64th Q1 Continued Operating Loss and Recognition of Impairment Loss on Homeplus, Expansion of New IP Business

Sales of KRW 3.74 billion (up 38.3% YoY) but operating loss of KRW 0.74 billion and net loss of KRW 0.50 billion
Credit rating maintained at BB- (speculative)
Full impairment loss recognized on KRW 2.5 billion ABSTB related to Homeplus rehabilitation (recovery uncertain)
Market cap delisting threshold raised to KRW 30 billion from July 2026; company may be subject
New IP business: signed licensing agreements with Universal Studios and SMG Holdings (Dragon Ball, Haikyuu)
Final dividend for 63rd term confirmed at KRW 200 per share (approved at AGM on Mar 27, 2026)
Treasury shares of 266,893 shares (3.51%) held; no plan for additional buyback or cancellation
Low debt ratio of 15.33%; hold KRW 32.49 billion in short-term financial instruments