Regular Disclosures vs Ad Hoc Disclosures, Why the Difference Matters?

The condition is simple!!! Disclosures are how companies communicate information to the market.

First, a quick summary: regular disclosures and ad hoc disclosures are different in name only.

Retail investor:

"Is more disclosure better?"

More disclosures mean more information,

but you must read them correctly for them to matter.

What are regular disclosures?

Regular disclosures are reports filed at set times.

They include annual reports, quarterly reports, and semiannual reports.

They mainly contain periodic numbers like revenue and operating profit.

Quarterly report

Annual financial statements

Regular disclosures let you check the overall health of a company.

Why do ad hoc disclosures exist?

Ad hoc disclosures announce important events immediately.

They cover events like M&A, large contracts, executive changes, or embezzlement allegations.

Ad hoc disclosures quickly inform investors about risks or opportunities.

Why does this matter?

Regular disclosures show trends, such as quarterly growth rates.

Ad hoc disclosures act as breaking news that prompt immediate reactions.

Looking at both together shows how events are reflected in financial figures.

Common misunderstandings?

Misunderstanding 1: One disclosure determines the stock price.

→ A disclosure is information; judgment is the investor's responsibility.

Misunderstanding 2: Regular disclosures are always less important.

→ Regular disclosures show trends, so they can be the key information.

Easier with numbers (hypothetical calculation)

Scenario: Company A issues a quarterly revenue report and an ad hoc disclosure about a contract.

Quarterly report: revenue 1000 billion KRW, operating profit 80 billion KRW

Ad hoc disclosure: large supply contract, expected additional revenue 200 billion KRW per year

Adding these gives next year estimated revenue = 1000 + 200 = 1200 billion KRW.

It does not end with simple addition.

Applying the operating margin 8% gives next year estimated operating profit = 1200 × 0.08 = 96 billion KRW.

When numbers change, valuation assumptions change, so market reactions differ.

Frequently seen disclosure types?

Annual report, quarterly report, semiannual report (regular disclosures)

Major management matters, major contracts, related party changes (ad hoc disclosures)

Identifying regular versus ad hoc from the title speeds up your analysis.

So, where do you start?

→ 1. Open the latest quarterly report under 'Regular Disclosures' on the company page or electronic disclosure system

→ 2. Then scan the 'Ad Hoc Disclosures' tab in reverse chronological order to spot recent events

→ 3. Consider whether ad hoc disclosures connect to the financial figures in regular disclosures

Please use this as a reference only.

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※ This article is for information only and not investment advice.
※ Investment decisions and responsibility rest with the investor.
※ Figures are as of the time of writing and may change.

This article is for information only and not investment advice.