Consolidated 2025 revenue of 215.6B KRW, operating profit of 3.5B KRW, net loss of 32.5B KRW (standalone net loss of 36.0B KRW); accumulated deficit of 38.4B KRW prohibits any dividend payment
External auditor (EY Hanyoung) disclaimed opinion on financial statements and internal accounting controls, citing systemic weaknesses in related-party transaction controls, fund disbursement approval, and corporate seal management
Issued three private convertible bonds totaling 29B KRW during the period; full conversion could add up to 15.31 million shares (17.58% of outstanding), diluting existing shareholders significantly
Downward refixing clause allows conversion price to drop to 70% of initial price in case of stock price decline, further increasing potential dilution
Top shareholder (BizAlpha and one other) holds only 10.79%, while minority shareholders hold 45.50%, leaving the company vulnerable to control disputes
Board composition: 6 inside directors, 2 independent directors (25%), below recommended majority; no audit committee; cumulative voting excluded by articles
Shareholder returns: no dividends or share buybacks/cancellations for the past 3 years; no medium- to long-term shareholder return policy established
In May 2026, a minority shareholder (J&J Asset Management) submitted a shareholder proposal to remove 7 directors and appoint new ones; the company accepted and will call an EGM
Corrective actions: revised internal control regulations (fund management, seal management, audit); established independent director recommendation committee; planned charter amendment to raise independent director ratio to at least 1/3 and elect board chair from independent directors
[AI Summary]DAEHO AL faces a severe crisis of confidence with an adverse audit opinion and systemic internal control failures, while massive private convertible bond issuance threatens further shareholder dilution. With no dividends and ongoing governance instability, the company's ability to execute its proposed governance improvements and restore trust will be critical for its stock outlook.