Hydro Lithium Files Corrected 2024 Audit Report; Prior Errors and Omitted Related Party Transactions Rectified, Lithium Business Impairment of 19.4B Won Drags Asset Value

Reason for correction: Omission of some related party transactions (Lithium Plus, etc.) and correction of prior period errors (understated share premium by 1.86B won, etc.).
Net loss for 2024: 17.65B won (improved from 40.96B loss in 2023), revenue 8.47B won (down from 22.86B due to reduced construction sales from Lithium Plus).
Recognized impairment loss of 19.39B won on lithium business assets (tangible 17.42B, intangible 1.96B), reducing asset values.
Related party transactions: purchases from Lithium Plus 44.28B won (in-kind settlement), sales 2.48B won, loans 3.40B won; allowance for doubtful accounts 17.31B won.
Most convertible bonds and bonds with warrants converted; remaining convertible bonds 2.74B won (vs 17.44B at end 2023). Paid-in capital increase of 3.99B won.
Treasury shares: 1.75 million shares held; no share buyback or dividend.
[AI Summary]Hydro Lithium's corrected 2024 audit report reflects retroactive adjustments for related party transactions and errors, but the lithium business weakness led to significant impairment losses (19.4B won), deteriorating asset quality. Sharp revenue decline and persistent net losses highlight urgent need for financial restructuring. Heavy reliance on related parties and large receivables/loans (Lithium Plus 17B won) pose credit risk, and remaining unconverted bonds (0.91M shares) imply potential further dilution.