Dongsung Pharm: Operating Loss, Qualified Opinion, Deteriorating Financial Health

Revenue 88.4bn won (-0.2% YoY), operating loss 5.7bn won (swing from +0.7bn), net loss 14.6bn won (vs 6.0bn loss)
Auditor changed to Hanul; qualified opinion for FY2023 (key audit matter: refund liability)
Debt ratio 220% (FY2023: 209%), current ratio 74% (127%), short-term borrowings 35.2bn (23.1bn)
Allowance for doubtful accounts 13.6bn (4.6bn, triple), full provisioning for illegal claims
Land revaluation added 23.5bn to OCI; equity 44bn (35.9bn), retained earnings -16.6bn
Early redemption of BW 7.4bn out of 14bn; issued EB 3bn; post-period CB 20bn
No dividends for 5 years; holds 3.23mn treasury shares (no cancellation plan)
Weak China brand sales; Guatemala export license pending; Vietnam distribution preparation
R&D expense 4.5bn (5.11% of sales); Photogen phase 2 approved; cannabis-derived drug development
New business 'Dongsung Aero' (kitchen air purifiers) launched with no revenue yet