Keyang Electric: Q1 Operating Loss of KRW 1.9B Continues… Rights Offering of 8.2M Shares

Consolidated Q1 2026 revenue KRW 98.9B (+5.4% YoY), operating loss KRW 1.9B, net profit attributable to parent KRW 0.83B
Debt-to-equity ratio 955% (equity KRW 22.3B, debt KRW 213.1B), weak financial structure
Board resolved on May 8, 2026 to conduct a rights offering of 8.2 million common shares (par value KRW 500)
Purpose: debt repayment, operating funds, facility investment; offer price to be determined later
Full impairment of KRW 19.9B receivables from former employee embezzlement; low recovery prospect
Received KRW 15B insurance for 2024 Cheonan factory snow damage, final settlement pending
Derivative valuation loss of KRW 74M and disposal loss of KRW 89M incurred
Significant related-party transactions and debt guarantees (Haesung Industrial, etc.)