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Kumyang Headquarters. (Photo = Kumyang) |
[Alpha Biz= Paul Lee] Shares of Kumyang are plummeting after the lifting of its trading suspension, following its designation as a non-compliant disclosure company and management stock.
As of 10:30 AM on March 6, Kumyang's stock price dropped by 4,490 KRW (-25.27%) from the previous trading day to 13,280 KRW, according to the Korea Exchange (KRX). The stock hit an intraday low of 13,230 KRW, marking a 52-week low.
Kumyang was designated as a non-compliant disclosure company after it abruptly canceled a 450 billion KRW rights offering in January 2024, despite announcing the plan in September 2023. Additionally, in 2023, it was flagged for allegedly inflating estimated earnings from a Mongolian mine, further contributing to its regulatory troubles. With accumulated penalty points exceeding 15, the company was placed under management stock status, leading to a temporary trading suspension and automatic removal from the KOSPI 200 index.
On February 28, Kumyang announced its preliminary 2023 financial results, reporting 1.537 trillion KRW in revenue and an operating loss of 545 billion KRW. While revenue saw a slight 1.1% increase year-over-year, operating losses widened significantly from 146 billion KRW in 2022. Net losses also surged from 604 billion KRW to 1.998 trillion KRW, further amplifying investor concerns.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
