Restatement of Consolidated Financial Statements: Correction of Gross Presentation for Loan and Borrowing, No Impact on Net Assets or Profit (Neutral)

Chonbang corrected its 2022 consolidated financial statements to present loans (80.1B won) and borrowings (10.7B won) on a gross basis instead of netting, as the netting did not meet K-IFRS requirements
The correction increased non-current assets and non-current liabilities by 10.7B won each, with no impact on net assets or total comprehensive income
Auditor (Yeil Accounting Corporation) maintained an unqualified opinion but included an emphasis of matter paragraph regarding the restatement, reissuing the audit report on May 29, 2026
The loan relates to a bridge loan for the Gwangju factory real estate sale; net borrowing is 69.4B won, with a loss allowance of 40B won recognized
[AI Summary]This restatement corrects a prior accounting error (netting of loan and borrowing) with no effect on net assets or profit, thus no direct impact on shareholder value. However, investors should note the financial statement reliability issue; the large loss allowance (40B won) reflects real estate PF risk, requiring credit risk monitoring.