KONEXFood & Beverage267080

Sevenbrau

₩486 0.00%2026-10-02 close

Market Cap

₩5.8B

Turnover

₩0

Volume

0 shares

Shares out.

11.9M

PER

—

PBR

—

EPS

-₩1,071

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Prices as of the 2026-10-02 close

Report overview

Court Receivership and M&A Search Test Listing Survival

SevenBrau is undergoing court-supervised rehabilitation and a pre-approval M&A search amid complete capital impairment and a steep revenue decline, with its KONEX listing status hinging on whether it fulfills the improvement plan.

1
Total equity turned to negative KRW 11.19 billion in 2025, marking complete capital impairment.
2
Revenue fell for four straight years, from KRW 32.68 billion in 2022 to KRW 6.83 billion in 2025.
3
KRX decided to delist the company in August 2025, but a one-year improvement period was granted after an objection was filed.
4
A stalking-horse pre-approval M&A process is underway under the Seoul Bankruptcy Court, but selecting a final buyer has been repeatedly delayed.
5
The trademark dispute with Chosun Flour Mills was settled in April 2026 through a cooperation fund arrangement.

Business structure

SevenBrau pioneered Korea's craft beer industry, becoming the first small business to obtain a general beer manufacturing license in 2011. The company operates its own regionally named brands such as Gangseo Mild Ale and Seoul 1983, along with a non-alcohol lineup.

Business grew rapidly after its 2020 collaboration with Chosun Flour Mills on Gompyo Wheat Beer became a hit, and the company returned to profit in 2021 with an operating profit of about KRW 11.8 billion after being unprofitable through 2019.

However, when the trademark agreement ended in March 2023 and Chosun Flour Mills switched partners to Jeju Beer for a second edition of the wheat beer, SevenBrau's performance deteriorated sharply.

The company responded by launching its own brand with an identical recipe and expanding into highball and non-alcohol beer categories.

Production, once split between breweries in Hoengseong and Yangpyeong, is now concentrated at the Iksan brewery after the Yangpyeong subsidiary went bankrupt, which previously handled about 29% of total volume.

Korea's beer market remains dominated by large brewers such as OB Beer and Hite Jinro, with craft beer holding only a small niche in which SevenBrau competes as one of several small players.

Earnings trend

Quarterly revenue · Operating profit

RevenueOperating profit

Annual revenue · Operating profit

₩32.7B₩4.9B2022₩12.4B-₩6.2B2023₩8.5B-₩9.1B2024₩6.8B-₩5.4B2025

RevenueOperating profit

Quarterly results · Last 0 quarters
Quarter	Revenue	Operating profit	Op. margin

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩32.7B	₩4.9B	₩4.1B	15.1%	14.9%	105.5%
2023	₩12.4B	-₩6.2B	-₩9B	−49.9%	−48.5%	131.9%
2024	₩8.5B	-₩9.1B	-₩17.4B	−107.1%	−1612.1%	3077.4%
2025	₩6.8B	-₩5.4B	-₩12.7B	−78.5%	—	−273.1%

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

Earnings analysis

SevenBrau's confirmed annual results show revenue peaking at KRW 32.68 billion with an operating profit of KRW 4.94 billion in 2022, at the height of the Gompyo Wheat Beer boom, before declining for four consecutive years.

Revenue plunged to KRW 12.40 billion in 2023 as the company swung to an operating loss of KRW 6.19 billion. In 2024, revenue fell further to KRW 8.49 billion while the operating loss widened to KRW 9.09 billion, pushing the operating margin to negative 107.1%.

In 2025, revenue declined again to KRW 6.83 billion, but the operating loss narrowed to KRW 5.36 billion, lifting the operating margin slightly to negative 78.5%. Net loss attributable to owners, however, widened to KRW 17.41 billion in 2024 and remained large at KRW 12.71 billion in 2025.

Operating cash flow swung from a KRW 4.58 billion inflow in 2022 to a KRW 7.11 billion outflow in 2023, before the outflow narrowed to KRW 1.56 billion in 2024 and KRW 0.77 billion in 2025, though cash continued to be consumed.

Owners' equity fell from KRW 27.47 billion in 2022 to KRW 18.49 billion in 2023 and KRW 1.08 billion in 2024, before turning negative at KRW 11.19 billion in 2025, marking complete capital impairment.

