PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Lemon, a nanofiber membrane and hygiene-products maker, narrowed its operating and net losses for two straight quarters in early 2026, but 2025 brought shrinking equity and a sharply higher debt ratio.
In Q2 2026, revenue reached KRW 6.01 billion with an operating loss of KRW 0.85 billion and an owners' net loss of KRW 0.20 billion, both sharply narrower than the prior quarter.
Full-year 2025 revenue rose slightly to KRW 7.46 billion, but the operating loss widened to KRW 7.14 billion and the owners' net loss surged to KRW 12.02 billion.
The largest shareholder is Toptec, a battery and factory-automation equipment maker, which together with related parties holds roughly 47% of shares, making Lemon an affiliate.
The Air Queen hygiene brand has begun shipments to China under a multi-year supply agreement with Guangzhou Haohe Health Technology.
The 2025 debt ratio jumped to 181.4% from 63.8% in 2024, while owners' equity shrank from KRW 12.25 billion to KRW 9.09 billion.
Lemon was established in 2012 and listed on KOSDAQ in 2020 as a technology-growth company, operating two business lines: nanofiber-related products and electronic components.
The nano business manufactures multifunctional nanofiber membranes that combine moisture-permeable, waterproof properties with high breathability, applied to masks, outdoor apparel, and hygiene products.
Its flagship consumer brand, Air Queen, is a sanitary pad and underwear line using the nano membrane, which recently began shipments to China under a supply agreement with Guangzhou Haohe Health Technology.
The company said the contract is structured for 7 million units in year one, 14 million in year two, and 25 million in year three.
The electronic components business uses electroless plating technology to produce ultra-thin composite materials such as EMI shielding cans with shielding, absorption, and heat-dissipation functions, supplied to electronics makers.
The nano membrane is supplied on an ongoing basis to VF Group, owner of the outdoor brand The North Face. Overseas, the company holds a Philippine subsidiary, Finetex Technology Phils., Corp.
Its largest shareholder is Toptec, a battery and factory-automation equipment maker, which together with related parties owns roughly 47% of shares, making Lemon an affiliate.
The company is also expanding into secondary-battery materials, including electrolyte supports for solid-state EV batteries, built on its nanofiber manufacturing and mass-production technology.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩800M | -₩1.3B | −162.1% |
| 2025Q3 | — | — | — |
| 2025Q4 | ₩3.9B | -₩2.1B | −53.7% |
| 2026Q1 | ₩3.3B | -₩2.1B | −62.9% |
| 2026Q2 | ₩6B | -₩900M | −14.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩39.8B | -₩6.6B | -₩16.4B | −16.7% | −138.7% | 135.2% |
| 2023 | ₩10.5B | -₩11.7B | -₩9.1B | −111.6% | −54.1% | 68.7% |
| 2024 | ₩7.3B | -₩6.3B | -₩4.7B | −86.2% | −38.2% | 63.8% |
| 2025 | ₩7.5B | -₩7.1B | -₩12B | −95.8% | −132.1% | 181.4% |
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
Consolidated revenue for 2025 came to KRW 7.46 billion, a slight increase from KRW 7.29 billion in 2024, but the operating loss widened to KRW 7.14 billion from KRW 6.28 billion. The owners' net loss surged to KRW 12.02 billion, more than double the KRW 4.68 billion loss in 2024, with an operating margin of -95.8%.
By quarter, Q4 2025 revenue was KRW 3.86 billion with an operating loss of KRW 2.07 billion, while the owners' net loss reached KRW 6.80 billion, far exceeding the operating loss.
This suggests non-operating factors weighed heavily on fourth-quarter results, though the specific drivers are not confirmed in public filings. In Q1 2026, revenue was KRW 3.31 billion with an operating loss of KRW 2.08 billion and an owners' net loss of KRW 2.06 billion, a marked narrowing from the prior quarter.
In Q2 2026, revenue rose to KRW 6.01 billion while the operating loss narrowed to KRW 0.85 billion and the owners' net loss shrank further to KRW 0.20 billion, extending the improving trend for a second straight quarter.
Cumulative operating cash flow for 2025 was negative KRW 7.71 billion, a larger outflow than the negative KRW 4.96 billion in 2024, indicating persistent cash-generation weakness.
This accumulation of losses reduced owners' equity from KRW 12.25 billion in 2024 to KRW 9.09 billion in 2025, while the debt ratio jumped from 63.8% to 181.4%.
Nanofiber membranes span functional-material markets including masks, hygiene products, and outdoor apparel, with demand for high-efficiency filtration and PFAS-free materials rising amid tightening environmental regulation.
The EMI shielding and heat-dissipation materials supplied by the electronic components segment are closely tied to smartphone and mobile-device demand, so a slowdown in global smartphone demand increases revenue volatility.
In hygiene products, China is regarded as the world's largest consumption market, and ongoing quality controversies over locally made sanitary pads have boosted interest in products built on overseas technology.
In secondary batteries, the government is pursuing a next-generation battery technology development program through 2028 that invests in solid-state and other advanced technologies.
Parent company Toptec's factory-automation segment, which supplies battery manufacturing equipment, saw revenue decline amid slower EV market growth and battery makers' investment adjustments, yet returned to profit through cost cuts, illustrating the affiliate group's sensitivity to industry cycles.
