Notice to shareholders regarding: The conclusion of the financial regulator’s audit inspection and the Securities & Futures Commission’s review
■ During the last 47 months, since Apr 2018, we have sincerely participated in the audit conducted by the financial authorities on its financial statements for 12 fiscal years. We have faithfully explained our position on the issues raised during this audit. As the decisions announced by Securities & Futures Commission (SFC) on Mar 11, 2022, officially mark the finalization of this audit, we believe that these decisions eliminate a significant portion of the uncertainty about Celltrion that has existed in the financial market for a long time. These decisions also clear up some of the misunderstandings caused by the differences in opinion between the financial authorities and Celltrion.
■ It is unfortunate that SFC has found some of our accounting practices in violation of the accounting standards. While we believe that these findings were caused by the different views on how the unique nature of biopharmaceuticals and the relevant international rules are incorporated into our accounting exercises, we respectfully accept SFC’s decisions.
■ The accounting practices that were viewed as violations of the accounting standards occurred in the past, hence having a limited impact on our current financial statements.
■ With the audit inspection finally resolved, we and the affiliates of Celltrion Group will remain committed to our key business to meet the market and shareholder expectations.