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
SD Biotechnology has had its shares suspended from trading since March 2023, and now awaits a KOSDAQ Market Committee decision on continued listing following the expiration of its improvement period in August 2026.
Trading has been suspended since March 2023 following an audit opinion disclaimer, and after two improvement periods the company was required to submit an implementation report by September 3, 2026 for the period that ended August 12, 2026.
Annual revenue contracted for four straight years from KRW 92.86 billion in 2022 to KRW 30.07 billion in 2025, while the operating margin narrowed from -44.2% to -21.0%.
Since Daewon Pharmaceutical became the controlling shareholder at the end of 2023, the company has continued to divest underperforming subsidiaries, most recently completing the liquidation of its Indonesian unit while restructuring its Vietnamese and Chinese entities.
Over 80% of revenue is concentrated in mask packs and eye patches, a low-barrier category that faces intense domestic and overseas competition.
A no-par capital reduction in August 2025 resolved the capital impairment issue, but accumulated deficit still stood at roughly KRW 81.5 billion as of the end of the second quarter of 2026.
Founded in 2008 and listed on KOSDAQ in 2017, SD Biotechnology is a cosmetics and food manufacturer whose core products are mask packs and eye patches under its dermacosmetic brand 'SNP,' complemented by basic skincare items and a food brand called Ogam Siktak.
According to its half-year report, more than 80% of revenue is concentrated in a small number of mask pack and eye patch products, a structure with heavy reliance on promotions and marketing incentives.
Its "Swallow's Nest" mask pack once served as a signature hit product for the SNP brand in the Chinese market, though its position has since been challenged by the rise of local Chinese brands.
China accounted for 31% of first-half sales, remaining the core of overseas revenue, with subsidiaries operating in China, Vietnam, and Japan. Overseas revenue as a share of total sales, however, has declined from 54% in 2024 to 48% in the first half of 2026.
Since the Daewon Pharmaceutical-led DKS consortium became the controlling shareholder at the end of 2023, the company has sequentially divested underperforming subsidiaries and affiliate stakes, most recently completing the liquidation of its Indonesian unit while consolidating multiple Chinese entities and liquidating its Vietnamese operation.
Mask packs and eye patches have simple cost structures and are easy to outsource, making the category accessible to small and mid-sized domestic and overseas cosmetics companies, resulting in persistent price competition with rivals such as L&P Cosmetic's Mediheal, Jayjun, and Papa Recipe.
The company continues efforts to diversify its business through joint functional-cosmetics development with Daewon Pharmaceutical and expansion of offline channels in Japan and the United States.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩7.8B | -₩1.9B | −24.0% |
| 2025Q3 | ₩6.9B | -₩1.7B | −25.4% |
| 2025Q4 | ₩6.3B | -₩1.6B | −24.5% |
| 2026Q1 | ₩6.1B | -₩1.1B | −17.5% |
| 2026Q2 | ₩6.3B | -₩1.4B | −22.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩92.9B | -₩41B | -₩72.7B | −44.2% | −2349.9% | 1897.5% |
| 2023 | ₩46.9B | -₩13.7B | -₩4.6B | −29.1% | −10.5% | 68.8% |
| 2024 | ₩34.5B | -₩9.2B | -₩14.3B | −26.8% | −49.0% | 103.7% |
| 2025 | ₩30.1B | -₩6.3B | -₩7.4B | −21.0% | −25.1% | 60.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
On a consolidated basis, annual revenue contracted for four consecutive years, from KRW 92.86 billion in 2022 to KRW 46.94 billion in 2023, KRW 34.47 billion in 2024, and KRW 30.07 billion in 2025.
Over the same period, the operating margin moved from -44.2% to -29.1%, -26.8%, and -21.0%, indicating losses eased relative to revenue even as the top line shrank.
Net loss attributable to owners swung sharply, falling from KRW 72.75 billion in 2022 to KRW 4.61 billion in 2023, widening again to KRW 14.27 billion in 2024, and narrowing to KRW 7.36 billion in 2025 — a pattern that likely reflects year-to-year variation in non-operating items such as disposal losses and impairment charges tied to the divestiture of subsidiaries and affiliates.
On a quarterly basis, revenue of KRW 7.80 billion, an operating loss of KRW 1.87 billion, and a net loss attributable to owners of KRW 1.23 billion in the second quarter of 2025 gave way to revenue of KRW 6.87 billion, an operating loss of KRW 1.75 billion, and a net loss of KRW 1.95 billion in the third quarter, then revenue of KRW 6.34 billion, an operating loss of KRW 1.55 billion, and the window's largest net loss of KRW 2.95 billion in the fourth quarter of 2025.
