Geumyang, facing delisting review financial crisis… Gao Fei established in 1978

On the 23rd, Financial submitted a detailed plan for operational improvements to the Korean Exchange.
As a result, the delisting review triggered by the rejection of the audit opinion will officially proceed, expected to be completed by the end of next month.

The Korea Exchange plans to hold a listing announcement committee before May 26th to determine whether Financial will maintain its listing.
The core of this review lies in the fact that external auditors have raised significant doubts about the company’s financial condition and the viability of its continued operation as a going concern.
If the listed company fails to obtain an unqualified opinion in the audit, from the perspective of protecting investors, it will become a strict focus of review by the exchange.
After 2024, Financial was again issued a qualified opinion in last year’s audit report.

Financial’s external auditor—Shinhan Accounting Corporation—stated in last March’s audit report that, during the reporting period ending December 31, 2025,
Financial recorded an operating loss of 418.36 billion Korean won, with a net loss of 535.87 billion Korean won for the period.
It also pointed out that as of December 31, 2025, current liabilities exceeded current assets by 6.11T Korean won.
The current liabilities far exceeded current assets, indicating that short-term debts are greater than assets that can be immediately liquidated, which is interpreted as a sign of very tight corporate cash flow.
Based on this situation, the auditor judged that there are significant doubts about the company’s ability to continue as a going concern, leading to the issuance of a qualified opinion.

There are still many subsequent procedures.
If the listing announcement committee decides to delist, a three trading day delisting notice period will be given first.
During this period, the company usually applies to the court for a lawsuit to invalidate the delisting decision and to suspend the effect of the provisional disposition.
If the court accepts the provisional disposition application, the delisting process will be suspended until the case’s verdict is issued;
Conversely, if rejected, after a three trading day notice period, the final delisting process will proceed.
Then, a seven trading day restructuring trading period will be granted, allowing investors to make their final stock transactions.

Financial was established in 1978 and is a company that produces foam agents and precision chemical products.
However, after entering the 2020s, as it expanded into the secondary battery field, it attracted significant market attention.
On July 26, 2023, its stock price once surged to 194k Korean won during trading, with a market value approaching 1 trillion Korean won.
However, since then, compared to the speed of business expansion, fundraising has been less smooth, financial burdens have increased, and the situation has rapidly worsened.
Before the stock trading suspension, on March 21 of last year, based on the closing price, the stock had fallen to 9,900 Korean won, a 94.9% decline from its all-time high, and the market value had shrunk to around 630 billion Korean won.
The company stated that it is making every effort to attract domestic and foreign institutional investors and claimed that substantial results would be achieved before the listing announcement committee meeting.
This trend indicates that whether Financial can maintain its listing in the future will depend on its ability to find concrete clues for fundraising and improving its financial structure.