MEKICS Posts Q1 2026 Turnaround to Profit; Revenue and Net Income Improve
Consolidated Q1 2026 revenue of 38.795 billion won (up 33% YoY), net income attributable to parent of 589 million won vs loss of 1.086 billion won in Q1 2025
Separate revenue of 36.795 billion won (up 17% YoY), net income of 428 million won vs loss of 903 million won in Q1 2025
Operating loss reduction trend continues (from 9.4 billion in FY2024 to 1.3 billion in FY2025) and sales mix improvement (high-margin respiratory therapy devices) drive turnaround
Disposable business growth: sales volume increased 300% from 10,000 units to >30,000 units in FY2025, contributing 18% of total revenue
North America market entry: FDA 510(k) clearance for OmniOx 750U respiratory therapy device (May 2025), expecting meaningful sales from 2026
Digital healthcare platform 'Meerkat' launched with central monitoring system; developing paid AI service model for home ventilator users
Glocalization strategy: established local subsidiaries in India and Turkey, expanded SKD business, Indian and Turkish subsidiaries reported profit
Associate company Mek Healthcare achieved #1 market share in sleep apnea devices and turned profitable
R&D investment sustained: Q1 2026 R&D expenses 769 million won (20.9% of revenue), net of government grants 364 million won
Financial position: short-term borrowings 11 billion won, long-term borrowings 4.49 billion won (consolidated), cash and equivalents 4.24 billion won; subsidiaries Yantai Sejong and WH Engineering have negative equity
New stock options granted in March 2026: 172,224 shares at exercise price of 2,000 won, vesting conditions: 2 years service and stock price above 4,000 won
CEO provides payment guarantees (844.5 million won), collateral provided for associate borrowings, payment guarantee for WH Engineering (954 million won)