Convertible Bond Derivative Valuation Loss of KRW 12.08B (Non-Cash)

The company recognized an accounting loss of KRW 12.08 billion (net loss) from fair value measurement of derivatives embedded in convertible bonds under K-IFRS, representing 12.48% of equity (KRW 96.79 billion).
Loss details: In Q1 2026 (Jan-Mar), derivative valuation gain of KRW 5.89 billion and loss of KRW 17.97 billion, net loss of KRW 12.08 billion.
Loss cause: Decrease in fair value due to changes in conversion price and underlying stock price of convertible bonds.
This loss is a non-cash accounting loss with no cash outflow, thus no impact on actual cash flow.
The company is not a large enterprise.
Related disclosure: Quarterly report filed on 2026-05-12, etc.