Borwon Chemical: Positive Signals from Financial Structure Improvement and Merger
Conversion of all redeemable convertible preferred shares (RCPS) into common stock (June 30, 2025): Liabilities decreased by ₩14.8 billion, equity increased by ₩17.8 billion, debt-to-equity ratio improved from 1,013.81% to 192.81%.
Revenue for the period: ₩52.19 billion (previous: ₩39.73 billion, +31.4%), operating profit: ₩5.12 billion (previous: ₩4.76 billion, +7.5%).
Net income fell sharply to ₩0.22 billion (previous: ₩1.67 billion, -87%) mainly due to increased financial costs including derivative valuation loss of ₩2.25 billion.
Cash at year-end: ₩1.06 billion (previous: ₩0), total borrowings: ₩36.13 billion (previous: ₩35.63 billion), net borrowings: ₩35.07 billion.
Planned merger with listed company BNK Second SPAC (merger date March 16, 2026).
Investment in associate (Cream House Friends) fully impaired (acquisition cost ₩1.35 billion, carrying value ₩0).
High customer concentration: Company A 63.6%, Company B 29.8% of total revenue.