1. What Happened? Daechang Solution’s Performance Plummets

Daechang Solution’s H1 2025 results were dismal. Revenue decreased by 38.4% year-over-year, and operating income turned negative. All business segments, including shipbuilding equipment, marine solutions, and general industrial equipment, experienced sharp declines in sales. A high debt-to-equity ratio of 337.97% and negative operating cash flow raise serious concerns about the company’s financial health.

2. Why the Downturn? Global Economic Slowdown and Industry Weakness

Daechang Solution’s struggles are attributed to the global economic slowdown and reduced investment in its key sectors: shipbuilding, power generation, and offshore plants. While IMO environmental regulations are positive in the long term, they’re currently causing order declines and increased competition. High interest rates and exchange rate volatility are also exacerbating financial risks.

3. August 18th IR: Key Points to Watch

The upcoming IR is crucial for gauging management’s commitment to improving performance and their specific plans. Pay close attention to the following:

  • • Business strategies and cost reduction measures
  • • New business development plans
  • • Plans to address the high debt-to-equity ratio and improve financial structure
  • • Convertible bond repayment plans and investment attraction strategies

4. Investor Action Plan: Proceed with Caution, Analyze the IR

Investments in Daechang Solution should be approached with extreme caution. Carefully analyze the information presented at the IR, focusing on the feasibility of business plans and the concreteness of financial restructuring measures. Avoid being swayed by short-term stock price fluctuations and make investment decisions based on a long-term perspective. Continue monitoring industry recovery trends, order intake, and the impact of macroeconomic factors after the IR.