SD Biotech: Q1 2026 Asset Sale Slashes Debt Ratio, but Operating Loss Continues

Asset sale and financial structure improvement: Sale of land and building to parent company Daewon Pharmaceutical for KRW 19.975 billion completed (Mar 16, 2026). Consolidated debt ratio improved sharply from 60.52% to 24.23%, cash and cash equivalents increased from KRW 6.9 billion to 13.3 billion, convertible bonds reduced from KRW 13.36 billion to 1.20 billion.
Continued operating and net losses: Consolidated revenue KRW 6.07 billion (down 33% from KRW 9.05 billion in same quarter last year), operating loss KRW 1.06 billion, net loss KRW 1.17 billion. Separate: revenue KRW 5.09 billion, operating loss KRW 0.84 billion, net loss KRW 1.24 billion.
Deficit coverage: Capital reduction gain of KRW 32.92 billion used to cover accumulated deficit. Accumulated deficits: consolidated KRW 80.68 billion, separate KRW 79.76 billion.
Litigation risk: Two ongoing lawsuits (total claim approx. KRW 0.158 billion). No provisions set.
R&D expenses: KRW 0.183 billion (0.36% of sales), down from KRW 0.245 billion in prior year period.

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