Q1 Net Profit Soars on Sale of AK Industrial; Consolidated Operating Profit Turns Positive
Completed sale of entire stake in subsidiary AK Industrial (100%) for KRW 317.2 billion (March 26, 2026)
- Buyers: Taekwang Industrial Co., Ltd. and Beauty Life One (Yoo)
- Gain from discontinued operations recognized: KRW 140.7 billion
Consolidated: Q1 2026 revenue KRW 937.7 billion, operating profit KRW 67.2 billion (swing to profit from FY2025 operating loss of KRW 147.9 billion)
Separate: Revenue KRW 7.7 billion (dividends 4.1B, consulting 1.5B, trademark 2.0B), net income KRW 183.0 billion (including gain from AK Industrial sale)
Major shareholder AK Asset Management increased stake from 18.91% to 26.34% (Jan 16, 2026, off-hours block trade)
No share buyback/cancellation plan; no quarterly dividend declared
Key subsidiary Jeju Air debt ratio 782% (end of period). No consolidated debt ratio disclosed
Multiple ongoing lawsuits related to humidifier disinfectant (contingent liabilities even after AK Industrial sale)
R&D expenses KRW 6.1 billion (1.64% of revenue); pursuing eco-friendly plasticizers and new businesses