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Fact Summary
Enchem is a KOSDAQ-listed manufacturer of electrolytes for lithium-ion batteries and EDLCs. For fiscal year 2025, consolidated revenue was KRW 312.79 billion and operating loss was KRW 78.39 billion (Business Report, DART receipt no. 20260326001049). Cumulative revenue for H1 2026 (as of 2026-06-30) was KRW 186.43 billion, with an operating loss of KRW 35.78 billion (Semiannual Report, DART receipt no. 20260814004135). On 2026-03-25, the largest shareholder changed from Oh Jeong-gang to Wyatt Group Co., Ltd., and around the same time the audit report noted an unqualified opinion together with a disclosure of substantial doubt about the company's ability to continue as a going concern (Semiannual Report; Samil PwC). In December 2025, the company signed a five-year (2026-2030) electrolyte supply agreement with CATL for a total of 350,000 tons, valued at approximately KRW 1.5 trillion (ETNews, 2025-12-23).
Price-Change Context Note
On the analysis date (2026-08-14), the closing price was KRW 24,900, up +3.97% (+KRW 950) from the previous day (aggregated from secondary sources, not cross-checked against KRX). Over the most recent week (2026-08-10 to 08-14), net foreign inflows of 194,226 shares, net institutional inflows of 34,887 shares, and net retail outflows of 229,103 shares were recorded (alphasquare.co.kr, reference figures not cross-checked against KRX). On 2026-08-07, a bondholders' meeting was reported to be convened to amend the terms of the 14th convertible bond issue (outstanding balance approx. KRW 238.1 billion) (Digital Times, 2026-08-07).
Business Overview
Founded in 2012, Enchem produces lithium-ion battery electrolytes for XEV (electric vehicles), IT, EDLC, and ESS applications, as well as NMP (N-methylpyrrolidone). Revenue composition (based on aggregator sites; cross-checking against primary sources recommended) is as follows.
Source: WiseReport/alphasquare.co.kr company data aggregation (secondary; exact reference date unknown — cross-checking against primary sources recommended)
There have been multiple reports of capacity expansion underway in North America (Georgia, Tennessee, Texas, Ontario) and Europe (Poland, Hungary) (Newspim, 2022-11-28; TheBell, 2025-03-05), but actual utilization rates and execution progress have not been confirmed. To internalize raw-material supply, the company is building a lithium salt (LiPF6) plant in Saemangeum through its subsidiary EDL, reported to target completion in Q4 2026 (TheBell, 2026-02-02).
5-Year Financial Trend
| Period | Revenue | Operating Profit(Loss) | Net Income(Loss) | Total Equity | Debt Ratio |
|---|---|---|---|---|---|
| 2021 | KRW 214.3 billion | -KRW 25.97 billion | -KRW 19.47 billion | KRW 216.6 billion | 88.1% |
| 2022 | KRW 509.8 billion | KRW 15.36 billion | KRW 21.81 billion | KRW 293.36 billion | 131.9% |
| 2023 | KRW 424.7 billion | KRW 5.12 billion | -KRW 49.23 billion | KRW 290.08 billion | 205.7% |
| 2024 | KRW 365.7 billion | -KRW 50.4 billion | -KRW 558.29 billion | KRW 484.84 billion | 139.2% |
| 2025 | KRW 312.8 billion | -KRW 78.39 billion | -KRW 70.57 billion | KRW 481.03 billion | 130.3% |
| 2026 H1 (cumulative) | KRW 186.4 billion | -KRW 35.78 billion | -KRW 39.19 billion | KRW 446.89 billion | 137.5% |
Figures in KRW billions (rounded), consolidated basis, A (confirmed). Source: DART Business Reports (receipt nos. 20220323001139, 20230825000636, 20260326001028, 20260326001039, 20260326001049) and Semiannual Report (20260814004135). Revenue has declined for four consecutive years since peaking in 2022 (cumulative -38.6% from 2022 to 2025), and operating profit turned to a loss starting in 2024, with the loss widening in 2025. The 2024 net loss (-KRW 558.29 billion) is substantially larger than the operating loss (-KRW 50.4 billion) for that year, but the specific cause has not been confirmed (footnotes in the Business Report should be checked). A comparison of H1 2025 versus H1 2026 revenue and earnings figures has not been confirmed.
