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
Despite its lithium-themed name, the company's actual lithium revenue remains negligible, while it pursues capital restructuring through a reverse stock split and treasury share retirement alongside efforts to exit administrative issue status.
FY2025 revenue of KRW 10.6 billion with an operating loss of KRW 4.48 billion and a net loss of KRW 13.4 billion, marking a fourth consecutive year of operating losses
Q2 2026 posted a quarterly net profit of roughly KRW 970 million even as the operating loss continued
Lithium-segment revenue accounts for only about 0.1% of total sales, and the Saemangeum plant project is being revised due to financing difficulties
Capital structure has been reshaped via a 5-to-1 reverse stock split completed in May 2026 and a treasury share retirement of 8,361 shares in October
A control dispute between controlling shareholder Lithium Insight and a former CEO continues alongside litigation with affiliate Hydrolithium
Lithium for Earth was founded in 1998 as a semiconductor test equipment maker named 'From Thirty,' and pivoted into mobile accessory manufacturing using intellectual property such as Kakao Friends characters after merging with content maker WithMobile in 2019.
In 2022 the company announced its entry into lithium-based anode material powder for secondary batteries and renamed itself Lithium for Earth, then in April 2023 spent roughly KRW 17 billion to acquire land for a lithium material plant inside the Saemangeum national industrial complex.
However, recent reporting confirms that lithium-related revenue accounts for only about 0.1% of total sales. The bulk of current revenue still comes from mobile device accessories, semiconductor test equipment manufacturing and sales, and IP-licensed products.
The Saemangeum plant project is being revised because external financing has not progressed smoothly, and the company has booked impairment on part of the under-construction assets in anticipation of a possible occupancy-contract termination.
Competitively, the firm is often grouped with affiliated small-cap lithium material makers Hydrolithium and Lithium Plus, both of which face similar utilization and financing challenges.
This contrasts sharply in scale and progress with large resource conglomerates such as the POSCO Group, which has formalized multi-trillion-won lithium investment plans. As a result, the company's practical business base still rests largely on its pre-lithium operations in mobile accessories and test equipment.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩2.6B | -₩1.4B | −53.3% |
| 2025Q3 | ₩2.7B | -₩800M | −31.5% |
| 2025Q4 | ₩3.1B | -₩1.1B | −36.1% |
| 2026Q1 | ₩2.9B | -₩1.9B | −64.9% |
| 2026Q2 | ₩4.9B | -₩1.3B | −27.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩20.7B | -₩3.7B | ₩89.6B | −18.1% | 48.2% | 33.1% |
| 2023 | ₩15.6B | -₩6.8B | -₩182.8B | −43.6% | −155.8% | 34.3% |
| 2024 | ₩15.2B | -₩5.2B | -₩102.2B | −34.4% | −192.5% | 4.1% |
| 2025 | ₩10.7B | -₩4.5B | -₩13.4B | −42.1% | −24.0% | 5.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-24
Annual revenue declined for four consecutive years, from KRW 20.72 billion in 2022 to KRW 15.63 billion in 2023, KRW 15.16 billion in 2024, and KRW 10.65 billion in 2025.
The operating loss moved from -KRW 3.75 billion in 2022 to -KRW 6.81 billion in 2023, then narrowed to -KRW 5.22 billion in 2024 and -KRW 4.48 billion in 2025, suggesting the loss width peaked in 2023 even as revenue kept shrinking.
On the net income line, the company posted a one-off net profit of KRW 89.59 billion in 2022 driven by non-operating factors, followed by large net losses of -KRW 182.83 billion in 2023 and -KRW 102.23 billion in 2024, before the loss narrowed sharply to -KRW 13.40 billion in 2025.
Quarterly data show the net loss spiked to -KRW 10.33 billion in Q4 2025, which appears linked to one-off factors such as impairment on the Saemangeum plant and bad-debt allowance on loans recognized around that period.
