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
Tera Science received a delisting decision from the KOSDAQ Market after three consecutive years of audit opinion disclaimers, but the procedure remains suspended via a court injunction, leaving completion of a KRW 2.5 billion third-party capital raise and the pending change of controlling shareholder as the key variables for the company's survival.
The Korea Exchange's corporate review committee confirmed a delisting decision citing disclaimer opinions for fiscal years 2023 and 2024, and the company's injunction filing has suspended follow-up procedures such as liquidation trading.
Both the FY2025 audit report and the 2026 semiannual review received disclaimer opinions due to scope limitations, adding further grounds for delisting.
A third-party capital raise for Seojin Panji (25 million new shares at KRW 100 each, KRW 2.5 billion) has been repeatedly postponed, with the payment date now reset to September 30; if completed, the largest shareholder would shift from Wiplus Investment Association (10.14%) to Seojin Panji (23.50%).
The core hydraulic pipe fitting business has seen multi-year revenue contraction amid weak construction equipment demand, though the first quarter of 2026 showed a much narrower operating loss year over year on cost cuts.
Diversification into lithium, renewable energy, and a crypto-asset platform has drawn scrutiny after field reporting found little visible progress at the Sinan Lithium subsidiary site, raising questions about execution.
Tera Science was founded in 1993 as Samwon Metal, manufacturing high-pressure hydraulic pipe fittings used in construction heavy equipment, industrial vehicles, military equipment, and agricultural machinery, and changed its name from Samwon Tech to Tera Science following an extraordinary shareholders' meeting in July 2020.
The hydraulic fitting manufacturing industry has matured into a highly competitive space, where low-cost mass production from developing countries has expanded the aftermarket segment while the OEM market remains dominated by advanced economies due to quality gaps.
Beyond this legacy business, the company has diversified into renewable energy, a crypto-asset platform, and lithium, nickel, and germanium production.
Through subsidiary Sinan Lithium, it has pursued brine-based lithium extraction in Sinan County, South Jeolla Province, announcing in 2023 the hiring of a lithium-brine expert and land acquisitions for the project.
However, on-site reporting in March 2024 found little evidence of construction or progress at the designated project sites, with local residents and county officials also reporting no advancement.
This fueled market speculation that the new-business announcements were aimed more at supporting the share price than at genuine business execution.
As a result, the company's revenue base remains concentrated in the hydraulic fitting segment, and the diversification businesses have not yet demonstrated verifiable revenue generation.
The customer base is presumed to center on manufacturers of construction equipment, industrial vehicles, military equipment, and agricultural machinery, though a detailed breakdown by customer is not publicly disclosed.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩3.6B | -₩2.6B | −72.1% |
| 2025Q3 | ₩3.3B | -₩2.5B | −76.3% |
| 2025Q4 | ₩3.4B | -₩2B | −58.8% |
| 2026Q1 | ₩3.8B | -₩1.7B | −46.6% |
| 2026Q2 | ₩3.9B | -₩2.1B | −54.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩22.8B | -₩900M | ₩28.8B | −4.0% | 36.0% | 35.7% |
| 2023 | ₩23.1B | -₩3.5B | -₩2.4B | −15.0% | −3.2% | 24.9% |
| 2024 | ₩17.3B | -₩9.5B | -₩9.8B | −54.9% | −14.6% | 16.2% |
| 2025 | ₩14.1B | -₩10.1B | -₩17.1B | −71.7% | −59.4% | 96.7% |
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
Consolidated revenue moved from KRW 22.81 billion in 2022 and KRW 23.08 billion in 2023 down to KRW 17.27 billion in 2024 and KRW 14.13 billion in 2025, showing a clear two-year decline.
Operating loss widened every year, from KRW -0.92 billion in 2022 to KRW -3.47 billion in 2023, KRW -9.48 billion in 2024, and KRW -10.14 billion in 2025, pushing the operating margin from -4.0% to -71.7% over the period.
Net income attributable to owners was a positive KRW 28.78 billion in 2022 despite an operating loss, a turnaround presumed to reflect a one-off non-operating item rather than core profitability. Net losses then widened each year to KRW -2.36 billion in 2023, KRW -9.79 billion in 2024, and KRW -17.12 billion in 2025.
