BCnC Swings to Operating Profit in Q1 2026, Announces Subsidiary Merger

Consolidated Q1 2026 revenue: KRW 23.7B (+19.5% YoY), operating profit KRW 0.8B (vs loss of KRW 0.7B in Q1 2025)
Net profit turned to KRW 0.27B from loss of KRW 1.19B YoY
Decided to absorb 100% subsidiary BCnC Materials (no new shares, effective June 30, 2026) for efficiency
Announced new facility investment of KRW 17.7B (24.1% of equity) for semiconductor materials plant expansion
Credit rating downgraded: BB- to B+ (Ecredible, April 2026) reflecting increased financial burden
Debt-to-equity ratio 128.04% (vs 125.29% at year-end 2025), borrowings KRW 72.5B, convertible bonds KRW 11.6B
High customer concentration: top 4 customers 64.5% of sales
R&D expense KRW 0.87B (3.67% of revenue), mass-producing QD9+ synthetic quartz and CD9 new materials
New solar power generation business planned (start July 2026)
No dividends (target payout ratio 20% not met)