HanWool & Jeju Inc

### Capital Structure and Liquidity HanWool & Jeju Inc has a high price-to-book ratio of 17.67, indicating that the market values the company significantly above its book value. The company's liquidity position is characterized as medium, with a current ratio of 0.72, suggesting that it has less than one unit of current assets for every unit of current liabilities. The company holds KRW 7,185,617,910 in cash and equivalents, but this is offset by long-term debt of KRW 16,501,091,260, resulting in a negative net cash position.

### Profitability and Returns The company is currently unprofitable, with a net loss of KRW 1,018,357,300 and an operating loss of KRW 909,223,990. Its return on equity (ROE) is -5.92%, and return on assets (ROA) is -2.00%, both significantly below the industry median for brewers. The negative EBITDA of KRW -909,223,990 further underscores the company's operational challenges.

### Segments and Geographic Exposure The company operates as a single business segment focused on brewing and does not disclose geographic revenue breakdowns. This lack of diversification increases its exposure to regional economic and regulatory risks.

### Growth Trajectory HanWool & Jeju Inc has reported declining profitability, with a net loss in the latest reporting period. The company's free cash flow is negative at KRW -1,123,743,930, and capital expenditures of KRW -392,945,790 indicate ongoing investment in operations. The company's growth trajectory is uncertain, with no clear signs of improvement in the near term.

### Risk Factors The company faces medium liquidity risk due to its current ratio of 0.72 and a negative net cash position. The risk of dilution is assessed as low, with no significant changes in shares outstanding between basic and diluted shares. The company's debt-to-equity ratio of 0.96 suggests a moderate level of leverage, but the negative net income raises concerns about its ability to service debt.

### Recent Events Recent financial filings show a continued decline in profitability, with operating and net losses in the latest period. No significant new events or disclosures have been reported that would alter the company's current financial trajectory.

Operating income improved by 73.7% year-over-year, signaling a significant reduction in operational losses compared to the prior period.

Net income narrowed losses by 45% year-over-year, indicating a meaningful improvement in overall profitability trends for the company.

Free cash flow improved by 37.7% year-over-year, suggesting better cash generation capabilities despite ongoing negative cash flow status.

Gross profit reached 4.59 billion KRW in the latest period, maintaining positive gross margins despite significant operating losses.

Dilution risk is assessed as low, providing some stability for existing shareholders regarding potential equity value erosion.

Debt-to-equity ratio stands at 0.96, significantly higher than the cohort median of 0.16, indicating elevated financial leverage.

Liquidity risk is rated as medium, suggesting potential challenges in meeting short-term financial obligations or operational needs.

Revenue KRW 28.84B; Operating income -KRW 7.29B.

• ▍Revenue KRW 28.84B
• ▍Operating income -KRW 7.29B
• ▍Net margin -28.5%