Q1 2026 Results: Strong Cosmetics Growth but Net Loss Persists, High Financial Leverage

Consolidated revenue surged to KRW 39.5bn (vs. KRW 4.3bn in Q1 2025) driven by cosmetics segment acquisition
Operating profit turned positive to KRW 1.5bn (vs. operating loss of KRW 1.0bn in Q1 2025)
Net loss widened to KRW 2.9bn (vs. net loss of KRW 1.5bn in Q1 2025)
Net debt at KRW 140.9bn, debt-to-total capital ratio 79.4% (very high leverage)
Significant contingent liabilities: convertible bonds worth KRW 90bn, derivative liabilities (put option) KRW 10.3bn
Share consolidation (5:1) approved and completed (May 7, 2026); no dividend plan, no share buyback/cancellation
Expansion of cosmetics business via subsidiary Moments Company acquisition, but continues to operate at a loss