HanWool & Jeju: Continued Losses and Reverse Stock Split in Q1 2026
Consolidated Q1 2026 revenue of KRW 3.3bn, operating loss of KRW 1.9bn, net loss of KRW 3.1bn, widening losses YoY (Q1 2025: revenue KRW 3.4bn, net loss KRW 1.0bn).
Accumulated deficit of approximately KRW 98bn, total equity of KRW 12.8bn, near capital impairment, debt-to-equity ratio 349% (debt KRW 44.8bn).
Total borrowings KRW 32.9bn, cash and equivalents KRW 3.1bn, net debt KRW 29.8bn, weak financial structure.
10-for-1 reverse stock split (capital reduction) in April 2026, diluting share value and reducing capital from KRW 11.1bn to KRW 1.1bn.
Adjustment of conversion/exercise prices for convertible bonds and bonds with warrants (from KRW 1,854 to KRW 18,540), potential dilution risk.
All four major subsidiaries reported losses (e.g., Patgodang SP negative equity of KRW 1.3bn, JK Core Value net loss KRW 0.15bn).
Increased related-party receivables and loans (JK Materials receivables KRW 4.6bn, loan to HanWool Material Science KRW 1.2bn).
Credit rating remains low at B+ (Korea Enterprise Data, June 2025).
Business diversification (F&B, carbonated water, imported beer) still immaterial; China Huarun beer partnership terminated.
R&D expenditure declined (0% of sales in Q1 2026 vs 0.5% in FY2025), slowing new product development.