Revenue decline and operating loss widening; continued treasury share holding; won 5 patent appeals against KT&G

Revenue KRW 48.6bn (down 9.1% YoY), operating loss KRW 4.8bn (vs loss of KRW 3.95bn), net loss KRW 3.13bn (continued losses)
Debt ratio improved to 69.5% (FY2025: 73.1%), borrowings maintained at KRW 108.4bn
Treasury shares: 1,327,092 shares (7.7% of issued), held with no current plan for additional purchase/sale/cancellation
R&D expense KRW 4.3bn (20.6% of revenue); FDA DMF registration for auto-injector and launch of own e-cigarette brand (ETo HYBRID & STONE)
Credit rating upgraded to BB (2026) from B+ (2025)
KT&G patent litigation: won 5 out of 6 cases in appeal (Apr 30, 2026); possibility of appeal to Supreme Court
Post-report: 3rd private exchangeable bonds (collateralized with Antrogen shares) fully paid on Apr 24, 2026
Major shareholder Seung-gyu Jung transferred 171,329 shares to a related party on Apr 27, 2026