Cho Thavee Public Company Limited informed of the resolution of the Board of Directors' Meeting No. 4/2024, held on March 4, 2024, approving the cancellation of the Project under the Contract for the sale and maintenance for Air-conditioned passenger vehicle using natural gas (NGV) of the SCN-CHO joint working group (consisting of Scan Inter Public Company Limited and Cho Thavee Public Company Limited) with the Bangkok Mass Transit Authority (BMTA) according to Contract No. R.51/2017 L. W. 27 Dec.

This was due to the fact that the Joint Venture had faced with unresolvable obstacles in the execution of the contract resulted from the internal situations within BMTA. One of the critical factors was the payment delay (some installments had been delayed for more than 3 months). The Joint Venture had issued notification letters demanding the payments but did not receive any remedy or correction.

As a result, the Joint Venture had to seek additional working capital financing that led to higher operating costs, the procurement of spare parts delay etc. As a result, the work could not be delivered as planned, and fines were unfairly imposed. The Company's Board of Directors has considered the cancellation of the said contract with honesty, caution, primarily protecting the interests of the Company and stakeholders, and is of the opinion that it is a transaction that affects the perception of information and investment decisions of shareholders.

Therefore, the provision of such important information is hereby provided to the SET. However, the cancellation of the said contract It does not affect the operations of the company significantly. The Company still recognizes income from both selling products that the Company has expertise in both domestically and internationally and includes investments in other businesses that are in process and awaiting revenue recognition.