Good morning, ladies and gentlemen. Welcome to the SCG Analysts' Conference for the third quarter and the nine months of 2024. I'm Sutathip, and I will be the moderator for today's session. We highly appreciate to welcome the guests joining online today. Our management are here to provide you the third quarter and the nine months of 2024 for the financial performance, as well as the business updates. After that, we will open the floor up for the questions after the presentation finish. Today's presenter comprise of SCG management led by Mr. Thammasak Sethaudom, the CEO of SCG, who will walk you through for the consolidated results and provide highlights of the SCG Cleanergy. SCGC management led by Mr. Sakchai Patiparnpreechavud, the CEO of SCG Chemicals.
Next are our management from the business related to the cement and construction business, beginning with Mr. Surachai Nimlaor, President of SCG Cement and Green Solutions business, and Mr. Wiroat Rattanachaisit, President of SCG Smart Living and SCG Distribution and Retail businesses. Followed by Ms. Chantanida Sarigaphuti, CFO of SCG, who will presenting for the SCG Packaging and Financials part. Then for the sustainability part will be highlighted by Mr. Chana Poomee, Chief Sustainability Officer. Thank you, and now let's start for today presentation beginning with Mr. Thammasak.
Good morning, and thank you for joining us this morning to discuss about the third quarter performance. Third quarter is one of the challenging quarter for us and, in detail, we will discuss about the chemical. Chemical business was in a deeper bottom. If you look at HDPE naphtha gap, this last quarter is around $300 / ton, and sometime is below the $300 / ton. This is far below the industry cash cost. That's the situation we are facing with. It amplify with the fact that this time we have three cracker in operation. That why it's the impact of chemical is amplified three times. One of the key reason that chemical is in the deeper bottom is because of the China weaker demand, which we will discuss later.
Cement and building material was in the slower in the third quarter due to flood. I guess that many of analysts already listened to Wichan yesterday. The packaging business, especially the paper business, it softened due to the regional demands soften. Let's get into the presentation. First of all, look at the sale revenues. The third quarter this year, we register at THB 128 billion, flat quarter-on-quarter, but up 2% year-on-year. The flat quarter-on-quarter because we have higher sale revenue of the chemical business, but we have weaker sale revenue of the packaging. If you look at nine months, the sale revenue register at THB 380 billion. This is the flat year-on-year. On the nine months, sale revenue chemical and packaging is increased year-on-year, but cement and building material business decreased year-on-year.
On the EBITDA, t hird quarter EBITDA registered at THB 9.8 billion. Later on, I will discuss the one-time IRS unwinding. Just look at the third quarter EBITDA. It dropped 11% year-on-year, mainly because of the chemical and packaging and the soften of the cement and building material as we discussed. In the third quarter, we have the inventory loss around THB 940 million. Again, the spread of the chemical, if you compare year-on-year, the spread of HDPE naphtha dropped by $40 /ton. Nine months, the EBITDA registered at THB 38.7 billion, dropped 10%. You could see that EBITDA on the year-on-year drop are smaller than the quarter-on-quarter, because quarter-on-quarter we have the dividend season in the second quarter. For the profit, we registered profit in the third quarter of THB 321 million.
Just to explain it, this included the unwinding of the interest rate swap around THB 2.1 billion that registered. If you adjust that one out, because that is a one-time, our performance will be THB -1.4 billion. T hat is the situation we are facing in the third quarter. For nine months, our profit registered at THB 6.8 billion. Let us compare with the THB 12.8 billion last year, because I adjust the last year we have the SCGJWD Logistics deconsolidation and the knock.
I f you adjust that one, last year our nine-month profit was THB 12.8 billion. Compared to THB 12.8 billion, profit nine month declined 46%. Let us dig deeper on what really happened in the third quarter. You could see second quarter, our profitability stood at THB 3.7 billion. In the third quarter, chemical is the business unit that the largest soften in the performance.
You could see the chemical declined by about THB 2.4 billion on a quarter-on-quarter basis, mainly because of the inventory loss, FX loss, and of course, the lowest spread that we have. We have a full operation of the Long Son Petrochemicals for one month. T hat is why chemical has the decline in terms of the profitability the most. Cement, Building Material, and Packaging also declined on the performance.
W e have one-time gain of the IRS of THB 2.1 billion. T hat is why this third quarter, we still can make a profit at THB 321 million. For sector level, you could see that SCG Cement and Green Solutions, SCG Smart Living and SCG Distribution and Retail and SCG Decor Public Company Limited on the year-on-year, the profitability increased. However, that is smaller than the decrease of the chemical and packaging. T hat is why overall profitability declined.
