EV Advanced Materials is carrying out a 90% capital reduction without refund to improve its financial structure. On the 13th, the company announced via a regulatory filing that its board of directors resolved to implement a large-scale capital reduction and stock consolidation aimed at covering retained losses.

This capital reduction will be carried out by consolidating 10 registered common shares into 1 common share of the same par value (a 10-for-1 stock consolidation).

• The specific changes are as follows:
• Number of shares issued: 59,591,882 existing shares → 5,959,188 shares (90% reduction)
• Capital stock: Existing 29.795 billion won → reduced to 2.979 billion won

Regarding the purpose of the capital reduction, the company stated it is "to improve the financial structure by covering retained losses." Since this falls under a capital reduction to cover losses under the Commercial Act, the creditor objection process is exempted, and the reduction will be finalized through an ordinary resolution at the general shareholders' meeting scheduled for August 26. For fractional shares of less than one share resulting from the stock consolidation process, cash will be paid based on the closing price (base price) on the first day of listing of the new shares.

• Key upcoming dates are as follows:
• Record date for capital reduction: September 10, 2026
• Trading suspension: September 9, 2026 – October 6, 2026
• Listing of new shares: October 7, 2026

Meanwhile, the Korea Exchange suspended trading of EV Advanced Materials' common shares for 30 minutes from 11:59 a.m. today. After trading resumes, the opening price will be determined through a single-price auction method for 10 minutes in accordance with the KOSDAQ Market Business Regulations.