Innovation Project Expansion

In 2025, the Company has expanded the innovation projects to generate tangible benefits. This also encouraged and empowered employees to develop practical innovations. The following project has created value and strengthened the Company’s reputation:

1) Sustainable Pallet ESG for the Future

An innovative logistic development that meets the needs of the food industry and supply chain through the customized food-grade pallet design that meets food safety standards. This improves the transportation efficiency of the shuttle pallet system, reducing damage in warehouses and enhancing overall logistics management efficiency. These pallets are designed to be 100% recyclable, supporting the green projects and net-zero greenhouse gas emission goals while creating revenue opportunities and business expansion for suppliers in the supply chain.

This sustainable pallet ESG for the future is an open innovation developed in collaboration with business partners. As a result, the Company received the Commended Supply Chain Management Award 2025 in the Sustainability Excellence category at the SET Awards 2025, organized by the Stock Exchange of Thailand in collaboration with the Money and Banking Magazine. It also lays the foundation for sustainable pallet ESG standards in the food industry, enabling widespread reuse and recycling.

2) Centralized Transportation Service Efficiency Enhancement Project (Phase 4)

This project originated from the 2022–2025 KCG Innovation Contest and has been successfully implemented and expanded in practice, contributing to the reduction of greenhouse gas emissions. The project applies route management to enhance delivery efficiency per cycle, optimize delivery scheduling, and enable customers to track their deliveries more conveniently. This project has been expanded following its previous success in reducing transportation distances and improving delivery efficiency in high-potential provinces, which resulted in the Company receiving the Innovation Award in 2022.

From 2023 to 2025, the project was continuously enhanced to expand coverage to other regions, increase the use of cross-docking for both ambient and frozen products, and maintain a strong focus on sustainability. This project enabled the Company to better align deliveries with customer demand, achieve a threefold reduction in transportation distances, increase shipment weight capacity, and achieve a 9% reduction in transportation cost per sale.

In addition, the project has optimized storage space at distribution centers to support business expansion and sales growth. In regard to sustainability, this project has improved transportation efficiency, lowered greenhouse gas emissions, reduced redundant operations, shortened delivery times, decreased employee working hours, etc.

KCG Kaizen Project

The Company organized the KCG Kaizen Project from August to October 2025 by offering “Kaizen Fundamentals” training sessions to promote the continuous improvement concept among employees at all levels. The objective was to equip and inspire employees to apply Kaizen principles in their daily work and improve work methods as well as operational efficiency.

The KCG Kaizen Contest was also organized, providing employees with the opportunity to present their work process improvements and ideas aimed at enhancing operational efficiency, reducing costs, and achieving practical implementation. A total of 57 projects were submitted from 11 departments.

Business Enhancement through Digital Technology & AI

To effectively drive digital transformation, the Company promotes and supports the development of technological knowledge and capabilities among executives and representatives from related departments as follows:

New Innovative Product Development

This project focuses on product redesign to enhance suitability, convenience for consumption, and modern appeal in response to changing consumer behavior and preferences. The project has generated sustainable benefits and revenue growth for the Company. From 2022 to 2025, the new innovative product segment has generated approximately 437.3 million baht in revenue. Key projects under this project include:

• Dairy Gold Milkana Cheese Lolly

  The Company has expanded its dairy products by introducing a ready-to-eat cheese snack. The product is presented in vibrant, colorful packaging designed to appeal to children, the primary target consumer segment. It is available in two flavors, Milky Ice Cream and Fruit Heart Strawberry, and is developed under a licensed Cheese Lolly character. In addition to being a snack, the product offers better nutrition, containing calcium, vitamin A, and vitamin D. The Company also plans to expand its market reach to the teenage segment.

  
• Dairy Gold Cheese 2 Slices

  Dairy Gold Cheese 2 Slices are available at 19 baht in convenience stores at a price point that is affordable for consumers, with a portion size suitable for modern lifestyles. The product can be consumed with instant noodles, in line with the Korean food trend that is popular among the target consumer segment of new-generation teenagers. As a result, Dairy Gold Cheese 2 Slices has received a positive market response and has generated consistent sales for the Company. In 2025, the Marketing Department and the Research & Development and Innovation Department jointly developed new flavors and redesigned the packaging to make it more convenient for customers to pick up the product, as well as to increase shelf space allocation in convenience stores.

  
• IMPERIAL Danish Cookies Less Sugar

  The Company incorporates customer and consumer feedback regarding health-conscious biscuit and cookie products as key input into its product development process. The Marketing Department and the Research & Development and Innovation Department collaborate to research and develop new formulations, carefully selecting high-quality ingredients and designing recipes with better nutrition to provide suitable options for health-conscious consumers. As a result, IMPERIAL Danish Cookies Less Sugar was created with a 35% reduction in sugar using the "Less Sugar, Same Great Taste" concept, while retaining the familiar taste and distinctive characteristics of IMPERIAL Danish Cookies. Furthermore, the Company has changed the packaging to a light blue tone to communicate the product's health-conscious positioning, distinguishing it from the red packaging of the original formula. At the same time, the packaging maintains the brand identity of IMPERIAL Cookies Denmark, demonstrating the Company's commitment to developing products that meet consumer needs and promote sustainable balanced consumption.

  
• Imperial Gold Selection

  IMPERIAL Gold Selection represents the rebranding of IMPERIAL cookies, transforming the iconic red tin into a more modern and premium product image. The product emphasizes quality, using premium butter and carefully selected ingredients imported from various countries.

  The rebranding has resulted in a diverse range of flavors and product styles under the concept of “A uniquely delicious taste...that you'll fall in love with in every bite.” The objective is to expand the consumer base within the teenage segment, positioning the cookies as suitable for personal consumption as well as for gifting on special occasions throughout the year, rather than only during festive seasons.

  In 2025, new flavors such as Caramel White Chocolate and Matcha White Chocolate were launched and received positive customer feedback.

  

Health-Promoting Product Development

The Company is committed to developing quality products under the Longevity & Wellness strategy, which focuses on promoting sustainable health and quality of life at all ages, together with responsibility to consumers throughout the value chain. The Company prioritizes research and development of products that appropriately meet health and nutritional needs, focusing on consumer groups with health risks, those requiring specific nutritional supplementation, children and youth, the elderly, and consumers who emphasize preventive healthcare to support long-term well-being.

Product development under the Longevity & Wellness plan not only responds to the growing consumer focus on health and wellness but also serves as a key driver of sustainable business growth. In 2025, the Company generated approximately 241 million baht in revenue from two health and nutrition product groups. This reflects the potential for innovation expansion in healthy food products and the creation of long-term shared value between the business and society

1) Product groups for consumers with health condition

This product group is specifically formulated to meet the needs of consumers with health conditions or with food allergies. The product range includes low-fat, low-sodium, lactose-free, and plant-based formulations, which contribute to reducing the risk of non-communicable diseases (NCDs) and supporting appropriate nutritional intake for the elderly, children, and consumers requiring continuous dietary control. Product groups for consumers with health conditions include:

2) Product groups for consumers with health-conscious

This product line comprises dairy products, butter, cheese, and food ingredients formulated to provide high nutritional value, including protein, calcium, and quality fats, to support muscle development, bone health, and overall growth. The products are suitable for the elderly, children, working adults, and individuals seeking to enhance balanced and safe nutritional intake in their daily lives.