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52 Super Turtle Public Company LimitedThe main operational processes involving in inventory management include (a ) product sourcing, (b) product ordering, (c) sales and promotional activities, and (d) stock take and inspection of expired, damaged, and lost product items. The Company has established control activities to manage the risks associated with these main operational processes, such as:(a) Product sourcing process involves considering the needs of the target customer group, surveying the product items and prices of competitors, defining the product items and their position in Turtle shops, seeking suppliers with diverse range of product offerings and favorable trade terms. This process will enable the Company to accurately determine the estimated inventory quantity and value in each shop.(b) Product ordering process shall ensure the availability of product items and quantity according to the shop planogram, as well as take into account of customer demand, stock levels, and supplier delivery schedules. For every order placement, the Company aims to have products available for sale while maintaining a suitable inventory level. The Company uses a system to facilitate ordering by analyzing inventory data, historical sales volume and the ordering conditions and delivery schedule agreed with suppliers. This will help recommend stock team to place accurate and sufficient orders of merchandise.(c) Sales and promotional activities shall follow the agreed prices and plans set for the relevant period. The Company shall continuously and regularly review, verify, and analyze sales and promotional data in order to understand the sales volume and profitability of each product item. For example, top selling items, slowmoving product items and the performance of promotional activities. This enables the Company to adjust its sales strategies and promotional activities to better meet customer needs, increase revenue, and set appropriate inventory level.(d) Stock take and inspection of expired, damaged, and lost products. Each Turtle shop and central warehouse must conduct stock take on a regular basis with an appropriate frequency. Product expiry must be reviewed to identify appropriate measures such as promotional price or trying to sell off these products. Damaged items must be monitored so that stores can claim or return those products to suppliers on a timely basis for replacement or compensation. This is necessary to ensure an accurate reflection of the quantity of product items available at each Turtle shop and the warehouse against inventory level in the system.(5) Capital Management RiskDuring the expansion phase, we realize the importance of having adequate funding to support both existing operations and capital investment for more store opening and lease area refurbishment.The Company managed to raise capital of around THB 4 billion in 2022 which should cover our expansion plan and operations until we start making profit; hence, there is a low risk of insufficient capital. However, the Company is still careful in capital management by maximizing return on the surplus capital as well as ensuring sufficient cash flows for operations and business expansion at all times.13.3 Emerging RiskApart from managing risks involving in the business operations, the Company also emphasizes addressing emerging risks that may impact or bring business opportunities to the Company in the future. Therefore, the Company conducts the reviews of emerging risks which are as follows:(1) Risk from Changes in Laws and Regulations Relating to Business OperationThe Company%u2019s business operations are subject to relevant rules, regulations, and laws. Failure to comply or incomplete compliance due to the enactment of new laws or amendments to relevant laws may affect the Company%u2019s reputation, resulting in penalties and fines, or lead to the loss of business opportunities. Therefore, the Company strictly and completely complies with all relevant rules, regulations, and laws. To manage this risk factor, the Company has organized a team to monitor the development of the laws concerning the business operations of the Company closely and continuously. The team regularly attends seminars and/or trainings held by the governmental and private sectors with respect to the laws relating to the business operations of the Company in order to ensure executives and other business units in the organization are informed. This ensures that the Company%u2019s personnel have the knowledge and understanding of the laws related to their business operations.Introduction Nature of Business Business Performance Corporate Information Corporate Governance Financial Report Attachment