NSN Denies Prosecutor's Report as Groundless... "Will Focus on Financial Soundness and Profit Improvement"

[Asia Economy Reporter Jang Hyowon] NSN announced on the 5th that there are no relevant matters regarding the prosecution report related to the disciplinary action by the Securities and Futures Commission under the Financial Services Commission.

A company official stated, "The investigation by the Securities and Futures Commission into NSN concerned audit issues during the accounting periods from 2017 to the third quarter of 2019 and the overstatement of loans," adding, "After a long-term investigation lasting more than three years, the final result was communicated as a fine, and prosecution reports or notifications to the prosecution do not apply to NSN."

He continued, "With the risk factors from the prolonged investigation and review now resolved, concerns about being designated for a substantive review also seem to have been alleviated," and added, "Since past accounting risks have been resolved, NSN expects this to be a good momentum to focus on strengthening management soundness this year as well as improving profitability through securing future growth engines."

NSN is currently focusing on the animal PCR diagnostic device business and distribution platform business. The company plans to secure financial soundness this year by improving profitability through business unit restructuring and downsizing to reduce costs.

NSN recently obtained product approval from the Ministry of Agriculture, Food and Rural Affairs for Korea's first on-site diagnostic animal PCR diagnostic device and African Swine Fever (ASF) diagnostic kit. The company is now actively supplying PCR diagnostic devices and diagnostic kits to livestock sites, starting with the Gyeonggi-do Animal Hygiene Testing Laboratory.

Additionally, the company explained that sales are progressing smoothly in the newly promoted ESG green industry distribution business sector.

A company official said, "In September alone, the distribution business segment generated sales exceeding 3 billion KRW and operating profit exceeding 500 million KRW," adding, "We are pushing the business forward with the goal of expanding sales and profits in the fourth quarter, and this year we will do our best to improve profitability and enhance shareholder value."