Sejong Medical Faces Delisting Risk as Improvement Period Ends; Q1 Turns Profitable but Uncertainty Remains

Delisting risk: Improvement period ended Apr 17, 2026; submitted improvement plan on May 12; KOSDAQ committee to decide delisting by Jun 11, 2026.
Q1 2026 (consolidated): Revenue 4.87B KRW, operating profit 0.93B, net profit 0.98B (turned profitable vs net loss in prior year). Basic EPS 14 won.
Weak financial structure: Consolidated accumulated deficit -156.7B, total equity 24.1B, total liabilities 38.1B (debt ratio 158%). Total borrowings 29.0B, net debt 20.7B.
Litigation risk: 7 ongoing lawsuits totaling ~18.3B KRW (consolidated); property seizure of 2.43B.
Withdrew from Magok R&D center new facility investment on Apr 9, 2026; existing assets: land 10.1B, construction in progress 14.2B.
Major shareholder BSJ Holdings increased stake to 31.43% via CB conversion; low conversion prices (100 won/share) may cause dilution.
No dividends (impossible due to accumulated deficit).