Q&A Opportunity Day Q3/2024
Please share KEX’s strategies
KEX’s strategies in 2024-25 will have a few main focus, where:
- Re-branding to KEX Under the new KEX brand, this rebrand aims to create a more unified identity that aligns with our Group’s logistics strategy and reflects KEX’s mission to redefine express delivery local operations to integrate with global network. Leveraging Group’s advanced technology to offer faster, more reliable, and innovative solutions to our customers.
- Identify, assess, and control actively non-profit making businesses, diversify our business and thus reduce dependence on e-commerce platforms.
- Focus on retaining and recruiting medium-to-high-end customers (which can be C2C and B2B) by providing good customer experience and service.
- Reallocate resources in our network in Thailand, so costs wastages can be cut while calibrated resources are put in the most effective places to achieve higher margin faster.
- Develop regional and international business and one-stop logistics capabilities together with Group and companies’ network.
Given the current cash burn rate, do you have a contingency plan in place should additional capital injection become necessary?
The Company is actively managing cash flow and is sensible in utilizing the capital resources to ensure a sustainable business and, at the moment, have received adequate funding and facilities to enhance business operations to increase efficiency, thereby strengthening the Company’s competitive capabilities and profitability.
Could you clarify if there is any possibility of KEX being delisted?
KEX are a publicly listed company on the Stock Exchange of Thailand under the ticker code “KEX.” Currently, we are now focused on rebranding and enhancing operations under SF Express's ownership, showing a strategy aimed at profitable growth and achieving synergies with the group’s business. At the moment, there is no plan to delist as KEX is focusing on rebranding and bringing back the company to the growth path.
Please kindly clarify the rumors that KEX is planning to close or cease its operations.
No. KEX is not shutting down. KEX along with SF Group is committed to Thailand and S.E. Asia. KEX Thailand is an important part of SF’s regional and international strategies. This support can be witnessed from our recent completion of Right Offering with capital injection along with providing KEX the operation “know-how" and technology. These tools allow KEX to be sustainable and adapt to core strategies of serving medium to high end customers better while reducing the dependence on e-commerce platforms especially those who have their own in-house delivery teams.
Referring to recent social media discussions regarding courier and employee protests, we would like to ask the following questions:
Q1. What are the reasons behind the closure of certain distribution centers (DCs) or shops?
A1: Opening, closures, relocations, and consolidations of DCs and Shops are dynamic and align with our operation planning in order to achieve our company strategy, revamp the operations and increase operational efficiency.
Q2. How will these closures impact KEX's customers? Will there be any effect on delivery timelines?
A2: Part of our company strategies is to provide distinguished customer experience and service for our customers. KEX will continue to strive for consistency and stability as part of providing quality service.
Q3. What measures is KEX implementing to support employees affected by these closures?
A3: Our HR has supporting actions and programs which are compliant to the Thai Labour Law and our staff can always reach out to them in case of clarifications and discussion.
Q4. Are there plans for additional closures in the future?
A4: As mentioned, our operation planning is a dynamic schematic that has to change in order to adapt to the market needs.
Recently, there have been reports on social media about a significant number of employee layoffs, along with rumors that KEX is considering selling its domestic delivery business to J&T. It is suggested that KEX will focus solely on international shipping and B2B logistics, which are SF's areas of expertise. Could you provide clarity on this matter?
KEX does not need to sell our business. And we remain committed to all our customers to enjoy the same services provided (i.e. tracking status update and parcel monitoring) at an elevated level and commitment. Within our strategy, certain areas or locations will have greater synergy by employing various local partners as long as they can sustain our level.