Hydrolithium Q1 Net Loss of KRW 34.2B, Going Concern Uncertainty Deepens Due to Litigation Risk
Q1 2026 revenue: KRW 0.95B (down 41% YoY from KRW 1.62B). Operating loss: KRW 3.37B; net loss: KRW 34.19B (widened from KRW 4.69B loss in prior year). EPS loss: KRW 610.
New litigation provision of KRW 30.59B recorded (Lithiumforce lawsuit of KRW 40B, second trial ongoing). Other expenses of KRW 30.65B drove the surge in net loss.
Default on outstanding convertible bonds (face value KRW 3B); creditor attached land. Total liabilities: KRW 50.87B; total equity: KRW 28.74B (halved from KRW 62.38B at year-end 2025).
Cash and cash equivalents only KRW 0.24B; short-term borrowings: KRW 7.24B; current liabilities: KRW 17.56B. Going concern uncertainty note included.
Lithium business revenue: KRW 0.95B (entire revenue); construction business discontinued. Customer base diversified to 4 domestic companies (vs. single customer G in prior year). Strategic long-term purchase agreement with Prairie Lithium (Canada) signed on Apr 1.