Joeyworks&Co. Completes Stock Consolidation... "Furniture Business Growth to Accelerate in Second Half"

Joeyworks&Co., which operates the furniture brand Ladygagu, has completed all procedures for its stock consolidation and will resume trading.

In March, the company decided on a 5-for-1 stock split in order to stabilize its share price and maintain an appropriate number of shares in circulation. As a result, the par value per share was adjusted from 100 won to 500 won, and the total number of shares issued was reduced from approximately 24.49 million to about 4.9 million. Industry insiders say this move has laid the foundation for a reevaluation of the company's value as a premium furniture company, helping it shed its image as a low-priced stock.

Joeyworks&Co. also decided on a 300% bonus issue last month. The company explained that this decision reflects its confidence in entering a growth strategy focused on profitability starting in the second half of the year, based on its improved financial structure.

Additionally, on May 26, the company resolved to retire all of its 8.375 billion won second convertible bonds. This is expected to have a positive effect by eliminating concerns about potential dilution of shares and protecting the value of existing shareholders.

Currently, the company is carrying out significant structural reforms, including organizational restructuring, transitioning to a third-party logistics (3PL) system, and optimizing retail inventory. Thanks to these changes, the company achieved a turnaround in the first quarter of this year, posting standalone sales of 21 billion won and operating profit of 3.5 billion won.

The company is also detailing its growth strategy for the second half. Building on the successful O2O (online to offline) case at Suwon Station, Joeyworks&Co. plans to expand premium stores and pop-up shops nationwide. In addition, it will strengthen the sofa lineup of its mattress brand 'Sonnidoro' and senior heated furniture brand 'Ondam', further upgrade its storage and kids product lines, and launch new products. The company aims to continue its performance improvement by expanding synergy between online and offline channels.

A representative from Joeyworks&Co. stated, "We are committed to enhancing shareholder value through measures such as the stock consolidation and bonus issue," adding, "We will complete our structural reforms within the first half of the year and, in the second half, enter a full-fledged growth trajectory centered on the furniture business to raise both corporate and shareholder value."

With this stock consolidation, improved financial structure, and business transformation, Joeyworks&Co. is expected to accelerate its performance rebound and corporate value revaluation in the second half of the year.

This content was produced with the assistance of AI translation services.