HFR Reports Poor Q1: Sharp Revenue Decline and Loss

[Negative] Consolidated Q1 2026 revenue KRW 16.3B (down 39.4% YoY from KRW 26.8B), operating loss KRW 5.7B (widened from KRW 1.6B loss), net loss KRW 7.8B (swing from KRW 0.3B profit)
[Negative] Operating cash flow -KRW 9.8B (vs -KRW 7.0B in prior year), continued deficit
[Negative] Net debt-to-equity ratio 24.71% (up from 16.21% at year-end 2025), deteriorating financial health
[Negative] Debt-to-equity ratio 74.71% (slight improvement from 76.99%), but total borrowings KRW 68.7B vs cash KRW 30.7B
[Negative] R&D expense ratio 21.83% (vs 8.38% in FY2025), insufficient short-term profitability improvement
[Other]Subsidiary GPCS liquidated; minor lawsuit pending (KRW 37.5M)