Dear Valued Clients, Partners, Shareholders, and Stakeholders,

On behalf of the Board of Directors of Family Microfinance Plc., I would like to express my sincere appreciation for your continued trust, confidence, and support throughout the years.

In the context of the world economic downturn, it is forecasted to moderate to 3.2% in 2025 down from 3.3% in 2024. A slight acceleration for advanced economies—where growth is expected to rise from 1.6 percent in 2024 to 1.8 percent in 2025. This implies that advanced economies will see a marginal growth of approximately 0.1% between 2024 and 2025, remaining steady into 2026. Conversely, growth in emerging market and developing economies is projected to decelerate from 4.2% in 2024 to 4.1% in 2025, and further decline to 4.0% in 2026.

The primary factors contributing to this decline include high interest rates, rising public debt, escalating global geopolitical tensions, and a slowdown in world trade. According to the World Bank, global inflation is projected to decline steadily from 5.9% in 2024 to 4.5% in 2025 and 4.4% in 2026.

In 2025, Cambodia’s economy experienced a slight downturn due to border tensions between the Kingdom of Cambodia and the Kingdom of Thailand, with growth projections falling from 5.2% to 2.5%. The Asian Development Bank (ADB) has revised its growth forecast for Cambodia downward from 5.2% in 2025 to 4.5% for 2026.

Despite a slight economic slowdown in Cambodia, the industrial, manufacturing, services, and tourism sectors continue to maintain significant growth. Concurrently, the real estate, tourism, and banking and finance sectors continue to face lingering challenges from the COVID-19 pandemic.

To ease the situation and support recovery, the NBC issued a new framework for debt restructuring. Family Microfinance Plc. has collaborated with our clients to restructure loans and provide support to those facing financial difficulty.

The past year has been particularly difficult for our institution as we have faced unforeseen financial challenges, resulting in a loss for the year.

However, we acknowledge that we must take responsibility for our current position. We are actively working to review our lending practices, improve risk management strategies, strengthen our capital and enhance our financial sustainability.

While this year has brought about significant challenges, we are confident that these measures, combined with our dedicated team and loyal stakeholders, will enable us to overcome the current financial difficulties.

I would like to take this opportunity to express my deepest appreciation for the continued support of our shareholders, employees, and customers during this difficult period.

We look forward to turning this page and returning to a path of sustainable growth and positive impact in the coming year.