Keyang Electric Machinery

Kyeyang Electric operates two core segments: industrial products and auto-electronics.

In industrial products, the company manufactures and sells power tools, small engines, and industrial equipment, having been the first in the industry to localize compact grinders, electric cutters, and related tools, giving it competitive strength in the domestic grinder, drill, and cutter markets.

The power tool market is shifting from corded tools toward lithium-ion battery-based cordless tools.

In auto-electronics, the company produces vehicle motors including power seat motors and electric parking brake (EPB) motors, supplying seat motors to most mid-size-and-above Hyundai and Kia models domestically, while exporting to global auto parts makers such as Lear, Mando's overseas unit, and Nexteer.

According to the September 2025 quarterly report, revenue mix was 73.7% auto-electronics and 26.3% industrial products, with electronics accounting for the overwhelming share. The company operates a subsidiary in Suzhou, China, handling power tool manufacturing and parts sales.

Building on its existing motor and power tool manufacturing capabilities, the company has recently entered the robotics business, winning an order in 2024 for a DnL module used in Hyundai Motor's MobED robotics production, followed by a December 2025 supply agreement with Hyundai Transys covering 2025 through 2030 for robotics module products.

2025 consolidated revenue reached KRW 389.8 billion, up from KRW 369.1 billion in 2024, yet the operating loss widened to KRW 27.1 billion from KRW 15.3 billion, and the owners' net loss reached KRW 36.9 billion, extending a four-year loss streak from 2022 through 2025.

In 2023 the company had narrowed losses to an operating loss of KRW 3.9 billion and a net loss of KRW 1.3 billion, but the net loss ballooned to KRW 61.2 billion in 2024, and losses persisted into 2025 without a clear return to profitability.

On a quarterly basis, net income turned positive in the third quarter of 2025 (operating loss of KRW 1.0 billion, net income of KRW 2.6 billion) and the first quarter of 2026 (operating loss of KRW 1.9 billion, net income of KRW 0.8 billion), but the fourth quarter of 2025 saw losses widen sharply to an operating loss of KRW 14.8 billion and a net loss of KRW 31.1 billion.

In the second quarter of 2026, revenue was KRW 97.4 billion with an operating loss of KRW 5.1 billion and a net loss of KRW 6.1 billion, marking a renewed deterioration in profitability from the prior quarter's net income.

According to FnGuide, cumulative revenue through the third quarter of 2025 rose 4.9% year on year while the operating loss expanded 70.5%, a pattern attributed to a widening operating loss in the auto-electronics segment combined with persistent losses in industrial products.

The volatile pattern of quarterly net income suggests one-off items such as asset disposals or foreign-exchange effects may have influenced results outside of core operations, and despite revenue growth, cost-structure improvement has not kept pace.

The downstream auto market for the auto-electronics segment carries structural growth drivers such as expanding vehicle comfort features and the shift toward electric vehicles, though the segment has also been affected by a recent slowdown in the broader auto industry.

Power seat motor applications are expanding from second-row to third-row seats, and electric parking brake (EPB) motors once mainly used in premium vehicles are extending into small and mid-size vehicles, reflecting a structure in which electrification and feature upgrades drive parts demand.

In industrial products, a slowdown in downstream demand has been cited as a factor weighing on profitability, while the power tool market continues its shift from corded tools toward lithium-ion battery-based cordless tools.

Competitively, Kyeyang Electric holds a strong share position domestically in grinders, drills, and cutters, while in auto-electronics it counts global parts makers such as Lear, Mando, and Nexteer as customers, creating a relationship that is simultaneously collaborative and competitive.

More recently, the robotics industry, including humanoid robots, has emerged as a rapidly growing global theme, drawing in parts makers with existing motor manufacturing capabilities and intensifying competition in that space.

Company and analyst materials indicate that growth in the auto-electronics segment is expected as demand for vehicle comfort features drives expanded third-row applications for power seat motors and broader use of electric parking brake motors in small and mid-size vehicles.

In May 2026 the company decided on a rights offering to raise roughly KRW 40.9 billion, allocating KRW 19.7 billion to debt repayment, KRW 4.8 billion to utility facility investment such as substations and air conditioning to expand auto-electronics production capacity, and the remaining KRW 16.4 billion to working capital for securing raw materials to expand the auto-electronics and robotics businesses.

Controlling shareholder Haesung Industrial plans to participate in the offering at 120% of its allotted portion, which the company links to demonstrating committed management and reinforcing confidence in its growth strategy.

The stated short-term financial goal is to sequentially repay bridge loans and financial institution borrowings using the proceeds, thereby lowering the debt ratio.

On the new-business front, the company reaffirmed its policy of cultivating robotics and smart tools as new growth drivers, with the 2025-2030 supply agreement with Hyundai Transys likely to be a key variable in determining future revenue contribution.

However, the specific contract value remains undisclosed, so the actual scale and timing of revenue recognition will need to be confirmed through future disclosures.