Management has taken several actions and this action will be taken further, not only for short term but also for the medium term. Immediate focus in the second half of this year, we will manage the debt and we reduce the debt, especially the U.S. dollar loan that we have a plan to repair to reduce the interest rate cost. We streamline and trim down the working capitals. We target at the THB 10 billion reduction of the working capital by early of next year. Y ou could see that if we can free up cash for THB 10 billion, basically it will reduce the debt for us. Of course, over the past few months, we already streamlined the non-profitable operation and discontinued many non-competitive unit and wind down. That also saved us the cost.
CapEx spending also tighten. We still have some investment, but mainly on the very quick return and also the green investment. LSP CapEx and debt profile also restructuring. In the short-term target, I think what we have done and we try to do, we have to take the target at the short term. Management will take the asset divestment because yesterday we already informed the stock market that we will invest in the ethane addition at LSP, which Mr. Sakchai will explain in the detail. I n order to control the overall debt level, we are aiming for the asset divestment to control our overall debt and ensure the financial stabilities. Cost cutting we also further cost cutting will also target at THB 5 billion next year.
That will come from the closing down of further non-profitable operation and also reduction of the SG&A net debt and working capitals that will contribute for THB 5 billion gain from that short-term operation. I n order to solve this issue, we have to also look at the medium term. Medium term, we will have to refocus on the core asset, the operation that we will have to improve the competitiveness and the efficiency. For example, like Long Son, that we improve the efficiency. The ethane project will be a key piece of the medium-term improvement that will shift our competitiveness to a competitive quartile in the global cost curve.
We still boost the high value-added of the chemical, which over the next few months, we will release more and more of the high value-added expansion, because this is the one that really help the Thailand operation to stay competitive in the deeper bottom that we are facing. For the cement and building material, which have a looking brighter future, especially not only in Thailand, which is we see improve in the construction demand due to the government budget spending that's already taken into the effects. A lso the regional demand that start to improve in Vietnam, Indonesia, and Philippines.
That's why we will accelerate our position in the low carbon cement. Because this one not only improve our long-term position, but also improve our cost position, which Mr. Surachai will give a further detail. That is the quick highlight. I will come back on this again toward the end of the presentation. Let's get into the detail first. May I pass to Mr. Sakchai ?
[Non-English content] Good morning. Let's start with the market situation in Q3. Throughout the third quarter, polymer demand has remained sluggish, falling short of expectation for the high season, reflecting broader trend of cautious consumer behaviors and economics uncertainties. Only C4 by-products benefit from limited naphtha cracker running. Look at the price and gaps. Crude oil price also drop a little bit down to $79, - $6 /bbl . Naphtha is also weak, - $16 /ton , down to $672 /ton . The product gaps, look at these quarters. PE dropped down $41 /ton . PP gap dropped down $13 /ton . As Mr. Thammasak mentioned, this gap is very low and also make the producer is very difficult.
For sale volume in the third quarter, it seem that the volume overall is lower than the last quarters and also higher than the last year, contributed by LSP. For nine months, we achieve 1.3 million tons. That's the portion of LSP, about 220,000 tons. Look at vinyl chains. Vinyl chain is also weak. The ongoing trend of price erosions caused by the weak constructions in the regions, especially in China. The market gap dropped to $322. That's about $12 / ton from the last quarters. Sale volumes is also dropped down a little bit to 168,000 tons. For nine months, it's also dropped down from the last year. Nine months this year, we have sold 500,000 tons.
For financials of SCG Chemicals of the third quarters, the revenues is increasing from the last year because of LSP start-up. Total sales revenues in the third quarter, THB 53 billion. For nine months, it's THB 151 billion. EBITDA, the third quarter still positive. Is about THB 1.5 billion. That's already including the one time gain from IRS. For nine months, the EBITDA has achieved THB 6 billion. Actually, it's about half of the last year. Look at the profit. The profit in the third quarter totally lost about THB 1.5 billion.
That's mainly caused by a subsidiary, as Mr. Thammasak already mentioned. This quarter, we have the stock loss, the strong baht, and the narrow gap, including LSP, a startup. The third quarter normally is the low contribution from dividend from associated companies. For nine months, profit minus the THB 4.5 billion, mainly because of, as I mentioned, LSP and the subsidiaries. For the associated company this year, the dividend is also less than the last year. Going forward to the next quarters, Q4, the outlook is still weak.
