PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Woosung Materials is pushing a business shift from its core polyester fabric operations toward materials, metals, and ink, but the completion of repeatedly delayed capital raises and a China ink-maker acquisition payment will determine its path forward.
Revenue shrank from KRW 72.46 billion in 2022 to KRW 24.69 billion in 2025, and further fell to a KRW 2.7-3.0 billion quarterly run rate in H1 2026.
The 2025 owner net loss of KRW 7.67 billion narrowed sharply from KRW 32.36 billion in 2024, but losses have persisted for four consecutive years.
At its March 2026 shareholder meeting, the company changed its name from Seongan Materials to Woosung Materials and added mineral resource development to its business scope, formalizing a shift toward materials and metals.
A KRW 15 billion third-party capital raise and a KRW 30 billion warrant bond payment have both been pushed back again, to September and October respectively, while the balance payment for a Chinese ink-maker acquisition has been postponed four times.
Control has shifted to WS Co., and a potential merger with affiliate Woosung Metal is under review, meaning governance and business-structure changes are unfolding simultaneously.
Woosung Materials is a KOSPI-listed textile company whose core operations have been polyester fabric manufacturing, processing, and export, alongside real estate leasing including officetel units. Its principal handled items are described as polyester fabric and officetel leasing.
At its March 26, 2026 annual general meeting, shareholders approved changing the company name from Seongan Materials to Woosung Materials, with the stated aim of strengthening a materials- and metals-centered business portfolio and establishing group identity.
The same meeting added mineral resource exploration, development, mining, smelting, processing and sales, as well as import/export of rare and non-ferrous metals and mining-related plant businesses, to the company's stated business purposes, formalizing a diversification push.
The company said it is restructuring its business and seeking new growth drivers to strengthen competitiveness in materials and metals. It also carried out a 10-for-1 reverse stock split, reducing total shares outstanding from roughly 158.6 million to about 15.9 million.
More recently, it has been pursuing a deal to acquire a stake in Jinan Huangguan Ink Co., a Chinese offset ink maker, from Dongyang Ink for KRW 11.9 billion, extending its reach into printing and ink materials.
Effective control has passed to WS Co., and a merger with affiliate Woosung Metal is reportedly under review, suggesting the business structure could shift further toward metals and materials.
The company is thus in a restructuring phase where new materials, metals, and ink businesses are being layered on top of its traditional textile operations.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩4.8B | ₩400M | 8.7% |
| 2025Q3 | ₩8.1B | ₩200M | 2.9% |
| 2025Q4 | ₩7.5B | -₩4.2B | −55.6% |
| 2026Q1 | ₩2.7B | -₩800M | −30.4% |
| 2026Q2 | ₩3B | -₩500M | −15.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩72.5B | -₩1.5B | -₩2.9B | −2.1% | −11.1% | 457.6% |
| 2023 | ₩33.8B | -₩9.3B | -₩42.1B | −27.6% | −155.6% | 374.7% |
| 2024 | ₩25.5B | -₩10.1B | -₩32.4B | −39.5% | −104.1% | 275.9% |
| 2025 | ₩24.7B | -₩2.3B | -₩7.7B | −9.5% | −24.5% | 224.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue fell for four straight years, from KRW 72.46 billion in 2022 to KRW 33.79 billion in 2023, KRW 25.49 billion in 2024, and KRW 24.69 billion in 2025. The operating margin worsened from -2.1% in 2022 to -27.6% in 2023 and -39.5% in 2024, before the loss narrowed to -9.5% in 2025.
Owner net loss widened from KRW 2.90 billion in 2022 to KRW 42.10 billion in 2023 and KRW 32.36 billion in 2024, then narrowed sharply to KRW 7.67 billion in 2025.
On a quarterly basis, the company briefly posted operating profit in Q2 2025 (KRW 0.42 billion) and Q3 2025 (KRW 0.24 billion), before deteriorating sharply in Q4 2025 with revenue of KRW 7.47 billion, an operating loss of KRW 4.15 billion, and an owner net loss of KRW 4.57 billion.
Weakness continued into 2026, with Q1 revenue of KRW 2.68 billion (operating loss of KRW 0.82 billion, net loss of KRW 1.78 billion) and Q2 revenue of KRW 2.98 billion (operating loss of KRW 0.48 billion, net loss of KRW 1.54 billion).
Over the most recent four quarters from Q3 2025 through Q2 2026, combined revenue was about KRW 21.19 billion and the combined owner net loss was about KRW 8.49 billion, highlighting that quarterly revenue more than halved from the KRW 7 billion range in second-half 2025 to the KRW 2.7-3.0 billion range in first-half 2026.
