RAONTECH: Q1 Revenue Up but Losses and Debt Deteriorate

Revenue increased 24.2% YoY to KRW 918M, but net loss widened to KRW -3.57B (from KRW -2.63B).
Debt ratio rose to 202.3% (from 150.8% at year-end), net debt ratio to 98.1% (from 52.9%) – financial structure worsened.
Operating cash flow remained negative at KRW -1.24B (vs KRW -1.09B a year ago).
Outstanding 2nd convertible bond of KRW 15B (conversion price KRW 4,906) and derivative asset of KRW 2.15B recognized.
New bad debt expense of KRW 569M recorded; 42.88% loss rate applied to receivables and contract assets overdue over 90 days.
Microdisplay revenue share increased, but R&D expenses remained high at KRW 2.37B (258% of revenue).
Market expects wider adoption of LCoS in smart glasses (e.g., Meta Ray-Ban), but project suspension risks exist.