RF Materials Announces 28.15 Billion Won Rights Offering for Facility and Working Capital

Purpose: Issuance of 500,000 common shares (5.89% dilution) at an expected price of 56,300 won to raise KRW 28.15 billion; proceeds to be used for facility investment (KRW 25 billion) and working capital (KRW 3.15 billion) to expand AI data center pump laser package business.
Financials: FY2025 consolidated revenue of KRW 64.1 billion (+44% YoY), operating profit of KRW 7.37 billion (turnaround from loss), net income of KRW 10.38 billion. Debt ratio of 48.39%; net cash of KRW 18.7 billion (cash KRW 31.3 billion > total borrowings KRW 12.6 billion), indicating sound financial structure.
Major shareholder participation: RFHIC (41.54% stake) plans full participation, maintaining its stake post-offering at 41.54%.
Customer concentration risk: Top 2 customers (Company A 49.22%, Company B 19.76%) account for 68.98% of separate revenue in 2025, highlighting high dependency.
Raw material and FX risks: Key raw materials (gold, tungsten, copper) have surged recently (gold +29.8%, tungsten +275.7%, copper +27.6% over 8 months). Export ratio of 55.7% on separate basis exposes to FX fluctuations; however, average 15% price hikes partially offset cost increases.
Stock volatility: Stock has ranged from KRW 4,245 (Dec 2024) to KRW 116,900 (Apr 2026). Designated as speculative stock 3 times and cautionary stock 13 times over the past 3 years.

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Filing: [Correction of Description] Securities Registration Statement (Equity Securities)
Company: RF Materials (327260)
Submission: RF Materials Co., Ltd.
Receipt: 05-06-2026