Operating cash flow was generally positive, at KRW 2.49 billion in 2022, KRW 1.14 billion in 2024 and KRW 1.13 billion in 2025, but swung to an outflow of KRW 10.37 billion in 2023.
Despite accumulated deficits, owner's equity held around KRW 26.05 billion in 2022 to KRW 31.24 billion in 2025, while total liabilities declined from KRW 101.66 billion in 2022 to KRW 70.09 billion in 2025, indicating the balance sheet is also being reshaped.
In the global polyester fiber market, Asia-Pacific accounts for more than half of world market share, with China the largest producer and exporter, followed by India, Indonesia, and Taiwan. This suggests that small and mid-sized Korean fabric makers face a structural disadvantage in cost and scale competition.
The decline in Woosung Materials' revenue from KRW 72.46 billion in 2022 to KRW 24.69 billion in 2025, roughly a third within three years, can be seen as reflecting this competitive backdrop.
Domestic fabric exporters face price competition from large Chinese and Southeast Asian production bases as well as diversified sourcing by global apparel brands, making business restructuring or a shift toward higher-value materials a broader industry theme.
Against this backdrop, Woosung Materials is attempting to diversify into unrelated industries such as metals, mineral resources, and printing ink materials while maintaining its legacy textile business, putting it at an early stage of building a portfolio on a different competitive axis than the traditional textile and apparel sector.
The planned new businesses in metals, mineral resources, and ink materials have not yet meaningfully contributed to revenue, making it a key point to watch whether these new lines can offset the ongoing contraction of the legacy fabric business.
The company's near-term direction hinges heavily on the completion of two separate capital-raising tracks.
A total KRW 15 billion third-party share placement (KRW 5 billion from WS Co. and KRW 10 billion from Grand E&R) was first announced in August 2024 and has been delayed for nearly two years, with the payment date most recently pushed to September.
Separately, a KRW 30 billion warrant bond decided in 2022 has also seen its payment schedule slip, now to October.
In addition, roughly KRW 40.15 billion of convertible bonds were issued across four rounds from 2023 to 2025, and these newly issued bonds equal 46.37% of shares outstanding, posing a substantial dilution risk if converted.
The KRW 4.9 billion balance payment for the acquisition of Chinese ink maker Jinan Huangguan Ink has been postponed four times, from May to September 30, and this deal must close for the new business line to become substantive.
KOSPI's market-cap delisting threshold is set to rise in stages from KRW 20 billion currently to KRW 30 billion in 2027 and KRW 50 billion in 2028, meaning the company faces the parallel task of defending its market capitalization alongside completing its funding plans.
A potential merger between controlling shareholder WS Co. and affiliate Woosung Metal is under review without a confirmed timeline, but could bring further changes to the business and capital structure if it proceeds.
On the earnings side, since quarterly revenue in first-half 2026 fell to less than half of prior levels, the contraction of the legacy fabric business may continue to weigh on results until new business lines begin contributing meaningfully to revenue.
With Woosung Materials posting net losses over recent years, valuing the stock on a price-to-earnings basis is not meaningful.
Owner's equity has held in the low-KRW-30-billion range in recent years despite an accumulated deficit burden, and the share price trades at a premium relative to net asset value, which may partly reflect market expectations around the business restructuring and pending capital raises.
The company currently pays no dividend, making dividend-related metrics of limited use for comparison.
On profitability, the net loss narrowed substantially from the large 2024 loss to a much smaller 2025 loss, but first-half 2026 saw losses continue alongside a sharp revenue decline, so the durability of that improvement has not yet been confirmed.
The point at which the pending share placement and warrant-bond payments are actually completed, and new acquired businesses begin contributing to revenue, is likely to be an important inflection point for how the valuation picture develops going forward.
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 2026-08-23
The 2025 owner net loss of KRW 7.67 billion narrowed sharply from KRW 32.36 billion in 2024, and the operating margin improved from -39.5% to -9.5%. The company briefly posted operating profit in Q2-Q3 2025. Operating cash flow also stayed positive in both 2024 and 2025.
However, losses widened again alongside a sharp revenue drop in first-half 2026, so the continuity of this improvement still needs confirmation.
Through its name change and expanded business scope, the company is broadening into mineral resource development and rare/non-ferrous metal trading. It is also pursuing entry into printing and ink materials via the acquisition of a Chinese offset ink maker.
