Dongjin Semichem (005290) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached KRW 328.1 billion, with operating income of KRW 66.6 billion and net income of KRW 66.9 billion, reflecting strong performance in electronic materials and the impact of discontinued operations from the sale of Chinese subsidiaries.

• The company completed a physical spin-off of its foaming agent business into Dongjin Innochem as of January 1, 2026, to enhance specialization and growth.

• Major Chinese subsidiaries were classified as discontinued operations and are expected to be sold by July 2026, impacting both assets and liabilities.

Financial highlights

• Q1 2026 consolidated revenue: KRW 328.1 billion; operating income: KRW 66.6 billion; net income: KRW 66.9 billion.

• Gross margin improved to 31.4% (KRW 103.1 billion gross profit on KRW 328.1 billion revenue).

• Basic EPS for Q1 2026 was KRW 1,331, down from KRW 1,927 in Q1 2025.

• Cash and cash equivalents at quarter-end: KRW 408.7 billion.

• R&D expenses for Q1 2026 were KRW 17.7 billion, 5.41% of sales.

Outlook and guidance

• No new business lines confirmed as of March 31, 2026; future new business plans will be disclosed as determined.

• The company aims to maintain a dividend payout ratio above 25% for the next three years and focus on cash dividends after retiring treasury shares.