New Risk • Apr 02
New major risk - Revenue and earnings growth Earnings have declined by 0.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (8.1% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 139% Paying a dividend despite having no free cash flows. Earnings have declined by 0.4% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (₩63.1b market cap, or US$41.7m). Announcement • Mar 17
HYUNGKUK F&B Co., Ltd., Annual General Meeting, Mar 31, 2026 HYUNGKUK F&B Co., Ltd., Annual General Meeting, Mar 31, 2026, at 12:00 Tokyo Standard Time. Location: conference room, 116-23, haiteksandan-ro, samseong-myeon, eumseong-gun, chungcheongbuk-do, South Korea New Risk • Feb 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (5.8% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 139% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₩72.8b market cap, or US$50.4m). 