If new businesses can offset the structural contraction of the legacy fabric operations, there is room for the revenue base to be reshaped. However, these new businesses are still at an early stage and have not yet meaningfully contributed to revenue.
Control has passed to WS Co., and the effective controlling shareholder, the CEO, purchased a total of one million shares on the open market between November 2025 and late January 2026.
A merger review with affiliate Woosung Metal is also underway, meaning capital and governance restructuring is proceeding at the group level. If these moves are completed, they could contribute to stabilizing the capital structure. However, specific timing for the merger or capital raises has not yet been finalized.
Revenue fell from KRW 72.46 billion in 2022 to KRW 24.69 billion in 2025, roughly a third within three years. In first-half 2026, quarterly revenue fell further to the KRW 2.7-3.0 billion range, less than half of the KRW 7 billion range seen in second-half 2025.
With new businesses not yet contributing to revenue, the contraction of the core fabric business continues, and this is also the underlying driver of four consecutive years of net losses.
A KRW 15 billion capital raise, first announced in August 2024, has been delayed for nearly two years and was most recently pushed to September. A KRW 30 billion warrant bond decided in 2022 has also slipped again, to October.
Convertible bonds issued from 2023 to 2025 total roughly KRW 40.15 billion, and these newly issued bonds equal 46.37% of shares outstanding, raising meaningful dilution concerns upon conversion. The repeated schedule changes have raised questions about the reliability of the funding plans.
Some media reports have noted that one of the entities slated to fund the capital raise is in a state of full capital impairment, raising questions about actual payment capability.
Concerns have also been raised that the company may have been used as a conduit in fund flows related to the counterparty in the Chinese ink company acquisition. These circumstances have been flagged as risk factors affecting the feasibility and credibility of the funding and M&A transactions.
KOSPI's market-cap delisting threshold is set to rise in stages, from KRW 20 billion currently to KRW 30 billion in 2027 and KRW 50 billion in 2028.
Falling below the threshold for 30 consecutive trading days triggers designation as an administrative issue, and failing to meet the standard for a further 45 consecutive trading days can lead to delisting. If the current valuation level is not maintained, the tightening future thresholds could become a burden.
Convertible bonds issued from 2023-2025 (about KRW 40.15 billion) combined with planned new share and warrant bond issuances equal 46.37% of shares outstanding. If conversion and exercise proceed in earnest, concerns over per-share dilution and increased selling pressure could grow. The possibility of price adjustment from discounted issuance cannot be ruled out either.
The balance payment for the Chinese ink company acquisition has already been postponed four times, and whether it will be completed by the next scheduled date of September 30 remains uncertain. The merger with Woosung Metal is also still under review without a confirmed timeline.
If these transactions do not proceed as planned, the diversification strategy itself could be delayed or fall through.
The scheduled date for the KRW 4.9 billion balance payment on the acquisition of Chinese ink maker Jinan Huangguan Ink; whether it actually closes should be checked.
The revised payment date for the KRW 15 billion third-party share placement (KRW 5 billion from WS Co., KRW 10 billion from Grand E&R); actual payment should be verified.
The scheduled payment date for the KRW 30 billion warrant bond; further delays or actual fund inflow should be confirmed.
The Q3 2026 quarterly report should be checked to see whether revenue and earnings break out of the sharp contraction seen in first-half 2026.
Any disclosure regarding the merger with Woosung Metal and its specific terms should be watched for.
Woosung Materials is at an early stage of restructuring its business toward materials and metals, through a name change, expanded business scope, and a pursued acquisition of a Chinese ink maker, even as its traditional polyester fabric business undergoes structural contraction.
The 2025 net loss narrowed substantially from the prior year, but revenue fell sharply in first-half 2026 and losses resumed, so the durability of that improvement remains unconfirmed.
Three separate funding and transaction tracks—the KRW 15 billion capital raise, the KRW 30 billion warrant bond, and the balance payment for the Chinese acquisition—have all been repeatedly delayed, making their actual completion a key variable for gauging the feasibility of the restructuring.
The scale of newly issued bonds, equal to 46.37% of shares outstanding, could become a significant dilution factor upon future conversion or exercise. The staged tightening of KOSPI's market-cap delisting threshold is also a structural variable worth monitoring over the medium term.
On the governance side, a change in controlling shareholder and a review of a merger with an affiliate are proceeding simultaneously, reflecting layered changes across the capital and business structure.
Investors should track the timing of funding completion, whether newly acquired businesses begin contributing to revenue, and the direction of quarterly revenue and earnings going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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