Lithium-for-Earth: Q1 2026 Operating Loss Widens, Business Uncertainty Rises

(Consolidated) Q1 2026: revenue KRW 2.93bn (+25% YoY), operating loss KRW 1.90bn (vs loss KRW 1.16bn), net loss KRW 1.27bn (vs loss KRW 0.79bn); losses widened
Debt ratio increased to 11.21% (from 5.82% at year-end 2025); cash dropped to KRW 4.72bn (from KRW 7.99bn)
Lithium business: Saemangeum plant funding issues, business plan being revised; impairment loss of KRW 8.46bn on construction in progress
New subsidiary LMK (65.88% stake) consolidated; RCPS purchase obligation of KRW 1.22bn (remaining KRW 0.44bn to be bought in H1 2026)
Allowance for impairment on related party loans: KRW 4.85bn out of KRW 19.9bn (consolidated)
Litigation: defendant in KRW 3.0bn damage suit, partial loss in first instance, provision of KRW 0.83bn; appeal ongoing
5:1 reverse stock split completed in May 2026 (shares from 60,186,641 to 12,037,328; capital from KRW 30.1bn to KRW 6.0bn)
No dividends or share buybacks/cancellations