New Risk • Apr 13
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 400% 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 Less than 1 year of cash runway based on free cash flow trend (-₩2.0b free cash flow). Share price has been highly volatile over the past 3 months (26% average weekly change). Earnings have declined by 41% per year over the past 5 years. Shareholders have been substantially diluted in the past year (400% increase in shares outstanding). Minor Risk Market cap is less than US$100m (₩72.1b market cap, or US$48.5m). Announcement • Mar 26
KM Pharmaceutical Co., Ltd. Expands Functional Skincare And Oral Care Product Portfolio KM Pharmaceutical Co. Ltd. is strengthening its global position by expanding into high-value functional product categories across haircare, skincare, and oral care. KM Pharmaceutical is strategically expanding its product portfolio to focus on functional and OTC-driven categories with strong global demand. In haircare, the company is developing products targeting: Hair loss symptom relief (functional scalp care), Scalp inflammation soothing, Scalp barrier strengthening. In skincare, the company is strengthening its functional cosmetic lineup with: Brightening (whitening) solutions, Anti-wrinkle and firming products, Skin barrier repair and strengthening, Anti-inflammatory and soothing formulations for sensitive skin. In oral care, KM Pharmaceutical is expanding its OTC-focused portfolio with: Teeth whitening solutions, Gum disease prevention products, Gingivitis and periodontitis prevention formulations. These categories reflect the company's strategic direction toward high-efficacy, clinically positioned products that align with global consumer demand for functional and results-driven personal care. Skincare continues to be a key growth driver for KM Pharmaceutical's global business. Announcement • Mar 17
KMPHARMACEUTICAL Co.,Ltd., Annual General Meeting, Mar 31, 2026 KMPHARMACEUTICAL Co.,Ltd., Annual General Meeting, Mar 31, 2026, at 08:00 Tokyo Standard Time. Location: conference room, 121, pyeongtaekhang-ro 268beon-gil, poseung-eup, gyeonggi-do, pyeongtaek South Korea 
