Haesung Industrial Q1 Report: Share Buyback and Subsidiary Penalty Create Mixed Signals

Consolidated Q1 revenue: KRW 599.4bn, operating profit KRW 18.2bn, net loss KRW 34.0bn (continued loss)
Standalone revenue: KRW 12.7bn, operating profit KRW 9.0bn, net loss KRW 29.4bn
Debt ratio rose to 114.13% from 101.02% at year-end 2025
Resolution to cancel treasury shares: 976,705 common shares and 11,469 preferred shares (record date May 4, 2026)
Dividend policy: target consolidated payout ratio of 20% for next 3 years
Subsidiary Korea Paper (한국제지) fined KRW 49.1bn by FTC for printing paper price collusion
Short-term credit rating maintained at A1 (highest)
Fatal accident at subsidiary's Hyunpung plant (Nov. 30, 2025)
Subsidiary Haesung DS continuing semiconductor facility expansion