KM Pharmaceutical Corrects Clerical Errors in Q1 Report and Approves Stock Split... Persistent Losses and Financial Risks Remain

KM Pharmaceutical corrected minor clerical errors in several notes of its Q1 2026 quarterly report (trade receivables, investment property, leases, trade payables, related party transactions, etc.). These corrections have no material impact on financial figures or enterprise value.
At the March 31, 2026 general meeting, a 5-to-1 stock split was approved (par value from KRW 100 to KRW 500), reducing outstanding shares from 27,887,050 to 5,577,410 with no change in capital. Aimed at stabilizing the stock price and optimizing share count; no dilution for shareholders.
Q1 2026 revenue rose 9.5% YoY to KRW 4.47 billion, but operating loss continued at KRW 659 million, net loss KRW 834 million. Debt ratio increased to 71.64% (from 64.13% in 2025), net debt ratio to 32.56% (from 25.70%). Cash and equivalents only KRW 1.2 billion, indicating liquidity risk.
KRW 10.4 billion long-term loan to related party Seokjeong Golf & Resort has an impairment allowance of KRW 2.28 billion (21.97%) with maturity extended to Dec 31, 2026. High default risk may lead to further impairment.
No share buyback, cancellation, or dividend plans. Largest shareholder Kang Il-mo holds 37.62%, unchanged.