Apple Supply Discontinuation and Continued Losses, Financial Risks Deepen

Q1 2026 consolidated revenue KRW 132.2B, operating loss KRW 4.9B, net loss KRW 3.6B (revenue -4.3% YoY, net loss narrowed)
Post-report (Apr 13, 2026) board decided to discontinue supply of mobile battery protection circuit packages to Apple Inc. (estimated 31.8% of sales)
Vietnam subsidiary embezzlement loss $9.29M, $6.82M unrecovered, fully provisioned as bad debt
Consolidated net debt ratio 374% (end of period), retained earnings deficit -KRW 113.8B
Separate net debt ratio 331%, short-term borrowings KRW 189.7B, cash only KRW 7.4B, liquidity risk
Hybrid securities KRW 21.5B (classified as equity), exchangeable bonds KRW 21.5B outstanding, weak financial structure
R&D expense 3.1% of sales (KRW 4.2B), ongoing projects but profitability outlook uncertain

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