The Group faced a mixed operating environment in 2024. While
inflationary pressures eased in major economies, persistent
geopolitical risks continued to weigh on global economic
stability. Cautious consumer sentiment led retailers to delay
orders, demand shorter production lead times, and adopt more
conservative inventory strategies. In the toy industry, rapid shifts
in consumer preferences, technological innovation, and market
fragmentation intensified competition. However, demand from
certain segments, such as theme parks, remained relatively
stable and resilient. In this context, Dream International
leveraged its forward-looking strategies and well-established
competitive strengths, particularly our dual production base, to
meet market challenges. Supported by decades-long customer
partnerships, a diversified portfolio of high-quality products, and
disciplined cost management, we maintained business growth
and profitability despite fluctuating market demand. We are
pleased to propose a final dividend, reflecting our confidence in
our ability to continue to create value for shareholders.

At the core of our 2024 strategy was to strengthen customer
relationships through proactive collaboration, building trust
and fostering mutual growth in a multi-faceted way. By working
closely with well-known toy brands, character owners and
licensors, we gathered customer insights through regular
feedback sessions, enabling timely adjustments to production
and delivery plans. Our tailored services, delivered through
flexible production runs and design support, empowered our
partners to seize the opportunities arising from emerging trends
and minimize overstock risks. This allowed us to enhance value
and address diverse customer needs. These initiatives delivered
tangible results, as evidenced by high-volume orders and
extended contracts secured throughout the Year, which in turn
fueled stable revenue growth. At the same time, we diversified
our established customer base by securing new customers, with
initial shipments already in progress. All of these efforts have
reinforced our position as a preferred toy manufacturer, capable
of overcoming various obstacles, and laid a solid foundation for
the Group’s long-term development in dynamic markets.

Operational excellence is the foundation of our resilience.
During the Year, we further improved our production efficiency
and cost control capabilities. Building on our previous progress,
we accelerated automation across production, incorporating
robotics in various processes and enhancing efficiency with
automated packaging. Investment in advanced production
technologies has streamlined workflows, reduced labor
dependency, and improved cost control. We are also embracing
digital integration by exploring innovative technologies to further
boost productivity and market responsiveness. Our supply
chain blueprint focused on stability through diversified sourcing
partnerships and localized supplier networks. Additionally,
exploration of alternative materials has allowed us to maintain
quality while mitigating risks from geopolitical and logistical
volatility. In terms of procurement, we have strengthened long-term
partnerships with key suppliers to ensure stable pricing
and negotiated bulk purchasing to leverage economies of scale.
All of these initiatives have allowed us to improve production
capacity, efficiency and cost control, which will facilitate greater
profitability over time.

Environmental, social, and governance (“ESG”) principles
remain central to our sustainable business development
strategy. In 2024, the Group intensified its efforts to incorporate
recycled materials into our product lines wherever feasible. This
commitment reflects our dedication to balancing environmental
responsibility with the high-quality products our customers
expect. Additionally, our investment in automated production
lines has reduced waste and created a healthier workplace for
our employees. Our initiatives in this area not only align with
growing consumer demand for responsible manufacturing,
but also demonstrate our ongoing commitment to minimizing
the ecological footprint of our operations. As regulations and
stakeholder priorities evolve, we remain committed to advancing
sustainable practices. We will continue to incorporate these
principles into our long-term strategy, ensuring that our efforts
meet current regulations and expectations, as well as pave the
way for a more sustainable future.

Looking ahead, macroeconomic and geopolitical uncertainties
are expected to persist in 2025. However, emerging trends in
the entertainment sector, such as the convergence of digital
and physical games and experiential retail, offer new growth
opportunities. Building on our proven strategies, we will leverage
geographical expansion as a key growth catalyst. With growing
customer interest in alternative sourcing solutions beyond
Vietnam, we are expanding into Indonesia, positioning it as an
alternative production hub. Together with our existing bases
in China and Vietnam, this production layout will increase our
flexibility and ability to serve global clients seeking cost-effective
sourcing options in response to ongoing global challenges.
We are poised to capture emerging opportunities in evolving
markets, leveraging our strong customer relationships, agile
operations, sound financial position, and a diverse range
of high-quality products to create sustainable value for all
stakeholders.