KOSPIBatteries001570

Kumyang

₩9,900 0.00%2026-10-02 close

Market Cap

₩633.3B

Turnover

₩0

Volume

0 shares

Shares out.

64M

PER

—

PBR

1.4×

EPS

-₩1,023

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q2–2026Q1) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Kumyang at a Delisting Crossroads, Awaiting Court Ruling

Having received a delisting decision from the Korea Exchange after two consecutive years of disclaimed audit opinions, Kumyang now stands at a crossroads where a pending court ruling on its injunction and the success or failure of foreign capital-raising will determine whether it remains listed.

1
On May 20, 2026, the Korea Exchange decided to delist Kumyang over disclaimed audit opinions for fiscal years 2024 and 2025, and the process was suspended after the company filed for an injunction.
2
At a hearing on June 24, 2026, the Seoul Southern District Court gave both sides two months to submit additional materials, indicating a further extension is possible if investment progress is confirmed.
3
A 405 billion won third-party share issuance tied to Saudi Arabia-based investor SKAEEB, presented as the key funding source, has been postponed eight times, and market doubts about the entity's financial capacity remain unresolved.
4
The site of the Gijang, Busan battery plant has entered forced auction over unpaid construction costs, and Busan Bank has also secured a court-approved claim seizure and collection order worth about 137.9 billion won.
5
Consolidated 2025 revenue fell sharply year-on-year to 102.8 billion won, with an operating loss of 44.7 billion won and a net loss attributable to owners of 65.8 billion won, extending a multi-year loss streak.

Business structure

Founded in 1955, Kumyang is a specialty chemicals company that has long produced foaming agents and related products, which have historically formed the core of its revenue. It has also pursued new businesses grinding and processing lithium hydroxide for lithium batteries and producing zirconium additives.

Entering the 2020s, the company moved into the cylindrical secondary battery market, announcing development of a 2170-format cell and a self-developed 46mm-diameter '4695' cylindrical battery.

To support this, it announced a plan to invest about 600 billion won in a cylindrical battery plant in Gijang, Busan, positioned as the fourth-largest such facility in Korea after Samsung SDI, LG Energy Solution, and SK On. However, the battery business has yet to translate into meaningful revenue.

To secure raw-material competitiveness, the company has taken equity stakes in the Monlaa mine in Mongolia (lithium, tungsten, and other minerals) and a lithium mine near Manono in the Democratic Republic of Congo, though the lithium projects remain at the exploration and permitting stage.

The company received disclaimed audit opinions from its external auditor for two consecutive years, leading the Korea Exchange to decide on its delisting in May 2026.

The process has been temporarily suspended following the company's injunction filing in court, and its shares have remained halted from trading since March 24, 2025, without resumption.

Earnings trend

Quarterly revenue · Operating profit

₩35.1B-₩13.5B25Q1₩23.3B-₩12B25Q2₩22.6B-₩13.5B25Q3₩21.7B-₩5.7B25Q4₩17.4B-₩7.9B26Q1

RevenueOperating profit

Annual revenue · Operating profit

₩202.8B₩7.9B2022₩152B-₩14.6B2023₩153.7B-₩56B2024₩102.8B-₩44.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q1	₩35.1B	-₩13.5B	−38.4%
2025Q2	₩23.3B	-₩12B	−51.4%
2025Q3	₩22.6B	-₩13.5B	−59.7%
2025Q4	₩21.7B	-₩5.7B	−26.1%
2026Q1	₩17.4B	-₩7.9B	−45.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩202.8B	₩7.9B	-₩33.3B	3.9%	−28.3%	136.6%
2023	₩152B	-₩14.6B	-₩60.4B	−9.6%	−30.9%	185.3%
2024	₩153.7B	-₩56B	-₩140.1B	−36.4%	−28.6%	154.2%
2025	₩102.8B	-₩44.7B	-₩65.8B	−43.5%	−14.3%	165.3%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Kumyang's consolidated revenue stagnated at 152.0 billion won in 2023 and 153.7 billion won in 2024 after 202.8 billion won in 2022, before falling sharply to 102.8 billion won in 2025.

Operating profit swung from a 7.9 billion won surplus in 2022 to losses of 14.6 billion won in 2023, 56.0 billion won in 2024, and 44.7 billion won in 2025, with the operating margin deteriorating from 3.9% to negative 43.5% over the period.

Net loss attributable to owners widened from 33.3 billion won in 2022 and 60.4 billion won in 2023 to 140.1 billion won in 2024, before narrowing somewhat to 65.8 billion won in 2025.

