Bangkok: The Stock Exchange of Thailand (SET) has called upon TSR Living Solution Plc (TSR) to provide a detailed clarification regarding its 2024 financial statements, which have raised concerns due to the auditors’ inability to express an opinion on the financial health of the company amid significant uncertainties.
According to Thai News Agency, TSR reported a substantial loss of 715 million baht in 2024, with accumulated losses climbing to 945 million baht, largely attributed to the full impairment of receivables and goodwill in its vending machine business acquired in July 2023. Additionally, the cessation of financial support and a demand for the repayment of a principal amounting to 873 million baht by its former major shareholder, SABUY, has further exacerbated the company’s financial woes.
SET has mandated TSR to submit clarifications through its information disclosure system by April 3, 2025, addressing these financial anomalies. The company’s board of directors and audit committee are also expected to provide their insights by April 10, 2025. Investors are urged to meticulously review TSR’s financial statements and remain attentive to the company’s forthcoming clarifications.
In the fiscal year 2024, the predominant cause of TSR’s losses was the impairment of debtors across four business segments and a goodwill impairment loss in the vending machine sector, amounting to 641 million baht. In January 2025, SABUY withdrew its financial backing, demanding repayment within 30 days, prompting TSR to contemplate its response. Negotiations aimed at asset transfers to settle debts, including vending machines to SABUY, remain unresolved.
Presently, TSR is in breach of financial conditions, allowing financial institutions to demand repayment of 418 million baht. Negotiations are underway to renegotiate these terms, while the company has defaulted on an additional 18 million baht owed to other entities. Furthermore, some of TSR’s assets, valued at 934 million baht, are pledged as collateral with SABUY, limiting the company’s ability to secure new funding sources.
The SET has outlined key areas requiring clarification from TSR:
1. Criteria for assessing goodwill impairment in vending machine businesses and the rationale behind investment decisions and operational disparities post-investment.
2. Origins and justifications for debtor impairments across four business groups, impacts on operations, and a summary of impaired debtors along with their past and present affiliations with TSR.
3. Current business operations and transactions with SABUY, including potential conflicts of interest and implications on provisions for losses or impairments.
4. Updates on negotiations and strategies to mitigate default risks with SABUY, financial entities, and creditors, along with fund procurement plans for debt repayment.
5. Insights from the Board of Directors and Audit Committee on the adequacy of impairments, debtor tracking methods, and future business strategies following a shift in major shareholders, including relations with SABUY.