Termination of Needle-Free Auto-Injector Supply Contract Due to Non-Payment by LT9 Enterprises… Contract Worth 167.8% of Sales at Risk, Recovery Measures Underway

Contract Termination Overview: The supply contract for needle-free auto-injectors (i-Ject) with LT9 Enterprises has been terminated due to the counterparty's failure to pay. The contract amount of 990.5 million KRW (excl. VAT) represents 167.8% of 2024 consolidated sales (590.4 million KRW).
Performance and Receivables: The company fulfilled its obligations, but the counterparty did not pay by the contract end date, leading to termination. Legal review and negotiations are planned to recover goods or payments.
Financial Impact: While the terminated contract size far exceeds annual sales, it accounts for only 2.75% of market cap (~36 billion KRW), limiting absolute impact. However, it negatively affects short-term cash flow.
[AI Comprehensive Analysis]This contract termination is a realization of counterparty credit risk, disrupting the company's revenue growth. The recovery of outstanding payments will be a key variable for future earnings and stock price, highlighting the need for better risk management in similar contracts.