Cellumed Confirms Resumption of Stock Trading... "Establishing a Business Structure Capable of Qualitative Growth"

[Asia Economy Reporter Hyunseok Yoo] Cellumed is accelerating the expansion of its recombinant protein-based medical device and bio business following its success in improving its financial structure and establishing corporate governance, thereby normalizing management.

Cellumed announced that the suspension of its stock trading will be lifted as of March 26, and stock trading will resume from the 26th.

Cellumed was designated for a substantial review of listing eligibility on December 26, 2019, due to violations of accounting standards, and was granted a 12-month management improvement period starting February 13 of last year. Recently, after submitting a report on the implementation of its management improvement plan, the stock trading suspension was lifted by the exchange.

Despite COVID-19, Cellumed carried out rigorous management improvements required by the Corporate Evaluation Committee to normalize the company. It rapidly improved the business environment by enhancing operating profit through increased orders and sales, and securing financial soundness and management stability through a paid-in capital increase.

Cellumed’s flagship product, the bone graft material ‘Rapugen DBM,’ saw an expansion of overseas export channels and increased production capacity, resulting in 2020 sales of 16.5 billion KRW, a 29% increase compared to the previous year. Operating loss for the same period was 1.6 billion KRW, improving by 7.9 billion KRW year-on-year. On a consolidated basis, 2020 sales reached 91.5 billion KRW, operating profit was 2.4 billion KRW, and net income was 1.8 billion KRW, achieving a turnaround to profitability.

Additionally, through a total capital raise of 41.4 billion KRW, including a paid-in capital increase of 34.9 billion KRW, Cellumed repaid borrowings, completely resolving capital erosion and transforming into a company with a solid financial structure featuring a current ratio of 123% and a debt ratio of 63.7%. Furthermore, with the participation of the largest shareholder, InscoBi, in the paid-in capital increase, the largest shareholder’s stake expanded to 22.2%, securing management stability.

A company official stated, “In addition to our flagship products, we expect sales to increase further through the clinical expansion of patient-customized artificial joint surgical instruments (PSI) using 3D printing and the full-scale sales of artificial joint surgery robots. To expand our recombinant protein-based medical device and bio business, we have secured a cash cow business by acquiring 100% of the shares of Hyoryang Enterprise Environment & Engineering, which recorded sales of 46 billion KRW and net income of 3.2 billion KRW.”

He added, “We are pleased to announce the resumption of stock trading to the many shareholders who have supported us through difficult times. Going forward, we will do our best to enhance corporate value and increase shareholder value by actively securing excellent talent and continuously discovering profitability and future growth engines for Cellumed’s sustainable growth.”

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