Total liabilities eased slightly from KRW 33.24 billion in 2024 to KRW 30.55 billion in 2025, but with equity now negative, the reported debt ratio itself distorts to negative 273.1%, reflecting a balance sheet under severe stress.

Industry analysis

Korea's craft beer market grew rapidly after retail distribution was allowed in 2018 and the tax system shifted to a volume-based basis in 2020, expanding from about KRW 9.3 billion in 2013 to roughly KRW 152 billion in 2021, before entering a downturn.

Post-pandemic consumption shifted from at-home canned beer toward on-premise drinking, contributing to a sector-wide slump; in SevenBrau's own case, 2024 consolidated revenue fell 31.6% year on year while the operating loss and net loss expanded sharply amid this shift.

Other domestic craft brewers face similar strain: Hanul&Jeju (formerly Jeju Beer) has continued to post large losses and changed controlling shareholders twice in a single year, Amazing Brewing Company faced possible bankruptcy after failing to submit a rehabilitation plan, and Y Brewery filed for court receivership around the same time, reflecting an industry-wide restructuring phase.

Korea's overall beer market remains dominated by large brewers, with imported beer and craft beer together making up a minority share, leaving limited near-term room for smaller players like SevenBrau within the broader industry structure.

Outlook

The company's path forward hinges on two parallel tracks: the court rehabilitation process and its KONEX listing status. In August 2025, the KRX listing committee decided to delist the company, but a one-year improvement period was granted after SevenBrau filed an objection.

As a centerpiece of its improvement plan, the company proposed selling its Iksan plant and leasing it back to raise liquidity. At the same time, with Seoul Bankruptcy Court approval, it is pursuing a stalking-horse pre-approval M&A process aimed at raising fresh capital through a new share issuance.

However, delays in finalizing a buyer have forced repeated extensions of the rehabilitation plan submission deadline, which was pushed from December 2025 to January 2026 and then again to a date in the following month as of an April 2026 report, underscoring how much time has been needed to secure a new investor.

Separately, the trademark dispute with Chosun Flour Mills that contributed to the earnings decline was resolved through mediation by an SME support agency, with Chosun Flour Mills contributing to a cooperation fund and both sides agreeing to explore future non-alcohol trademark collaboration, though whether this leads to concrete new business remains unconfirmed.

Valuation

PER

—

PBR

—

ROE

—

EPS

-₩1,071

BPS

—

Dividend per share

—

As of the end of 2025, the company is in a state of complete capital impairment with negative total equity, and earnings have remained in the red for several consecutive years, making conventional valuation metrics based on net assets or net income difficult to derive in a meaningful way.

As a result, rather than comparing valuation multiples in the usual sense, market attention is centered on non-financial events such as the progress of the rehabilitation process, the M&A search, and whether the company fulfills its listing improvement plan.

There has been no dividend payment history in recent years, limiting the relevance of dividend-related metrics as well.

Given that the share price has swung considerably since the KONEX listing amid worsening earnings and delisting risk, tracking the progress of the rehabilitation and sale process appears more relevant than a valuation-based assessment at this stage.

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

Bull factors

Trademark Dispute Resolution Removes a Legal Overhang

The three-year trademark dispute with Chosun Flour Mills over the Gompyo Wheat Beer brand was settled in April 2026 through mediation by an SME support agency.

Both sides agreed to drop lawsuits, with Chosun Flour Mills contributing to a cooperation fund, and future collaboration outside the alcohol category is also under consideration. This removes a legal uncertainty that had been cited as a contributing factor to the company's earnings decline.

Narrowing Operating Loss and Production Restructuring

The 2025 operating loss narrowed to KRW 5.36 billion from KRW 9.09 billion in 2024, with the operating margin improving slightly to negative 78.5%. Consolidation of production at the Iksan brewery following the closure of the less efficient Yangpyeong facility has created room for operating efficiency.

This directional improvement is visible in the confirmed financial figures, suggesting some cost restructuring is underway even as revenue continues to decline.

Attempted Capital Injection via M&A

A stalking-horse pre-approval M&A process is underway with Seoul Bankruptcy Court approval, structured so that, if completed, fresh capital would flow in through a third-party share issuance.

The KRX listing committee also granted a one-year improvement period rather than immediate delisting, giving the company time to attempt normalization, though finalizing a buyer still requires further time.

