Automobile & PCB: Significant Non-Compliance with Corporate Governance Key Indicators and Persistent Losses Raise Risk of Shareholder Value Decline
For 2025, Automobile & PCB reported consolidated revenue of 117.49 billion KRW, operating loss of 7.29 billion KRW, and net loss of 14.19 billion KRW, continuing a loss streak with no dividend payments.
The 9 billion KRW 25th series convertible bond (conversion price 500 KRW, current price 544 KRW) issued in April 2025 remains outstanding; full conversion would issue up to 18 million new shares (38% of current shares), severely diluting existing shareholders.
The corporate governance report reveals non-compliance with many key indicators, including lack of a shareholder return policy, CEO succession plan, and internal control policy, indicating poor governance standards.
The board consists of 3 inside directors and 1 outside director (female), with the outside director ratio at 25%, below the recommended majority; no board committees (audit, compensation, etc.) have been established.
Internal audit is handled by a single full-time auditor with CPA qualification, with no separate audit committee, leading to weak internal control and oversight.
No IR activities for retail or foreign investors, and insufficient English disclosures and website information, resulting in poor communication with shareholders.
[AI Summary]Automobile & PCB's persistent operating losses, substantial convertible bond dilution risk, and widespread governance deficiencies pose a high risk of continued shareholder value erosion. The absence of shareholder returns and lack of transparency deter new investment.