The share price of JKN Global Group Public Company Limited (SET: JKN) plunged on Friday to the floor limit in the morning session after the Stock Exchange of Thailand lifted a ‘suspension’ restriction off the company’s securities.
The trading of JKN securities was suspended from March 1, 2024, after the company failed to submit its annual financial report due to internal issues. The Thai regulator lifted the restriction this morning after the company submitted the report yesterday.
The share price hit the floor a few minutes after the opening bell on March 29, 2024. It closed the morning session at THB0.52 per share, down 29.73%.
About 80% of its share price was wiped out since the start of its financial crisis in late September when the company announced that it was unable to fully fulfill obligations to debentureholders.
Yesterday, JKN reported a net loss of 2,128 million baht for the year, compared to a net profit of 608 million baht in 2022. The overview on the entertainment and television business of the company in 2023, for the year ended 31 December 2023, the company earned a total revenue of THB 2,495.42 million, which decreased by THB 174.15 million or 6.52% from the previous year.
The net loss was due to the impairment of assets, the procedures that the company applied to ensure that the company’s assets are carried at no more than the recoverable amount.
JKN noted that it was unable to pay its own debt to debentureholders and is now seeking business rehabilitation.
On 5 March 5 2024 the Thai Bankruptcy Court has completely examined testimonies of the petitioner and the opposing party, and has scheduled the hearing date on April 23, 2024, while cancelling the appointments on March 6 and 7, 2024. Additionally, this does not impact the company’s business operations by any means.
JKN noted that submitting the rehabilitation petition will effectively solve the company’s liquidity problem under legal mechanisms and provide fair protection to all stakeholders. In addition, the company can continue its operation while being under the rehabilitation plan which is a sustainable solution to the problem and to create profits in the future.
In addition, JKN clarified that that the auditor does not express an opinion on the company’s financial statements for the year ended December 31, 2023 was not due to the limited scope by the management but due to the uncertainty as at the date of the audit report, the management is considering the business plan as well as the negotiation with various groups of creditors. Therefore, the auditor was unable to audit by other means based on the events that cannot be concluded.
