Hwaseung Industries Q1 Plunge: Sales Down 16%, Debt Ratio Hits 204%

Consolidated Q1 2026: Revenue KRW 408.2bn (down 16% YoY from KRW 485.5bn), Operating profit KRW 8.5bn (down 64% from KRW 23.7bn), Net profit KRW 0.4bn (down from KRW 10.3bn).
Debt ratio 204.15% (end-2025: 185.01%), net debt-to-capital ratio 54.59% (51.87%), increased leverage.
Treasury share buyback trust maintained but no new purchases in Q1 (holds 7,400,879 shares).
Guarantees for subsidiaries: USD 381mn, CNY 60mn, KRW 30.8bn.
No pending litigation or other contingencies. Inventory valuation loss of KRW 3.4bn recognized.