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
DA Technology faces a delisting decision after two consecutive years of audit opinion disclaimers, and while a court stay has paused the process, full capital impairment persisted as of mid-2026.
Audit opinion disclaimers for both FY2024 and FY2025 triggered delisting grounds.
After the KOSDAQ Market Committee's December 2025 delisting decision, the company's court stay request was granted, suspending liquidation trading procedures.
Despite a 30-to-1 reverse split in April 2026 and a third-party share issuance in May, full capital impairment remained unresolved at the half-year mark.
A one-off large revenue recognition drove a profitable third quarter of 2025, but losses resumed sharply afterward.
A former CEO was sentenced to seven years in prison in January 2026 on embezzlement and breach-of-trust charges tied to company funds.
DA Technology began as a sole proprietorship in 1996, incorporated in 2000, and listed on KOSDAQ in 2014 as a maker of secondary battery production automation equipment.
It started as 'Daesung FA System' in 1996, converted to a corporation in 2000, and renamed itself DA Technology in 2003 while pioneering notching, cutting, and stacking equipment for lithium-ion cell assembly.
Its core business is turnkey supply of assembly and activation process equipment for battery production, historically serving Korea's three major battery makers—LG Energy Solution, Samsung SDI, and SK On—as well as global automakers and battery producers.
However, around 2020, losses tied to unrelated equity investments and financing costs by an acquiring investor group led to major non-core losses, and following the Lime Asset Management scandal, key customers reportedly left and LG Energy Solution suspended orders, with the company posting an operating loss and swinging to deficit in 2020 before the operating loss widened to KRW 42.0 billion in 2023.
The company ultimately filed for court receivership at the Suwon Rehabilitation Court in May 2024 and pursued a stalking-horse M&A with Samil PricewaterhouseCoopers as sale manager, but the receivership process was terminated in November 2025 after no buyer was found.
To repair its capital structure, it carried out a 30-to-1 reverse stock split in April 2026, and a subsequent third-party share issuance changed the largest shareholder to an individual holding 21.14%, with two other entities acquiring 17.62% and 8.81% stakes respectively.
On the technology side, the company holds multiple hardware and software patents related to high-speed notching processes.
Current public information on new orders or utilization rates remains limited, so any operational normalization appears heavily contingent on capital stability and the outcome of ongoing litigation.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩2.4B | ₩200M | 8.6% |
| 2025Q3 | ₩25.5B | ₩7.3B | 28.8% |
| 2025Q4 | ₩2.9B | -₩13.2B | −457.9% |
| 2026Q1 | ₩1.5B | -₩2B | −131.0% |
| 2026Q2 | ₩2.1B | -₩100M | −6.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩53.2B | -₩17.7B | -₩25B | −33.3% | −31.5% | 65.7% |
| 2023 | ₩89.5B | -₩44.5B | -₩53.4B | −49.7% | −104.5% | 193.7% |
| 2024 | ₩43.3B | -₩22.6B | -₩63.8B | −52.1% | — | −931.8% |
| 2025 | ₩33.3B | -₩6.5B | -₩8.7B | −19.4% | — | −460.5% |
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
Annual results show a clear multi-year loss pattern. Revenue rose from KRW 53.2 billion in 2022 to KRW 89.5 billion in 2023, then contracted for two straight years to KRW 43.3 billion in 2024 and KRW 33.3 billion in 2025.
The operating loss widened from KRW -17.7 billion in 2022 to KRW -44.5 billion in 2023, before narrowing to KRW -22.6 billion in 2024 and KRW -6.5 billion in 2025, showing a gradual reduction in loss size.
Net loss also narrowed from large losses of KRW -53.4 billion in 2023 and KRW -63.8 billion in 2024 to KRW -8.7 billion in 2025, though the loss-making trend continued.
Total equity, positive at KRW 79.3 billion in 2022 and KRW 51.1 billion in 2023, turned negative for the first time to KRW -7.0 billion in 2024 and deteriorated further to KRW -10.8 billion in 2025.
