KOSDAQMachinery412540

Jeil M&S

₩3,935 0.00%2026-10-02 close

Market Cap

₩81.1B

Turnover

₩0

Volume

0 shares

Shares out.

20.6M

PER

—

PBR

—

EPS

-₩568

Dividend Yield

0.00%

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

Report overview

Battery Mixing Equipment Maker at a Crossroads in Receivership

Jeil M&S entered court receivership after the Northvolt bankruptcy and an audit opinion dispute, and while recent quarterly results show signs of recovery, the outcome of its listing eligibility review and M&A process remains uncertain.

1
The company filed for court receivership at the Suwon Rehabilitation Court in December 2025, and its CEO was appointed as the court-approved receiver.
2
The court determined going-concern value exceeds liquidation value, and a conditional M&A process with Pureun Investment as the designated acquirer is underway.
3
Following a disclaimer of audit opinion for fiscal 2024, the company has faced audit opinion shortfalls for a second consecutive year, keeping it under KOSDAQ listing eligibility review.
4
Full-year 2025 shareholders' equity remains negative at roughly -KRW 11.46 billion, meaning full capital impairment has not yet been resolved.
5
The company has filed a complaint with the Korea Fair Trade Commission over a payment dispute with LG Energy Solution and its Canadian joint venture NextStar Energy regarding mixing equipment.

Business structure

Jeil M&S, founded in 1986, mainly manufactures mixing equipment used in the first step of the secondary battery electrode process.

Its core products blend powder-form active materials, binders, and conductive agents into slurry, and the company also supplies related equipment such as storage tanks and powder transport systems.

Historically, secondary battery-related products accounted for the large majority of revenue, with a significant portion generated through exports. Major customers have included the Swedish battery maker Northvolt as well as LG Energy Solution and its Canadian joint venture NextStar Energy.

Because of the nature of mixing equipment, the technology is also considered applicable to defense and food/pharmaceutical applications beyond batteries.

Competitors handling similar secondary battery mixing equipment include Yoosung F&C and TSI, and differences in revenue and cost recognition methods among these companies became a point of contention during audit reviews.

The company listed on KOSDAQ in April 2024 under the pre-profit special listing track (the so-called Tesla requirement), but faced a delisting crisis roughly a year later after receiving a disclaimer of audit opinion.

It subsequently filed for court receivership in December 2025 and currently operates under court supervision, with an M&A process running in parallel on the premise of rehabilitation.

Earnings trend

Quarterly revenue · Operating profit

-₩27B25Q2₩118.8B-₩19.9B25Q3₩5.7B25Q4₩15.5B₩1.3B26Q1₩111.6B₩3.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩58.4B-₩7.7B2023₩149.5B-₩87.8B2024₩151.3B-₩7.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	—	-₩27B	—
2025Q3	₩118.8B	-₩19.9B	−16.7%
2025Q4	—	₩5.7B	—
2026Q1	₩15.5B	₩1.3B	8.3%
2026Q2	₩111.6B	₩3.8B	3.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2023	₩58.4B	-₩7.7B	-₩11.3B	−13.1%	−35.1%	922.9%
2024	₩149.5B	-₩87.8B	-₩104.9B	−58.7%	—	−2509.6%
2025	₩151.3B	-₩7.2B	-₩15.7B	−4.8%	—	−4706.9%

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

Consolidated revenue in 2025 was KRW 151.27 billion, broadly similar to KRW 149.49 billion in 2024, while the operating loss narrowed sharply to KRW 7.24 billion (operating margin -4.8%) from KRW 87.81 billion (operating margin -58.7%) in 2024.

This improvement reflects the fact that much of the one-off shock from the Northvolt-related bad debt and the change in revenue recognition method that hit 2024 results did not recur in 2025.

Net loss attributable to owners, however, was still KRW 15.70 billion in 2025, a large reduction from KRW 104.87 billion in 2024 but still in loss territory. Quarterly results show substantial volatility.

After an operating loss of KRW 26.96 billion and a net loss of KRW 26.08 billion in the second quarter of 2025, the third quarter saw revenue of KRW 118.79 billion alongside an operating loss of KRW 19.89 billion and a net loss of KRW 21.30 billion.

The fourth quarter turned positive with operating income of KRW 5.70 billion and net income of KRW 6.36 billion, and the first quarter of 2026 posted operating income of KRW 1.28 billion on much lower revenue of KRW 15.46 billion, even as net income came in at a loss of KRW 0.91 billion.

The second quarter of 2026 expanded profitability again with revenue of KRW 111.62 billion, operating income of KRW 3.75 billion, and net income of KRW 4.14 billion.

These sharp revenue and earnings swings are closely tied to an accounting characteristic in which results become concentrated in specific quarters depending on whether revenue is recognized based on construction progress or on final delivery completion.

Over the trailing four quarters (Q3 2025 through Q2 2026), net income attributable to owners totaled a loss of KRW 11.72 billion, as the recent two profitable quarters have not been enough to offset the earlier large losses, and operating cash flow has remained negative for three consecutive years at KRW -9.08 billion in 2023, KRW -63.97 billion in 2024, and KRW -31.69 billion in 2025.

