Charm Engineering: 1Q Operating Profit Turns Positive, Capital Strengthened, but Delisting Risk Remains
Capital strengthened via paid-in capital increase (KRW 5bn) and new hybrid securities (KRW 10bn); consolidated debt ratio 877.78% (improved from 1,154.41% at year-end 2025)
Consolidated operating profit turned positive to KRW 5.4bn (vs loss in previous quarter); net profit KRW 4.2bn (vs net loss KRW 13.6bn)
Subsidiary Cham Savings Bank: BIS ratio 13.61%, NPL ratio 6.56% (improved from 8.32% at year-end 2025), delinquency rate 6.61%
Credit ratings remain very low: B- (NICE D&B) and CCC (Icredir)
Capital reduction approved in March 2026 (KRW 8.75bn, 17.5M shares) to offset accumulated deficit and improve financial structure
Subject to Korea Exchange's delisting review (since April 8, 2026); submitted improvement plan, pending review
Separate net income KRW 279mn but basic EPS negative KRW 2 after deducting hybrid securities distribution
Ongoing litigation with minor expected financial impact