Just two years ago, Kumyang was celebrated as the leading stock in the secondary battery theme, but it now faces delisting risk. The company's market capitalization, which exceeded 9 trillion won, has fallen to about 600 billion won, triggering a delisting reason after receiving a 'disclaimer of opinion' in its audit report.
According to the Korea Exchange, Kumyang submitted its audit report at 5:44 p.m. on the 23rd, revealing that it received a 'disclaimer of opinion' from its auditor. Hanul Accounting Corporation, Kumyang's auditor, assessed that there is 'a significant uncertainty that raises substantial doubt about the company's ability to continue as a going concern.'
If a company listed on the KOSDAQ receives a disclaimer of opinion from its auditor, a delisting reason arises immediately, thereby becoming subject to substantive review. The company can file an objection within 15 days of receiving related notice, and trading will be suspended during the review process. The deadline for Kumyang to file an objection is until the 11th of next month. If there is no objection, the delisting process is expected to proceed.
Earlier that day, rumors about Kumyang's 'disqualified audit opinion' circulated in the market. Consequently, the Korea Exchange requested an inquiry after the regular market closed, and trading of Kumyang's shares was suspended around 5 p.m. Kumyang received a qualified audit opinion in its 2022 report regarding internal accounting management, and in its 2023 report, it also received a mention of the uncertainty related to its ability to continue as a going concern.
Last year, Kumyang's revenue decreased by 1% from the previous year to 134.5 billion won. The operating loss increased from 16.9 billion won in 2023 to 43 billion won last year, and the net loss nearly doubled from 65.8 billion won to 132.9 billion won.
Additionally, KOSPI-listed companies Well Biotec, SEWON E&C, and KUKBO also announced that they received a 'disclaimer of opinion' from their auditors on that day.