Revenue then came in at KRW 2.93 billion with an operating loss of -KRW 1.90 billion and a net loss of -KRW 1.06 billion in Q1 2026, before Q2 2026 revenue jumped to KRW 4.88 billion and net income turned positive at roughly KRW 970 million on a quarterly basis.
The operating loss nonetheless persisted at -KRW 1.33 billion in Q2 2026, indicating the net profit swing likely stemmed from non-operating items rather than a genuine improvement in core profitability.
Equity fell from KRW 117.32 billion in 2023 to KRW 53.12 billion in 2024 and recovered slightly to KRW 55.87 billion in 2025, reflecting both accumulated losses and capital restructuring such as the reverse stock split.
The debt ratio dropped from 34.3% in 2023 to 5.8% in 2025, an improvement that should be read alongside the shrinking equity base caused by cumulative losses.
The domestic lithium material industry is in a phase where slower EV demand growth and soft lithium prices have generally delayed the commercialization timeline for smaller new entrants.
By contrast, large resource conglomerates have been expanding investment, with the POSCO Group securing an annual lithium concentrate supply of more than 187,000 tons through a joint venture with Australia's Mineral Resources as part of its broader resource portfolio buildout.
This stands in sharp contrast to Lithium for Earth's Saemangeum project, which had planned investment in the hundreds of billions of won but has had to revise its business plan amid financing difficulties.
Affiliates Hydrolithium and Lithium Plus have also experienced legal disputes over plant asset transfers and controlling-shareholder changes, underscoring the elevated uncertainty among smaller players in the sector.
In this environment, small and mid-cap lithium material companies, including Lithium for Earth, tend to see earnings swing more from changes in the value of existing investment assets and equity/debt relationships than from actual production ramp-up.
A growing gap is emerging within the industry between companies with genuine mass-production track records and those still at the naming or business-planning stage.
In a September 2026 shareholder letter, the company presented a roadmap aimed at addressing concerns over its administrative issue designation, citing March 2027 — when the FY2026 audit report is due — as the point when an exit from that status could become visible.
To improve its capital structure and capital efficiency, the company decided in March 2026 on a 5-to-1 reverse stock split for common shares, completing the relisting and trading resumption in May, and in September resolved to retire 8,361 treasury shares, with retirement targeted for October 2.
In a fraudulent-conveyance cancellation lawsuit against affiliate Lithium Plus, the company won a first-instance ruling and has completed seizure of key machinery and fixtures at the Geumsan plant, with a second-instance trial now underway.
Regarding the Saemangeum plant, the company has disclosed that it is revising its business plan while seeking external financing, though a concrete completion schedule or restart timeline has not yet been confirmed.
The next regular filing, the Q3 2026 report, must be submitted by November 16, 2026 under capital markets law, and it should reveal the status of the lithium business and any changes in related asset values.
The legal dispute between controlling shareholder Lithium Insight and former management over corporate control also remains unresolved, leaving governance stability as a variable that could affect the pace of business execution going forward.
Because net income has remained in a loss position for several years, the price-to-earnings ratio stays in a range with limited interpretive value.
The price-to-book ratio trades below 1x, indicating a discount to net asset value, which should be read alongside the company's history of sharp equity erosion from large impairments and investment valuation losses.
Dividend-related metrics carry limited practical use for investment judgment given the absence of any dividend payouts in recent years.
Net income direction shifted from large losses in 2023-2024 to a narrower loss in 2025 and a quarterly net profit in Q2 2026, though because that profit appears driven by non-operating items, it is difficult to characterize it as a sustained earnings recovery.
When assessing valuation, it is worth distinguishing the mechanical effect of capital restructuring (the reverse stock split and treasury share retirement) on per-share metrics from any genuine improvement in underlying business performance.
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 2026-08-24
The company decided on a 5-to-1 reverse stock split in March 2026, completing relisting and trading resumption in May, and in September resolved to retire 8,361 treasury shares, with retirement targeted for October 2. Both measures were presented as aimed at improving the capital structure and shareholder value. A roadmap to address concerns over administrative issue designation was also disclosed in a shareholder letter.