Actually, the supply side, especially from China, capacity addition and sluggish demand persist. That makes the polymer market in the fourth quarter still challenging. Wire news business is also. Actually, wire news very much depends on the constructions. We also hope the stimulus of China would be effective. Otherwise, you will see the products export from China to Asia. At the end of the years, normally, the cargo from U.S., every year they export to Asia. That's why the fourth quarter of this year, the overall is still very challenging. The cost we know will, at the end of the year, the energy price is getting higher because of the coming winters. We also forecast the naphtha price, crude oil and naphtha price are still strong. At the same time, the product price probably is maintained. Next is I would like to update LSP.
LSP already started up since September 30th. We already test run all the mode of operations. The plant's performance in the good conditions. The product is also distributed to our target market. All the product quality is well accepted. Unfortunately, the market at the third quarter, especially right now, is under pressure. That is why we decided to shut down some of the LSP in order to mitigate the loss. Right now, we will look closely in the market improvement. We will bring three cracker in the carefully optimization. Also, we will focus more on domestic customers. Also, we will try to increase the HVA products extended from Thailand to Vietnam. Also, we will look at the cost, how to reduce the cost in SG&A and also the working capitals. This is the main focus from now on until the market improvement.
I used to explain the reason why we decided to add the ethane into our asset in Vietnam, LSP. This is the cost curve. You look at the right-hand side. The producers on the right-hand side considering is less competitiveness comparing with the producer on the left-hand side. Just make it simple, the right-hand side represents LSP. That is why we will bring ethane from U.S. That will make the economics of the LSP will be better. Our competitiveness will improve from the fourth quarter to the mid of second to third quarters. I am sorry. Move to about third quarter, not the third quarters. This is a little bit details of the LSPE. Yesterday, SCG already made announcement to the public. Overall investment is about $700 million, equivalent to THB 23 billion . Funding from SCC internal sources. The major CapEx is ethane tank storage.
That will be expected completion in the end of 2027. Another major task that we are going to do is we will apply for the permits. According to Vietnamese law and regulation, we have to submit and to get the certificate and permit before we move forward. In short, the rationales that we are going to improve the competitiveness of LSP. The key reasons, we would like to bring in the competitive feedstock ethane from U.S., and LSP basically designed for gas-based. It means that if we introduce another gas, we can get advantage. In term of the modification will be less, and also the executions of this modification will be faster. Definitely, if we could get the ethane as the feedstock, our cost will be lower, is about $250 /ton . This curve that already is happened in the past.
Look at average naphtha price and ethane price. Majority is the price different on average $250 /ton. T his also can make our carbon footprint from this asset will be lower. This the last, I just want to update SCG Chemicals. We still pursue the green initiatives and introduce new products into the market. In the past quarters, we have collaborate with the several plant owners. O ur product is already launched in the market, in both the consumer products and also some is linked to the constructions. Thank you.
Good morning. May I start from the financial highlight. Revenue from sale in the third quarter dropped by 3% year-on-year. In the first nine months, revenue from sale dropped by 6% year-on-year, mainly from soft demand in construction market. Even though we have planned maintenance of our cement plant in the third quarter, EBITDA and profit in the third quarter improved when compared to year-on-year. EBITDA and profit in the first nine months increased by 13% and 95% year-on-year. Thank to our energy transition and our efficiency improvement project that we have done in the first half of this year. For the Thai market, overall cement demand in the third quarter decreased 0.5% year-on-year, significantly improved compared to the previous quarter.
Ready-mix concrete demand also increased 1%, aligned with our cement demand growth, while the situation in ASEAN also improved compared to the same period last year, as Mr. Thammasak mentioned earlier. In the first nine months, we use alternative fuel reach up to 46%, increase 6% from the same period last year, mainly from developing a new decarbonization project and our technology. We also replaced our ordinary Portland cement with a low carbon cement. The low carbon cement has increased from 58% last year to 86% in the first nine months. We also successfully implement ongoing cost reduction strategy focused on our alternative fuel usage and renewable energy and low carbon product. W e can achieve a total cost saving almost THB 1.2 billion in this year.
