PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
As game publishing revenue has declined for four straight years, ITOXI has positioned Ukraine reconstruction business as a new revenue source, but the company faces structural risk from repeated failed capital raises, a trading halt, and an ongoing listing eligibility review.
Annual revenue shrank for four consecutive years from KRW 28.1 billion in 2022 to KRW 5.7 billion in 2025, as the core game publishing business contracted sharply.
An export contract with Ukraine's SKS Group for KG Mobility pickup trucks has emerged as a new revenue pillar, though geopolitical uncertainty around ceasefire negotiations persists.
Multiple rounds of capital reduction were carried out to ease capital impairment, but a trading halt since March 2026 and an audit opinion disclaimer have triggered an ongoing listing eligibility review.
In 2026, three third-party rights offerings worth roughly KRW 22 billion were all withdrawn due to investor payment failures, leaving few remaining capital-raising options.
Operating cash flow has remained negative for four consecutive years since 2022, with internal cash generation yet to recover.
ITOXI was founded in 1997 as a software developer, listed on KOSDAQ in 2002, and merged with game developer Freestone in 2005.
Its core business is mobile and PC game publishing and re-publishing, currently holding publishing contracts for 'Cheonsangbi K' with developer Playworks and 'Lasalas' with developer Reforme Games, alongside a revenue-sharing agreement for the 'God of High School' IP with affiliate Onecoms.
The company operates without an in-house R&D organization and relies on external IP, which analysts note limits profitability given app-market fees and developer royalties. Its healthcare segment distributes domestically approved self-test kits under Ministry of Food and Drug Safety authorization.
Since establishing the Ukrainian joint venture ITOXI UA in 2023, the business mix has shifted rapidly: the game segment, which accounted for 94% of 2024 revenue, fell to about 40% by the third quarter of 2025, while overseas distribution rose to roughly 49%.
Overseas distribution, including KG Mobility pickup truck deliveries through the Ukrainian joint venture, became the main revenue source accounting for 49% of sales, while delayed new game launches and user attrition weighed on performance.
The Ukraine business centers on a pickup truck export contract with SKS Group for KG Mobility's Musso Grand model, alongside a flat-glass plant joint venture with Ukrainian manufacturer BFG, an influencer marketing platform subsidiary called Influlinker, and subsidiary YD Online.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | — | — |
| 2025Q3 | ₩700M | — | — |
| 2025Q4 | — | — | — |
| 2026Q1 | ₩1B | -₩500M | −48.0% |
| 2026Q2 | ₩71,718,768 | -₩600M | −769.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩28.1B | ₩700M | -₩400M | 2.6% | −5.6% | 93.4% |
| 2023 | ₩21.6B | -₩4.4B | -₩4.4B | −20.3% | −40.0% | 30.3% |
| 2024 | ₩17.2B | -₩11.8B | -₩16.8B | −69.0% | −305.1% | 94.2% |
| 2025 | ₩5.7B | -₩4.9B | -₩7.3B | −86.4% | −163.7% | 82.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Consolidated revenue fell for four straight years, from KRW 28.1 billion in 2022 to KRW 21.6 billion in 2023, KRW 17.2 billion in 2024, and KRW 5.7 billion in 2025.
Operating profit swung from a KRW 0.72 billion gain (2.6% margin) in 2022 to losses of KRW 4.4 billion (-20.3%) in 2023, KRW 11.8 billion (-69.0%) in 2024, and KRW 4.9 billion (-86.4%) in 2025 — the absolute loss narrowed but the margin deteriorated sharply as revenue collapsed.
Net income attributable to owners was negative KRW 0.4 billion in 2022, KRW 4.4 billion in 2023, KRW 16.8 billion in 2024, and KRW 7.3 billion in 2025, with the loss narrowing after the large 2024 shortfall but remaining substantial.
Owners' equity rose from KRW 7.3 billion in 2022 to KRW 11.2 billion in 2023 before falling to KRW 5.5 billion in 2024 and KRW 4.4 billion in 2025, underscoring persistent capital impairment pressure.
Operating cash flow was negative in all four years — KRW -2.1 billion, -4.8 billion, -9.4 billion, and -5.1 billion respectively — indicating a continuous cash drain regardless of reported earnings quality.
