JungAng Advanced Material announced in a regulatory filing on the 9th that it has signed a goods purchase contract for 'LTE-R onboard wireless communication equipment' with Korea Railroad Corporation (Korail), whose main business is passenger and freight transportation.

The value of this contract is 2,462,368,909 won (excluding value-added tax). This amount represents 12.43% of JungAng Advanced Material's most recent consolidated sales revenue of 19,809,115,165 won for 2025. The contract will be executed through in-house production within South Korea, and it has been confirmed that there is no record of fulfilling similar contracts with Korea Railroad Corporation over the past three years. Payment will be made according to the counterparty's payment terms after the complete delivery of the goods, and there is no separate contract deposit or advance payment.

The contract period is specified from June 8, 2026, to December 31, 2028. However, the actual end date is subject to change in the future.

JungAng Advanced Material explained, "The contract period in the goods purchase agreement is stipulated as '24 months after the completion of railway vehicle modification approval,' so the contract end date is not finalized and is subject to change. We initially entered the end date based on the contract performance guarantee period of December 31, 2028, specified in the special conditions. If the guarantee period changes according to the future completion date of the railway vehicle modification approval, we plan to correct the contract end date accordingly."

The date of this contract (order received) is June 9, 2026, when the electronic signatures of both parties were completed. The company added that the contract conditions, such as the contract amount and contract period, may change during the future progress of the project.