Iljeong Industrial Q1 operating profit plunges 69%; legal risk from related party loan

Sales 10.76B KRW (vs 10.00B, +7.5%), operating profit 0.35B KRW (vs 1.15B, -69.4%), continuing net income 0.65B KRW (vs 1.17B, -44.6%)
Chinese subsidiary in liquidation, deconsolidated; gain of 10.55B from disposal fully recognized in prior year
Cash & cash equivalents 1.70B (up from 0.21B at year-end 2025, +709%), short-term borrowings fully repaid (7.46B to 0), long-term borrowings maintained at 8.00B
Loan to related party (Hyundai Interior) of 2.79B may violate Commercial Act credit extension limit, subject to penalties
No dividend or share buyback/sell plan; inventories 5.24B (down from 5.94B), trade receivables 6.36B
Major customers: Hyundai Motor 39%, VALDESE 16%, Yongsan Asan 10%