Sungchang Enterprise Holdings: Q1 Consolidated Net Loss of 1.46 Billion Won Continues; Stock Consolidation and Equity Acquisition Executed

Consolidated: Revenue 33.05bn won (vs 32.45bn YoY), operating loss 1.62bn (vs 2.27bn loss), net loss 1.46bn (vs 1.54bn loss) continued
Separate (holding): Revenue 1.89bn, operating profit 0.10bn, net profit 0.42bn (management consulting fees from subsidiaries)
Stock consolidation: April 27, 2026, par value 500→2,500 won (5:1), shares reduced from 69,751,600 to 13,950,320 (no change in capital)
Post-report: Acquired 100% of GC Global (6,616mn won, offset against loan to Sungchang Enterprise), decided to suspend formaldehyde plant production (Apr 13-Dec 31, 2026)
Subsidiary GC Global conducted a capital reduction in Jan 2026 (from 70bn to 30bn capital)
Dividends: None for past 5 years, will consider when profitability improves
Credit ratings: Holding company AA, Sungchang Enterprise BB+, Sungchang Board BBB-
Ongoing lawsuits: 2 cases (construction claim 0.44bn as plaintiff, restitution claim 0.80bn as defendant), outcome uncertain
Borrowings: 44.45bn won, net debt ratio 4.97% (low relative to equity of 675.6bn)
Financial soundness indicators (BIS/NPL) not applicable due to holding company nature