Moreover, we are the first company in Thailand that we successfully expand environmental product declaration certified to cover all the mortar products. For the outlook, we foresee recovery in Thailand construction market in the fourth quarter, driven by our government projects and private investment. While we still see a continued growth in regional and recovery in other market also. We continue working on cost reduction by increasing alternative fuel and renewable energy usage. Additionally, to secure our biomass usage, we enter into a partnership with the Forest Industry Organization, or FIO, to promote energy crop cultivation on their land. T hat's all for the Cement and Green Solution business.
Good morning, everyone. For the Smart Living and Distribution and Retail, today I begin with the construction materials market situation. For the Thailand building materials in first quarter dropped 10% due to the slow demand in residential segment and flooding in the northern. Still there are some favorable sign from the non-residential segment, like government segment infrastructure project. For the regional market, Indonesia market and Vietnam is regain momentum, while the Cambodia market remains slow. For the Smart Living and Distribution Retail business in this quarter, sale performance decline from both domestic and overseas market due to the slow market situation. However, nine-month accumulation, EBITDA and profit increase mainly from the overseas business from the foreign exchange gain. Let's move to the Smart Living business effort. We continue strategically agility to enable us efficiency and respond to market dynamic.
For the smart building material system, we aim to develop the new material and system for customer insight. We can provide the customer comprehensive solution. For example, we contribute the [inaudible] with an effective system post the flood work. Moreover, we are awarded in the market tier one brand in Thailand, and also we continue the sustained competitive advantage. We continue our cost saving projects, such as the lean automation. We gain THB 240 million in the first nine months. For the distribution and retail business effort, we proceed the enhanced domestic growth and fortify global presence. For the Thailand market, we already do three house brands. For the house brand, like a unique top steel and top pro with the sourcing from our international strategic partner.
For the international expansion, our JV with CSA, we expand the Mitra10, the leading modern trade retailer in Indonesia, open two more new brands and reaching 52 brands in Indonesia. For the outlook, we anticipate the government spending in both Thailand and regional. We still aim to grow in sustained business flowing, develop affordable product in the capture opportunity in growing segment, and maximize cost effective and enhance sustainable energy usage, and proceed to improve our supply chain operation with the digitalization in order to capture the customer need and both domestic and international market. Lastly, I would like to share with you about the update, Q-Chang.
Q-Chang is a platform connecting more than 10,000 skilled technicians to the customer nationwide with a service, like home repair and renovation, home installation, and home service. With strong track record to developing innovation solution for the both B2C and B2B customer, had a solidify our position in market. Now we are scaling up to drive future growth and seeking strategic partner to join us in the taking Q-Chang to the next level. Next, for the SCG Decor Public Company Limited update. For the SCG Decor Public Company Limited business performance in Q3, the company faced an unexpected drop in market due to the storm in the Northern and Central Vietnam, along with the flooding in Northern and Northeastern in Thailand. As a result, revenue from sale was THB 6,240 million, down 5% from the previous quarter and 13% from the same period last year.
EBITDA reached in at THB 766 million, declined from 16% quarter-on-quarter and 13% year-on-year. Net profit reaches to at THB 189 million, down 34% from the previous quarter and 22% from last year. For the nine-month period, SCG Decor Public Company Limited perform improved despite facing many challenge. Overall profit increased 15% compared the same period last year, while the EBITDA remain, even though revenue decreased nearly 9%. EBITDA margin and profit margin improve over time, reaching almost 13% and 3.7% respectively, the reflect of the company ability to generate profit efficiently, effective in this year. Thank you. Ms. Chantanida?
Good morning, everyone. I will start off with a quick recap on the SCG Packaging performance. For the Q3, revenue from sales was about THB 33 billion, up 6% year-on-year, down 3% quarter-on-quarter. The EBITDA was about THB 3.5 billion, and net profit about THB 580 million. EBITDA and net profit declined both from quarter-on-quarter and year-on-year, basically because of the rising raw material prices since the second quarter of this year. That resulted in the lower packaging paper margins. For the nine months, revenue was THB 101 billion. EBITDA, THB 13 billion, and net profit, THB 3.8 billion. Look at the financials. I put this slide up front. If you could recall, I'll normally put this one on the last page.
What I would like to emphasize is that you may look at the cash on hand at the end of Q3. It dropped from THB 78 billion down to about THB 48 billion. There are reasons behind that. One is that in August, SCG Packaging acquired the 100% of shares in Fajar. That results in the reduction of cash by about THB 23 billion. Also, we redeemed the debenture that we issued to the financial, no, sorry, the institutional investors. That's another THB 10 billion. T hat combined caused a reduction of the cash down to THB 48 billion. Despite that, our financial position remain strong. We just completed the issuance of the debenture at SCC, THB 30 billion. The resubscription rate of that was 91%. That was considered very high. The remaining was sold out quickly as usual.
