Consolidated Operating Loss of KRW 4.8 Billion in Q1 2026, Swinging to Deficit YoY

Consolidated revenue in Q1 2026 was KRW 350.9 billion, down 17.1% YoY from KRW 423.4 billion; operating loss of KRW 4.8 billion vs operating profit of KRW 13.4 billion in Q1 2025; net loss of KRW 9.2 billion
Consolidated debt ratio rose to 200.35% from 180.38% at end of 2025, with net debt of KRW 580.5 billion, indicating deteriorating financial health
Separate net profit increased to KRW 4.3 billion from KRW 0.3 billion YoY, but driven by one-off financial income
Sales to ultimate parent Hwaseung Industry accounted for 79% of total revenue at KRW 277.4 billion, deepening related-party dependency
Outstanding convertible bonds of KRW 16.0 billion (approx. 2.85 million shares) and hybrid securities of KRW 114.0 billion (approx. 14.2 million shares) pose potential equity dilution risk