Page 200 - KEX EXPRESS (THAILAND) PUBLIC COMPANY LIMITED : ANNUAL REPORT 2024

200 ONE REPORT (FORM 56-1) 2024

35.3 Advertising fee agreement

On 25 June 2024, the Company entered into a Memorandum of Understanding related to the use of media
advertising network services with a former shareholder. The amount to be paid according to this agreement is
Baht 153.00 million with the payment schedule being between June 2024 to March 2025. The Company expects
to be able to utilise future economic benefits from the said amount within 4 years from the date of the agreement.

During the year, the Company has already paid an advance fee for this Memorandum of Understanding
Operational Highlights and Financial Summary
Operational Highlights and Financial Summary
amounting to Baht 113 million, the remaining amount of Baht 40 million will be paid according to the schedule start
in the Memorandum of Understanding.

35.4 Letters of bank guarantee

As at 31 December 2024, the Company and Group have letters of guarantee issued by a financial institution for
the purpose of ordinary course of business amounting to Baht 25.74 million and Baht 26.19 million,
Key Milestones
Key Milestones
respectively (31 December 2023: Baht 103.58 million and Baht 103.58 million).

35.5 Guarantee

As at 31 December 2024, the Company guaranteed to KEX Express Service Limited (Formerly “Kerry Express
Service Limited”) (subsidiary) under the lease contracts for trucks and pick-up trucks which are leased by the
subsidiary. The guarantees cover the full amount of lease payments, totaling to Baht 269.42 million
Business Overview
Business Overview
(31 December 2023: Baht 1,240.50 million).
35.6 Financial support to a subsidiary

Under the long-term loan agreement between a financial institution and a subsidiary, the Company has agreed
with the contracting financial institution to provide financial support in the event that the subsidiary does not have
sufficient cash flow to repay the principal and/or interest to the said financial institution.

36 Subsequent event

Governance Structure and Practices
Governance Structure and Practices
On 21 February 2025, the Board of Directors of KEX Express (Thailand) Public Company Limited held its Meeting
No.2/2025 and passed a resolution to dissolve Kerry Express Betagro Company Limited, a subsidiary in which
the Company holds a 60% of its share capital. This decision was made because the business no longer aligns
with the current business objectives. The dissolution of the subsidiary will not affect the Company’s and the Group
operations. The Company will proceed with the relevant registration for the Company’s dissolution within the first
quarter of 2025 and settle accounts in accordance with legal procedures.

Financial Performance
Financial Performance

Sustainable Development
Sustainable Development