Page 47 - PSTC - One Report 2023 (EN)

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Power Solution Technologies Public Company Limited
Guarantor’s Debt Repayment Ability Risk
The company is obligated to provide debt guarantee through its subsidiary, Biggas Technology Limited (Biggas), of which the company holds 100% as of December 31, 2023. Biggas has committed to guaranteeing bonds (PSTC247A) amounting to 788.20 million baht, with a guaranteed limit of 850 million baht.
As the guarantor, Biggas is bound, without conditions or withdrawal, to guarantee the principal, interest, penalty interest, indemnity, duties, taxes, expenses, and/or total damages owed by the loan share issuer to the bondholders in case of default on the guaranteed debt payment. The guarantor is jointly liable with the loan share issuer and cannot withdraw from this obligation.
In 2023, Biggas reported total revenue of 1,219.8 million baht and a net profit of 18.4 million baht, with liquidity and debt-to-equity ratios of 1.4 times and 0.26 times, respectively. Investors can access details about the guarantor from Section 4 - Stock Offering Information, Section 1.4 - Financial Status and Operations Results of the Guarantor, and General Information of Biggas on the company’s website. However, in the first quarter of 2023, the guarantor had total debts of 681.9 million baht and a guaranteed obligation of 850.00 million baht to “Power Solution Technology Limited (Public)” due for withdrawal in 2024. If the bonds default, the guarantor may face liquidity constraints and need to liquidate investments or assets or wait for cash flow from operations. This process, combined with default, may impact the financial status and operations of the group, particularly Biggas. The business operations and debt repayment ability of the guarantor may be compromised. Nevertheless, the company and its subsidiaries adhere to a prudent liquidity management policy and have additional capital reserves from financial institutions to ensure adequate funds for loan repayment and business operations.