Dongsung Pharmaceutical: Financial Structure Improved via Rehabilitation Plan and Capital Increase, Q1 Turns to Profit
- Rehabilitation plan approved and change of largest shareholder: Forced approval of rehabilitation plan on March 27, 2026; capital increase of 70 million shares (KRW 70 billion) completed on March 31. Largest shareholder changed to UAMCO Pharmaceutical Industry No.1 PEF (32.6%).
- Financial structure improvement: Debt ratio plummeted from 620.7% to 208.9%. Total assets KRW 288.5 billion, cash equivalents KRW 163.6 billion (from KRW 3.9 billion at year-end 2025). Net debt ratio turned to -106.6% (net cash).
- Q1 performance: Revenue KRW 19.1 billion (down 27% YoY), operating profit KRW 0.29 billion (vs loss of KRW 11.8 billion in Q1 2025), net profit KRW 0.014 billion (vs loss of KRW 1.3 billion).
- Rehabilitation proceedings: Filed for rehabilitation in May 2025; issued convertible bonds (KRW 50 billion) and corporate bonds (KRW 40 billion) in April 2026 to repay rehabilitation claims. Filed for termination of rehabilitation on May 6, 2026.
- Delisting risk: Subject to substantive review for listing eligibility by KRX; improvement period ended May 13, 2026; KSE Committee will decide on delisting based on improvement plan implementation.
- Former management embezzlement: Full allowance for illegal receivables of KRW 16.2 billion. KRW 30 million fine for rebate violations under Pharmaceutical Affairs Act; corrective order and fine (exempted) from Fair Trade Commission.
- R&D: Ongoing new drug development for cannabinoid-based neurological treatment and Ce6-curcumin anticancer therapy.
- Post-report events: On April 9, 2026, issued CB (KRW 50 billion, conversion price KRW 1,000, coupon 6%) and bonds (KRW 40 billion) to major shareholder. Decided to cancel 250,000 shares of former CEO without compensation.
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KOSPI Filing Information
- Filing: Quarterly Report (2026.03)
- Company: Dongsung Pharmaceutical (002210)
- Submission: Dongsung Pharmaceutical Co., Ltd.
- Receipt: 05-15-2026