Syntekabio Completes Most Key Measures After Adverse Opinion... Pushing Forward with Re-Audit and Management Normalization

AI-driven drug development company Syntekabio is accelerating its efforts to normalize management and proceed with a re-audit, after addressing major pending issues related to the “adverse opinion” issued in its semiannual review for 2026. Following the completion of repayment and recovery of loans to executives and others, the company has established an accounting and financial advisory system and has started discussions with the auditing firm regarding re-audit procedures and scheduling.

On September 22, Syntekabio announced that it had completed the necessary financial follow-up actions related to loan transactions that were flagged as key issues during the semiannual review, by ensuring that the loans to the executives and others were repaid and recovered.

The company's semiannual review report previously cited the lack of sufficient and appropriate audit evidence regarding the legitimacy and use of the loan transactions as grounds for the adverse opinion. Since then, Syntekabio has conducted follow-up actions to resolve these issues and has addressed all major matters within the company's scope, including securing repayment and recovery of loans.

Currently, Syntekabio is supplementing additional materials and documentation required for the re-audit. The company is revisiting the issues raised during the semiannual review, including data related to the loan transactions, and plans to have the actions it has taken independently verified by the auditing firm in the upcoming audit process.

The company has also put an accounting and financial advisory system in place to prepare for the re-audit. Recently, Syntekabio signed a service contract with an accounting firm for accounting and financial advisory services, as well as support for the re-audit process. Through this, the company aims to systematically organize the necessary materials, documentation, and accounting and financial management systems, while also re-examining the issues previously raised.

In regard to the actual re-audit procedures, the company has commenced discussions with the auditing firm. They are now deliberating on the necessary steps, preparations, and schedule for the re-audit, aiming to fully prepare all required documentation to ensure the audit can proceed as soon as possible.

Efforts to improve the management system are being pursued in parallel. To enhance stability and external credibility, Syntekabio is in the process of recruiting external professional management. By reorganizing its management and decision-making structure around these professionals and reinforcing its financial, accounting, and internal control systems, the goal is to further enhance transparency and management accountability.

The company plans to fast-track these sequential follow-up measures—completion of loan repayment and recovery, establishment of an accounting and financial advisory system, commencement of re-audit discussions, and recruitment of professional managers—to expedite the normalization of its management.

A Syntekabio spokesperson stated, "We have continuously implemented follow-up measures to address the issues raised after the semiannual review. Most of the essential actions that can be taken internally by the company, including the repayment and recovery of the related loans, have already been substantively completed."

The spokesperson added, "Currently, we are focusing on refining relevant materials and documentation, and have begun discussions with the auditing firm to proceed with the re-audit. We will speed up our preparations and actively cooperate with the auditing firm to ensure that the re-audit can be carried out as soon as possible."

The spokesperson further emphasized, "We are also working simultaneously on recruiting an external professional management team and strengthening internal controls, aiming to renew our management system. We view this process as an opportunity to strengthen accounting transparency and management stability, and will focus all our efforts on expediting normalization and recovering market confidence."

Syntekabio is continuing the management normalization procedures following the adverse opinion, by completing loan recovery and the restructuring of its accounting and financial systems, while also preparing for the re-audit and recruiting external professional managers in parallel.

This content was produced with the assistance of AI translation services.