Vivien Secures Unqualified Audit Opinion... "Enhancing Shareholder Value Through Financial Optimization"

Vivien has accelerated its efforts to improve its financial structure and enhance shareholder value after securing an "unqualified" opinion from its external audit.

On March 24, Vivien announced that it had received an unqualified audit opinion for the previous fiscal year from Jeongdong Accounting Corporation. This move demonstrates the company’s management transparency and financial credibility. Building on this, Vivien plans to further optimize its financial structure by carrying out a 30-to-1 capital reduction (reverse stock split) without consideration to offset accumulated deficits and improve its financial standing.

Earlier, on March 13, the company decided on the capital reduction to resolve accumulated deficits. The process involves merging 30 common shares with a par value of 500 won each into a single share with the same par value. The gain generated from the capital reduction will be used to offset accumulated deficits. While this will decrease the company’s capital, Vivien expects it to have a positive impact on its financial structure.

The company views the external auditor’s unqualified opinion as a turning point for restoring market confidence. A Vivien representative stated, "If the financial optimization through the capital reduction is achieved, it will serve as an opportunity to regain market trust and secure investment eligibility."

Unlike a capital reduction with consideration, a capital reduction without consideration does not affect the intrinsic value of shareholders’ holdings. Only the capital amount is adjusted, with no changes to the company’s total assets or total equity. Notably, this method allows for the elimination of negative items such as accumulated deficits from the financial statements, thereby enabling earlier conditions for dividend distribution.

Vivien also plans to accelerate the development of new businesses based on its improved financial structure. The company has designated this year as the first year of its performance turnaround, focusing on expanding high-profit product lines, streamlining online distribution channels, and establishing a stable profit structure for new business portfolios as its key objectives.

Furthermore, as financial soundness is secured, the company anticipates an increased capacity for new investments and financing, which is also expected to expedite its ongoing future growth engine projects.

Chief Executive Officer Son Youngseop stated, "Improving our financial structure through the offsetting of deficits is an essential step toward sustainable growth and maximizing shareholder interests," adding, "After achieving financial soundness, we will prioritize performance-based shareholder return policies to normalize the undervalued stock price and deliver results that meet shareholder expectations."

Meanwhile, the capital reduction will be finalized upon approval at the regular shareholders’ meeting scheduled for March 31, with the new shares expected to be listed on May 6.

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