On a quarterly basis, revenue declined consistently from 35.1 billion won in the first quarter of 2025 to 23.3 billion, 22.6 billion, and 21.7 billion won in the following three quarters, then to 17.4 billion won in the first quarter of 2026.

Over the same period, the operating loss narrowed from 13.5 billion won in the first quarter to 5.7 billion won by the fourth quarter, before widening again to 7.9 billion won in the first quarter of 2026, showing inconsistent improvement.

Quarterly net losses attributable to owners were also volatile, moving from 21.7 billion to 12.9 billion, 18.6 billion, 12.6 billion, and 18.8 billion won, suggesting a substantial influence from non-operating items.

Operating cash flow turned negative, swinging from surpluses of 46.0 billion won in 2022 and 14.9 billion won in 2023 to deficits of 20.3 billion won in 2024 and 43.2 billion won in 2025, indicating an accelerating cash burn.

The debt ratio rose from 136.6% in 2022 to 185.3% in 2023, then registered 154.2% in 2024 and 165.3% in 2025, and the external auditor disclaimed its opinion after noting that, as of December 31, 2025, current liabilities exceeded current assets by roughly 611.2 billion won.

Industry analysis

In the competition among electric-vehicle battery form factors, prismatic cells are estimated to hold about 60% share, pouch cells over 20%, and cylindrical cells roughly 10%.

However, as Tesla adopted the 4680 cell and automakers' interest grew, the 46mm-diameter '46-series' cylindrical battery has drawn attention as a next-generation form factor.

Samsung SDI moved up its 46-series mass-production target from 2026 to 2025, and LG Energy Solution is reported to have been preparing to expand supply volumes to Tesla.

SK On has also entered cylindrical battery development, meaning Korea's three major battery makers have already established an early lead in the 46-series market.

Kumyang has announced self-developed 2170 and 4695 (46-series) cells, but as a late entrant it is viewed as lacking a track record of commercial production or customer contracts.

On the raw-material side, fluctuations in lithium and other core mineral prices, along with political and permitting risk in resource-developing countries, are variables that differentiate cost competitiveness among players.

As electric-vehicle demand growth has remained slower than earlier expected, the market's bar for new entrants' fundraising capacity and adherence to mass-production timelines has risen further.

Outlook

In early 2024, the company set a target of achieving 4 trillion won in revenue by 2026 through mass production of 46-series batteries, but subsequent delays in both plant completion and fundraising have left this target far from current reality.

Estimates for the Mongolia mining business have also been sharply cut, from a projected 400 billion won in revenue and 160 billion won in operating profit for 2024 to actual figures of just 6.6 billion won and 1.3 billion won, respectively.

The Gijang Dream Factory 2 has again seen its completion pushed to 2026, and the site has entered forced auction after the company failed to pay 36.2 billion won in construction costs.

Whether the company remains listed hinges heavily on whether the 405 billion won third-party share issuance involving Saudi investor SKAEEB is actually paid in, but that agreement has been postponed eight times over nearly a year, and doubts about the investor's financial capacity remain unresolved.

The company says it continues to negotiate with multiple domestic and international investors, and maintains that once funding is secured, it can obtain a clean opinion through a re-audit.

At the June 24, 2026 hearing, the court gave both sides two months to submit additional materials, indicating it could allow roughly one more month if substantive progress in investment talks is confirmed.

The Korea Exchange, however, maintains that even after the improvement period, no re-audit contract for the 2025 fiscal year financial statements has been signed, and that the likelihood of a clean opinion is slim, making the actual outcome of fundraising over the coming months the key variable determining whether the listing survives.

Valuation

PER

—

PBR

1.4×

ROE

-13.3%

EPS

-₩1,023

BPS

₩7,267

Dividend per share

₩0

It should first be noted that Kumyang shares have remained halted from trading since March 24, 2025 following the disclaimed audit opinion, meaning the normal market price-discovery function is effectively suspended.

With the company posting net losses for several consecutive years, earnings-based valuation metrics are structurally difficult to compute.

Relative to book value, the last price formed before the halt appears to have stood above net asset value per share, a point that contrasts somewhat with the company's weak performance and going-concern uncertainty. No dividends are being paid, so there is currently no shareholder-return incentive through dividends.

Because whether the listing survives depends on the court's ruling and the success of fundraising, any valuation metric applied should be interpreted with the understanding that its meaning could differ fundamentally between a continued-listing scenario and a delisting scenario.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Potential to remain listed if foreign capital is secured

The company says it is negotiating fundraising with multiple domestic and international investors, including a Saudi Arabian investor, and the court has indicated it could grant more time depending on progress in those talks.

