1. What Happened? Shinsung Tongsang’s Delisting Decision

Shinsung Tongsang announced its voluntary delisting plan in its business report for the fiscal year ending June 2025. The majority shareholder and related parties will acquire the remaining shares through a tender offer to pursue delisting. This is expected to bring significant changes to the company’s management structure and shareholder composition.

2. Why Delist? Analyzing the Background and Causes

While no official announcement has been made, industry experts believe that the recent decline in profitability is one of the main reasons. The 58th business report shows a year-on-year decrease in sales, operating profit, and net income. The decline in sales in the fashion business and rising raw material prices are analyzed as the main factors contributing to the decline in profitability. Despite the company’s explanation that the delisting decision was made to enhance management efficiency and simplify the decision-making structure, investors cannot rule out the possibility of a management crisis due to deteriorating profitability.

3. How Does Delisting Affect Investors?

  • Positive Aspects: Freed from short-term market pressure, the company can establish management strategies from a long-term perspective and accelerate decision-making.
  • Negative Aspects: Investor access to information may be restricted, and liquidity may decrease due to reduced stock trading volume. Concerns about management transparency may also arise.

4. What Should Investors Do? An Action Plan

Shinsung Tongsang investors need to fully understand the characteristics of unlisted companies and make informed investment decisions after delisting. It’s crucial to carefully review the company’s growth strategy, financial soundness improvement plan, and measures to ensure management transparency. It’s also necessary to prepare for potential trading limitations and reduced liquidity after delisting.