Freems Q1 2026: Net Loss but Strong Share Buyback for Cancellation; Treasury Shares Reach 15%
[Shareholder Return] Acquired additional 264,590 treasury shares (total 904,906 shares, 15.08% stake). Ongoing plan to acquire KRW 5 billion worth of shares for cancellation (2026.04.01~06.30).
[Profitability] Consolidated sales KRW 4.97B (down 2.4% QoQ), operating loss KRW 0.33B, net loss KRW 0.98B (vs. net profit KRW 5.3B in prior quarter).
[Financial Health] Cash & equivalents KRW 22.8B, short-term borrowings KRW 0.9B, debt-to-equity ratio 12.2% (consolidated). Net cash KRW 21.9B.
[Costs] Income tax expense KRW 0.8B (effective tax rate 190%) causing net loss; non-recurring items such as asset disposal gains.
[Business] Core product: wire harnesses for construction equipment. Main customers: HD Construction Equipment (81%) and Doosan Bobcat (17%). Chinese subsidiary Weihai Xianzhong has negative equity.