Chonbang Reports 2023 Operating Loss of 32.5B KRW and Net Loss of 19.2B KRW, Financial Deterioration Due to Plant Shutdowns and PF Loan Allowance

Consolidated (K-IFRS): Revenue 94.7B KRW (YoY -24%), operating loss 32.5B KRW, net loss 19.2B KRW. Causes: rising cotton prices, won depreciation, and domestic demand slump.
Decision to suspend operations at Yeongam plant (Apr 2023) and Iksan plant (Dec 2023). Capacity reduction leads to continued fixed cost burden, hindering profitability recovery.
Set up 57.15% allowance (39.7B KRW) on net PF loan balance of 69.5B KRW related to Gwangju plant real estate project. Related PFV borrowing of 10.7B KRW; further losses possible due to real estate downturn.
Total equity 189.8B KRW (down 10% YoY), debt ratio 24.84% (low but equity erosion weakens financial stability). No dividend for the period.
Treasury shares: 540,530 shares (32.17%); outstanding shares: 1,139,470. Previous year paid 1,000 KRW per share dividend; none this year.
[AI Summary]Chonbang's 2023 business report reveals significantly worsened financials with declining sales, deepened operating losses, plant shutdowns, and a large PF loan loss allowance. The PF loan risk and plant closures are key drags on near-term stock recovery; the success of restructuring and business diversification will be critical for future value recovery.