Shareholders' equity was negative in both 2024 (KRW -19.84 billion) and 2025 (KRW -11.46 billion), indicating that full capital impairment has not been resolved despite the improving earnings trend.

Industry analysis

Secondary battery mixing equipment sits at the very start of the electrode process, and equipment makers' results are heavily tied to battery manufacturers' capital expenditure cycles.

As global electric vehicle demand growth has moderated more than previously expected, major battery makers' pace of new capacity investment has been adjusting, which in turn affects the timing of equipment orders and revenue recognition for suppliers.

Jeil M&S experienced a particularly severe shock from this dynamic when its major customer Northvolt went bankrupt, resulting in a large bad debt write-off — an example of how concentrated customer exposure can heavily impact an equipment maker's results.

Competitors also differ in accounting treatment: Yoosung F&C recognizes revenue on a full-delivery basis, while TSI recognizes equipment revenue on a free-on-board basis and installation revenue based on progress, differences that contribute to varying timing and volatility of reported results even within the same industry segment.

Because Jeil M&S simultaneously performs equipment manufacturing and installation engineering, it has been noted as particularly sensitive to the choice of revenue recognition standard.

The ongoing dispute with LG Energy Solution and NextStar Energy over mixing equipment payment is a recent example of how important agreement on inspection and installation criteria with customers is to finalizing revenue.

Within the industry, Jeil M&S was previously recognized as an early contributor to localizing this equipment segment, but it is currently in a phase where company-specific risks from accounting issues and court receivership loom larger than the broader industry cycle.

Outlook

The company's future path can broadly diverge in two directions. One is a path in which the Suwon Rehabilitation Court-led receivership and M&A process concludes successfully, bringing in new capital and normalizing the company as a going concern.

The court determined that going-concern value (KRW 42.3 billion) exceeds liquidation value (KRW 27.9 billion), and Pureun Investment, having signed a conditional investment contract, has been confirmed as the final designated acquirer under a stalking-horse pre-approval M&A structure.

The other path depends on the outcome of the KOSDAQ Market Eligibility Review Committee's assessment, which has continued given audit opinion issues in two consecutive fiscal years since 2024.

These two processes are interlinked, as capital raised through the M&A and approval of the rehabilitation plan could influence the listing eligibility determination.

On the earnings side, consecutive operating and net profits in the fourth quarter of 2025 and the second quarter of 2026 suggest a possible stabilization of revenue recognition standards going forward, though quarters with sharply reduced revenue, as seen in the first quarter of 2026, could recur, meaning quarter-to-quarter variability is likely to persist.

How the payment dispute with LG Energy Solution and NextStar Energy is resolved through the Korea Fair Trade Commission review is another variable that will affect future cash collection and results.

Overall, the company's outlook is heavily dependent on the progress of the receivership and M&A process and the outcome of the listing eligibility review.

Valuation

PER

—

PBR

—

ROE

—

EPS

-₩568

BPS

—

Dividend per share

₩0

Having experienced accumulated losses and full capital impairment in recent years, the company is in a state where conventional valuation metrics such as the price-to-earnings ratio and price-to-book ratio are difficult to calculate in the normal sense, which is why these metrics appear as loss-driven or impairment-affected on screen.

Dividends also have no payment history in recent years, making a typical dividend-based comparison of limited relevance.

Given that new capital raising through the receivership and M&A process is underway, it should also be considered that any new share issuance or debt restructuring outcome could itself alter the per-share value structure for existing shareholders going forward.

Under these circumstances, tracking business-level indicators such as approval of the rehabilitation plan, completion of the M&A, and the trajectory of operating margin recovery is more relevant than relying on conventional multiple comparisons.

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

Consecutive Quarterly Profitability

Following operating income of KRW 5.70 billion and net income of KRW 6.36 billion in the fourth quarter of 2025, the company posted operating income of KRW 3.75 billion and net income of KRW 4.14 billion in the second quarter of 2026, marking two consecutive profitable quarters.

This is interpreted as reflecting that the one-off factors behind the large prior losses, including the Northvolt-related bad debt, have largely been resolved.

However, quarters with sharply reduced revenue, such as the first quarter of 2026, have also occurred, so the durability of this profitable trend requires further confirmation.

Recognized Going-Concern Value and Ongoing M&A

The Suwon Rehabilitation Court determined that the company's going-concern value (KRW 42.3 billion) exceeds its liquidation value (KRW 27.9 billion) and decided to proceed with a sale process on the premise of rehabilitation.

Pureun Investment, having signed a conditional investment contract, has been confirmed as the final designated acquirer, and a pre-approval M&A is being pursued. If the new capital raise is completed, it could help resolve capital impairment and stabilize the business.

Global Customer Base and Diversification Potential

Jeil M&S has been recognized as a contributor to the localization of secondary battery mixing equipment and has a track record of transactions with global battery makers.

