EcoSimplex: Subsidiary Bankruptcy and Continuing Losses as Negative Factors
Consolidated Q1 2026 revenue: 2.85 billion won (down 30.3% YoY from 4.09 billion won), operating loss 0.99 billion won, net loss 0.38 billion won.
After reporting period (Apr 15, 2026), subsidiary ITS Noa filed for bankruptcy; declared bankrupt on May 7, 2026. Expected negative impact on consolidated financials.
Consolidated equity: 73.38 billion won (down from 73.76 billion at year-end 2025), net debt-to-equity ratio 20.9%.
Related party loans (Total Agro): 24.98 billion won with allowance for doubtful accounts of 6.91 billion won. Total allowance for short/long-term loans: 15.57 billion won (26.3% of gross loans).
Credit rating maintained at BB0 (eCredible, NICE D&B).
Contingent liability from put option: 8.4 billion won (present value 6.85 billion won).
Separate Q1 net income: 0.15 billion won (down 70% YoY from 0.52 billion won).
Clean hydrogen production facilities (Seonam, Yeongcheon) under construction, but timing of revenue contribution uncertain.