Page 40 - ACC One Report 2567-En

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Risk Factors
Company Corporate Group Operation Risks
The corporate group is exposed to risks related to fluctuations in interest rates, market exchange rates, and the potential non-compliance of counterparties with contractual obligations. To mitigate these risks, the group may consider utilizing suitable financial instruments. However, it should be noted that the group does not maintain a policy to hold or issue financial instruments for speculative or trading purposes.
• Liquidity Risks
The company is normally exposed to operational risks stemming from interest rate fluctuations and the potential non-compliance of counterparties with contractual obligations. It does not have a policy of holding or issuing financial instruments in the form of derivatives for speculative or trading purposes.
• Lending Risks
The corporate group is exposed to lending risks related to trade receivables. However, the management has implemented appropriate policies and methods to control credit these risks as well as following up on the progress of operations in each part of the business. Consequently, the company does not anticipate incurring significant losses from lending. Furthermore, the company's lending activities are not concentrated in any particular segment due to the diversity and high number of customers. In the event of any loss resulting from lending, the maximum amount that the company could lose would be the value indicated by the accounts receivable stated in the financial statement.
• Interest Rate Risks
The company is subject to significant interest rate risks related to various financial instruments, including bank deposits, restricted bank deposits, current assets, loans, overdrafts, debt capital, and interest-bearing liabilities related to financial leasing. However, the majority of the company's assets and financial liabilities carry interest rates that either fluctuate with market rates or are fixed at rates close to the prevailing market rates. As a result, the company's exposure to interest rate risk is considered low
• Risks from Applying for Credits from Financial Institutions
Due to the company's unsatisfactory turnover, financial institutions may view it as lacking a clear direction in operating its business. As a result, the assets held by the financial institution could potentially reduce the credit limit for the company. Additionally, it may be challenging for the company to obtain loans from other institutions that it has not previously worked with due to the current economic downturn. Financial institutions are exercising greater caution in their lending practices. The company may be forced to utilize the secondary market to secure additional loans, resulting in higher financial costs.
• Risks of a Single-Customer Dependency
The company is involved in a solar rooftop project with Wyncoast Industrial Park Public Company Limited (WIN), where the company primarily sells the produced electricity to WIN, who owns the land. WIN then resells the electricity to tenants of Wyncoast Industrial Park, creating a single-customer dependency risk for the company. To mitigate this risk, the company is currently in the process of changing the meters to enable direct selling of electricity to each tenant.
Annual Report 2024 (Form 56-1 One Report)
Advanced Connection Corporation Public Company Limited
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