Dawonsys faces rehabilitation and delisting risk amid worsening financials

Rehabilitation proceeding commenced on April 17, 2026; court-appointed administrators
Designated as unfaithful disclosure entity by KRX; accumulated penalty points exceeded 15, triggering delisting criteria; substantive review for listing eligibility underway
Consolidated Q1 2026 revenue: KRW 20.97bn (down from KRW 43.97bn in prior quarter); operating loss KRW 9.46bn; net income KRW 34.31bn (one-off items)
Negative equity of KRW -485.2bn (debt-to-equity ratio -228.27%); complete capital erosion
Termination notices received for 8 major contracts (rail vehicles and fusion); legal disputes ongoing but uncertainty remains
Order backlog of KRW 1.2tn (including two ITER contracts) but low progress rates
Regulatory risks: KRW 9.38bn fine from Fair Trade Commission; bidding restrictions from Public Procurement Service and KORAIL
Loss of control over subsidiary Dawon PowerTron (exercise of collateral)
R&D expenses KRW 2.81bn (13.7% of revenue)