신테카바이오's shares fell to the lower limit after the company received a 'disclaimer of opinion' from its auditor in its semi-annual review report.
On August 18, at 9:10 a.m., Shintech Bio's stock was trading at 1,048 won, down 449 won (29.93%) from the previous trading day.
The company announced that it received a 'disclaimer of opinion' from Samjeong Accounting Corporation regarding its consolidated and separate financial statements for the first half of this year. In the same period last year, it received an unqualified opinion.
As of the end of the first half, Shintech Bio reported total equity of 25.926 billion won and paid-in capital of 12.129 billion won. Its revenue for the first half was 872 million won, a decrease compared to the same period last year, and it recorded an operating loss of 5.729 billion won.
A disclaimer of opinion is issued when an auditor cannot obtain sufficient and appropriate audit evidence to form an opinion on the financial statements. In Shintech Bio's case, the reason cited was the lack of sufficient and appropriate evidence to verify the legitimacy and purpose of loan transactions.
For listed companies, a disclaimer of opinion can raise concerns about accounting transparency among investors. If the nature of related transactions and the use of funds are not sufficiently clarified during future audits, it could lead to additional risks related to accounting and maintaining the listing status.
* This article has been translated by AI.
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