On a quarterly basis, revenue stalled around KRW 3.6-3.4 billion from the second through fourth quarter of 2025 while operating losses narrowed slightly from KRW -2.63 billion to KRW -2.02 billion, but the fourth-quarter net loss attributable to owners jumped to KRW -7.23 billion, far exceeding the operating loss and suggesting a non-operating one-off charge.
In the first quarter of 2026, revenue was KRW 3.75 billion with an operating loss of KRW -1.75 billion and a net loss of KRW -1.97 billion, a notably narrower loss, while the second quarter saw revenue rise to KRW 3.89 billion but the operating loss widen again to KRW -2.13 billion, with net income not yet finalized.
The combined net loss attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) reached roughly KRW 15.50 billion.
Equity attributable to owners fell from KRW 79.95 billion in 2022 to KRW 28.84 billion in 2025, shrinking to about a third within three years, while total liabilities rose back from KRW 10.93 billion in 2024 to KRW 27.69 billion in 2025, pushing the debt ratio from 16.2% to 96.7%.
Operating cash flow turned from a positive KRW 0.36 billion in 2022 to three consecutive years of net outflow in 2023-2025 (KRW -4.55 billion, -3.11 billion, -13.01 billion), indicating an accelerating pace of cash burn.
The hydraulic pipe fitting manufacturing industry has entered a mature phase with intense competition; low-cost mass production from developing countries is expanding the aftermarket segment, while the OEM market remains centered on advanced economies due to quality gaps.
A slowdown in the downstream construction equipment and industrial vehicle markets, along with weaker global demand, has been cited as a direct cause of the company's recent revenue weakness.
Against this backdrop, company revenue fell from KRW 23.08 billion in 2023 to KRW 14.13 billion in 2025, a decline of nearly 40% in two years.
In the first quarter of 2026, revenue held roughly flat year over year with a slight dip in gross margin, yet cost cuts sharply narrowed the operating loss, indicating at least a short-term attempt at cost-structure stabilization.
Still, whether the broader industry cycle turns depends largely on the pace of recovery in construction-equipment demand, and the new businesses the company has pursued in lithium and renewable energy have yet to translate into a clear industry position or verified revenue.
The most important near-term variable is the KRW 2.5 billion third-party capital raise targeting Seojin Panji, which after multiple delays has had its payment date reset to September 30 and its new-share listing date to October 26.
If completed, the largest shareholder would change from Wiplus Investment Association to Seojin Panji, whose stake would expand to 23.50%.
The company has filed a court injunction to suspend the effect of a delisting decision tied to disclaimer audit opinions for fiscal years 2023 and 2024, which has paused follow-up procedures such as liquidation trading, while the FY2025 audit report and the 2026 semiannual review both received disclaimer opinions due to scope limitations, continuing to add grounds for delisting.
Once an improvement-plan implementation report is filed, the KOSDAQ Market Committee is expected to reassess the delisting question within a set number of business days of submission, following the standard procedure applied to similar cases.
On the operating side, cost-reduction efforts continue in the core hydraulic fitting segment, but no specific new-order growth or customer-acquisition news that would support a revenue rebound was found in available public sources.
The lithium, renewable energy, and crypto-asset platform businesses remain listed as corporate purposes, but no recent disclosure or reporting confirms tangible revenue contribution or a concrete project timeline, warranting continued monitoring.
The company has posted net losses in each of the past four fiscal years, leaving price-to-earnings-based valuation largely inapplicable. The share price appears to trade at a substantial premium to book net assets, a factor that should be weighed alongside the sharp decline in total equity over the past three years.
Dividends have not been paid in recent years, consistent with sustained net losses and concerns over capital erosion.
In addition, completion of the pending capital raise would issue new shares that could dilute per-share metrics going forward, making it important to consider the progress of the delisting proceedings and the capital-raise outcome alongside any valuation multiple.
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
If the capital raise targeting Seojin Panji is completed, KRW 2.5 billion in fresh funds would flow in and a clearer controlling shareholder would emerge, potentially easing some governance uncertainty.
The shareholder change carries a six-month lock-up and the new shares a one-year escrow, limiting near-term liquidation incentives. Still, given the history of repeated delays, whether Seojin Panji actually completes payment remains to be seen.
