Financially beleaguered Group Lease (GL) Plc yesterday reported a consolidated net loss of 1.82 billion baht last year as a result of capital allowance set up for a potential loss on asset revaluation.
"The drop in net profit was mainly driven by the results for the set-up of allowance for potential losses on the revaluation of assets," GL said in a statement filed with the Stock Exchange of Thailand (SET).
GL's consolidated bad debts and doubtful accounts had increased by 9.77 million baht or 3.1% year-on-year, mainly because of a 11.3% hike in portfolios.
"The company had set an additional allowance for doubtful accounts to stay on the safe side," the statement said. "But bad debt expense increased at a slower rate than portfolios, implying better portfolio quality.
"The loss was partially offset by increases in interest income from the firm's main businesses: hire purchase; asset-backed loans; microfinance; and consumer finance under joint financing arrangements."
Revenue from sales grew by 870,000 baht, which was derived from new product launches in last year's final quarter by GL's local subsidiary, the statement said.
GL's share price has fallen drastically amid the ongoing regulatory scandal. GL is a digital finance company specialising in hire purchase for Japanese motorcycle brands.
On Oct 16, the Securities and Exchange Commission filed a criminal complaint against former chief executive Mitsuji Konoshita alleging fraud, misappropriation of company assets and falsification of accounting records by executing concealed transactions through several associated companies abroad to exaggerate the company's operating results.
Separately, shares of Pace Development Plc were suspended yesterday because Baker Tilly Audit and Advisory Services Thailand, Pace's auditor, had not expressed an opinion on the company's 2017 financial statement, due to significant uncertainties surrounding the estimation of income from the MahaNakhon Observation Deck, which is yet to be built.
"As the company's auditor has put a disclaimer on the financial statements, it can be considered that the numbers, which represent the company's financial status and operating outcome as presented therein, failed to adequately and/or properly reflect the actual position of the company," the SET said.
Pace's revenue was reported at 9.3 billion baht last year, up 70% year-on-year. Gross profit stood at 2.94 billion baht.
GL shares closed yesterday on the SET at 9.10 baht, up 10 satang, in trade worth 160 million baht.
