Daewon Chemical: Slight Operating Profit Improvement in Q1 2026 but Net Loss Persists, High Debt and No Dividends
Consolidated Q1 2026 revenue: 34.99 billion KRW (slight decrease from 35.32 billion YoY). Operating profit: 0.49 billion (up from 0.40 billion YoY). Net loss: 0.31 billion (improved from 0.75 billion loss YoY).
Separate Q1 2026 revenue: 25.00 billion, operating profit: 0.83 billion, net profit: 0.13 billion (turned to black).
Consolidated debt ratio: 227.15% (up from 220.13% at year-end 2025). High reliance on short-term borrowings (70.06 billion).
Shareholder returns: No share buyback or cancellation plans, no dividends for the past 5 years (zero dividend).
Allowance for doubtful accounts: 16.47 billion (consolidated), 44.9% of trade receivables. Full impairment of long-term trade receivables of 6.87 billion.
Large related party transactions and debt guarantees from the largest shareholder and CEO (approx. 34.4 billion).
New LPMC business segment: revenue of 0.92 billion, production utilization rate of 54.5% (initial stage).