AVACO 2025 Business Report Analysis: Share Cancellation and Improved Financial Structure Enhance Shareholder Value, New Business Investments Pursue Growth

AVACO contributed to enhancing shareholder value by canceling approximately 236 thousand shares (1.6% of total issued shares) through profit cancellation in 2025, completing the cancellation of 235,549 treasury shares acquired via trust in May 2025.
In 2025, the company achieved record results with sales up 28.6% year-on-year to 392.9 billion KRW and operating profit up 69.7% to 34.6 billion KRW. The debt ratio improved significantly to 45.8% from 91.8% in the previous year.
The company decided to acquire a 100% stake in a foreign entity for approximately 5.7 million USD to enter the North American automotive equipment market, while continuing investments in core businesses such as OLED and secondary battery equipment.
As of end-2025, the consolidated net borrowing ratio was -7.5%, effectively debt-free, with cash and cash equivalents of 19.2 billion KRW, ensuring ample liquidity.
Governance was strengthened by appointing three new outside directors and establishing an audit committee during the period. The external auditor was changed to Samwha Accounting Corporation.
[AI Summary]AVACO has significantly improved financial soundness through share cancellations and debt reduction, while securing growth drivers via new market entry and core equipment competitiveness investments. The company successfully enhanced shareholder value, evidenced by positive profitability and financial stability.