1. What Happened? Dissecting the Financial Results

Hyosung Chemical reported revenue of KRW 616.9 billion, an operating loss of KRW 8.9 billion, and a net profit of KRW 102.3 billion for H1 2025. However, discrepancies between the reported revenue and the consolidated revenue of KRW 1.19 trillion stated in the semi-annual report raise concerns about potential disclosure errors. The net profit is attributed to one-off gains from restructuring, indicating minimal improvement in core business performance.

2. Why Did This Happen? Analyzing Capital Impairment and External Factors

Hyosung Chemical’s trading was halted due to complete capital impairment at the end of Q1 2025. The H1 results offer little relief, increasing the risk of delisting. External factors, such as fluctuating raw material prices and intensifying competition from China, further exacerbate the situation.

3. What Should Investors Do? Navigating the Uncertain Future

Investing in Hyosung Chemical requires extreme caution. The company faces multiple challenges, including declining investor confidence, severe capital impairment, and weak core business performance. Investors must consider the potential for delisting when making investment decisions. A clear explanation from the company and a concrete plan to address capital impairment are crucial for reassessing investment value.

4. Investor Action Plan

  • Stay Informed: Closely monitor the company’s disclosures and related news.
  • Manage Risk: Acknowledge the potential for investment loss and adjust investment size accordingly.
  • Seek Professional Advice: Consult with a financial advisor to develop an appropriate investment strategy.