Commerce Miner, whose stock trading has been suspended since April 2020 due to embezzlement and breach of trust by former management, is raising expectations for the resumption of trading by successfully turning its operating profit positive.
According to the Financial Supervisory Service's electronic disclosure, Commerce Miner recorded sales of 20.7 billion KRW and an operating profit of 400 million KRW last year. Sales increased by 24.3% compared to the previous year, and operating profit turned positive.
Industry insiders believe that Commerce Miner’s operating profit turned positive as a result of significantly restructuring underperforming businesses such as masks and strengthening its core online business.
In particular, the company made a bold entry into the hygiene panties and beauty business, which are friendly to its largest online commerce customer base, female consumers, achieving a complete structural reform by expanding its business portfolio and diversifying sales.
Along with the solid performance, the overall financial soundness was also at a good level. Commerce Miner acquired the hygiene panties and beauty business divisions last year to diversify its sales.
To prevent the loss of key personnel and technology, the company conducted a third-party allotment paid-in capital increase to the existing CEOs of the acquired divisions and appointed them as heads of each business division, establishing a partnership. Through this process, capital was expanded and merger risks were minimized. Additionally, the company maintained a sound financial structure with a debt ratio of 15% and a current ratio of approximately 700%.
Expectations for the resumption of trading have also increased with the turnaround to profitability. HiSonic, which succeeded in resuming trading after a listing maintenance decision on the 27th of last month, recorded separate basis sales of 29 billion KRW and an operating profit of 400 million KRW last year, similar to Commerce Miner’s performance.
A Commerce Miner representative stated, “The company plans to diligently prepare and submit the improvement plan implementation report and do its best to respond to the substantive review,” adding, “Since the decision on whether to resume trading is made by the KOSDAQ Market Committee, it is difficult for the company to express its opinion.”
Meanwhile, the Korea Exchange held the KOSDAQ Market Committee and made listing maintenance decisions for four companies (DXVX, HiSonic, S&WR, Korea Precision Machinery) on the 27th of last month, and for two companies (SkyMoon Technology, CNT85) on the 29th of last month.
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