On a quarterly basis, revenue surged to KRW 25.5 billion in the third quarter of 2025, producing an operating profit of KRW 7.3 billion and net profit of KRW 7.7 billion, which appears to reflect one-off recognition of a specific large contract rather than a repeatable trend, as it was not sustained afterward.
Indeed, fourth-quarter 2025 revenue plunged to KRW 2.9 billion with the operating loss sharply widening to KRW -13.2 billion and net loss to KRW -12.8 billion.
Losses continued in the first quarter of 2026 (revenue KRW 1.5 billion, operating loss KRW -2.0 billion, net loss KRW -1.9 billion), but in the second quarter of 2026 the operating loss narrowed considerably to KRW -0.14 billion on revenue of KRW 2.1 billion, while net income turned positive at KRW 4.9 billion—a result likely tied to non-operating items such as capital transactions or debt restructuring gains, which should be distinguished from underlying operating improvement.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative net income attributable to owners totaled KRW -2.1 billion, notable in that excluding the one-off Q3 2025 profit, all three remaining quarters were in deficit.
The secondary battery assembly and activation equipment industry is directly tied to the investment cycle in the EV and ESS markets, and in recent years the pace of capacity expansion slowdowns and delayed investments among battery cell makers have made the order environment difficult for domestic equipment suppliers broadly.
The notching, cutting, and stacking assembly equipment the company historically specialized in depends heavily on whether Korea's three major battery makers expand or convert their production lines.
However, since 2020 DA Technology appears to have been unable to participate normally in new order activity amid financial crisis, court receivership, and audit opinion disclaimers.
This is also reflected in the sharp contraction of recent quarterly revenue to roughly KRW 2-3 billion per quarter (with the exception of the third quarter of 2025), down from an annual scale once near KRW 90 billion.
Competitively, domestic and overseas battery equipment makers have formed specialized supply chains by cell form factor—prismatic, pouch, and cylindrical—but with limited recent public order information, it is difficult to assess where the company currently stands within that competitive landscape.
Industry-wide tailwinds such as expanded North American investment by automakers and battery producers and growing ESS-driven demand persist, but whether the company is currently benefiting from such demand growth is unconfirmed.
Ultimately, the stock's industry positioning appears shaped less by the general sector cycle than by the company's own idiosyncratic financial and legal risk resolution.
The company's future path hinges largely on two confirmable tracks.
The first is the final outcome of the court stay on the delisting decision and related litigation; going forward, the direction of DA Technology's delisting process is expected to be determined by the results of the ongoing stay-of-execution litigation.
The second is whether the capital structure normalizes—despite the reverse split and rights issuance carried out in the first half of 2026, the Korea Exchange confirmed in the half-year report filed that DA Technology remained in a state of full capital impairment as of the half-year end, stating that this constitutes grounds for a listing eligibility review under KOSDAQ market rules, with consolidated total assets of KRW 35.76 billion and total liabilities of KRW 40.84 billion as of end-June.
As a result, resolving the capital impairment without further capital raising or debt restructuring appears difficult. No specific guidance on new orders or a revenue recovery has been disclosed in currently available materials.
It also remains uncertain whether a large one-off revenue event like the third quarter of 2025 will recur, or whether additional non-operating gain factors like those seen in the second quarter of 2026 will occur again.
Ultimately, the near-term outlook should be monitored less through operating results and more through the litigation and exchange review schedule and any further capital-raising disclosures.
With sustained multi-year net losses and negative total equity, the company sits in a range where conventional metrics such as price-to-earnings or price-to-book ratios are difficult to calculate in a meaningful way.
Per-share metrics are similarly difficult to use as a stable yardstick given the loss position and frequent share count changes from the reverse split and capital increase.
It should also be considered that trading in this stock has been halted for an extended period amid ongoing litigation over the delisting decision, so the price currently displayed is closer to a reference point from a past moment than a value formed through continuous trading.
Under these conditions, the outcome of litigation and exchange review, along with progress on capital raising, arguably has a more direct bearing on how the market assesses the company than traditional valuation yardsticks. Dividend-based comparisons are also of limited relevance given a multi-year no-dividend policy.
