Hwaseung Enterprise화승엔터프라이즈

Hwaseung Enterprise is loss-making on a trailing basis, with its shares down sharply over the past year and a June 2026 unfaithful-disclosure designation on record.

Hwaseung Enterprise is a footwear and apparel ODM, mainly producing adidas products, with factories in Vietnam, Indonesia and China. Trailing twelve-month revenue is about ₩1.50T, but operating income is only about ₩15B and net income is about -₩31B, with liabilities at roughly 201% of equity. The share price closed at ₩2,575 on 2026-10-27, close to its 52-week low of ₩2,570 and well below its 52-week high of ₩5,800.

What stands out

• Trailing revenue is ₩1.50T, but the operating margin is about 1% and the net margin is about -2%.
• Full-year 2025 revenue fell 2.8% to ₩1.56T and the company posted a net loss of about ₩29B, after a ₩33B profit in 2024.
• Borrowings are about ₩645B against cash of about ₩141B, and liabilities are roughly 2x equity.
• The shares are down 54.6% over one year and trade at about 0.3x book value; no dividend is paid.
• The filings include a June 2026 designation as an unfaithful disclosure company, and the data does not explain its details or consequences.
• Foreign ownership is 5.7%, little changed over 60 days, while the 20-day flows show retail and institutional net selling.

What to watch

• The next periodic filings for Q3 2026 and the full-year 2026 results, to see whether margins and the net loss improve.
• Any follow-up from the unfaithful-disclosure designation, including any penalties or remedial steps, which the data does not detail.
• Debt levels and cash generation, since the data shows heavy borrowings relative to cash and equity.