New Risk • Jun 07
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 148% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 31% per year over the past 5 years. Shareholders have been substantially diluted in the past year (148% increase in shares outstanding). Minor Risk Market cap is less than US$100m (₩70.8b market cap, or US$45.4m). Announcement • Apr 24
NEORIGIN Co., Ltd. announced that it has received KRW 26.768 billion in funding from Jakota Asia Strategy Limited On April 22 , 2026, NEORIGIN Co., Ltd. closed the transaction. The company issued 28,000,000 common shares at an issue price of KRW 956 for gross proceeds of KRW 26,768,000,000. The transaction included participation from Jakota Asia Strategy Limited acquiring a 52.72% stake, becoming the company's largest shareholder. Reported Earnings • Mar 25
Full year 2025 earnings released: ₩355 loss per share (vs ₩246 loss in FY 2024) Full year 2025 results: ₩355 loss per share (further deteriorated from ₩246 loss in FY 2024). Revenue: ₩31.0b (down 11% from FY 2024). Net loss: ₩8.02b (loss widened 49% from FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 51 percentage points per year, which is a significant difference in performance.