New Risk • Mar 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 12% 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: Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Market cap is less than US$100m (₩102.4b market cap, or US$68.9m). Announcement • Mar 13
Daechang Solution Co., Ltd., Annual General Meeting, Mar 31, 2026 Daechang Solution Co., Ltd., Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 387-22, samdong-ro, samdong-myeon, ulju-gun, ulsan South Korea Board Change • Oct 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • Jul 15
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 8.6% 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: Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Market cap is less than US$100m (₩69.9b market cap, or US$50.5m). Reported Earnings • Mar 27
Full year 2024 earnings released: ₩19.00 loss per share (vs ₩15.00 profit in FY 2023) Full year 2024 results: ₩19.00 loss per share (down from ₩15.00 profit in FY 2023). Revenue: ₩61.4b (down 14% from FY 2023). Net loss: ₩3.09b (down 232% from profit in FY 2023). Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Mar 18
Daechang Solution Co., Ltd., Annual General Meeting, Mar 31, 2025 Daechang Solution Co., Ltd., Annual General Meeting, Mar 31, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 387-22, samdong-ro, samdong-myeon, ulju-gun, ulsan South Korea New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Market cap is less than US$100m (₩50.9b market cap, or US$35.4m). New Risk • Nov 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 27% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.1x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (₩55.2b market cap, or US$39.6m). Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩390, the stock trades at a trailing P/E ratio of 54.5x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total loss to shareholders of 28% over the past three years. New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Market cap is less than US$100m (₩62.2b market cap, or US$47.3m). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: ₩6.00 (vs ₩8.00 in 2Q 2023) Second quarter 2024 results: EPS: ₩6.00 (down from ₩8.00 in 2Q 2023). Revenue: ₩14.1b (down 18% from 2Q 2023). Net income: ₩1.00b (down 23% from 2Q 2023). Profit margin: 7.1% (down from 7.6% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: ₩2.00 (vs ₩8.00 in 1Q 2023) First quarter 2024 results: EPS: ₩2.00 (down from ₩8.00 in 1Q 2023). Revenue: ₩16.7b (down 15% from 1Q 2023). Net income: ₩387.7m (down 70% from 1Q 2023). Profit margin: 2.3% (down from 6.6% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 30
Full year 2023 earnings released: EPS: ₩15.00 (vs ₩44.00 loss in FY 2022) Full year 2023 results: EPS: ₩15.00 (up from ₩44.00 loss in FY 2022). Revenue: ₩71.7b (up 36% from FY 2022). Net income: ₩2.34b (up ₩9.32b from FY 2022). Profit margin: 3.3% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. New Risk • Nov 17
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.4x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.4x net interest cover). Minor Risk Market cap is less than US$100m (₩78.0b market cap, or US$60.4m). New Risk • Jun 23
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 8.4% 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 Risk Earnings have declined by 3.7% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.4% average weekly change). Market cap is less than US$100m (₩113.2b market cap, or US$86.4m). Reported Earnings • May 10
First quarter 2023 earnings released: EPS: ₩8.00 (vs ₩12.00 loss in 1Q 2022) First quarter 2023 results: EPS: ₩8.00 (up from ₩12.00 loss in 1Q 2022). Revenue: ₩19.8b (up 58% from 1Q 2022). Net income: ₩1.29b (up ₩3.26b from 1Q 2022). Profit margin: 6.6% (up from net loss in 1Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2021 earnings released: ₩4.00 loss per share (vs ₩12.00 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: ₩13.3b (up 111% from 3Q 2020). Net loss: ₩670.9m (loss narrowed 65% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 24
New 90-day low: ₩459 The company is down 15% from its price of ₩542 on 26 November 2020. The South Korean market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 5.0% over the same period. Is New 90 Day High Low • Feb 08
New 90-day low: ₩460 The company is down 3.0% from its price of ₩476 on 10 November 2020. The South Korean market is up 25% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 12% over the same period. Is New 90 Day High Low • Oct 05
New 90-day high: ₩389 The company is up 23% from its price of ₩316 on 07 July 2020. The South Korean market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 2.0% over the same period.