Sconec Entertainment: Audit Disclaimer and Massive Losses Signal Financial Peril

Auditor issued a 'disclaimer of opinion' (Apr 7, 2026) due to inability to verify propriety of investment property, equity investment, and subsidiary fund outflow transactions.
Net loss in 2025: KRW 21.86 billion (2024: loss of 6.65 billion), accumulated deficit reaches 80.37 billion.
Debt ratio surged to 55.92% (2024: 12.37%), shareholders' equity fell to 13.20 billion (2024: 17.39 billion).
Operating loss of 12.23 billion (revenue 6.76 billion, operating expenses 18.99 billion).
Large one-off charges: investment property impairment 5.2 billion, other bad debts 5.33 billion.
Operating cash flow -11.21 billion, investing -8.06 billion, financing +20.61 billion (convertible bonds 4 billion, rights issue 18.17 billion).
Despite issuing convertible bonds (KRW 4 billion) and a rights offering (KRW 18.17 billion), losses persist.
Post-period: additional convertible bond (5.01 billion) and another rights offering planned, signaling continued funding needs.