Alpha Holdings "Will Focus Company-wide Efforts to Resolve 'Scope Limitation Qualified Opinion'"

[Asia Economy Reporter Jang Hyowon] Alpha Holdings announced on the 16th that it will do its best to resolve related issues after receiving a limited scope disclaimer of opinion from the accounting auditor for the semi-annual period.

Through the submission of the semi-annual report, Alpha Holdings recorded consolidated sales of 48.4 billion KRW, an increase of about 35% compared to the same period last year, and an operating loss of -1.3 billion KRW, a decrease of about 50%. On a separate basis, it achieved sales of 47.8 billion KRW and an operating profit of 2 billion KRW, indicating that it has officially entered a performance turnaround.

This significant improvement in profitability is due to company-wide cost reductions through the disposal of non-core businesses, as well as factors such as the rise in exchange rates and supply prices, and increased operating rates in the system semiconductor design division.

Despite this positive trend, Alpha Holdings explained that the reason for the limited scope disclaimer in this semi-annual review report stems from the fact that Hansong Neotek and Human N, companies invested in by Alpha Holdings, received a disclaimer of opinion on their 2021 financial statements as of the end of March. It is expected that if Hansong Neotek and Human N receive a re-audit or an unqualified audit opinion for this year, the scope limitation reasons will naturally be resolved, allowing Alpha Holdings to exit the management item status.

An Alpha Holdings official stated, “The core business performance of Alpha Holdings is on the rise due to the expansion of new customers and cost reductions,” adding, “We believe that the limited scope disclaimer for this semi-annual period will be fully resolved once the invested companies receive unqualified opinions in their re-audit or full-year audit this year, and we plan to concentrate company-wide capabilities to achieve this.”

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