Bangkok: SET orders SABUY to clarify financial statements by April 10, 2025, regarding lost assets, locker leasing business, and accumulated losses of more than 1,000%.
According to Thai News Agency, the Stock Exchange of Thailand (SET) has requested SABUY Technology PCL (SABUY) to provide clarifications on several observations made by auditors in its 2024 financial statements. These observations include the loss of assets and inventories amounting to 215 million baht, incomplete fair value assessment of locker rental business assets with goodwill constituting 71% of the purchase value, and material uncertainty concerning the company’s going concern due to a significant loss of 6,238 million baht in 2024, which marks a 3,283% increase, leading to an accumulated loss of 8,152 million baht, an increase of 1,103%.
The company is required to submit clarifications through the Stock Exchange of Thailand’s information disclosure system by April 3, 2025. Additionally, the opinions of the company’s board of directors and the audit committee are to be provided by April 10, 2025. Investors are advised to review the financial statements and monitor the company’s clarifications closely.
The auditors noted that there were significant losses in assets and inventory totaling 215 million baht, recorded primarily in the fourth quarter of 2024. The losses included 114 million baht from the company’s assets, 89 million baht from PTECH, and the remaining from other subsidiaries. The Board of Directors has sanctioned a detailed fact-finding investigation.
In October 2024, SABUY acquired Lockbox Group Co., Ltd. and Lockbox Ventures Co., Ltd., businesses involved in locker rentals, for 360 million baht. The goodwill from this acquisition amounted to 257 million baht, with the fair value assessment yet to be completed.
SABUY faces material uncertainties regarding its ability to continue as a going concern. The company suffered a loss of 6,238 million baht in 2024, with accumulated losses reaching 8,152 million baht. Additionally, SABUY is involved in a civil lawsuit filed by a financial institution over debt default. Key reasons for the company’s high losses include a 5,731 million baht impact from investments in TSR AS PTECH and other companies, a 111 million baht loss from financial asset measurement, and a 416 million baht loss due to business impairment and contract terminations.
The SET has outlined several points for SABUY to clarify, including the circumstances surrounding the lost assets and the measures to prevent future occurrences, the timeline for completing the asset appraisal of the locker rental business, management’s strategy regarding the civil lawsuit and debt collection with TSR, the company’s approach to future business operations amidst uncertainties, and the opinions of the Board and Audit Committee concerning internal control systems and risk management.
If the investigation reveals that assets were indeed lost and improvements to the internal control system are necessary, SABUY is instructed to disclose this information alongside its quarterly financial statements or whenever significant progress is made.