KUKJEON Q1 Operating Profit Turns to 26.6B Won, Net Loss Due to Derivative Valuation Loss

Consolidated operating profit improved sharply to 2,663M won (vs 113M in prior quarter), operating margin 7.7%
Consolidated net loss of 2,777M won (vs net profit 888M) due to derivative valuation loss of 4,094M
Excluding valuation effects, pretax profit was 1,094M (sound business)
Debt ratio improved to 75.0% (86.9% at year-end), net debt ratio 27.0% (39.9%)
Issued 13.83B won worth of common shares (3.81M shares) from BW exercise, strengthening equity
Increased stake in subsidiary KSBL from 51% to 92.97% via debt-to-equity swap and additional investment
Electronic materials segment sales grew to 2.19B won (vs 1.75B in prior quarter)
Cash and equivalents increased to 11.1B won (7.7B at year-end)