In the first quarter of 2026, the hydraulic fitting segment held revenue roughly flat year over year while the operating loss narrowed sharply, indicating that cost and SG&A reductions are being reflected in actual earnings.
If this cost-structure improvement continues, there is room to further reduce loss size even without a revenue rebound.
The company's stated business purposes include lithium, nickel, and germanium production, renewable energy, and a crypto-asset platform, which could become new revenue sources if commercialized.
However, no revenue contribution or concrete timeline for these businesses has been confirmed to date, making this more of an uncertain option than a established growth driver.
The Korea Exchange confirmed a delisting decision citing disclaimer opinions for fiscal years 2023 and 2024, and the company has only suspended the procedure via injunction without resolving the underlying cause.
Repeated disclaimer opinions in the FY2025 audit and the 2026 semiannual review continue to add to the grounds for delisting. Uncertainty over continued listing is likely to persist until the legal process reaches a final outcome.
Revenue from the core hydraulic fitting segment fell sharply from KRW 23.08 billion in 2023 to KRW 14.13 billion in 2025 in just two years. A slowdown in the construction equipment market and weaker global demand are cited as direct causes, and operating losses continued to widen over the period. With a narrower revenue base, the absolute size of losses remains large.
The Seojin Panji-targeted capital raise, first decided in November 2024, has had its payment date postponed multiple times, and the company was designated an unfaithful disclosure entity during this process.
As the completion date continues to slip, it remains uncertain whether the funding and shareholder change will actually be finalized, and even if completed, dilution from the new share issuance is unavoidable.
The company has a history of multiple changes in controlling shareholder and was designated an unfaithful disclosure entity in connection with delays in the capital-raise payment date.
Whether the shareholder change to Seojin Panji will actually be completed, and how management direction would be set afterward, remain uncertain. A history of frequent governance changes calls for a cautious approach in investment assessment.
Following disclaimer opinions for fiscal years 2023 and 2024, the FY2025 audit report and the 2026 semiannual review also received consecutive disclaimer opinions, citing scope limitations on the opening balance sheet and constraints on key review procedures. Unless the audit opinion is normalized, the grounds for delisting will continue to persist.
The core hydraulic fitting business is highly dependent on the construction-equipment demand cycle, resulting in significant revenue volatility. At the same time, on-site reporting in 2024 found no visible progress in the lithium and other new businesses, raising questions about execution capability. Concrete evidence to support future performance has not yet been sufficiently confirmed on either front.
The scheduled payment date for the Seojin Panji-targeted capital raise; the key point to watch is whether it is delayed again or actually completed, triggering the shareholder change.
If the capital raise proceeds as planned, this is the scheduled new-share listing date; investors should verify whether the listing actually occurs and confirm the finalized stake of the new largest shareholder.
Around the time of the third-quarter 2026 earnings disclosure, this is a point to check whether the hydraulic fitting segment's revenue and loss trend continues the improvement seen in the first quarter, and whether there is any change in the auditor's review opinion.
Around the expected disclosure date of the FY2026 audit report, this will be a watershed moment for whether the string of disclaimer opinions is resolved, determining whether the grounds for delisting are cleared.
Tera Science currently has its delisting decision provisionally suspended via a court injunction, while both the FY2025 audit and the 2026 semiannual review received disclaimer opinions, continuing to accumulate grounds for delisting.
The core hydraulic fitting business has seen multi-year revenue contraction amid a construction-equipment downturn, with operating losses widening each year, though the first quarter of 2026 showed a notably narrower loss on cost cuts.
The KRW 2.5 billion capital raise targeting Seojin Panji, after repeated delays, has been rescheduled to a September 30 payment and an October 26 new-share listing, and its completion would change the controlling shareholder, potentially easing some governance uncertainty.
However, diversification efforts such as the lithium business through Sinan Lithium have shown no visible progress in 2024 field reporting, leaving questions about execution unresolved.
On balance, assessment of this company is shaped far more by the trajectory of the delisting proceedings, the actual completion of the capital raise and shareholder change, and the timing of audit-opinion normalization than by conventional earnings metrics.
Continued monitoring of disclosures related to these survival-critical events is essential for any investment assessment.
Report written 2026-09-05 · Data as of 2026-09-04
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