Ssangyong Motor Again Receives Audit Opinion Disclaimer... Trading Suspended Until the 18th (Comprehensive)

[Asia Economy Reporter Kiho Sung] Ssangyong Motor has received a disclaimer of opinion from its auditor on its semi-annual report, following the first quarter, due to uncertainty about its status as a going concern.

On the 14th, Ssangyong Motor disclosed through the Financial Supervisory Service's electronic disclosure system that Samjong Accounting Corporation issued a disclaimer of opinion. Samjong Accounting Corporation stated in the semi-annual report, "The half-year net loss of 202.5 billion KRW and current liabilities exceeding current assets by 448 billion KRW raise doubts about the company's ability to continue as a going concern."

Accordingly, the Korea Exchange suspended trading of Ssangyong Motor's shares from 3:19 p.m. on the same day. The trading suspension will be lifted at 9 a.m. on the 19th. With two consecutive disclaimers of opinion, Ssangyong Motor is expected to be designated as a management item.

Ssangyong Motor stated, "We will actively reflect the auditor's comments and aim to resolve the issues and obtain an unqualified opinion in future audits."

Ssangyong Motor has been struggling with management difficulties, recording losses for 14 consecutive quarters. In the first half of this year, Ssangyong Motor recorded sales of 49,419 units, revenue of 1.3563 trillion KRW, operating loss of 215.8 billion KRW, and net loss of 202.4 billion KRW.

Furthermore, the major shareholder, India's Mahindra, announced it will not make additional investments and that if a new investor appears, it will reduce its stake to below 50%, making the situation even more difficult.

Ssangyong Motor is currently raising emergency funds by selling non-core assets such as the Guro Service Center and the Busan logistics center land. Once a new investor is determined, Ssangyong Motor plans to negotiate with creditors and foreign banks regarding loan issues. Although Chinese companies such as Geely Automobile, BYD, and Chery Automobile have shown interest, high debt ratios and poor business performance remain obstacles.

This content was produced with the assistance of AI translation services.