29.5 Billion Won Rights Offering with 60% Dilution and 25% Discount… Deepening Financial Risks
- Hyulim A-Tech announces a rights offering of 6,000,000 new shares (60.36% dilution at 25% discount) to raise approximately 29,490 million KRW in July 2026.
- 2025 sales: 64,375 million KRW (-8.5% YoY); operating profit: 248 million KRW (0.4% margin); net loss: 11,122 million KRW. COGS ratio 86.2%, SG&A ratio 13.4%.
- Interest coverage ratio 0.1x, current ratio 57.6%, net debt 7,908 million KRW. Market cap below 15 billion KRW in 2026 risks designated as management cautionary item.
- Despite raising 44,998 million KRW via 4 equity offerings and 3 CBs in 5 years, profitability and financial health deteriorated, mainly due to investment losses and derivative valuation losses.
- Proceeding with a 10:1 stock consolidation to eliminate deficits. After consolidation, outstanding shares will be 9,991,819; par value remains 500 KRW.
- Major shareholder Hyulim Robot (25.6%) plans to subscribe for 2 billion KRW (25% of allocation), reducing its stake to 18.41%. Its parent Hyulim Holdings’ stake plummeted to 0.87% due to margin call.
- Lock-up on 2,157,977 shares (post-consolidation) from major shareholder expires in September 2026, posing overhang risk.
- Use of proceeds: early redemption of 16th CB (10,000 million), facility investment (8,000 million for new plant), and working capital (11,490 million).
- History of listing qualification review (2021 audit denial → 2023 listing maintained). Under investigation for two prior disclosure violations; fine of 29.8 million KRW pre-notified.
- Exposed to valuation risks from investments in Lime Tree, Palm Tree, Onul E&M, MetaCare CB, etc. Derivative valuation loss of 6,363 million KRW in 2025.
- Subject to investor caution and warning designations (2 warning cases) in recent 3 years; high price volatility.
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KOSDAQ Filing Information
- Filing: [Request for Submission of Correction][Correction of Description] Securities Registration Statement (Equity Securities)
- Company: Hyulim A-Tech (078590)
- Submission: Hyulim A-Tech Co., Ltd.
- Receipt: 04-27-2026