Dynamic Design Receives "Qualified" Audit Opinion... Begins Procedures to Resume Trading, Citing No Issues with Business or Financial Stability

Dynamic Design announced on March 24, 2026, that it received a “qualified” opinion due to a limitation in audit scope in its audit report for the 2025 fiscal year. The company explained that this opinion is unrelated to its financial soundness or business continuity, and that it stems from limitations in the application of accounting standards and audit procedures.

According to the audit report by Samil PwC, aside from the effects of the matters mentioned in the basis for the qualified opinion, as of December 31, 2025, the company’s financial position, operating results, and cash flows for the reporting period were fairly presented in all material respects in accordance with the Korean International Financial Reporting Standards (K-IFRS).

This qualified opinion resulted from restrictions in obtaining sufficient and appropriate audit evidence for certain assets in prior year financial information. As a result, the auditor explained that there were also constraints in performing audit procedures for the opening balances and related profits and losses in the current year’s audit. The company emphasized that this is an accounting issue limited to specific items, and that it does not affect the overall reliability of the current financial statements or actual business operations.

In terms of performance, the company continues to show improvement. Sales increased by approximately 28%, rising from about 62.5 billion won in 2024 to around 80.1 billion won in 2025, while operating loss decreased from about 2.5 billion won to approximately 570 million won during the same period. A company representative stated that the improvement in business structure is underway through sales growth and loss reduction, and that the operational base remains stable.

This performance is attributed to the company’s strategy focused on high value-added products. The company explained that it achieved an increase in sales of high value-added molds by expanding orders from major customers in Europe and the United States and commencing mass production at its Indonesian subsidiary, leading to a marked improvement in profitability. The company also added that it is strengthening its position as a global mold supplier through investments in automation equipment, technological accumulation, and active business development.

The company maintains that there are no significant concerns regarding financial stability. It explained that collateral ratios remain stable, debt levels are within manageable limits, and there are no liquidity issues. The company also emphasized that there have been no major issues in terms of internal accounting management or business stability.

In relation to this matter, the company plans to submit a delisting objection to the Korea Exchange and initiate procedures to be granted an improvement period. Going forward, the company intends to resolve issues related to the opening financial information during the next audit, supplement audit evidence, and clarify accounting policies in order to achieve an “unqualified” audit opinion.

A company representative stated, “This qualified opinion is unrelated to our actual financial soundness or business continuity,” adding, “The reliability of our financial information remains intact, as the current financial statements are fairly presented in all material respects.” The representative further emphasized, “We will do our utmost to promptly resolve this issue, protect investors, and restore market trust,” and added, “We will swiftly implement necessary measures during the improvement period to resume trading.”

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