Barunson E&A Posts Q1 2026 Consolidated Net Loss of KRW 1.1Bn, Executes 75% Capital Reduction

Consolidated Q1 2026 revenue KRW 2.3Bn, operating loss KRW 0.1Bn, net loss KRW 0.1Bn (parent-only net income KRW 0.15Bn)
Completed 75% capital reduction in Apr 2026 (4 shares→1), reducing share capital from KRW 37.2Bn to KRW 9.3Bn, using capital reduction surplus of KRW 27.9Bn to cover deficit
Debt-to-equity ratio consolidated 74.6%, separate 67.4% (previous year-end 76.2% and 69.3%)
Short-term borrowings KRW 20.1Bn, long-term borrowings KRW 12.4Bn, exchangeable bonds KRW 2.4Bn (exchangeable for Nexon Games shares, maturing Oct 2026)
Holds 0.79% stake in Nexon Games, recognized KRW 0.22Bn valuation loss in Q1 (previous year KRW 0.67Bn)
Commitments: KRW 30Bn investment agreement with Kakao Entertainment, KRW 7.5Bn executed; KRW 10Bn content supply agreement, KRW 7Bn executed
Subsidiary NX Games effectively dormant, net equity negative KRW 1.7Bn
Full allowance for impairment on related party loans and receivables of KRW 3.69Bn
Exhibition revenue (Basquiat) KRW 0.99Bn in Q1, accounting for 42.9% of total revenue

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