Shin Hwa Contech: 1Q Operating Profit Declines; Solid Financial Structure Maintained

Consolidated 1Q 2026: Revenue 13.4bn KRW, Operating Profit 1.38bn (down 34% YoY from 2.09bn), Net Income 1.64bn (down from 3.68bn)
Separate: Revenue 13.8bn, Operating Profit 1.82bn, Net Income 2.23bn
Debt Ratio 30.15% (consolidated), Net Cash Position (Cash 22.3bn > Borrowings 9.3bn)
Derivative Valuation Loss of 0.89bn recognized (vs 0.2bn prev yr)
Mar 2026 AGM approved 50 won per share dividend (sustained dividend policy)
3.35bn KRW Exchangeable Bond issued (Sep 2025, exchange price 4,228 won): potential dilution risk
New digital microphone mass production preparation: expected annual revenue of 30bn from 2H 2026 to 2032
Credit Rating: BBB- (eCredible)