Hyper Corporation, Audit Opinion 'Unqualified'... Restructuring Toward Profit-Centered Business

Hyper Corporation announced on the 21st that it received an 'unqualified' audit opinion.

Hyper Corporation expanded its new businesses last year through aggressive research and development (R&D) and mergers and acquisitions (M&A). Due to significant valuation losses caused by delayed profits in some affiliates, it was designated as a management item. Since January this year, it has begun improving its financial structure with a focus on profitability. The company is accelerating business restructuring by promoting the integration of affiliates and the sale of non-core affiliates such as Hyper Prism.

Since the reason for the management item designation is clear, Hyper Corporation is preparing a multifaceted strategy including fundraising methods such as a rights offering to promptly resolve the designation. Based on this, it plans to enhance the execution of financial structure improvement and mid- to long-term growth strategies.

It is building a growth foundation and increasing profits through the expansion of existing profitable businesses and export expansion strategies. The commerce division recorded domestic sales of 57.3 billion KRW last year, an increase of 33.6% compared to the previous year. Gift Letter, acquired last year, achieved sales of 47.5 billion KRW, up 170% year-on-year, and operating profit of 3.1 billion KRW, up 244% year-on-year. In cooperation with ByteDance, it exclusively supplies mobile coupons to TikTok Lite, and in collaboration with Blackhawk, a global brand specialist operator, it will sell Google and Disney products in the second half of this year.

Lee Sang-seok, CEO of Hyper Corporation, said, "Although we secured an unqualified audit opinion, we take the seriousness of the current situation very seriously," adding, "Resolving the management item designation and restoring financial soundness are our top priorities."

He continued, "We expect the recently acquired business to grow significantly this year," and added, "We will intensively pursue profit structure improvement and business restructuring to restore management trust."