Kodako’s Delisting: What Happened?
Kodako is under review for delisting due to violations of KOSDAQ regulations. The company has received a delisting notice and can appeal within 15 business days. Without an appeal, delisting proceeds. If appealed, a re-review occurs within 20 business days.
Why is Kodako Facing Delisting?
Kodako continues to struggle even after exiting receivership. Q1 2025 results show a net loss, and debt ratios remain high. The downturn in the auto parts industry, rising raw material prices, and the global economic slowdown negatively impacted performance.
- Weak Financials: Consolidated debt-to-equity ratio stands at 3535.92%, and the standalone ratio is 422.88%.
- Poor Performance: Q1 2025 showed a consolidated net loss of 3 billion KRW and a standalone loss of 1.6 billion KRW.
- External Factors: Auto industry downturn, rising raw material prices, and the global economic slowdown all contributed.
What’s Next for Kodako?
If delisting is confirmed, Kodako shares will cease trading, making it difficult for investors to recover their investments. An appeal is possible, but given the current situation, it’s unlikely to succeed.
What Should Investors Do?
Kodako investors must carefully consider the potential delisting when making investment decisions. Closely monitor the appeal results and prepare strategies to minimize losses if delisting is confirmed. Keep an eye on Kodako’s future actions and financial improvements, particularly the performance of its Mexican subsidiary (MKDC) and its hedging strategy against raw material price fluctuations.