K C Property Public : Report on corrective action guidelines in the case of KC securities are marked with a "C"

KC 016/2565

June 2, 2022

Subject Report on corrective action guidelines in the case of KC securities are marked with a "C"

To	The President
	The Stock Exchange of Thailand

According to K.C. Property Public Company Limited ("The Company") held a meeting to provide information to shareholders, investors, and related parties (Public Presentation) outlining its plans to improve the Company's securities are marked with a "C" sign because the Company's shareholding is less than 50% of the paid-up capital The Company held a meeting through the Zoom Program system on June 2, 2022, at 10:30 a.m. The details of the meeting can be summarized as follows:

The company submitted the financial statements for the quarter 1/2565 May,6 2022 in the amount of 346,319,259.02 baht on separate financial statements and Equity on theCompany's consolidated financial statements is equal to 410,171,739.57 baht or 32.84 % of paid-up capital after adjusting by the minimum share value which is less than 50.00%

Cause of financial status

According to the company has a continuous operating loss. As a result, the shareholders' equity is less than 50.00% of the paid-up capital. by considering the consolidated financial statements that have been audited or reviewed by the auditor without updating the list

Corrective action

Currently, In the process of financial restructuring by clearing accumulated losses which has been approved the plan to clear the accumulated loss from the Annual General Meeting of Shareholders for the year 2022 on April 5, 2022 with details as follows:

Shareholders approve the transfer of the allocated reserve fund. The Company transfers appropriate retained earnings under Section 116 of the Public Limited Companies Act to clear the accumulated loss and also proceed to reduce the capital by reducing the par to clear the accumulated loss, which will reduce the par value from 1.00 baht to 0.70 baht, by transferring the

appropriate retained earnings of the Company to clear the accumulated loss is an operation under Section 119 of the Public Limited Companies Act. In addition, the reduction of the registered capital by reducing the par value can be done in accordance with Section 139 of the Public Limited Companies Act

As of March 31, 2022, the Company has appropriate retained earnings at 102,294,491.98 baht, which the company will transfer to clear the accumulated losses as shown in the separate financial statements as of March , 2021, total (940,995,636.81) baht. After the transfer to clear the said accumulated loss, the Company will have all remaining accumulated losses at (838,701,144.83) baht.

		At the March 31,2022
	Effects on the Company's consolidated financial statements
	Before transfer	Change		After Transfer
Paid - up Capital	3,613,536,044.00	-		3,613,536,044.00
Par Value	1.00	-		1.00
Share discount	(2,364,663,159.60)	-		(2,364,663,159.60)
Retaining earnings -appropiate	102,294,491.98	(102,294,491.98)		-
Accumulated losses	(940,995,636.81)	102,294,491.98		(838,701,144.83)
Shareholder's equity	410,171,739.57	-		410,171,739.57

In addition, the company also proceeds to reduce capital by reducing par value to clear accumulated losses. The par value will be reduced from 1.00 baht to 0.70 baht, which will cause the company's paid-up capital to decrease by 0.30 baht per share or account for the total registered capital decrease. (1,084,060,813.20) baht, this will cause the company's paid-up capital to decrease from 3,613,536,044.00 baht, remaining equal to 2,529,475,230.80 baht, The reduced paid-up capital will clear all accumulated losses in accordance with remaining number of (902,553,625.38) baht and the Company will deduct the remaining share premium to be offset against the outstanding share discount of 181,507,187.82,which will cause the share discount to decrease from (2,364,663,159.60) baht to (2,183,155,971.78) baht. however, after clearing the accumulated loss according to the aforementioned plan, the Company will have retained earnings on the consolidated financial statements equal to 63,852,480.55 baht, which came from the profit of the Company's subsidiary, Modern Street Company Limited, which has retained earnings at 63,852,480.55 baht at the first quarter of 2022

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		At the March 31,2022
	Effects on the Company's consolidated financial statements
	Before reduce	Change		After reduce
	par value			par value
Paid up capital	3,613,536,044.00	(1,084,060,813.20)		2,529,475,230.80
Par Value	1.00	(0.30)		0.70
Share discount	(2,364,663,159.60)	181,507,187.82		(2,183,155,971.78)
Retaining earnings -appropiate	-	-		-
Retaining earnings	(838,701,144.83)	902,553,625.38		63,852,480.55
Shareholder's equity	410,171,739.57	-		410,171,739.57

After completing all the processes, the company will have paid-up registered capital 2,529,475,230.80 baht, the share discount is equal to (2,183,155,971.78) baht, accumulated loss equals will become 63,852,480.55 baht, (consisting of the Company's equity 0.00 baht and the Company's subsidiary, Modern Street Company Limited, equal to 63,852,480.55 baht) and the shareholders' equity is equal to 410,171,739.57 baht, However, after the process of clearing such accumulated losses, the Company has a business plan in order to have profitable results by the said business plan to be able to turn around to have a financial position that is expected to have retained earnings in 2022.

Tharefore,No objection creditor, the Company expects the operation to be completed by June 2022.

Please be informed accordingly,

Yours Sincerely

-Santi Piyatat-

___________________

(Mr. Santi Piyatat)

Managing Director

K.C.Property Public Company Limited

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