NK 2026 Q1: Operating Profit Turns to Black, Share Buyback and Stock Split
**(Positive) Operating profit turns black**: Consolidated operating profit of KRW 534 million (vs. -962 million YoY), separate operating profit of KRW 2,406 million (vs. -406 million YoY). Consolidated net income of KRW 2,917 million (vs. -3,694 million YoY).
**(Positive) Improved financial structure**: Debt ratio of 35.5% (38.7% at year-end 2025). Cash and cash equivalents of KRW 54.6 billion, borrowings of KRW 15.4 billion.
**(Positive) Shareholder return policy**: Completed cancellation of 4,699,579 treasury shares (April 15, 2026). Decided on a 10:1 stock split (face value KRW 5,000, listing expected May 22, 2026). Expected to reduce outstanding shares and enhance stock price adequacy.
**Segment performance**: Firefighting equipment posted operating profit of KRW 2.27 billion (vs. -0.32 billion YoY). High-pressure gas containers continued with operating loss of KRW 0.8 billion, special equipment with loss of KRW 0.49 billion.
**Order backlog**: KRW 93.57 billion (CO2 system KRW 42.76 billion, FOAM system KRW 24.61 billion, etc.).
**Litigation risk**: Hanwha Ocean claims USD 1,031,000 (approx. KRW 1.4 billion) for damages. Other lawsuits aggregating KRW 0.56 billion. Total litigation amount approx. KRW 1.96 billion.
**Other**: R&D expenses KRW 0.56 billion (2.85% of sales). Embezzlement receivables of KRW 0.31 billion fully provisioned.