Page 76 - KEX EXPRESS (THAILAND) PUBLIC COMPANY LIMITED : ANNUAL REPORT 2024

76 ONE REPORT (FORM 56-1) 2024

Business Continuity Risk Act B.E. 2562 (2019). In the event of a new law or an
Natural disasters, epidemics, political violence, amendment to the existing laws or regulations, KEX’s
insurgency, terrorism, strikes, and other uncontrollable business operations may be adversely affected if it

events may affect KEX’s operations, such as the cannot fully comply with the laws. The latest regulatory
inability to complete pickups or delivery services in change was the Personal Data Protection Act 2019
some areas or a shortage of operational employees. The (PDPA) which was effective on 1 June 2022. While the
COVID-19 pandemic from new variants has made this direction from the regulatory body was still unclear and
risk more imminent during the past year. For this reason, had continuously released sub-laws, the Company
KEX has developed a business continuity management adapted its operations to align with the Act, including
Operational Highlights and Financial Summary
plan so that all departments can deal with any probable raising awareness and rechecking the protocol. KEX
crisis or emergency and reduce the impact on the places great emphasis on this Act due to the nature of

business and minimise any possible service interruption its business that uses customers’ personal data including
to build confidence among its stakeholders. names and addresses. Overall, the Company has
continuously monitored legal and regulatory
Financial Risk requirements related to the business and the industry.
The relevant changes are reported to management to
Key Milestones
Operating Expense Risk align their functions with the new requirements.
KEX has adopted various cost reduction measures to
reduce its operating costs by expanding its network, Occupational Health and Safety Risk

which drives economies of scale and improves its As human resource is essential to the success of
operating efficiency through routing, asset optimisation, its business, KEX places significant emphasis on
and the adoption of advanced technology. However, the health and safety of its employees. In this respect,
Business Overview
these measures may take time to be effective in KEX provides safety and occupational health
improving KEX’s operating efficiency and profitability. measures in the working environment following the
Fuel and labor costs are the main components of KEX’s relevant standards, laws, and regulations, especially
operating costs. Fuel prices may fluctuate due to concerning operational safety within sorting hubs,

changes in the global oil production capacity, distribution centers, transportation processes. KEX
seasonal variations, weather or climatic conditions, provides suitable working equipment to protect

geopolitics, or other factors, while labor costs may employees from any risks they might face during sorting,

fluctuate based on changes to the industry and moving, and transporting parcels. Meanwhile, the
economic conditions as well as relevant government conditions of transport vehicles and the readiness of
policies. Such changes may affect KEX’s cost structure carriers are also checked before operations begin.
and lower its profitability. Therefore, KEX has created a In addition, KEX regularly promotes knowledge and
plan to increase the efficiency of its fuel usage and awareness of workplace safety and safe driving through
Governance Structure and Practices
vehicle management as a way to control fuel costs. In training and various communication channels to prevent
addition, enhancing operating efficiency through better physical injuries and property damages to employees
manpower and technology adoption is also a key focus and third parties.
of KEX. Furthermore, changes in fuel prices and labor
costs are monitored closely to timely and appropriately Corruption and Misconduct Risk
develop and update plans in response to these risks. As KEX’s business operations involve a variety of
activities and rely on a significant number of managers,
Financial Performance
Legal and Compliance Risk staff, suppliers and subcontractors, corruption and

KEX operates under several applicable laws and misconduct can arise at different levels within the
regulations, including the Land Transport Act B.E. 2522 Company. This could substantially impact its business
(1979), the Vehicle Act B.E. 2522 (1979), the Trade operations, brand reputation, financial performance, as

Competition Act B.E. 2560 (2017), the Foreign Business well as bring about major legal and regulatory
Act B.E. 2542 (1999), and the Securities and Exchange issues. Realising this important risk, KEX has placed

Sustainable Development