Valuation (Factual Multiples)
EV/EBITDA cannot be calculated due to unavailable depreciation and net debt line items. PBR is an estimated calculation based on consolidated total equity (which may include non-controlling interests in addition to the parent company's share), and BPS based on the controlling shareholders' equity alone has not been confirmed.
Peer Comparison
| Company | Ticker | Core Business | Market Cap | PBR | Reference Date |
|---|---|---|---|---|---|
| Enchem | 348370 | Electrolytes & additives (XEV/IT/EDLC/ESS) | KRW 542.3 billion (A) | approx. 1.22x | 2026-08-14 |
| Chunbo | 278280 | Electrolyte (LiFSI) & additives | KRW 629.7 billion | 1.42x | 2026-05-15 |
| Soulbrain Holdings | 036830 | Secondary battery materials (incl. electrolytes; subsidiary accounts for 57% of revenue) | N/A | N/A | — |
PBR reference dates differ (Enchem: 2026-08-14, Chunbo: 2026-05-15) — not a same-date comparison; for reference only. Source: alphasquare.co.kr, siglab.kr. During a 2024 electrolyte-theme rally, Enchem, Soulbrain Holdings, and Dongwha Enterprise all recorded new 52-week highs together (Sisa Journal-e; exact timing not confirmed).
Trading Flow Trends
The figures below are reference values from a secondary source (alphasquare.co.kr) that could not be cross-checked against the KRX primary source because pykrx was not installed (fallback provision under Articles 5-4 and 13 of the core principles applied).
Starting in the first week of August (08-03 to 08-07), foreign investors shifted to net-inflow dominance, with a concentrated net foreign inflow of 173,748 shares on 08-10 coinciding with the period's highest closing price (KRW 27,900) on the same day. Retail investors showed net-outflow dominance throughout the entire August period covered (alphasquare.co.kr daily trading trends, 2026-07-16 to 08-14, not cross-checked against KRX).
| Category | Volume (08-14) | Trading Value (08-14) | vs. 10-Day Average |
|---|---|---|---|
| Volume | 407,646 shares | — | +1.9% |
| Trading Value | — | KRW 10.12 billion | +8.3% |
Foreign ownership ratio: 4.44% (as of 2026-08-14, cross-checked via wisereport.co.kr/alphasquare.co.kr). Exact reference dates for the foreign ownership limit utilization rate, margin balance, and short-selling balance have not been confirmed.
Governance & Capital Structure
On 2026-03-25, the largest shareholder changed from Oh Jeong-gang to Wyatt Group Co., Ltd. Oh Jeong-gang's personal stake sharply declined from 14.41% as of 2025-12-31 to 2.90% as of 2026-06-30, while over the same period Wyatt Group Co., Ltd.'s status changed from a related party (6.52%) to the largest shareholder (6.50%).
Source: Enchem Business Report (2025, receipt no. 20260326001049) and Semiannual Report (June 2026, receipt no. 20260814004135). Based on total shares issued of 21,910,993 as of 2026-06-30.
| Change Date | Largest Shareholder | Ownership Stake | Reason for Change |
|---|---|---|---|
| 2023-04-12 | Oh Jeong-gang and 2 others | 17.40% | Off-hours over-the-counter disposal by the former largest shareholder |
| 2026-03-25 | Wyatt Group Co., Ltd. and 1 other | 9.39% | Sale of shares by the former largest shareholder |
The FY2025 audit report (Samil PwC) expressed an unqualified opinion on both the consolidated and separate financial statements, but included a disclosure of substantial doubt about the company's ability to continue as a going concern. The original DART filing states the reason for the shareholder change only as 'change due to sale of shares', and whether it was related to the enforcement of a security interest has not been confirmed.
