CU Medical Systems: Strong Q1 Performance and Vistoss Acquisition, but Offset by Convertible Bond Issuance and Contingent Liability Risks

Consolidated Q1 2026 revenue KRW 15.25bn (up 73% YoY from KRW 8.81bn), operating profit KRW 2.53bn (vs KRW 1.51bn loss in prior period), net profit KRW 2.79bn (vs loss).
Net profit attributable to parent KRW 2.99bn, basic EPS KRW 49 (vs KRW 10).
Acquired 33.88% of Vistoss in Jan 2026 for KRW 22bn, gaining control and consolidating. Recognized provisional goodwill of KRW 15.93bn.
Issued 11th series convertible bonds (KRW 70bn, 2% coupon, 5% yield, conversion price KRW 533 → 13,133,208 new shares, 21.7% dilution).
Subsidiary Vistoss issued 2nd series CBs (KRW 40bn, 3% coupon, conversion price KRW 920).
Total borrowings KRW 36.8bn, bonds KRW 9.0bn, cash & equivalents KRW 22.6bn → net debt KRW 23.2bn, gearing ratio 23.9%.
Increased loans to related parties: Daekwang Healthcare KRW 3.02bn, Daekwang Networks KRW 2.01bn (secured by convertible bonds).
Subsidiary Vistoss holds 1,538,661 shares of parent, recorded as treasury stock (deducted from equity).
Accumulated deficit (consolidated -KRW 30.9bn, separate -KRW 35.2bn) → no dividends.
Credit rating BBB+ (NICE).
Subsequent events: reverse stock split, and ultimate parent's controlling shareholder changed from Daekwang Healthcare to Daekwang Networks.

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