While the company claims one of the world's largest nanofiber membrane production capacities, its price competitiveness and manufacturing stability relative to substitute materials and competitors remain subject to ongoing validation.
The company has stated plans to increase Air Queen shipments to China to 14 million units in year two and 25 million units in year three under its supply agreement. It has cited expanding PFAS-free product supply and demonstrating results in industrial application products as future tasks.
The consecutive narrowing of net losses in Q1 and Q2 2026 could be read as an early sign of cost structure improvement or revenue recovery, but whether this trend continues needs further confirmation in coming quarterly results.
Its solid-state battery electrolyte support technology is built on joint research with a Japanese university and a specialty paper manufacturer, leaving room for linkage with government-led secondary-battery R&D programs.
Parent Toptec's factory-automation segment is expanding into solid-state batteries and robotics, leaving room for Lemon's materials technology to be leveraged for synergy within the affiliate group. However, commercialization timing and specific revenue contribution have not yet been confirmed through disclosures.
Because Lemon has posted operating and net losses in each of the past four fiscal years, conventional earnings-based valuation metrics are difficult to apply in the current period.
Its price-to-book ratio carries a notable premium over net asset value, suggesting that expectations around new businesses in nanomaterials, secondary-battery materials, and hygiene products weigh more heavily on the share price than reported earnings.
There has been no dividend payout in the most recent fiscal year, limiting the appeal from a dividend perspective. The trend of shrinking equity and a rising debt ratio each year reduces the stability of net-asset-based metrics.
Overall, the current trading level appears to be driven more by new-business expectations and supply-demand dynamics than by a historical earnings base.
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
Operating and owners' net losses narrowed for two consecutive quarters in early 2026, marking a departure from the sharp loss widening seen in Q4 2025. Notably, the Q2 2026 net loss of KRW 0.20 billion shrank sharply from KRW 2.06 billion in the prior quarter. Whether this trend persists requires further confirmation in upcoming quarterly results.
The Air Queen brand has signed a multi-year supply agreement with Guangzhou Haohe Health Technology in China and begun local shipments. The contract volume is structured to expand year over year, leaving room for a gradual increase in revenue contribution.
Rising interest in overseas technology-based products amid China's local sanitary-pad quality controversies is also a favorable backdrop.
Building on its nanofiber manufacturing and mass-production technology, Lemon holds solid-state battery electrolyte support technology developed through joint research with Japanese institutions. There is potential linkage with a government-led next-generation secondary-battery R&D program running through 2028. Parent Toptec's expansion into solid-state batteries and robotics also leaves room for group-level synergy.
Owners' equity fell from KRW 12.25 billion in 2024 to KRW 9.09 billion in 2025, while the debt ratio jumped from 63.8% to 181.4% over the same period. Accumulating losses have continued to erode the capital buffer. If further losses occur, financial structure pressure could intensify.
The EMI shielding and heat-dissipation materials business is heavily dependent on smartphone and mobile-device demand. If global smartphone market growth stalls, related revenue volatility could widen.
Detailed revenue mix and customer structure between the nano and electronic components businesses remain limited in public disclosures.
Operating cash flow in 2025 was negative KRW 7.71 billion, a wider outflow than the negative KRW 4.96 billion in 2024. With operating cash flow negative for four consecutive years, reliance on external financing could increase. Amid ongoing losses, a recovery in cash generation has not yet been confirmed.
The debt ratio surged from 63.8% in 2024 to 181.4% in 2025 while equity has continued to decline, raising concerns about potential capital impairment if losses continue. Operating cash flow has been negative for four consecutive years, potentially increasing reliance on external financing. Additional measures such as capital raises or asset sales may be needed to improve the financial structure.
Nano membrane revenue appears relatively dependent on specific global brands such as VF Group. The China Air Queen export contract presumes multi-year volume expansion, so contract execution and changes in local regulatory or quality standards could be variables.
The electronic components segment also appears structurally sensitive to demand fluctuations from a small number of customers.
The largest shareholder is Toptec, a battery and factory-automation equipment maker, holding roughly 47% of shares together with related parties, meaning group-level decision-making and business direction could be linked to the parent's strategy.
Transparency in intra-group transactions or financial support relationships needs ongoing management. Changes in the parent's business restructuring or financial condition could affect Lemon.
Check whether the loss-narrowing trend of the past two quarters continues into Q3 2026 and whether the revenue recovery persists.
Monitor the progress of year-two Air Queen shipments (14 million units) to China and when they are reflected in revenue.
Assess how parent Toptec's factory-automation results and its expansion into solid-state batteries and robotics affect Lemon's materials business.
Track the progress of the government-led solid-state battery R&D program and whether Lemon's participation or technology is incorporated.
For full-year 2025, Lemon posted a slight revenue increase but wider operating and owners' net losses, alongside a clear financial burden from shrinking equity and a sharply higher debt ratio. However, losses narrowed for two consecutive quarters in Q1 and Q2 2026, which could be read as a near-term improvement signal.
On the business side, growth initiatives such as the expanding China Air Queen export contract and solid-state battery material technology are progressing on multiple fronts, though commercialization and revenue contribution timing remain unconfirmed by disclosures.
The affiliate relationship with largest shareholder Toptec carries both potential business synergy and governance-related risk.
Financial soundness, customer and business concentration, and affiliate-related risks all warrant balanced consideration, and the trend should continue to be monitored through upcoming quarterly results and contract execution.
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.