What Happened to KH Feelux?

KH Feelux received a disclaimer of audit opinion on its 2025 semi-annual report. Issues with accounting transparency were raised in various areas, including inventory valuation, investments, and cash transactions. This recurring issue has led to trading suspension and a delisting decision.

Why This Crisis?

The company faces a serious financial crisis. Declining sales, continuous operating losses, capital impairment, increasing debt, and worsening cash flow indicate a very weak fundamental position. Key business segments, including components/materials, lighting, resort, and bio, are all underperforming, with significant losses from investments in the bio sector. Increasing debt, large-scale investments, and losses from subsidiary investments further complicate the financial situation.

What’s Next for KH Feelux?

Investing in KH Feelux is currently extremely risky. The disclaimer of audit opinion and delisting decision can lead directly to a loss of principal. The macroeconomic environment, including global interest rate hikes, potential recession, exchange rate volatility, and rising raw material prices, further adds to the negative outlook.

What Should Investors Do?

Investment in KH Feelux is strongly discouraged. Investors should avoid investing until uncertainties regarding the disclaimer of audit opinion, financial restructuring, and the outcome of the delisting lawsuit are resolved. It is crucial to recognize the low probability of recovery and the significant risk of total principal loss.