KEM Tech 2025 Report: Deepening Losses, Going Concern Warning, Battery Orders as Sole Hope

Consolidated revenue down 57% YoY to KRW 757.4bn, operating loss KRW 92.3bn, net loss KRW 125.6bn
Current ratio plunged to 32.5% (previous year 152%), debt ratio 74.2%, net debt ratio 73.4%
Going concern uncertainty: current liabilities exceed current assets by KRW 149.5bn; recoverability of long-term prepayment (Magok-dong land, KRW 29.5bn contract) uncertain
Battery division secured long-term supply contracts for ESS CAN & Cap Assembly worth KRW 50.2bn; mass production target Q2 2026
Post-report: stock split (1→2), capital reduction (10→1), rights offering of 8.64mn shares at KRW 2,875 to improve capital structure
Credit rating B- (KCB), multiple lawsuits including industrial technology protection act violation
High reliance on debt: KRW 14.4bn convertible bonds outstanding, additional CB issued (20th series KRW 2bn, 21st series KRW 4.5bn)
No dividends or shareholder return plans