TERA RESOURCE CO.,LTD. (South Korea)

Despite sales increase of broadcasting programs, sales fell YoY, due to sluggish petrochemical biz.Deficit continued, owing to plunge of sales, expansion of selling and administrative expenses, and financial expenses exceeding sales including increase in loss on foreign exchange.Despite continued deficit, firms cash creation thru operating activities turned into positive territory, according to delay of accrued receivables and accounts payable. When meaningful production is made, after the firm signed a basic agreement for production facility investment with Chinas large enterprise, Sinopec, in Vican oil field located in Bashkortostan.Earnings structure improvement is not likely easy in the short-term, due to continuation of high expense structure vs.sales along with weak U.S.dollar.No specific difficulties are expected, in view of stable level of various stability indicators including debt ratio thru high equity capital ratio.