Cosmochemical Reports Q1 2026 Operating Profit Turnaround and 120B KRW CB Issuance, Debt Ratio Rises in Parallel
Consolidated Q1 2026 revenue reached KRW 183.5B (up 13.6% YoY from KRW 161.6B), operating profit turned positive to KRW 5.99B (vs. KRW 0.95B in prior year), and net profit attributable to parent company was KRW 2.62B (vs. loss of KRW 1.96B). The battery materials segment drove the improvement.
Standalone operating profit surged to KRW 5.54B (from KRW 0.11B), net profit turned to KRW 3.68B (from loss of KRW 2.31B), EPS improved to KRW 96 (from -KRW 60).
Issued 68th series private convertible bonds worth KRW 120B on Jan 30, 2026 (conversion price KRW 44,051, up to 2,724,115 shares), maturity Jan 30, 2031, coupon 1.20%, yield to maturity 4.80%.
Consolidated debt ratio rose to 102.13% (from 99.96% at year-end 2025), standalone debt ratio increased to 201.88% (from 199.71%), while net borrowing ratio improved to 54.85% (from 60.22%).
Consolidated cash and cash equivalents increased to KRW 111.5B (from KRW 42.5B) due to CB issuance, but operating cash flow was negative at -KRW 35.9B (vs. +KRW 60.5B), investing CF -KRW 12.1B, financing CF +KRW 116.1B.
[AI Summary]Cosmochemical achieved a Q1 2026 operating profit turnaround (KRW 5.99B) thanks to improved profitability in the battery materials segment, but the KRW 120B convertible bond issuance poses potential dilution (up to 7.1% of outstanding shares) and the consolidated debt ratio rose to 102.13%, increasing financial leverage. While short-term liquidity is secured, conversion of the bonds could pressure the stock price, warranting investor caution.
KOSPI Filing Information
Filing: [Correction of Description] Quarterly Report (2026.03)