2026 Q1 Operating Profit Turns Positive, Net Loss Persists, Debt Reduced

Consolidated Q1 2026 sales KRW 25.2B, operating profit KRW 0.15B, turning positive (vs Q1 2025 sales KRW 25.5B and operating loss KRW 8.5B)
Consolidated net loss KRW 0.44B continues (financial costs KRW 1.38B etc.)
Total borrowings KRW 82.7B (down from KRW 85.2B at year-end 2025), net debt KRW 82.3B slightly decreased
Gearing ratio improved to 70% from 78% (equity increased by KRW 35.9B due to CB conversions)
Allowance for doubtful accounts on trade receivables at KRW 9.4B (36.2% of gross receivables), credit risk persists
Outstanding convertible bonds and bonds with warrants KRW 5.9B, derivative liabilities KRW 6.0B
Two ongoing lawsuits (amount KRW 0.26B), not material to financials
New businesses (all-solid-state battery, humanoid robot) under development, no revenue yet