[비즈한국] As Daidong Electronics008110 faces KOSPI delisting after receiving a qualified audit opinion for three consecutive years, it has been revealed that the company has been reducing domestic factory investments for several years, effectively showing signs of winding down the business. Despite the depletion of inventory, annual factory investments have been cut to the 10 million won range. On the other hand, suspicions are mounting that the company may be orchestrating a "voluntary delisting," as dividend income received from overseas subsidiaries is being used for executive bonuses, travel expenses, and service fees.
According to Daidong Electronics' quarterly report disclosed to the Financial Supervisory Service on the 13th, capital expenditure (CAPEX) for tangible assets, including factories, from April to December of last year was 3.6 million won. Compared to 10.3 million won during the same period the previous year, this is a sharp decline of over 65%. Capital expenditure refers to investment funds spent by a company to generate future profits or increase the value of existing assets, typically used for replacing key components to boost production capacity or for renovations to improve product quality. Given that Daidong Electronics holds over 90.4 billion won in tangible assets such as land, buildings, and equipment, it could be seen that the factories are being neglected without even basic maintenance. Expenses used for raw material procurement also dropped to 122 million won, a decline of over 90% compared to 1.512 billion won during the same period the previous year.
This disappearance of investment is not a temporary phenomenon. Examining the business reports over the last six years, the scale of capital expenditure (based on tangible assets), which was 1.45 billion won in 2020, has plummeted by over 99% to 10.3 million won in 2025.
It is not as if they have stockpiled significant inventory either. As of the end of last year, the inventory value based on book value was a mere 34.5 million won. The warehouses are empty, and investments have come to a halt.
With production and investment at a standstill, the abnormal reversal where Daidong Electronics' financial income exceeds its revenue has continued for three years. Last year's revenue was 8.7 billion won, less than half of its 20.9 billion won in financial income.
Cash flow is also poor. As of the end of last year, the net cash flow generated from operating activities was negative 3.777 billion won, indicating a deficit. Daidong Electronics has been filling this hole with 7.138 billion won in dividend income received from its profitable subsidiary, the Thai entity (DAIDONG ELECTRONICS THAILAND CO., LTD.).
Under these circumstances, spending on management has increased. Compensation for key executives for the current quarter, including 20.6 million won in severance pay, amounted to 1.324 billion won, a 35.6% increase compared to the same period the previous year.
There are also clear signs of suspicious cash outflows. From April to December last year, travel and transportation expenses were 237 million won, an 18% increase from the same period the previous year. Notably, service fees during the same period also rose to 838 million won, an increase of over 38% year-on-year. Service fees are costs paid for services provided by third parties, such as business consulting and facility management. Questions are inevitably being raised as to why external service fees are increasing when inventory is depleted and factory operations have essentially stopped. Additionally, the company is operating two offices in the 18th Daeryung Techno Town, a two-minute walk from the factory.
Minority shareholders, facing the prospect of delisting, are looking at the company with critical eyes.
In response to these allegations, a Daidong Electronics official stated, "These comments are made without a proper understanding of the company's business situation, and there is nothing further I can say."