In terms of the financing capability, the raising fund, we remain very strong. Debenture continue to dominate 75% of the long-term loan and the currency is still pretty much majority in Thai baht. Looking at net debt. Net debt to EBITDA rise down to 6.3 x at the end of Q3. It has been increasing. The reason that it shot up in the Q3, I think the same reason as I explained. Because the reduction in cash resulted in the higher net debt. Anyhow, based on our internal calculation, our forecast by the end of this year, we expect to bring down Net debt to EBITDA to around the mid of 5 x by the end of this year. CapEx and investment spending. Nine months, we spent THB 48 billion. THB 23 billion of that was from FajarPaper acquisition.
Subtracting that amount, it's about THB 26 billion in terms of the CapEx and investment spending. Our full-year, we expect about THB 37 billion exclude FajarPaper, which pretty much a little bit slightly lower than what we have informed you earlier this year of about THB 40 billion. That concludes my part, and next is Mr. Chana's.
Good morning. Decarbonization transition of SCG is very good, still in line with the Science-Based Target. In the first nine months, the emission of the greenhouse gas is about 20 million tons of Scope 1 and 2. We project for the whole year, we will come up with 29 million tons. That are still lower than Science-Based Target that we commit. Next slide, please. As a part of the greenhouse gas reduction has been achieved mainly from the alternative fuel or biomass, that also using the refuse-derived fuel or RDF. As you can see that increasing from last year is about 6% for cement industry business. For the whole of SCG, we achieve nine months at 28% increase from last year at 24%. Next slide, please.
Accelerating of the development of low carbon product as we have a SCG Green Choice label is one of the key lever, is helping SCG to achieve Net Zero target. In the first nine months of this year, revenue from sale of SCG Green Choice is about THB 207 billion, account for 54.4% for total revenue. Next slide, please. This also the one of another achievement that we do the externals and internal collaboration in the Saraburi Sandbox area-based approach. We got recognized in the Global Corporate Sustainability Assessment , community World Economic Forum, that Saraburi Sandbox is the first industrial cluster in Thailand, or the third in ASEAN that join World Economic Forum Transitioning Industrial Clusters initiative.
This international recognition highlight the tangible collaborative effort driving the project forward, not only for the internal SCG, but also we do with our supply chain of the SCG and with the government agency, private industry, and also civil society. This also provide opportunity to access the funding, and other from the support of both the national and international level. Next slide, please. This is what we also follow the NDC of Thailand categorize in the five initiative.
We still are quite very good progress to work without any different what we have planned. For example, energy sector, renewable energy production is underway in collaborative with Princeton University and also do the project with the Provincial Electricity Authority and governors. Waste management, we also do the partnership with the Thailand Institute of Scientific and Technological Research. Five pilot site have been selected for waste separator installation to accelerate waste segregation from the source.
Also the agricultural sector, the project aim to expand alternative wetting and drying rice cultivation from 50 rai in last year, target to 1,000 rai this year. Land use and forestry are strengthening Saraburi community forest network. The project is developing assessment criteria for over 40 community forest with the focus on creating food bank and promoting sustainable resource utilization. Next slide, please. This is the very good response from our stakeholder in the ESG Symposium at the end of September. We also proposed four issues to the government. One is the unlocking law and regulation, as you may know that finally the law and regulation are quite very important to support our decarbonization of the country to be the smooth transition and also will expedite what we have the project in assembly is about 37 projects.
Second, we also proposed that advanced technology and green infrastructure have to be focused not only cooperate in Thailand but also have to bring in best of technology from outside Thailand. Also, the pressure from the financing is the one of the key driver that if we can have the very good support from the government side on the green financing or green funding, we will also expedite this kind of the transition of Thailand. The last one is very important because of the SME. They have a lot of the small company that also may have the pressure under of the decarbonization transition. We also ask the government to consider supporting to SME and enhance the competitiveness of the old SME. That's all from my side. May I pass to Mr. Thammasak.
[Non-English content] For me, on the quick update of the clean energy progress is quite steady. This quarter, we put 17 MW in operation, and we still have 467 MW in the pipeline. You're going to see steady increase of our green MW. Something that interesting is the even though it's quite small, but this is the first commercial smart microgrid. Smart microgrid is the key piece of technologies that will allow us to add more of the solar into the national grid. This is still a private one, but the technology is tested. We work with Toyota and group, which is consisting of several customer to put into the smart microgrid and also the battery storage. The battery storage is 0.6 MW h and overall rooftop is around 6 MW.
