WAVE EXPONENTIAL PUBLIC COMPANY LIMITED: Financial Uncertainty Amidst Auditor Concerns

In a recent development that has caught the attention of investors and market analysts alike, WAVE EXPONENTIAL PUBLIC COMPANY LIMITED, a company listed on the Stock Exchange of Thailand, finds itself at the center of financial scrutiny. On May 16, 2025, the Securities and Exchange Commission (SET) announced a significant move that has implications for the company and its stakeholders. This announcement came in the wake of auditors expressing reservations about the company’s financial statements for the year ending March 31, 2025.

Auditor’s Stance and Market Reaction

The crux of the issue lies in the auditors’ inability to express a conclusion on the financial statements of WAVE EXPONENTIAL PUBLIC COMPANY LIMITED. This lack of confidence from the auditors has led to the posting of a Suspend (SP) sign on the company’s securities, alongside others such as CHARAN, ITD, MILL, TSR, and ACAP. The SP sign, indicating a suspension of trading, was posted on May 16, 2025, and is set to be lifted on May 19, 2025. The reason cited for this action is the auditors’ refusal to issue an opinion on the financial statements, prompting the SEC to potentially require amendments to these statements.

This development has necessitated that the listed securities, including WAVE, be purchased with a Cash Balance account only. This means that each member must ensure that its customers pay the full amount in cash prior to trading, from the date of sign posting until the elimination of such event.

SET’s Request for Clarification

Adding to the company’s challenges, the Stock Exchange of Thailand (SET) has requested further clarification regarding the information disclosed in the financial statements for the year 2024. This request, detailed in a letter dated April 8, 2025, seeks additional information on several fronts. Key among these is an explanation of the pricing methodology for the acquisition of I-REC(E)s, especially given the discrepancy between the purchase price and the Utility Green Tariff (UGT1) rate, which resulted in an impairment loss of THB 1,031 million. Furthermore, SET has asked for clarification on the company’s inventory management policy for I-REC(E)s, including details on long-term purchase agreements, the nature of the customer base, and risk management strategies.

Implications and Moving Forward

The situation presents a complex challenge for WAVE EXPONENTIAL PUBLIC COMPANY LIMITED. The inability of auditors to express a conclusion on the financial statements not only affects the company’s market perception but also raises questions about its financial health and governance practices. The request from SET for additional clarification underscores the need for transparency and accountability in the company’s financial reporting.

As the company navigates these challenges, the coming days will be crucial. The lifting of the SP sign on May 19, 2025, will be a significant milestone. However, the company’s ability to address the concerns raised by the auditors and the SET will be critical in restoring investor confidence and ensuring the stability of its financial standing.

In conclusion, WAVE EXPONENTIAL PUBLIC COMPANY LIMITED finds itself at a pivotal moment. The actions taken by the company in response to these developments will not only determine its immediate financial future but also its long-term reputation in the market. Investors and stakeholders will be watching closely as the company works to clarify its financial position and address the concerns raised by its auditors and the SET.