Net Profit Declines Due to Financial Loss amid Self-Share Cancellation and Shareholder Return Policy Announcement
Consolidated revenue of 7.33 billion won (up 24.9% YoY) and operating profit of 0.99 billion won, but net profit decreased to 2.53 billion won (down 47.7% YoY) due to a 2.55 billion won fair value loss on financial assets.
On a separate basis, net loss of 0.29 billion won (vs net profit of 2.60 billion won in prior year), mainly due to a 2.54 billion won fair value loss.
During the quarter, 665,731 treasury shares (book value 5.90 billion won) were fully cancelled. Outstanding shares reduced to 9,806,109.
After the reporting date (April 21), announced shareholder return policy: minimum annual dividend of 200 won per share, 3-year average total shareholder return ratio of at least 50% of consolidated net profit. Entered into a 80 billion won treasury stock acquisition trust contract, with all acquired shares to be cancelled.
Operating cash flow outflow of 2.54 billion won (vs inflow of 0.08 billion won prior year), but cash and cash equivalents of 25.37 billion won.
Equity method gain from affiliates of 2.80 billion won (vs 2.34 billion won prior year), reflecting solid performance from Suprema Inc. and others.
Total assets of 251.7 billion won, liabilities of 7.4 billion won, indicating very stable financial structure. Borrowings are minimal at 1 million won.
Lawsuit for collection of receivables from 4G ID Ltd.: Won at Supreme Court, enforcement proceedings ongoing at Hyderabad High Court in India. No allowance for doubtful accounts.