Kwangmyung Electric: 5:1 Reverse Stock Split and Board Overhaul; Going Concern Uncertainty Due to Deteriorating Finances

2025 (FY45) net loss: KRW 68.2bn; operating loss KRW 10.0bn; second consecutive year of huge losses
Near capital erosion: total equity KRW 6.2bn, total liabilities KRW 127.8bn, debt-to-equity ratio 2,050%
Current liabilities (KRW 116.3bn) exceed current assets (KRW 54.9bn), severe liquidity crisis
New PF provisions of KRW 61.7bn (vs. KRW 18.8bn last year), multiple PF projects missed completion guarantees
5:1 reverse stock split (43,337,615 common shares → 8,667,523), reducing capital from KRW 21.7bn to KRW 4.3bn
All 4 current directors removed (shareholder proposal) and 7 new directors elected (including Cho Kwang-sik from P&C Tech)
No dividends, no share buyback/cancellation plan
Auditor's report highlights 'going concern uncertainty'; mitigation plans include discounted sales and PF loan extensions
Multiple lawsuits ongoing: Orix Capital claims KRW 5bn damages; company sues P&C Tech for KRW 8.9bn share return

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