Codes Combine 2026 Q1 Consolidated Operating Profit Surges 5.6x, Net Profit Declines

Consolidated revenue 9,752M KRW (+17% YoY), operating profit 781M (5.6x), net profit attributable to parent 1,069M (-26%), EPS 28 won (vs 38)
Separate revenue 9,261M (+17%), operating profit 505M (+5.2x), net profit 913M (+20%)
Debt ratio improved to 27.2%, net cash position (cash & short-term financial assets 32.4B > borrowings 9.7B)
New equity investment of 1.47B (FVTPL) with disposal gain 155M and valuation loss 147M
R&D expenses 2.4B, selling expenses increased
Considering retirement of treasury shares (93,343 shares, 0.25%) but no specific plan
No dividends for past 5 years
Operating cash flow turned positive to 626M (vs -288M in Q1 2025)
Related party transactions: large increase in lease deposits (7.58B to Cotton Club etc.)
Auditor changed to Yeji Accounting Corp (2025-2027)