Board Change • Jun 26
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director JunGyeong Eo was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • May 22
Tongyang Inc. announced that it has received KRW 1.2308 billion in funding from Eugene Corporation On May 20, 2026, Tongyang Inc. closed the transaction. Announcement • May 13
Tongyang Inc. announced that it expects to receive KRW 1.2308 billion in funding from Eugene Corporation Tongyang Inc. announced a private placement to issue 170,000 registered class 2nd preferred stock at an issue price of KRW 7,240 for gross proceeds of KRW 1,230,800,000 on May 12, 2026. The transaction includes participation from returning investor, Eugene Corporation. The transaction has been approved by the board of directors of the company. The offering is expected to close on May 20, 2026. The shares are subject to 1 year lock-up. The transaction will happen through third party allocation. New Risk • May 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩144.2b (US$97.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (₩144.2b market cap, or US$97.8m). New Risk • Mar 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩150.2b (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 59% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩150.2b market cap, or US$99.1m). Announcement • Mar 11
Tongyang Inc., Annual General Meeting, Mar 26, 2026 Tongyang Inc., Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 33, gukhoe-daero 76-gil, yeongdeungpo-gu, seoul South Korea New Risk • Sep 26
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 8.9% 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 (currently running at an operating cash loss). Earnings have declined by 57% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.9% average weekly change). Reported Earnings • Mar 22
Full year 2024 earnings released: ₩390 loss per share (vs ₩95.00 profit in FY 2023) Full year 2024 results: ₩390 loss per share (down from ₩95.00 profit in FY 2023). Revenue: ₩750.4b (down 13% from FY 2023). Net loss: ₩74.2b (down ₩92.4b from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 45 percentage points per year, which is a significant difference in performance. Announcement • Mar 11
Tongyang Inc., Annual General Meeting, Mar 26, 2025 Tongyang Inc., Annual General Meeting, Mar 26, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 33, gukhoe-daero 76-gil, yeongdeungpo-gu, seoul South Korea New Risk • Dec 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩138.2b (US$96.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 11% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩138.2b market cap, or US$96.5m). New Risk • Nov 24
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.2x 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 Risks Interest payments are not well covered by earnings (0.2x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 11% per year over the past 5 years. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩868, the stock trades at a trailing P/E ratio of 71.1x. Average trailing P/E is 7x in the Basic Materials industry in South Korea. Total loss to shareholders of 35% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: ₩30.00 (vs ₩58.00 in 2Q 2023) Second quarter 2024 results: EPS: ₩30.00 (down from ₩58.00 in 2Q 2023). Revenue: ₩211.1b (down 4.9% from 2Q 2023). Net income: ₩5.78b (down 48% from 2Q 2023). Profit margin: 2.7% (down from 5.0% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₩95.00 (vs ₩215 loss in FY 2022) Full year 2023 results: EPS: ₩95.00 (up from ₩215 loss in FY 2022). Revenue: ₩866.3b (up 13% from FY 2022). Net income: ₩18.2b (up ₩59.2b from FY 2022). Profit margin: 2.1% (up from net loss in FY 2022). Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩40.00 per share at 3.9% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.9%. Within top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (4.3%). Reported Earnings • Mar 26
Full year 2022 earnings released: ₩215 loss per share (vs ₩146 profit in FY 2021) Full year 2022 results: ₩215 loss per share (down from ₩146 profit in FY 2021). Revenue: ₩767.7b (up 9.7% from FY 2021). Net loss: ₩41.0b (down 240% from profit in FY 2021). Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩40.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 20 April 2023. Payout ratio is on the higher end at 80% but the company is not cash flow positive. Trailing yield: 3.9%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.7%). Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. 1 highly experienced director. 1 independent director (9 non-independent directors). Chairman Jae-Hyun Hyun was the last director to join the board, commencing their role in 1989. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. 1 highly experienced director. 1 independent director (9 non-independent directors). Chairman Jae-Hyun Hyun was the last director to join the board, commencing their role in 1989. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩40.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 20 April 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.7%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.7%). Is New 90 Day High Low • Jan 15
New 90-day high: ₩1,275 The company is up 12% from its price of ₩1,140 on 16 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 34% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩40.00 Per Share Will be paid on the 14th of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.3% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (2.4%). Is New 90 Day High Low • Nov 17
New 90-day high: ₩1,225 The company is up 7.0% from its price of ₩1,145 on 19 August 2020. The South Korean market is up 8.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Basic Materials industry, which is down 3.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: ₩1,065 The company is down 13% from its price of ₩1,220 on 26 June 2020. The South Korean market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 8.0% over the same period.