HS Hyosung Advanced Materials Group Status Disclosure: Debt Ratio 119.76%, Operating Loss 18.2B KRW, Guarantees to Affiliates 1.7T KRW – Routine Disclosure, Limited Impact on Shareholder Value
HS Hyosung Advanced Materials is part of the Hyosung group, with (주)Hyosung as the representative company and Cho Hyun-joon as the controlling individual.
As of the end of the previous fiscal year (2025), total assets stood at 2.2137 trillion KRW, total liabilities at 1.2064 trillion KRW, and total equity at 1.0073 trillion KRW, resulting in a debt ratio of 119.76%.
Revenue was 488.05 billion KRW, with an operating loss of 18.18 billion KRW, but net profit reached 64.31 billion KRW due to other income of 152.18 billion KRW.
The largest shareholder is (주)HS Hyosung (29.91%), and including related parties (Cho Hyun-sang, etc.) with 23.33%, the total related party ownership is 53.25%. Public shareholders hold 46.75%.
Transactions with domestic affiliates: sales of 19.13 billion KRW (3.92% of total sales) and purchases of 50.52 billion KRW (14.52% of total purchases), indicating moderate internal dealings.
Guarantees to overseas subsidiaries total 1.709 trillion KRW, mainly for Vietnamese and Chinese entities such as HS Hyosung Vietnam and HS Hyosung Quang Nam.
Collateral provided to affiliates is small at 3.2 billion KRW (related to inventory financing for HS Hyosung Toyota).
The board consists of 7 members including 4 independent directors, with committees for audit, compensation, etc. Electronic voting was implemented but only 0.53% of ordinary shareholders exercised their voting rights.
During 2025, three affiliates were added: HS Hyosung India (new establishment), GST Safety Textiles Mexico (equity acquisition), and Extra Mile Materials (equity acquisition).
[AI Summary]This is a routine annual status disclosure. Despite an operating loss, net profit was achieved through other income. The debt ratio is near 120%, but with no dividend or share buyback, direct impact on shareholder value is limited. However, the substantial guarantees of 1.7 trillion KRW to overseas subsidiaries pose contingent liability risks that investors should monitor.
KOSPI Filing Information
Filing: Large Enterprise Group Status Disclosure [Annual And First Quarter Use (Individual Company)]