The company's position is that once funds are actually secured, it can obtain a clean opinion through a re-audit. If this path materializes, delisting procedures could be halted, opening room for renewed discussion of the company's normalization as a going concern.

Asset value the company cites in the Gijang plant and mining stakes

At the court hearing, the company's CEO argued that the Gijang plant would be worth about 1 trillion won once completed, and stated that a local buyer had proposed acquiring the Mongolia mine for roughly 110 billion won.

However, these are the company's own claims and need to be weighed separately from the fact that the plant site has already entered forced auction.

Ongoing operating base from the core foaming-agent business

Unlike the newer battery and resource-development businesses, the foaming-agent business is the long-standing core operation that has generated revenue for decades and continues to hold a roughly duopolistic position in the domestic market.

If the burden of new-business investment were eased, the cash generation of this core business could serve as a minimal foundation for the company's continued operation.

Bear factors

Delisting decision and ongoing trading halt

The Korea Exchange decided on May 20, 2026 to delist Kumyang over two consecutive years of disclaimed audit opinions for fiscal 2024 and 2025, and the court made clear this qualifies as an immediate delisting cause not subject to substantive review.

If the company's injunction request is denied, procedures including liquidation trading could resume immediately.

Repeated fundraising delays and creditor pressure

A 405 billion won third-party share issuance has been postponed eight times over nearly a year, and doubts about the financial capacity of the foreign entity subscribing to the new shares remain unresolved.

At the same time, the Gijang, Busan plant site has entered forced auction over unpaid construction costs, and Busan Bank has also secured a court-approved claim seizure and collection order worth about 137.9 billion won.

Shrinking core business and unrealized new ventures

Consolidated revenue fell by about half, from 202.8 billion won in 2022 to 102.8 billion won in 2025, and operating losses have persisted for four consecutive years. The battery and resource-development ventures have yet to translate into meaningful revenue despite years of investment.

Risk factors

Delisting and audit risk

A delisting decision has already been made following two consecutive years of disclaimed audit opinions, and whether the company remains listed hinges on the outcome of its injunction request. If the injunction is denied, liquidation trading and delisting could proceed within a short period.

Liquidity and balance-sheet risk

As of the end of 2025, current liabilities exceeded current assets by more than 611 billion won, and operating cash flow has been negative for two consecutive years in 2024 and 2025, indicating an ongoing cash drain. The debt ratio has remained elevated in the 150–185% range.

Execution and counterparty risk

There is significant market skepticism about the identity and financial capacity of the foreign investor presented as the key funding channel, and the battery and mining ventures have a track record of repeated schedule delays over several years.

This heightens uncertainty over whether future fundraising will succeed and when, if ever, the business can normalize.

What to watch next

September 2026
This marks when the Seoul Southern District Court's two-month document-submission deadline (set on June 24, 2026) expires and a ruling on the injunction is expected, determining whether delisting procedures resume.
From September 2026, upon disclosure
Investors should watch for disclosures confirming whether the 405 billion won third-party share issuance involving SKAEEB is actually paid in, or whether new investors are finalized.
From September 2026
The progress of the forced auction on the Gijang Dream Factory 2 site and subsequent proceedings related to the unpaid construction costs should be monitored.
From September 2026, upon disclosure
Whether a re-audit contract is signed for the 2025 fiscal year financial statements, and its outcome, is the key indicator determining the likelihood of continued listing.

Overall view

Kumyang built battery and resource-development ventures on top of its core foaming-agent business, but the burden of these new investments significantly weakened its finances, leading the Korea Exchange to decide on delisting in May 2026 after two consecutive years of disclaimed audit opinions.

Following the company's injunction filing, the process has been temporarily suspended, and the court has granted two months to watch for progress in investment negotiations.

Financially, confirmed disclosures show consolidated revenue has contracted for four straight years while operating losses and negative operating cash flow persist, adding to liquidity strain.

The foreign investor's share issuance, presented as the key funding mechanism, has been repeatedly delayed for nearly a year, and questions about its credibility remain.

On the other hand, the company maintains that a clean audit opinion is achievable through a re-audit once funding is secured, leaving both continued-listing and delisting scenarios open.

Investors will need to track, in sequence, the timing of the court's injunction ruling, whether the funds are actually paid in, and whether a re-audit contract is signed.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.