Diark "Q1 Sales Growth... Expecting Trading Resumption in Listing Eligibility Substantial Review"

Significant Strengthening of Financial Stability through Bio Business Division Spin-off
Financial Structure Improvement via Paid-in Capital Increase to Hurim Robot

[Asia Economy Reporter Hyungsoo Park] Diarc, a company listed on KOSDAQ, will undergo a substantial review of its listing eligibility on the 2nd of next month.

Diarc's business sustainability is known to be one of the factors for the substantial review of listing eligibility. Diarc's sales revenue recorded 37.7 billion KRW in 2019, 37.4 billion KRW in 2020, and 42.6 billion KRW in 2021. During the same period, operating profits were 940 million KRW, 879 million KRW, and 1.37 billion KRW, maintaining profitable management.

The bio-business sector, cited as the cause for the failure to receive an audit opinion, was spun off. The company improved its financial structure and reduced unnecessary selling and administrative expenses. It achieved sales revenue of 10.9 billion KRW in the first quarter of this year, an increase of 700 million KRW compared to 10.2 billion KRW in the same period last year. Regardless of the bio-business spin-off, Diarc has continued its business stably. As a first-tier supplier to Hyundai Motor Company, Diarc secured an order backlog worth 160 billion KRW as of the end of the first quarter this year. Continuous sales generation is expected.

On the 19th of last month, Diarc secured funds through a paid-in capital increase of 10 billion KRW. The debt ratio improved from 46.18% to 34.92%, securing financial soundness. This figure is approximately 47 percentage points lower than the average debt ratio of 82.24% in the automotive industry among 1,961 companies in 2020. Diarc's KoDATA credit rating improved from CCC- at the end of 2020 to BB+ at the end of 2021.

While preparing for the substantial review of listing eligibility, Diarc is prioritizing stable management as its top task. Hurim Robot, which acquired Diarc, replaced Diarc's management and is also promoting improvements in the production environment using the robot technology possessed by Hurim Robot.

On the 12th of last month, Diarc received notification from the Korea Exchange that it was subject to the substantial review of listing eligibility and submitted an improvement plan. The Korea Exchange will decide on whether to maintain Diarc's listing and whether to grant an improvement period through the deliberation and resolution of the Corporate Evaluation Committee on the 2nd of next month.

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