Quarterly data show a large owners' net profit of KRW 8.8 billion in the second quarter of 2025 and a further KRW 1.4 billion profit in the third quarter, but given the full-year net loss of KRW 7.3 billion, these quarterly gains appear to stem largely from non-operating items rather than a core business turnaround.
In 2026, first-quarter revenue was KRW 964 million with an operating loss of KRW 463 million and a net loss of KRW 392 million, while second-quarter revenue plunged to KRW 72 million with an operating loss of KRW 552 million and a net loss of KRW 387 million, coinciding with the trading halt and reflecting a sharply narrowed revenue base.
The debt ratio fluctuated widely, from 93.4% in 2022 down to 30.3% in 2023, then back up to 94.2% in 2024 and 82.2% in 2025.
Korea's mobile game publishing market is dominated by large players such as Netmarble and Kakao Games alongside numerous small and mid-sized publishers, making it a hit-driven industry with wide performance variance depending on new title success.
A company representative noted that in the current game industry, the concept of a 'moderate hit' has disappeared — only a genuine hit generates meaningful results.
Lacking proprietary IP and relying on publishing deals, ITOXI is seen as relatively disadvantaged in bargaining power and revenue share in this environment.
By contrast, the Ukraine reconstruction market is a nascent theme heavily dependent on ceasefire negotiation progress; reconstruction activity is expected to accelerate as the Trump administration pushes for a Russia-Ukraine ceasefire, with total reconstruction needs estimated at over USD 486.3 billion (roughly KRW 702 trillion).
However, a large Ukraine support package that was expected to be announced at the World Economic Forum in Switzerland fell through at the last minute, and continued Russian attacks on energy infrastructure suggest the physical environment remains unfavorable for reconstruction to gain full momentum.
ITOXI is cited as the first listed Korean company to post actual results from Ukraine reconstruction business after winning a KG Mobility Musso Grand pickup truck export contract in a Ukrainian police tender.
Still, industry observers generally view operating margins as limited given the nature of intermediary export trade.
The company has stated that following the first shipment of 150 units under its roughly KRW 12.5 billion, 400-unit contract with SKS Group, the remaining 250 units are planned to be delivered in a second batch, with hopes for additional supply from a possible second-batch contract in the second half and an ongoing large-scale tender with the US Embassy.
A flat-glass plant joint venture with Ukraine's BFG is also being pursued, though revenue from that project has not yet been realized.
On the financial side, despite multiple rounds of capital reduction aimed at easing capital impairment, the company was designated an administrative issue after its capital impairment ratio exceeded 50% in 2024, and subsequently entered delisting procedures after receiving an audit opinion disclaimer.
In 2026, three third-party rights offerings worth roughly KRW 22 billion that had been pursued since the prior year were all withdrawn due to investor payment failures, and a planned KRW 4 billion issuance of 18th-round convertible bonds late last year was also withdrawn for non-payment, with the last successful capital raise being a KRW 700 million issuance of 17th-round CBs.
The stock is undergoing delisting procedures due to deteriorating financial structure, and while capital raising is essential to escape the crisis, no remaining capital-raising plan currently exists.
Key items to watch going forward are the outcome of the listing eligibility review, whether new investors can be secured, and whether the remaining Ukraine truck volume and the US Embassy tender materialize into actual orders.
With consecutive years of operating losses and mounting capital impairment pressure, applying traditional earnings-based valuation metrics to ITOXI is difficult.
Persistent multi-year net losses make price-to-earnings comparisons largely meaningless, and the share price appears to have traded close to net asset value without a large premium or discount. The company maintains no dividend policy, so there is no basis for comparison on shareholder return through dividends.
Most importantly, the stock is currently under a trading halt tied to a listing eligibility review triggered by an audit opinion disclaimer and deteriorating financial structure, meaning the price signal generated by the market itself is limited.
Given that multiple rounds of capital reduction have repeatedly reset the share count and per-share metrics, the outcome of capital-raising efforts and the listing eligibility review are likely to be more decisive factors for future valuation than a simple comparison against historical valuation bands.
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 2026-09-05
The KG Mobility pickup truck export contract stands out as one of the rare cases among Korean Ukraine-reconstruction-themed listed firms to generate actual revenue.
