Daehan Green Power Denies Delisting Rumors... "Profit Improvement This Year Due to Asset Write-Down in Bio-Middle Oil Business"

[Asia Economy Reporter Hyunseok Yoo] Daehan Green Power announced on the 8th that it has completed the internal settlement of accounts for the last fiscal year and disclosed changes in profit and loss structure.

A company official stated, "As a result of the internal settlement for the last fiscal year, due to losses concentrated in the bio-heavy oil business in the first half, it corresponds to operating losses and losses from continuing operations before corporate tax expenses for the fourth consecutive year, and designation as a management item is expected. The rumors about delisting, which have been raised and spread mainly by some YouTubers, are absurdly exaggerated, and there is no reason for delisting."

He continued, "Since the parent company Daehan Green Energy acquired management rights in July last year, 40 billion KRW of capital has been raised, all borrowings have been repaid, and the financial structure has significantly improved. With the merger of profitable businesses, the profit and loss structure has escaped the deficit situation as of the end of the third quarter of last year."

Daehan Green Power explained that the sharp decline in sales last year was a positive result of reducing the bio-heavy oil business, which had a continuous deficit structure. They explained that they have fully written off existing losses by significantly reflecting depreciation of tangible and intangible assets, which account for a large portion of the cost of the bio-heavy oil business, a perennial deficit business.

A company official added, "From this fiscal year, losses from the bio-heavy oil business will no longer have a significant impact on performance, meaning that risks for this fiscal year have been greatly reduced. As the performance of the renewable energy business increases, the profit and loss will show a distinctly different pattern from before."

Meanwhile, the Korea Exchange KOSDAQ Market Division announced that it has decided to suspend trading of Daehan Green Power common stock until the close of trading on the afternoon of the 8th. The reason is concerns about designation as a management item, and if such reasons are confirmed in the audit report, the stock may be designated as a management item.

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