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KUM YANG Headquarters. (Photo=KUM YANG) |
[Alpha Biz= Kim Jisun] Kum Yang, a secondary battery company, is facing the threat of delisting after receiving an "opinion denial" in its audit report for last year.
According to a filing with the Financial Supervisory Service's electronic disclosure system last Friday, Kum Yang announced that it received an "opinion denial" from its auditor in the 2024 fiscal year's audit report.
When a company listed on the securities market receives an "opinion denial" from its auditor, it immediately triggers a delisting cause and becomes subject to substantial review.
Kum Yang's auditor, Hanul Accounting Firm, cited the reason for the opinion denial as "uncertainty regarding the company’s ability to continue as a going concern."
For the year 2023, Kum Yang recorded an operating loss of 56 billion KRW and a net loss of 186.1 billion KRW on a consolidated basis. In 2023, the company also posted an operating loss of 14.6 billion KRW and a net loss of 60.4 billion KRW.
Kum Yang has until the 11th of next month to file an objection. The Korea Exchange, which had suspended trading of Kum Yang's shares in response to a query regarding the audit report, will maintain the trading suspension according to listing regulations.
Meanwhile, Kum Yang's stock closed at 9,900 KRW, down 4.62% from the previous session.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