Macro Environment
| Factor | Value (Reference Date) | Notes |
|---|---|---|
| KRW/USD Exchange Rate | KRW 1,418.3 (2026-08-14) | Affects the KRW-translated value of USD-denominated revenue (Newsis) |
| Lithium Salt (LiPF6) China Domestic Price | CNY 160,500/ton (2025-11-25) | +226% vs. the July 2025 low (SNE Research) |
| US AMPC Tax Credit | Cumulative approx. KRW 45 billion for 2023-2025 | An additional approx. KRW 23 billion reported for 2026 (JoongAng Economy News) |
| US IEEPA Tariff Refund | Approx. KRW 8 billion applied for, 63% already refunded | Based on CIT ruling (Digital Daily, 2026-06-15) |
| Global EV Electrolyte Market | +22.5% YoY in H1 2026 | 768,000 tons; +36.2% in regions excluding China (SNE Research) |
| Global Electrolyte Market Share | China 89.1%, Korea 6.4% (H1 2026) | Korea's share narrowed from 7.8% to 6.4% year-over-year (ZDNet Korea) |
Because Enchem passes through lithium salt price changes into its selling prices, higher raw-material prices could function as a channel for revenue growth, whereas a stronger won would reduce the KRW-translated value of USD-denominated overseas revenue. The dual production system in Saemangeum (Korea) and Georgia (US) may work favorably toward meeting the US OBBBA Act's MACR non-Chinese-origin raw-material requirement (60% in 2026, rising to 85% by 2030).
Risk Factors
| Category | Details |
|---|---|
| Going-Concern Uncertainty | FY2025 audit report noted an unqualified opinion together with a disclosure of substantial doubt about going-concern ability (Samil PwC) |
| CB Repayment Burden | 14th CB outstanding balance approx. KRW 238.1 billion; put option date arrives November 2026; conversion price (KRW 112,700) is higher than the analysis-date closing price |
| Revenue Decline Trend | Declined for four consecutive years since peaking at KRW 509.8 billion in 2022, cumulative -38.6% through 2025 |
| Continued Operating Losses | Operating losses have continued since 2024; operating margin was -25.1% in 2025 and -19.2% in H1 2026 |
| Capacity Expansion Execution Progress | Multiple large-scale expansion plans have been announced for North America and Europe, but actual utilization rates and execution progress have not been confirmed |
News Timeline
| Date | Details |
|---|---|
| 2025-12-23 | Signed a five-year, 350,000-ton electrolyte supply contract with CATL valued at approx. KRW 1.5 trillion (ETNews) |
| 2026-03-24 | Disclosed delayed submission of the audit report; stock hit the daily lower limit (-29.94%) |
| 2026-03-25 | Largest shareholder changed from Oh Jeong-gang to Wyatt Group Co., Ltd. (Nate News, among others) |
| 2026-05-13 | Reported combined CB and borrowing repayment burden of over approx. KRW 400 billion (Businesspost) |
| 2026-06-15 | Reported USD 3.44 million in US tariff refunds already received and cumulative AMPC of approx. KRW 45 billion (Digital Daily) |
| 2026-07-29 | Enchem America pursuing a Nasdaq back-door listing, with equity value assessed at USD 400 million (Daum News) |
| 2026-08-07 | Pursuing amendment of 14th CB terms; bondholders' meeting scheduled (Digital Times) |
Q1 2026 revenue and earnings figures have not been confirmed due to conflicting secondary reports. Confirmed Q2 2026 (semiannual) results are scheduled for release on 2026-08-19, which is after the analysis date (08-14).
Theme Relevance
Fact Highlights
Provenance: Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · NASDAQ · DART · SEC EDGAR