Shares of RS Public Company Limited (SET: RS) plummeted by 20.14% on Friday, May 16, 2025, following news of a missed interest payment of THB 27.48 million, raising concerns that banks could call default on almost THB 3 billion in outstanding loans.
Wittawat Wetchabutsakorn, Director and Chief Financial Officer of RS, disclosed that the company, along with its subsidiaries, failed to meet loan agreement conditions with financial institutions. The defaulted interest payment of THB 27.48 million has given banks the right to call back loan principals as follows: short- and long-term loans amounting to THB 940.20 million and THB 831.32 million, respectively, for the company, and short- and long-term loans of THB 225.23 million and THB 878.57 million, respectively.
The CFO noted that presently, RS and its subsidiaries are urgently negotiating with financial institutions to restructure their debt and resolve the situation as quickly as possible.
Meanwhile, the Stock Exchange of Thailand (SET) has flagged RS with a CB (Caution: Beginning Stage of Financial or Operational Problems) sign effective May 19, 2025. Under this flag, purchasing RS shares requires transactions to be made via a Cash Balance account, meaning investors must deposit the full purchase amount in cash with their brokers beforehand, starting from the flag date until the issue is resolved. Furthermore, RS securities will be excluded from the sSET and SETESG index calculations effective May 21, 2025, as a result of the company’s debt default according to relevant regulations.
RS has scheduled a Public Presentation for May 27, 2025, at 09:15 AM in an online format to update and explain measures addressing the default incident.
For 1Q25, RS reported a net loss of THB 274.63 million, or a net loss per share of THB 0.1258. This marks a widening loss compared to the same period last year, which saw a net loss of THB 130.25 million, or a loss per share of THB 0.0609. The increased loss was attributed to the underperformance of the entertainment segment, which failed to cover high fixed costs, and a decline in commerce revenue from home shopping due to shifts in consumer behavior.
In 1Q25, RS reported total revenue from sales and services of THB 454.7 million, a decline of 19.3% quarter-on-quarter and 32.7% year-on-year, mainly due to seasonal impacts (seasonality) on the entertainment business.