Bear factors

Complete Capital Impairment and Deteriorating Balance Sheet

Owners' equity turned negative at KRW 11.19 billion at the end of 2025, marking complete capital impairment. As recently as 2024, the company still held a thin positive equity balance of KRW 1.08 billion, but large net losses wiped it out within a single year.

Total liabilities stand at about KRW 30.55 billion, meaning the company carries substantial debt against negative equity, severely undermining its financial stability.

Four Consecutive Years of Steep Revenue Decline

Revenue fell every year, from KRW 32.68 billion in 2022 to KRW 12.40 billion in 2023, KRW 8.49 billion in 2024, and KRW 6.83 billion in 2025.

The replacement brands launched after the Gompyo Wheat Beer contract ended have not restored revenue to prior levels, which can be read as a structural, not one-off, contraction of the sales base. This overlaps with a broader demand slowdown across the craft beer industry, which may further slow any recovery.

Unresolved Buyer Selection and Repeated Schedule Delays

The pre-approval M&A received court authorization in October 2025, but a buyer has still not been finalized, and the rehabilitation plan submission deadline has been extended multiple times, from December 2025 to January 2026 and again to a later date.

This suggests the sale negotiations are proving more difficult than expected, and if the M&A ultimately fails to close, uncertainty around the rehabilitation process itself could deepen.

Risk factors

Delisting Risk

The KRX listing committee decided to delist the company in August 2025, and a one-year improvement period was granted following the company's objection.

If rehabilitation execution and balance sheet improvement are not confirmed within this period, delisting proceedings could resume, making this a central risk tied directly to whether the company can normalize.

Rehabilitation and M&A Execution Risk

If the pre-approval M&A fails to close, drafting the rehabilitation plan and securing funds for debt repayment could be disrupted. Conversely, even if the M&A succeeds, use of a third-party share issuance structure could substantially dilute existing shareholders.

The fact that the rehabilitation plan submission deadline has already been extended multiple times also illustrates the uncertainty of the process.

Structural Industry Risk

Korea's craft beer market has moved past its growth phase into a downturn, and competitors such as Amazing Brewing Company, Hanul&Jeju, and Y Brewery are experiencing similar financial distress. If the sector-wide demand slowdown persists, SevenBrau's revenue recovery itself could remain limited.

As seen in the bankruptcy of its Yangpyeong subsidiary, there is also a structural risk that industry-wide contraction can spread down to the affiliate level.

What to watch next

Around October 2026
This marks the expiration of the one-year KONEX delisting improvement period granted on October 16, 2025; whether the improvement plan has been fulfilled will determine if the listing is maintained or delisting proceedings resume.
Q4 2026 (further extension possible)
Watch for the submission and court approval status of the rehabilitation plan at the Seoul Bankruptcy Court. Given the plan's submission deadline has already been extended multiple times, both further extensions and progress on finalizing a buyer warrant close monitoring.
Second half of 2026
Check whether a final buyer is confirmed in the stalking-horse pre-approval M&A process, and whether the Iksan plant sale-and-leaseback transaction is completed. Both issues are directly tied to the company's funding and balance sheet improvement.
Around March 2027 (expected)
This is the expected timing for the FY2026 annual audit report and business report, when it will be possible to confirm from the financial statements whether the complete capital impairment has been resolved and whether the revenue and earnings trends have continued.

Overall view

SevenBrau peaked with the Gompyo Wheat Beer boom in 2020-2021, then suffered four consecutive years of revenue decline and large losses following the end of its trademark contract, culminating in complete capital impairment by the end of 2025.

The company entered court rehabilitation in June 2025, and although KRX decided to delist it in August, an objection secured a one-year improvement period.

The core of its improvement plan involves raising liquidity through a sale-and-leaseback of the Iksan plant and attracting new capital via a stalking-horse pre-approval M&A, but delays in finalizing a buyer have led to repeated extensions of the rehabilitation plan submission deadline.

Meanwhile, the trademark dispute with Chosun Flour Mills that contributed to the earnings decline was settled through mediation by an SME support agency in April 2026, removing one source of legal uncertainty.

While the narrowing of the 2025 operating loss versus the prior year is a confirmed directional improvement, the underlying revenue base has shrunk considerably, and recovery hinges on whether the M&A closes and whether listing requirements are met within the improvement period.

Investors should prioritize monitoring the progress of the three parallel tracks—rehabilitation, sale, and listing maintenance—over the direction of financial figures alone.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

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.