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Photo = Hyosung Chemical |
[Alpha Biz= Kim Jisun] Hyosung Chemical has entered a state of capital erosion according to its consolidated financial statements as of the end of last year. As a result, its stock will be suspended from trading starting on the 4th of next month.
However, the company has stated that the capital erosion has been resolved as of the end of January this year, and it plans to submit a special-purpose audit report next month to resume trading promptly.
In a disclosure on the 28th, Hyosung Chemical confirmed that its capital was entirely eroded by the end of last year. Due to increased debts at its Vietnam subsidiary, the company reported a capital total of -680 billion KRW, excluding non-controlling interests, with a capital-to-equity ratio of -358.63%.
Regarding the total capital erosion, if the company fails to submit documentation proving the resolution of this issue by the 31st of next month, it may face delisting. If the issue is resolved and proof is provided, Hyosung Chemical will undergo a review to determine if it meets the criteria for listing eligibility, as per the Securities Market Listing Rules Article 49. During this period, Hyosung Chemical's stock will be suspended from trading.
Hyosung Chemical announced that the capital erosion was resolved by the end of January 2025, following the reflection of profits from the sale of its specialty gas business unit. As of January 31, 2025, the company reported a capital-to-equity ratio of 1897.02%, excluding non-controlling interests.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