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 operating loss narrowed for three consecutive years, from -KRW 44.5 billion in 2023 to -KRW 22.6 billion in 2024 and -KRW 6.5 billion in 2025. Net loss also shrank significantly, from -KRW 63.8 billion in 2024 to -KRW 8.7 billion in 2025.
Although revenue itself contracted, the trend of narrowing absolute losses can be interpreted as a result of cost structure adjustments.
Following a capital reduction without compensation in April 2026, a third-party allotment capital increase in May brought in a new largest shareholder. This can be seen as an attempt at management normalization through offsetting accumulated deficits and raising new funds. However, the complete capital impairment has not been fully resolved, leaving a need for further measures.
The company holds a track record of being the first in Korea to localize prismatic lithium-ion cell assembly equipment, along with numerous patents related to the notching process. It also has past transaction experience with Korea's three major battery makers as well as global automakers and battery companies.
If litigation and capital risks are resolved, this technology and track record could serve as a foundation for resuming business.
The company received disclaimers of audit opinion for two consecutive fiscal years, 2024 and 2025, triggering grounds for delisting. In December 2025, the KOSDAQ Market Committee decided on delisting, but the company's request for an injunction to suspend the effect was granted, putting the process on hold. Depending on the outcome of the litigation, there remains a possibility that delisting could actually proceed.
Despite undergoing a capital reduction without compensation and a capital increase, total equity remained negative as of the end of the first half of 2026. This has given rise to additional grounds for a substantive examination of listing eligibility. Without further capital raising, improving the financial structure will not be easy.
Annual revenue declined for two consecutive years, from KRW 89.5 billion in 2023 to KRW 33.3 billion in 2025, and recent quarterly revenue has remained in the range of KRW 2.0-3.0 billion except for the third quarter of 2025. Quarterly earnings have also fluctuated significantly, resulting in low predictability. Disclosed information on new orders is also limited.
While the injunction suspending the effect of the delisting decision has been granted, there remains a possibility that delisting could be finalized depending on the outcome of the main lawsuit. If the litigation becomes prolonged, the trading suspension status could also continue. This represents a fundamental risk that restricts investors' ability to trade the stock itself.
The former CEO was sentenced to seven years in prison in January 2026 on charges of embezzlement and breach of trust related to company funds. Controversy has also recently arisen over whether shareholder notification deadlines under the Commercial Act were observed during the recent capital increase process.
The fact that the largest shareholder has changed multiple times in recent years also leaves questions about the stability of corporate governance.
One of the main grounds for the disclaimer of audit opinion was uncertainty over the company's ability to continue as a going concern. Amid the ongoing complete capital impairment, normal business operations may be constrained without additional fundraising.
There is also a possibility that future capital increases or debt restructuring could lead to additional dilution burdens for existing shareholders.
Check for court proceedings and any disclosed rulings on the stay of execution and underlying lawsuit over the delisting decision.
Review the Q3 2026 report for updated results, any change in capital impairment status, and further auditor commentary.
The exchange's review outcome on the capital-impairment-related eligibility grounds could determine whether the listing is maintained.
Any new fundraising plan aimed at resolving capital impairment should be checked for size, counterparties, and dilution impact on existing shareholders.
DA Technology has grounds for delisting following consecutive audit opinion disclaimers for FY2024 and FY2025, and after a December 2025 delisting decision, the company's stay-of-execution request was granted, leaving it awaiting the outcome of litigation.
Capital structure repair attempts via a reverse split and third-party share issuance took place in the first half of 2026, but full capital impairment remained unresolved at the half-year mark, adding grounds for a listing eligibility review.
On the earnings side, operating and net losses generally narrowed from 2023 through 2025, but the revenue base itself shrank considerably, and excluding the large one-off revenue event in the third quarter of 2025, quarterly results have shown very high volatility.
Operationally, the company retains technical expertise and a past customer base in battery assembly equipment, though recent public information on new orders is limited.
Valuation metrics sit in a range that is difficult to calculate or compare using conventional yardsticks given the losses and capital impairment, and market attention should focus on the litigation and exchange review timeline along with any further capital-raising developments.
This report contains no investment opinion or buy/sell recommendation and is provided for informational purposes only.
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.