News Detail

Date/Time
27 Jul 2021 13:39:00
Headline
Notification on a new business operation of the Company's subsidiary
Symbol
JTS
Source
JTS
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[ TRANSLATION ]


Our Ref. JTS/CS-018/2564

July 27, 2021

Subject    :    Notification of a new business operation of the Company's subsidiary
To    :    President of the Stock Exchange of Thailand


Jasmine Telecom Systems Public Company Limited (the "Company") would like to 
notify that JasTel Network Company Limited ("JasTel"), a subsidiary of the
Company, shall invest in the Bitcoin mining business which is its new business
after prudently studying about it for a certain period of time and is convinced
that this is a long-term investment that can generate new revenue to the
Company.

The Board of Directors of JasTel, at the meeting No.6/2021 convened on July 15, 
2021 has resolved to approve the investment in Bitcoin mining business of which
the investment value is 156.7 million Baht. The main equipment comprises 500
Bitcoin mining machines for which the Company has gradually placed order, aiming
to complete the installation within the third quarter of 2021. The Company
expects that it can continuously realize the revenue, generated by this new
business. This transaction is classified as an asset acquisition of the Company
under the Notification of the Capital Market Supervisory Board No. TorChor.
20/2551 Re: Rules on Entering into Material Transactions Deemed as Acquisition
or Disposal of Assets and the Notification of the Board of Governors of the
Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of
Listed Companies Concerning the Acquisition and Disposition of Assets B.E. 2547
(2004) (including any amendment thereto) (collectively, the "Notifications on
Acquisition or Disposal") the size of which is equivalent to 11.66 percent by
the criteria of total value of consideration, calculated based on the
consolidated financial statements of the Company, ended March 31, 2021, reviewed
by the Company auditor. The Company has not had any other acquisition of assets
during the past 6 months so this does not fall into the criteria of acquisition
or disposal of assets. However, the Company realizes it as a new progress and
would like to acknowledge the Stock Exchange of Thailand (the "SET")
accordingly.

Based on the accounting policy, the Company shall record Bitcoins as intangible 
asset and revenue (at fair value as at the date of acquisition) offset by
impairment of assets. These Bitcoins will be partially sold. The revenue
obtained from this business in 2021 will not have significant impact on the
total revenue.

Currently, to operate Bitcoin mining business, an operator is not obliged to ask
for permission from any agency. Moreover, it does not have to ask for
permission from the Bank of Thailand either because Bitcoin has not yet been
considered a currency in Thailand; thus, it is not under the regulations on
currency exchange.




Nevertheless, Bitcoin mining is the process of adding the transaction records to
the Blockchain network. The amount of Bitcoins received depends on the total
Hash Rate at that particular period that is ever changing. The company's major
operating cost is electricity charge which is fixed and in line with the number
of the Bitcoin mining machines. The Company is well aware that this business has
risks, pertaining to certification, both by law and future regulatory agencies,
and the volatility of Bitcoin exchange rate; therefore, the Company will do its
best to cautiously manage such risks, preventing them from affecting its
investments and the benefits of its own and the shareholders.

For the additional mining capacity of 5,000 Bitcoin mining machines in the 
future, the Company will propose the issue for the Board of Directors'
consideration. In the event that the transaction falls into any significant
criteria, stipulated by the Notifications on Acquisition of Assets, the Company
will proceed to comply with such criteria and accordingly inform the SET
further.


Please be informed accordingly.




Sincerely yours,
Jasmine Telecom Systems Public Company Limited.


[Dusit Srisangaoran]
(Mr. Dusit Srisangaoran)
President
______________________________________________________________________
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