Following recent media reports and information circulated regarding BCPG Public Company Limited’s investment in Asia Link Terminal Co., Ltd. (“ALT”), which may have caused misunderstanding, the Company would like to clarify the facts and reaffirm the project’s strong fundamentals and compliance with accounting standards as follows:

Investment in Long-Term Income-Generating Infrastructure

The Company invested in an oil storage terminal and jetty project in Phetchaburi Province, a strategic energy and utility infrastructure asset with strong potential to generate recurring income and stable cash flow. The project currently contributes approximately THB 900 million in annual revenue to the Company and aligns with BCPG’s long-term business strategy and investment direction. It also supports future expansion into energy-related and adjacent businesses.

Transaction Valuation and Fair Value Assessment under Accounting Standards

This investment involved the acquisition of a business, including assets, rights, long-term contracts, and business components capable of generating continuous revenue and cash flow. Therefore, the transaction value was assessed based on the business’s future cash flow generation capability under its existing contracts and rights.

Following the acquisition in May 2023, the Company conducted a Purchase Price Allocation (PPA) in accordance with accounting standards. The PPA process is an accounting procedure used to classify and allocate the value of acquired assets, including tangible and intangible assets, solely for post-acquisition accounting treatment in the consolidated financial statements. It is not an assessment of the investment’s appropriateness or purchase price.

The independent advisor’s PPA assessment for consolidated financial statement purposes resulted in the reclassification of certain assets and fair value adjustments in compliance with accounting standards. These adjustments did not affect the investment value, did not result in any impairment, and had no impact on the project’s ability to generate cash flow.

During the closing of the Q2/2023 financial statements, the Company was still in the process of completing the PPA within the 12-month timeframe permitted under accounting standards from the acquisition date. The Company disclosed the PPA information in accordance with accounting requirements, while the auditor provided observations as part of the standard professional review process regarding the incomplete PPA. Such observations did not indicate any irregularities in the Company’s business operations or accounting records.

The Company subsequently completed the PPA and disclosed the finalized information in the Q2/2024 financial statements. The finalized PPA showed no material changes from the previously disclosed information and has been duly reviewed by the auditor.

Commitment to Good Governance and Sustainable Growth

BCPG remains committed to conducting business with good corporate governance, transparency, and accountability, alongside prudent risk management, to ensure sustainable long-term growth and support the continued expansion of the Company’s energy infrastructure investments.