Hubexel "Application for Exemption from Penalties for Delays in Audit Reports... Final Approval by the Korea Securities and Exchange Commission"

[Asia Economy Reporter Yoo Hyun-seok] Hubexel announced on the 24th that it has received approval for exemption from sanctions related to delayed submission of audit reports and other documents.

This system exempts administrative sanctions and extends submission deadlines for companies that inevitably find it difficult to submit business reports and other documents on time due to unexpected COVID-19 circumstances. The Korea Exchange plans to defer the designation of management status for 12 listed companies (8 KOSDAQ companies and 4 KONEX companies) and 3 unlisted companies that receive exemption from administrative sanctions until the extended deadline.

A company official stated, "We have been operating Dio USA, a wholly-owned subsidiary in Philadelphia, USA, for 10 years, which accounts for 30-40% of the headquarters' sales," adding, "At Dio USA, most neurosurgery and orthopedic surgeries were canceled due to the inability to secure hospital beds caused by COVID-19, making business operations impossible and resulting in decreased sales."

He said, "Around December last year, a family member of an accounting staff in the US was infected with COVID-19, leading to the forced closure of Dio, full testing of all employees, and a two-week quarantine, which delayed data collection and audit preparation," and added, "We anticipated an additional 2-3 weeks of delay, so we inevitably submitted an application for exemption from sanctions in consultation with the auditor, Ichon Accounting Corporation, and the Securities and Futures Commission gave final approval on this day."

The official added, "Only the timing of the audit report preparation and financial and accounting schedules were delayed," emphasizing, "There has been no disruption to product manufacturing and sales."

CEO Heo Seong-gyu emphasized, "Last year, we faced difficulties as most neurosurgery and orthopedic surgeries were canceled due to unexpected COVID-19, but after vaccination and securing hospital beds, surgeries resumed and demand for our products surged."

He explained, "We are establishing a system that links global product development and rapid sales by building a customer-oriented logistics system and a global supply network using IT systems, based in the US subsidiary as well as China, the Middle East, Southeast Asia, and Europe," adding, "As a result, we signed a $2.3 million contract with South Africa over five years and received orders worth about $450,000 at the end of last month, which are currently in progress." He continued, "China and Russia have also promised purchases of $500,000 each this year, totaling $1 million, making it possible to achieve the highest performance this year, and we plan to achieve a KOSDAQ transfer listing next year."

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