The first quarter of 2026 showed revenue of KRW 6.07 billion and the smallest operating loss in the four-quarter window at KRW 1.06 billion, while the second quarter of 2026 posted revenue of KRW 6.30 billion, an operating loss of KRW 1.39 billion, and the smallest net loss in the window at KRW 0.84 billion.
Operating cash flow remained negative every year from 2022 through 2025, though the outflow shrank from KRW 15.37 billion in 2022 to KRW 5.14 billion in 2025, meaning the company continues to consume cash from operations.
While cost efficiency measures appear to have supported the improving operating margin trend despite falling revenue, the continued shrinkage of the absolute revenue base remains a burden on fixed-cost absorption.
Despite the broadly favorable macro backdrop of expanding K-beauty exports, mask packs and eye patches remain a category with simple cost structures and easy outsourced production, making entry accessible to small and mid-sized domestic and overseas players and keeping price competition persistently intense.
SD Biotechnology's former signature product, the "Swallow's Nest" mask pack, once represented the SNP brand in the Chinese market but has seen its position erode amid the rise of local Chinese brands and shifting consumption patterns.
In the domestic mask pack market, competitors including L&P Cosmetic (Mediheal), Jayjun, and Papa Recipe operate in similar categories, keeping pressure on brand differentiation.
As global cosmetics trends shift rapidly toward dermacosmetics, bio-derived ingredients, and home-care devices, a portfolio still concentrated more than 80% in mask packs and eye patches is flagged as a challenge in adapting to these shifts.
Overseas, sales in newer strategic markets such as Japan and the United States currently run through online channels (Qoo10, Amazon), while offline expansion remains at an early stage.
Continuing operations while shares have been suspended from trading for more than three years due to listing eligibility issues is an unusual situation even within the sector, leaving the company with constrained access to normal capital markets and reliance on shareholder-level funding support.
In its improvement plan tied to the listing eligibility review, the company outlined three pillars — operational continuity, financial soundness, and management transparency — and addressed the capital impairment issue through a no-par capital reduction in August 2025.
With the second improvement period ending on August 12, 2026, the company was required to submit an implementation report and an expert verification statement by September 3, 2026, after which the exchange plans to convene its corporate review committee within 20 business days to decide again on delisting.
On the business front, joint development of functional cosmetics with Daewon Pharmaceutical is beginning in earnest for the first time, while in Japan the company is preparing to add an offline channel at Don Quijote alongside its existing online presence on Qoo10, and in the United States it is exploring offline distribution beyond its current Amazon online sales.
Overseas subsidiary restructuring also continues, with the Indonesian unit's liquidation now complete and consolidation of multiple Chinese entities and liquidation of the Vietnamese unit underway.
In 2026, the company brought in dermacosmetics veteran Kim Hye-won as head of the cosmetics business to oversee sales, marketing, and product development, reinforcing its growth-strategy execution structure.
However, assessments note that these measures have not yet been shown to sufficiently translate into improved profit-and-loss structure during the improvement period, given the continued revenue decline and weak cash generation, leaving the upcoming review outcome as the key variable determining whether the listing is maintained.
Because this stock has been suspended from trading since March 2023, the price and market capitalization currently displayed should be understood as a reference figure close to the last-fixed basis price rather than a market value formed through actual trading.
Relative to net assets, the price sits in a premium range above book value per share, an unusual combination given the company's history of sustained net losses and capital impairment.
With losses persisting for multiple years, calculating a meaningful price-to-earnings ratio is difficult, and no dividend payment history has been confirmed in recent years.
When interpreting valuation here, it is important to first factor in that, unlike an ordinarily listed stock, whether trading even resumes remains uncertain pending the outcome of the listing eligibility review.
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 2026-08-23
The operating margin steadily improved from -44.2% in 2022 to -21.0% in 2025, and the operating loss in the first quarter of 2026 was the smallest in the four-quarter window at KRW 1.06 billion.
This appears to partly reflect cost structure efficiencies such as reduced selling and administrative expenses even as revenue shrank. Whether this improvement is sustainable without an expanding revenue base requires further confirmation.
Daewon Pharmaceutical, which became the controlling shareholder at the end of 2023, has injected capital through new share subscriptions and unsecured convertible bond purchases, and is now moving forward with joint functional-cosmetics development.