Its mixing equipment technology is reportedly applicable beyond secondary batteries to defense and food/pharmaceutical applications, leaving room for future customer diversification. However, whether this diversification has translated into actual orders or revenue requires further confirmation.

Bear factors

Unresolved Full Capital Impairment

Annual shareholders' equity was negative for two consecutive years, at KRW -19.84 billion in 2024 and KRW -11.46 billion in 2025, meaning full capital impairment has not been resolved.

Despite recent quarterly profits, the scale of accumulated losses is large enough that further profit accumulation or capital raising will be needed to resolve the impairment, an issue directly tied to the listing eligibility review.

Uncertainty in Receivership and M&A Process

The company is undergoing court receivership under the supervision of the Suwon Rehabilitation Court, and numerous procedural variables remain before the rehabilitation plan is approved and the M&A is finalized.

If the new capital raising process involves third-party share issuance, existing shareholders could face dilution.

With audit opinion issues persisting for a second consecutive fiscal year since 2024, a parallel KOSDAQ Market Eligibility Review Committee review is also underway, leaving uncertainty over whether the listing will be maintained.

Customer Credit and Litigation Risk

The bankruptcy of major customer Northvolt, which resulted in a large uncollected receivable, previously exposed the risk of concentrated revenue and credit exposure to a small number of large customers.

The company has now filed a complaint with the Korea Fair Trade Commission against LG Energy Solution and its Canadian joint venture NextStar Energy over a mixing equipment payment dispute, and the outcome could affect future cash collection and results.

The customer side has taken the position that there are differences over installation and inspection criteria, suggesting the dispute could take time to resolve.

Risk factors

Listing Eligibility Risk

Following a disclaimer of audit opinion for fiscal 2024, an audit opinion shortfall has occurred for a second consecutive fiscal year, and a KOSDAQ Market Eligibility Review Committee review is underway.

Depending on the outcome, scenarios ranging from maintaining the listing, to granting an improvement period, to delisting are all possible. If the review is delayed or the outcome is unfavorable, measures such as a trading halt could directly affect investors.

Litigation and Customer Dispute Risk

The payment dispute with LG Energy Solution and NextStar Energy over mixing equipment has led to a complaint filed with the Korea Fair Trade Commission, and the timing and outcome of the resolution remain uncertain.

Disagreements over installation and inspection criteria with this customer could recur as similar issues in future contracts with other customers. Litigation and dispute-related costs, along with delayed payment collection, could add further strain to an already weak cash flow position.

Capital Structure and Liquidity Risk

Operating cash flow was negative for three consecutive years from 2023 to 2025, at KRW -9.08 billion, KRW -63.97 billion, and KRW -31.69 billion respectively, indicating weak internal cash generation.

With shareholders' equity negative for two consecutive years, the capital structure could change significantly depending on debt restructuring under the receivership and whether capital is raised through the M&A. A delay in approving the rehabilitation plan or failure of the M&A could re-intensify liquidity pressure.

What to watch next

Q4 2026 (tentative)
Investors should check the final outcome of the KOSDAQ Market Eligibility Review Committee's listing eligibility review (maintain listing, improvement period, or delisting).
Second half of 2026
The approval status of the rehabilitation plan by the Suwon Rehabilitation Court and the schedule for Pureun Investment's payment and finalization of the definitive M&A agreement should be checked.
Around November 2026 (expected Q3 disclosure)
Investors should check whether the third-quarter 2026 results continue to show revenue-recognition-driven volatility and whether the recent profitable trend continues.
When Korea Fair Trade Commission review updates are disclosed (during 2026)
The progress and outcome of the Korea Fair Trade Commission's review of the mixing equipment payment dispute with LG Energy Solution and NextStar Energy should be monitored.

Overall view

Jeil M&S is a company exposed to unusually high uncertainty even by KOSDAQ standards, having gone through a chain of events starting with large losses tied to the Northvolt bankruptcy, a disclaimer of audit opinion, and a subsequent filing for court receivership.

The 2025 operating loss narrowed sharply to KRW 7.24 billion from KRW 87.81 billion in 2024, and consecutive profitable quarters in the fourth quarter of 2025 and the second quarter of 2026 can be viewed as a positive earnings signal.

However, shareholders' equity has been negative for two consecutive years, meaning full capital impairment remains unresolved, and operating cash flow has stayed negative for three straight years, indicating that balance sheet repair is still a work in progress.

The company's future path depends heavily on three procedural variables: approval of the rehabilitation plan by the Suwon Rehabilitation Court, completion of the M&A involving Pureun Investment, and the outcome of the KOSDAQ Market Eligibility Review Committee's listing review.

An additional variable remains in the form of the payment dispute with LG Energy Solution and NextStar Energy, suggesting that full resolution of uncertainty is unlikely in the near term.

Investors should prioritize tracking the progress of the receivership, M&A, and listing review processes over the headline earnings figures alone.

Sources

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

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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.