Hwail Pharmaceutical: Q1 2026 Operating Loss Continues but Net Profit Turns Positive, Share Cancellation and Stock Consolidation Executed
Q1 2026 results: Revenue KRW 23.4B (down 22% YoY), operating loss of KRW 0.57B continues, net profit turned positive to KRW 0.58B (vs net loss of KRW 0.66B in Q1 2025)
February 2026: Completed cancellation of 2,340,000 treasury shares (total 3,859,180 shares canceled). March 2026: Approved 10:1 stock consolidation (face value from KRW 500 to KRW 5,000), completed in April
Financial structure: Debt-to-equity ratio 3.01%, zero total borrowings, cash and cash equivalents KRW 65.9B
Governance: In July 2025, largest shareholder changed to Osung Advanced Materials Co., Ltd. (stake 26.2%)
Production halt: Sinsa-ri plant's active pharmaceutical ingredient (API) business suspended (Feb 1, 2026 onward), expected to improve profitability through fixed cost reduction
Risk: Ongoing litigation related to Sinsa-ri fire; management believes financial impact is not material
R&D: Lab research completed for 13 API projects including Tegoprazan and Erdosteine; multiple patent applications filed