Aroot Q1 2026 Loss Continues, Capital Reduction Implemented – Financial Restructuring Needed | Aroot(096690)

Q1 2026 consolidated sales KRW 13.5B (vs 11.1B same period last year), operating loss KRW 3.0B (vs 4.0B), net loss KRW 2.9B (vs 4.0B) – losses narrowed
6:1 reverse stock split (24.14M shares to 4.02M) approved at March 2026 AGM; capital reduced from KRW 60.3B to 10.1B for financial restructuring
Credit rating downgraded from BB0 to B0 (2024→2025), maintained B0 in 2026
Assets KRW 185.8B, liabilities KRW 83.5B, equity KRW 102.3B (debt ratio 81.7%); continued losses raise risk of capital erosion
Key subsidiaries with capital impairment: Aroot Hotel & Resort (equity -KRW 33.6B, declared bankrupt), Dongrae Oncheon (-6.8B), Aroot Eco (-3.4B), etc.\- Litigation risks: 3 pending cases (patent infringement KRW 300M, service fees KRW 430M, fraudulent conveyance KRW 61M)
Curious Canyon private equity fund liquidated (Apr 2026); put option liabilities related to NSRC acquisition of KRW 3.8B
Semiconductor equipment refurbishment segment sales surged (KRW 250M to 3.78B) but still operating loss
New businesses: USD-based stablecoin (Mar 2025), waste recycling expansion
Operating cash flow improved to +KRW 1.5B (vs -1.4B in prior year)

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