Czechoslovak Group A.S.: CSG Response to Short Seller Article
CSG (AMS: CSG) acknowledges a second publication by Hunterbrook Media, whose affiliated fund has publicly disclosed a short position in CSG. We believe the piece is intended to advance that position and relies on selective readings of public information, leading to conclusions that do not accurately represent our business model, disclosures, governance, or operations.
Southeast Asia Business
Southeast Asia has for several years been a targeted growth market for CSG, aligning with our strategy to broaden beyond a primarily European and NATO-aligned customer base. In 2025, the region represented approximately 2.5 percent of Group revenue.
As set out in our IPO Prospectus, CSG has contractual relationships with multiple governments across the region. In keeping with market norms and contractual obligations, we report our activity on a regional, aggregated basis. We do not disclose customer- or country-level details where doing so might undermine commercial arrangements or violate confidentiality commitments.
Our portfolio in Southeast Asia spans multiple defense segments and reflects a deliberate program of geographic diversification. This includes the previously announced contract to deliver a complete multi-layer air defense system to a customer in the region, with a total value of USD 2.5 billion.
Use of Intermediaries and Regional Presence
CSG operates in accordance with established international defense industry practices. As described in the IPO Prospectus, we may work through vetted local business partners in selected markets where we are not yet fully established. This market-entry and development model is widely used across the sector.
All such partners undergo rigorous due diligence before engagement and are subject to ongoing compliance oversight. Our procedures are active and risk-based, and include reviews by CSG sales, compliance, legal, and senior management teams, and, where appropriate, external law firms and specialized due diligence providers.
Consistent with our long-term strategy, we are advancing plans to expand our direct presence in Southeast Asia, including discussions about creating permanent local operating structures as opportunities develop.
Subsidiary Accounting
The referenced transaction concerns a historic minority stake in Vývoj Martin, a CSG subsidiary. In 2021, a third party agreed to acquire a 24 percent stake for €5.8 million but failed to complete payment. The contract was terminated by mutual agreement: the purchaser returned the shares and received back only the cash it had actually paid. No further consideration was provided. The purchaser is not, and has never been, a related party.
Following the return of the shares, CSG reconsolidated the subsidiary at fair value under IFRS. This is a standard accounting treatment and did not involve a cash outflow. The transaction is fully reflected in our audited financial statements, which were reviewed by Deloitte.
Governance and Disclosure
As a publicly listed company, CSG is committed to strong corporate governance, robust internal controls, and transparent, timely disclosure in accordance with applicable regulations. We stand by the integrity of our IPO materials and all formal disclosures since listing, including our annual report for the year ended December 31, 2025, and we encourage investors to rely on those documents.
CSG engaged constructively with Hunterbrook prior to its first article; however, we do not believe our responses were fairly represented and therefore declined to engage ahead of the second publication. We maintain confidence in our disclosures, governance, and financial reporting, and we remain focused on executing our strategy and delivering value for shareholders.
We will continue transparent engagement with investors and expect to provide a further update to shareholders with our Q1 2026 results on 20 May 2026.
