Kodaco Secures New Orders Despite Trading Suspension... New Growth Engine 'Expansion of Electric Vehicle Parts Supply'

[Asia Economy Reporter Hyungsoo Park] The Korea Exchange KOSDAQ Market Division has decided to exclude Codaco from the subject of the delisting suitability review, and trading of Codaco’s stock resumed on the 19th.

Codaco, a specialized aluminum die-casting automotive parts company, had its trading suspended from March 19 last year due to a disclaimer of opinion on its 2018 financial statements. After receiving an unqualified opinion on its 2019 financial statements, the formal reason for delisting was resolved. The Korea Exchange held a corporate review committee meeting and decided to exclude Codaco from the delisting suitability review.

In Gwi-seung, CEO of Codaco, said, "I am grateful to the shareholders and creditors who must have suffered greatly due to the suspension of stock trading over the past year," and added, "Since receiving the disclaimer of opinion, Codaco has made great efforts to resume stock trading as soon as possible."

He continued, "We conducted a thorough inspection and reorganization of accounting and internal controls," and added, "As a result of these efforts, we were able to resume stock trading."

Furthermore, he expressed his determination, saying, "We will operate the company with a fresh mindset from the start and ensure that such issues do not cause concern to many people again."

During the suspension period, Codaco did not settle for maintaining stable supply through existing clients but steadily secured new orders. New orders were received from clients recognizing their technology, including Mando, Hanon Systems, Valeo, and BorgWarner. The overseas local factory, Mexico MKDC, was selected as a first-tier supplier to North American Hyundai and Kia through technical support from Codaco headquarters. They began supplying converter housing parts for SUV vehicles to Hyundai. Through Mando, the volume of rack housing parts supplied to leading global electric vehicle companies and GM increased from 400,000 units to 1.4 million units annually. The company emphasized that they have agreed to supply new electric vehicle parts through BorgWarner.