The company won a first-instance ruling in its fraudulent-conveyance cancellation lawsuit against affiliate Lithium Plus and has already completed seizure of key machinery and fixtures at the plant.
A second-instance trial is ongoing, but if the ruling is upheld, there is room for the related asset value to be reflected positively in the financial statements.
Q2 2026 revenue rose sharply to KRW 4.88 billion from KRW 2.93 billion in the prior quarter, and net income turned positive at roughly KRW 970 million on a quarterly basis. Whether this revenue recovery continues will need to be confirmed through upcoming quarterly disclosures.
Contrary to its name, lithium-related revenue has been confirmed to account for only about 0.1% of total sales. The Saemangeum plant project is being revised amid difficulty securing external financing, and its completion schedule remains uncertain.
There is a wide gap between the large investment plans the company previously announced and the actual progress made.
Revenue fell every year from KRW 20.72 billion in 2022 to KRW 10.65 billion in 2025, with operating losses persisting throughout the period. In 2023 and 2024, net losses of KRW 182.83 billion and KRW 102.23 billion respectively sharply eroded equity.
Following the death of former controlling shareholder Byun Ik-sung, a control dispute has continued between his heirs and a former CEO. With litigation against affiliates proceeding in parallel, governance stability remains a variable that could affect business execution.
The company has previously been designated an administrative issue stock after pre-tax continuing-operation losses exceeded 50% of equity in repeated fiscal years.
It has cited March 2027, when the audit report is due, as a point when an exit from that status could become visible, but renewed designation cannot be ruled out depending on future earnings trends.
External financing for the Saemangeum plant project has not progressed smoothly, leading to an ongoing business plan revision, and the possibility of triggering an occupancy-contract termination clause has also been raised. The possibility that additional invested funds could be written off as losses cannot be ruled out.
Litigation against affiliates Lithium Plus and Hydrolithium remains in its second-instance stage following a first-instance win, and the final outcome and scale of any asset recovery have not yet been confirmed. Prolonged legal disputes could sustain management uncertainty.
The scheduled date for retiring 8,361 treasury shares; actual completion and the resulting change in total shares outstanding (from 12,037,328 to a planned 12,028,967) should be confirmed via disclosure.
The statutory deadline under capital markets law for the Q3 2026 report, offering a point to check lithium business progress, related asset value changes, and operating profit/loss trends.
The outcome of the ongoing second-instance ruling, following the first-instance win, could determine whether and to what extent the roughly KRW 40 billion in assets reported to be at stake is recovered.
The expected submission date for the FY2026 audit report, a point at which the realization of the company's stated roadmap to resolve its administrative issue designation can be checked.
Despite its name, Lithium for Earth's actual revenue contribution from the lithium business remains negligible, and the Saemangeum plant project is still at a stage of revising its business plan due to financing issues.
Actual revenue continues to come from legacy operations such as mobile accessories and semiconductor test equipment, and both revenue and operating losses have persisted for four consecutive years.
That said, the net loss narrowed substantially in 2025, and the company swung to a quarterly net profit in Q2 2026, while capital restructuring measures such as the 5-to-1 reverse stock split and treasury share retirement have proceeded in parallel.
A first-instance litigation win against affiliated companies opens a possibility of asset recovery, though the second-instance outcome and final recovery amount remain unconfirmed.
Variables to weigh also include the ongoing control dispute between the controlling shareholder and former management, and the risk of renewed administrative issue designation given the company's past history.
The upcoming Q3 report (due by November 16, 2026) and the FY2026 audit report around March 2027 stand as key points to gauge further changes in the company's business and financial condition. This report is for informational purposes only and does not constitute investment advice or a buy/sell recommendation.
Report written 2026-10-02 · Data as of 2026-10-01
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