Page 74 - KEX EXPRESS (THAILAND) PUBLIC COMPANY LIMITED : ANNUAL REPORT 2024

74 ONE REPORT (FORM 56-1) 2024

Risk Factors capabilities, pricing, cost control, and service quality.
The industry has also seen the arrival of new entrepreneurs
KEX has always put great emphasis on risk management and e-commerce platform clients who establish express
as a key to sustainable growth. Various types of risks delivery businesses to compete with KEX. Some of these
are continuously monitored and analyzed, as well competitors may have broader service or network
as internal and external factors that might affect on coverage, greater financial and marketing resources,

KEX business environment. Mitigation plans are also more advanced technology infrastructure, stronger

developed and monitored to minimize any potential brand recognition, or greater capital resources. They

Operational Highlights and Financial Summary
impact of risk on its business operations. Key risk may be able to devote additional resources following
factors relating to KEX’s business activities are new capital injections, strategic alliances, or other

summarized below. similar events or implement aggressive marketing
strategies to compete with KEX. In addition to the
Strategic Risk competitive nature of this industry landscape, the
influence of rapid technological developments,
Emerging Risk demographic and socioeconomic trends, and global
KEX has constantly monitored emerging risks that can consumer behaviors on the e-commerce and social
Key Milestones
have potential impact on the express delivery industry commerce industries hascontinually presented
and the Company’s business operations. The most emerging new risks to our businesses. Although KEX
crucial factors during the past years have been has successfully implemented various strategies to
the dismal global geopolitical landscape and continuously grow the business in the face of this

macroeconomic conditions as well as changes in competitive and dynamic landscape, especially an

customer behavior after COVID-19. Geopolitical aggressive pricing strategy to compete in the express

Business Overview
conflicts, soaring inflation, skyrocketing commodity delivery service market, there is a possibility that these
prices and interest rate trends, as well as volatile strategies may adversely affect our market share,

capital markets have put challenges on global revenue, and profitability. In response to these risks,

businesses and consumers. The aforementioned KEX continuously studies and analyses the market

factors affect the market volume and intensified the trends and movements, competitors, and customer
competition among existing players who are express needs and expectations to introduce new services,
delivery companies and platform-owned express units. improve service quality, and adjust our strategies to
This put challenges on the Company’s strategy compete in the market in a timely and efficient manner.
execution and business operations. Given these KEX also has a dedicated customer service team
changing environments, the Company may face devoted to managing relationships with clients and

challenges in forecasting market demands, acquiring maintaining their service commitment to ensure
Governance Structure and Practices
volume, and optimizing resources that could significantly customer satisfaction.
impact its operating and financial performance. In
response to this, the Company has closely monitored Reputational Risk
the market movements, emphasized market research, KEX operates as a household brand, which represents
and the stiff competition so as to reassess volume its commitment to providing comprehensive and
projections and plan appropriate strategies to ensure high-quality services to our customers over the long
that resources are properly allocated and managed. term and embodies the reliability and efficiency of its
services. However, its business operations involve many
Financial Performance
Industry Risks groups of stakeholders. If employees, franchisees,
KEX operates in the highly dynamic parcel express subcontractors, or business partners are unable to

delivery service industry, consisting of many industry provide the pick-up/delivery services to customers in
players. Since its inception, KEX has continuously faced accordance with the SLA (Service Level Agreements) or
competition from international, regional, and domestic fail to comply with the relevant laws and regulations, this
logistics players in terms of business models, operating may have a significantly adverse effect on our corporate

Sustainable Development