NE Neungyule Q1 Sales Plunge 87.9%, Operating Loss of 12.08 Billion Won

Revenue of 1.97 billion won, operating loss of 12.08 billion won, net loss of 11.82 billion won (revenue down 87.9% YoY, swung to loss)
Main cause: temporary concentrated returns of previously shipped products due to changes in credit and inventory policies for major distributors
Excluding phased-out businesses, remaining operations (English textbooks, ELT, education services) maintained shipment-level sales similar to prior year
Debt ratio 28.95%, cash and short-term financial instruments of approx. 24.7 billion won, no borrowings
NELT cumulative test takers exceeded 600,000, AI digital textbooks approved, new services continue to grow
No subsidiaries consolidated (standalone financial statements)