Daegu Department Store: Q1 Consolidated Net Loss Continues at 7.17B KRW, Deteriorating Financial Structure and Asset Sale Plan
Consolidated operating loss of 3.77B KRW (vs 3.82B KRW in Q1 2025), net loss of 7.17B KRW (vs 8.30B KRW)
Separate sales down 11.8% YoY to 11.19B KRW, operating loss of 4.26B KRW
Debt ratio increased to 218.74% from 206.91% at year-end 2025, further weakening financial health
Credit rating maintained at B0 (speculative grade), unfavorable funding conditions
Asset sale plan disclosed: aims to complete asset sales promptly to secure financial stability
Shareholder returns: no dividend for two consecutive periods, no share buyback or cancellation plans
Articles amended: authorized shares increased from 30M to 60M, limit for CB/BW issuance raised from 100B to 150B KRW (potential dilution risk)\- High-interest borrowings from major shareholder and related parties (4.6%~8.4%) and debt guarantees provided