Combining this with Daewon's distribution and R&D capabilities could aid product upgrades and new channel access. However, concrete results from this collaboration remain at an early stage.
In Japan, the company is preparing to add an offline presence at Don Quijote following its existing online channel on Qoo10, while in the United States it is examining offline expansion building on its Amazon online sales.
The hiring of a new cosmetics business chief also signals an effort to strengthen sales and marketing execution. Given that overseas markets can offer relatively higher margins, successful channel expansion could contribute to profitability improvement.
Annual revenue fell every year from KRW 92.86 billion in 2022 to KRW 30.07 billion in 2025, and the decline continued into the first half of 2026. A continuously thinning revenue base weighs on both fixed-cost absorption and the sustainability of profit-and-loss improvement.
It remains unclear whether the revenue-base-strengthening goals set out in the company's improvement plan have translated into actual results.
Shares have been suspended from trading since March 2023, and following the submission of an implementation report by September 3, 2026 for the second improvement period that ended on August 12, 2026, the company faces another exchange review.
In June and July of 2025, delisting was previously voted on before an appeal secured another improvement period, so a delisting outcome from the upcoming review cannot be ruled out. This represents a risk of a different order than that faced by ordinarily listed companies.
More than 80% of revenue is concentrated in mask packs and eye patches, a category with low entry barriers that faces persistent price competition from small and mid-sized domestic and overseas players.
The mask pack product that was once a flagship item in China has seen its position weaken amid the rise of local brands. Relative to the industry trend shifting toward dermacosmetics and bio-derived ingredients, a clearly differentiated strategy has yet to stand out.
The company became subject to a listing eligibility review after its pre-tax loss ratio exceeded 50% for three consecutive fiscal years, and delisting was voted on once in July 2025.
An appeal secured an additional improvement period, but that period ended again on August 12, 2026, and based on the implementation report submitted on September 3, the KOSDAQ Market Committee will decide once more whether to delist the company. Depending on the outcome, this could lead to delisting following a liquidating trading period.
The August 2025 no-par capital reduction resolved the capital impairment issue, but accumulated deficit stood at roughly KRW 81.5 billion as of the end of the second quarter of 2026.
Annual operating cash flow was negative every year from 2022 through 2025, meaning the business is not generating cash through operations and continues to depend on non-operating means such as asset sales and disposal of subsidiary stakes. Further liquidity deterioration could affect the pace of financial soundness improvement.
With more than 80% of revenue concentrated in the narrow category of mask packs and eye patches, sensitivity to category trend shifts is high.
Joint development with Daewon Pharmaceutical, offline channel expansion in Japan and the United States, and the growth strategy tied to the new business-unit chief hire all remain at an unproven planning stage.
If improvement plan execution fails to translate into actual profit-and-loss gains, it could also negatively affect the listing maintenance review.
It is worth monitoring how the exchange processes and reviews the improvement plan implementation report and expert verification statement submitted on September 3.
The KOSDAQ Market Committee, following review by the corporate examination committee, is expected to make a final decision on delisting or granting a further improvement period, an outcome that will determine the prospects for any resumption of trading.
The third-quarter report will show whether the revenue decline and the improving operating-loss-ratio trend continue, and whether early results from new initiatives such as joint development with Daewon Pharmaceutical are reflected.
It is worth checking for concrete disclosures on the progress of the planned offline entry at Don Quijote in Japan and offline distribution expansion in the United States.
SD Biotechnology sits at the intersection of two parallel processes: continued contraction in its core cosmetics revenue and an ongoing listing eligibility review.
Financial metrics show some positive signals, including a multi-year improving trend in the operating margin and resolution of the capital impairment issue through a no-par capital reduction, but the revenue base has shrunk for four consecutive years and operating cash flow has remained negative throughout.
Trading suspension in place since March 2023 has yet to be lifted, and the most important variable now is the imminent KOSDAQ Market Committee decision on delisting following submission of the implementation report for the improvement period that ended on August 12, 2026.
Improvement measures including capital support and joint development with Daewon Pharmaceutical and overseas offline channel expansion are underway, but there is no clear evidence yet that these have translated into a meaningful revenue rebound.
The currently displayed price and market capitalization should be interpreted with the understanding that they are not figures formed through actual trading.
The outcome of the upcoming KOSDAQ Market Committee review and subsequent quarterly results remain the key items to monitor in assessing this stock's direction going forward.
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.