Kumyang Reports Operating Loss of KRW 7.9B in Q1 2026: Liquidity Crisis Deepens Due to Battery Plant Delay and Major Lawsuits

Liquidity crisis and asset auction: Dongbu Construction filed for auction of two Gijang plant sites claiming KRW 36.2B and KRW 10B (March 16, April 17, 2026). Busan Bank also seized KRW 137.9B in receivables (April 27). Company plans to respond with KRW 405B rights offering or asset securitization, but uncertain.
Continuing operating losses: Q1 2026 consolidated revenue KRW 17.365B (vs KRW 17.318B YoY), operating loss KRW 7.94B (vs KRW 8.29B), net loss KRW 19.439B (continued losses). Foaming agents account for 98% of sales; battery sales only KRW 287M.
Battery business delay: Dream Factory 2 construction delay leads to further adjustment of 21700 battery PO (KRW 57.9B) for Nanotech Energy (disclosed April 30, 2026). 4695 battery certifications obtained but mass production timeline uncertain.
Deteriorating financials: Consolidated assets KRW 1.22T, debt ratio 60.24%, net debt KRW 678.5B. Retained earnings deficit of KRW 281.1B. R&D expenses KRW 2.35B (13.5% of revenue).
FX risk: KRW 688M loss if USD depreciates 10%.
Litigation and contingencies: Beyond Dongbu auction, Busan Bank seizure (KRW 137.9B) ongoing. Company plans to address via KRW 405B rights offering.
Battery certifications: Secured various international certifications (UN38.3, CB, UL) for 21700 and 4695 cells. Positive, but commercialization delayed.

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