80% Capital Reduction to Cover Deficits… Pivoting to Defense & Aerospace for Business Diversification

[Correction] Corrected disclosure error: number of shares subject to reduction amended to 48,662,515 shares (previously stated as 48,662,515,000 was a typo).
[Capital Reduction] 80% free reduction (5:1 reverse split) reduces outstanding shares from 60.83M to 12.17M. Record date: July 13, 2026; new shares listing expected July 28, 2026. Capital decreases from 60.83B won to 12.17B won, but no direct dilution of shareholder value.
[Name Change] Company name reverts from 'THE CUBE&' to 'CHEONGBO', signaling focus on defense and aerospace.
[Business Purpose Expansion] Added ~30 new business purposes including defense products, aircraft parts, UAVs, missile development/maintenance, and military supplies. Expansion from auto parts to defense/aerospace.
[Outside Director Appointment] Kang Taewon, former Ministry of National Defense and ADD researcher, nominated as outside director. Expected to enhance expertise in new business.
[Financial Risk] Earnings improvement in 2025 but frequent CB issuances and borrowings (IBK, Hana Bank) indicate ongoing financial strain. Capital reduction aims to improve financial structure.
[AI Comprehensive Analysis]The capital reduction to cover deficits signals financial difficulty, but it is more of a financial cleanup than value destruction. The pivot to defense/aerospace and hiring of a specialist are positive for long-term growth. However, the success of new ventures and financial recovery will be key stock price drivers.