1. What’s Happening with Flask?

Flask’s 2025 semi-annual report paints a bleak picture of severe financial distress and the looming threat of delisting. Declining revenues in its construction business, underwhelming performance in its IT sector, and a deteriorating financial structure jeopardize the company’s very existence. The trading suspension following the disclaimer of opinion significantly increases the likelihood of delisting.

2. Why is This Happening?

a. Deteriorating Business Performance

  • Construction Business: Hit hard by the downturn in the real estate market, revenues plummeted by 44% year-over-year. New ventures in real estate development and PM, intended as growth drivers, remain in early stages and highly uncertain.
  • IT Business: Despite launching new Web 3.0 based games, the IT sector contributes less than 5% to total revenue and continues to operate at a loss.

b. Weakening Financial Structure

  • Declining equity, deepening deficit, and negative operating cash flow paint a picture of overall financial distress. The bankruptcy filing of a subsidiary further exacerbates the situation.

3. What Should Investors Do?

With Flask’s stock currently suspended and delisting highly probable, new investments should be avoided entirely. Existing investors should closely monitor the delisting process and prepare for the worst-case scenario. Even if trading resumes following an appeal, the inherent risks remain substantial without a fundamental turnaround in the company’s performance.

4. Key Factors to Watch

  • Outcome of the delisting appeal
  • Performance improvements in the construction and IT businesses
  • Financial restructuring plans and their effectiveness

Flask’s future hangs precariously in the balance. Investors need to approach the situation with caution and make informed decisions.