Q1 2026 Report: Revenue -54.6%, Swings to Operating Loss on R&D Spend

Quarterly Report 6.5 JUSUNG Engineering Co., Ltd. 1 Y 130111-0033281 Quarterly Report (32nd Term, Q1) Fiscal Year: From January 1, 2026 to March 31, 2026 To: Financial Services Commission, Korea Exchange Date of Submission: May 14, 2026 Type of Filing Entity: Listed Corporation Exemption Reason: Not applicable Company Name: JUSUNG Engineering Co., Ltd. CEOs: Hwang Cheol-Joo, Hwang Eun-Seok Head Office: 240 Opo-ro, Gwangju-si, Gyeonggi-do (Phone) 031-760-7000 (Website) https://www.jusung.com Responsible Preparer: (Title) Head of Management Strategy Team (Name) Kim Bo-Hyun (Phone) 031-760-7109 Table of Contents [Confirmation by CEO, etc.] 32nd Term (2026) CEO Confirmation Letter.jpg CEO Confirmation Letter I. Company Overview 1. Company Overview — Omitted in accordance with quarterly report disclosure form standards. 2. Company History — Omitted. 3. Changes in Capital Stock — Omitted. 4. Total Number of Shares, etc. — Omitted. 5. Articles of Incorporation — Omitted. II. Business Content 1. Business Overview The Company is currently engaged in the semiconductor and solar cell manufacturing equipment business and the display manufacturing equipment business. Through subsidiaries, the Company conducts overseas sales and service operations for related equipment. Among the many processes, the Company primarily manufactures and supplies equipment required for the deposition process to its customers. In the semiconductor industry, the technical difficulty is evolving rapidly in order to secure cost competitiveness through ultra-fine processing. As line widths become narrower and pattern aspect ratios increase, step coverage of thin-film deposition processes must be further improved, and to realize high-quality thin films, fine control of not only the deposition layer but also the underlying interface characteristics is required. Therefore, the importance of differentiated ALG (Atomic Layer Growth) and ALD (Atomic Layer Deposition) technology is increasingly emphasized. In particular, the Company has developed ALG technology that can grow thin films of Group 3-5 and Group 3-6 compounds at low temperatures without impurities, regardless of the underlying substrate material. This is expected to dramatically improve current semiconductor technology challenges such as materials, heat generation, speed, and profitability. Furthermore, the Company's ALG technology is evaluated as a technology that will lead a new paradigm by being applied not only to the semiconductor industry but also to the solar and display industries. Currently, the Company is securing world-class competitiveness by continuously developing semiconductor mass production equipment that can meet the demand for various applications in both memory and non-memory based on differentiated ALG and ALD technology in the semiconductor industry where Tech-Migration is further accelerating. The tandem solar cell being developed in the Solar Business Division is an innovative technology that combines HJT (Heterojunction Technology) — a solar cell with a different energy band gap — with perovskite, a next-generation key material, using CVD+ALD+ALG technology to maximize light utilization. By combining perovskite, which is suitable for short-wavelength light absorption, on top of conventional HJT silicon solar cells, the Company plans to be the first to introduce next-generation tandem solar cell equipment capable of achieving a power conversion efficiency of over 35%, based on a fusion of the world's first semiconductor ALD+ALG ultra-fine process technology and OLED display large-area deposition technology. Finally, in the Display Business Division, the Company expects expansion of display business revenue through diversification of small/medium and large panel equipment such as TFT Layer expansion, Encapsulation, ToE (Touch sensor on thin film Encapsulation), PECVD, and ALD. [JUSUNG Engineering Manufacturing Equipment and Major Products] - Semiconductor Manufacturing Equipment: SD System (ALD, HDPCVD, Dry Etch, MOCVD, UHVCVD), ALMO (ALD, CVD), SDP System (ALD, CVD), Guidance Series (ALG, ALD, CVD), Eureka (Epi) - Solar Cell Manufacturing Equipment: Thin film Si solar cell equipment (PECVD, MOCVD); Crystalline (c-Si) solar cell equipment (HJT, PECVD, PVD, RIE); Perovskite solar cell equipment (ALG, ALD, CVD, PVD); Tandem solar cell equipment (ALG, ALD, CVD, PECVD, PVD) - Display Manufacturing Equipment: LCD TFT equipment (PECVD), OLED LTPS TFT equipment (CVD), OLED Oxide TFT equipment (CVD), Encapsulation equipment (ALD/CVD, ALD, CVD), ToE (CVD) In Q1 2026, results decreased year-over-year due to increased R&D investment to secure future growth drivers and the impact of front-end customer investment schedules. Q1 2026 consolidated revenue was approximately KRW 54.9 billion, down approximately 54.6% year-over-year. Operating loss was approximately KRW 7.0 billion, a deterioration of approximately 120.7% year-over-year, and the operating margin was -12.8%. Net loss was approximately KRW 1.2 billion, a 104.3% deterioration year-over-year. Details and items not included in this overview are described in detail in items '2. Major Products and Services' through '7. Other Reference Matters' of 'II. Business Content'. 2. Major Products and Services A. Current Status of Major Products (As of March 31, 2026; Unit: KRW million, %) - Whole Company / Products: Semiconductor equipment, solar cell equipment, display equipment for respective manufacturing — JUSUNG Engineering brand — KRW 44,521 million (81.1%) - Merchandise / Raw Materials: KRW 10,358 million (18.9%) B. Price Trend of Major Products The Company's products are sold entirely on a made-to-order basis. Therefore, specifications and the number/type of chambers vary according to customer requirements, and even the same product may have price differences. 3. Raw Materials and Production Facilities A. Raw Materials (1) Current Status of Major Raw Materials (Unit: KRW million, %) - Processed goods (aluminum, etc.): 9,385 (37.8%) - OEM Equipment (semiconductor/solar/display related): 3,200 (12.9%) - OEM PART: 4,007 (16.1%) - RF Equipment (Remote Plasma generation): 400 (1.6%) - General Purchases: 1,328 (5.4%) - AL Base Materials: 294 (1.2%) - Electrical/Electronic Components: 2,919 (11.8%) - Other: 3,274 (13.2%) - Total: 24,807 (100.0%) (2) Price Trend of Major Raw Materials (Unit: KRW million, %) - Domestic Chambers, etc.: 32Q1: 403 / 31st: 404 / 30th: 415 - Overseas Platforms, etc.: 32Q1: 222 / 31st: 222 / 30th: 227 (a) Calculation basis: Based on major components of the Company's products. Because raw material specifications vary depending on product specifications, average unit prices are calculated by dividing total purchase amount by quantity for the same item. (b) Major price change factors: Domestic raw material prices may fluctuate based on supplier production costs, while import prices are significantly affected by tariffs and exchange rates, resulting in unit price differences by year and supplier. B. Production and Facilities (1) Production Capacity (Unit: units) - Semiconductor Manufacturing Equipment: SD System (ALD, H... [Translation truncated]