Of the 400-unit contract, the first 150-unit shipment has been completed, with expectations remaining for the remaining 250 units and additional tenders such as the US Embassy. This could partly offset the sharp decline in game revenue.
The company has repeatedly carried out capital reductions that convert paid-in capital into retained earnings, offsetting a significant portion of accumulated deficit and lowering the capital impairment ratio on an accounting basis.
This is interpreted as an effort to buy time to maintain listing eligibility, though it should be noted that such measures do not increase total equity itself.
The company continues efforts to diversify its game portfolio through new titles such as Cheonsangbi K and Lasalas, along with a revenue-sharing agreement for the God of High School IP.
There have been instances of early success upon launch, which could serve as a foundation for core business recovery if a title achieves sustained popularity.
Annual revenue contracted for four consecutive years from KRW 28.1 billion in 2022 to KRW 5.7 billion in 2025, while the operating margin deteriorated sharply from 2.6% to negative 86.4% over the same period. The absence of hit new game titles and user attrition are cited as key causes of the core business decline. With the revenue base severely eroded, offsetting this through new business contributions alone is challenging.
In 2026, three rights offerings worth roughly KRW 22 billion and one convertible bond issuance were all withdrawn due to investor payment failures.
Over the past three years, the company has conducted ten rights offerings alongside dozens of amended filings, raising doubts about the stability of its fundraising process — a factor that further complicates future capital raising.
The stock is under a trading halt due to an audit opinion disclaimer and capital impairment issues, with a listing eligibility review currently underway.
The outcome could result in either resumption of trading or delisting, carrying major implications for shareholder value, while the absence of a clear follow-up capital-raising plan further constrains the prospects for resolving the crisis.
An audit opinion disclaimer, prior administrative-issue designation after the capital impairment ratio exceeded 50%, and a trading halt have combined to trigger a listing eligibility review. If the review results in delisting, shareholders could lose the ability to trade in the market. Without a follow-up capital raise, improvement in the financial structure is likely to be delayed.
The progress of ceasefire negotiations heavily influences order intake and logistics and receivables conditions for the reconstruction business.
The local joint venture ITOXI UA was confirmed to be in complete capital impairment as of the third quarter of 2025, raising concerns about business stability, and uncertainty over distribution networks and receivables collection persists under wartime conditions.
The withdrawal of an 18th-round convertible bond issuance led to designation as an unfaithful disclosure company with a penalty, and numerous amended filings related to rights offerings have accumulated over the past three years.
This can negatively affect execution capability on funding plans and market trust, and accumulated penalty points could also risk triggering tightened delisting requirements.
Check whether the listing eligibility review outcome is announced — this is the key event determining whether trading resumes or the company is delisted.
Upon filing of the Q3 2026 report, revenue recovery, capital impairment ratio, and accumulated deficit trends should be reassessed.
Progress and payment collection on the second-batch shipment (remaining roughly 250 units) of Musso Grand trucks to SKS Group should be monitored.
Continued monitoring is needed on whether new rights offerings or convertible bond issuances are pursued, and whether new investors or a controlling shareholder are secured.
The FY2026 audit opinion result should be checked — under tightened fast-track rules, two consecutive years of a disclaimer opinion could subject the company to immediate delisting without an appeal process.
ITOXI presents a distinctive case: while its core game publishing revenue base has contracted sharply for four consecutive years, the company has generated actual revenue from a new Ukraine reconstruction business pillar, setting it apart from many other theme-driven names.
However, repeated capital reductions and rights-offering attempts — and their failures — leave considerable doubt about the company's execution capability in improving its financial structure.
The stock is currently under a trading halt tied to an audit opinion disclaimer and capital impairment issues, undergoing a listing eligibility review, which raises questions about the company's going-concern status independent of the competitive dynamics of the game industry or the growth potential of the Ukraine reconstruction market.
Fulfillment of the remaining Ukraine truck shipments, the US Embassy tender, and the BFG joint venture could be potential catalysts for a revenue rebound, but a clear path for the new capital needed to support these remains absent at this time.
Investors should monitor not only performance indicators but also the timeline and outcome of the listing eligibility review and audit opinion trends. This report is for informational purposes only and does not constitute a buy or sell recommendation.
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.