Oneul ENM Improves Capital Impairment Ratio from 1,553% to 482% in Q3: "Substantially Overcame Financial Crisis"

On November 17, Oneul ENM announced through its quarterly report that its capital impairment ratio decreased from 1,553.6% in the second quarter to 482.7% in the third quarter.

This year, the company was temporarily placed in a state of complete capital impairment after being levied a cumulative additional tax of 110 billion won by the tax authorities and reflecting a 55.4 billion won provision for liabilities. However, there was significant market misunderstanding, as this was an "unrealistic one-off factor unrelated to business operations."

The company explained that it rapidly proceeded with the settlement of convertible bonds, converting 13.9 billion won out of the fifth tranche of 40 billion won in convertible bonds during the third quarter, which significantly increased its actual equity capital. In addition, the court's decision in August to suspend enforcement of approximately 29 billion won in additional taxes is regarded as a "decisive turning point in eliminating financial uncertainty."

A company representative stated, "Excluding the abnormal factor of the additional tax, Oneul ENM is already a financially sound and normal company," adding, "We will remove all uncertainties related to financial soundness by the end of the year."

The company also showed a clear recovery in its third-quarter performance. On a consolidated basis, revenue increased by about 25%, from 10.2 billion won in the same period last year to 12.8 billion won, regaining its growth momentum. Operating loss decreased from 4.6 billion won to 1.06 billion won, narrowing the deficit by about 77%. This demonstrates that the company's profit and loss are quickly normalizing due to improvements in cost structure and increased global demand for antennas.

The core factor was the strengthening of competitiveness in the company's main antenna business in the global market. In particular, its U.S. subsidiary has solidified its position as the number one or two market share holder among AT&T small cell antenna suppliers, and in Europe, the company is expanding its market share with specialized product lines such as tri-sector and tunnel antennas.

Overseas sales growth was also remarkable. Exports of base station antennas soared from 2.6 billion won at the end of last year to 6.2 billion won, recording a growth rate of about 136.6%. Exports of in-building antennas also expanded from 137 million won to 537 million won, achieving a remarkable 291.2% growth. It is evaluated that the company's expanding market share in the global market is now being reflected in tangible results.

Meanwhile, at an extraordinary general meeting of shareholders held on October 31, the company added new business objectives, including online gaming and publishing, iGaming software, blockchain and virtual asset-based financial services, token issuance (STO), and PG and escrow businesses. Through this, the company has established a diversified growth portfolio spanning antennas, gaming, blockchain, and fintech.