Q Capital Partners: 1Q26 Net Profit Falls, but Strong Shareholder Returns via Full Treasury Share Cancellation and Capital Reduction
1Q26 standalone net income KRW 164M (down 55% YoY from KRW 365M), EPS KRW 0.9 (down 57% from KRW 2.1). No performance fee (vs KRW 1.8B in prior year) and higher equity-method losses.
On Apr 2, 2026, board resolved to cancel all 3,727,090 treasury shares (scheduled Jun 5, 2026) to enhance shareholder value.\- Shareholders' meeting on Mar 26, 2026 approved a 60% capital reduction (par from KRW 500 to KRW 200, completed May 4, 2026), followed by a 12.5:1 stock split (par to KRW 2,500), reducing shares from 178,247,112 to 14,259,768.
As of Mar 31, 2026: total loans KRW 51.4B, with non-performing loans KRW 10.7B (fixed 10.7B, estimated loss 0.35B). Total loan loss provision KRW 5.3B (coverage ratio 9.6%). Adjusted equity ratio 78.19% (well above regulatory 7%).
Related party loans of KRW 51.4B: Gienco KRW 29.95B, K Partners KRW 10.48B, Quro Holdings KRW 10.95B. Specific provision of KRW 4.99B recorded.
Contingent liabilities: unfunded investment commitments KRW 44.2B; loss absorption guarantees on PEFs up to KRW 408B (KRW 30B for 2018QCP13, KRW 40.8B for 2021QCP15, etc.).