These are the thing that we are putting to the operation, which will increase the renewable power in a very flexible model and enhancing the BESS, the capability to improve the utilization. We can also manage the carbon credit or RECs in a centralized platform. That's a test in operation of this smart grid. Next one is on the green loan. As Mr. Chana mentioned, the green finance is very important for the SME. We are testing on this green loan for THB 1.5 billion for our solar private PPA with the KBank. Rondo is the first Rondo unit in Thailand is well on schedule. We will have a showcase early next year, and that will show how we can decarbonize using these new technologies of the heat battery. I will come back to update you on this one. That's a quick update for the clean energies.
Now, for outlook. I think we are living in a very volatile situation from the multiple geopolitics issue that probably the next few day, few week there will be a major event like U.S. election which will definitely reflect into the demand fluctuation or even the oil price could be very volatile. I n this region, China still play a very big part of the regional demand, not just the global. We keep an very close eye on China, a series of the stimulus package. Just to name a few. You see the interest cut, you see many things, but I would like to highlight that the Chinese government on the September 24th announced the economic stimulus. PBOC introduced 800 billion facility to support the corporate to buy back their share.
So that will one way to, in a way, more like a QE that you inject, that the Chinese government inject into the economy. October 12th, Ministry of Finance raised the local government debt ceiling and expanded the local government financial resource. That will definitely help the SME and the estate in the provincial level. October 17th, housing minister expand funding for travel property developer. They make into the black, gray, and white. Of course, black category have to shut down, but gray and white will be rescued. That will be very helpful. Also easing the purchase restriction. Several purchase restriction has been eased, lower the market rate. That have a potential to improve the China domestic demand over the next 6 - 12 months. That is something we keep an eye on.
As Mr. Sakchai explained that chemical business, the demand is dependent pretty much on the China domestic demand. That why we have to keep an eye on. O verall, chemical business still continue to be quite challenged from the low margin. I do not want to say a very gloomy thing, but we have to prepare for it for the full next year. That is still in a very tough situation for the chemical business.
Of course, if the stimulus program has been executed as the plan by the Chinese government, that will help. So far, the effect could be toward the end of 2025 or even 2026, so we have to prepare for the worst-case situation. The oversupply is still there for the chemical, as the chemical unit already explained. We know the supply is coming, but the softer demand is something that quite unexpected. Very soft demand.
If the Chinese economy improve, global economy improve, that will ease the demand softening. SCG, since we have three cracker, especially the first brand new cracker in Vietnam, we have a lot of depreciation interest that hit us at the bottom of the cycle. That why we have to really focus on the cash flow and EBITDA to make sure that our financial stability is there. In the trough, if you can pass the trough, the amplify effect will be even bigger. T he key assumption is have to pass this trough. That why we really ensure on the financial stability. In the long term, we transform LSP to be able to use ethane which you know that will be the key competitiveness of the chemical in the long term. Yesterday, SCG Board of Directors already approved on this project to move on.
On the construction material and other related business, we see a sign of improvement not only in Thailand but also in the regional. Vietnam and Indonesia also see the sign of the recovery. That help. However, the amount of the decline of the chemical is quite significant. T he construction business unit may not be able to cover all. T hat why we need to put more action to cut costs. This is, again, I just come back on this page. Very important for us to maintain our financial strength and stability. That why we are working on the divestment of the asset. I cannot say much on this but let us assure that we are working on this to ensure that we control the overall net debt. I hope to come back to explain to you more and more on this initiative.
But another thing that I want to highlight is we really have to go the further cost cutting on the THB 5 billion target, together with the release the working capital for another THB 10 billion . T hat will really help us over the next year to maintain the overall stability and strength. W e will do in a way that improve our long-term competitiveness, not just the short-term issue that we try to solve. You could see that we emphasize on the quick win HVA expansion because that will improve our long-term competitiveness.
We have to be really decisive on the non-profitable business. Have to be very clear on this one, because we have to conserve the cash. F or the cement and building material, especially on the cement, we already see the formula of the future business model, which is the low carbon cement. Which in a way that we can do in a way that we can reduce the cost and improve our competitiveness at the same time. That why we have to speed up on that movement. Not only in Thailand, but also in Vietnam and Indonesia and the rest of the region.