[Trading Trend] 'KESolution' Preparing for KOSDAQ Listing, Jumps in Performance on the Wings of LFP Batteries

Secondary battery and logistics equipment specialized company 'KESolution' has embarked on a full-scale Initial Public Offering (IPO) process by requesting a preliminary review for a KOSDAQ listing. The company is recording performance growth based on the successful improvement of its business constitution. During the attraction of investment via preferred stock in January 2026, the estimated corporate value was 35 billion won, but it is currently trading at around 95 billion won in the over-the-counter (OTC) market, reflecting investors' expectations for the listing in its corporate value.

Hit the Mark with Business Improvement via 'LFP Batteries'… 'Explosive Growth' with Sales Up 51% YoY

In April 2024, KESolution changed its name from its former name 'Hongjin Enterprise' to the current one, successfully diversifying its business portfolio centering on lithium iron phosphate (LFP) battery pack manufacturing and electric forklifts.

This preemptive business reorganization led to immediate top-line growth. KESolution's sales in 2025 reached approximately 34.57 billion won, recording high growth of about 51% compared to the previous year (approximately 22.85 billion won). In particular, the battery division, a new core business, showed explosive growth. Sales in the LFP battery pack division recorded about 11.06 billion won (accounting for 32%), surging by more than 15 times compared to the previous year (about 720 million won), driving company-wide growth.

The existing flagship businesses are also serving as a solid support. The automobile sequencing division, which has Hyundai and Kia Motors as its major clients, generated stable sales of about 10.05 billion won (accounting for 29%) through responses to new car model facilities and the maximization of productivity. In addition, the electric forklift division also contributed to the growth by achieving sales of about 9.31 billion won (accounting for 27%) while concurrently using the ODM (Original Design Manufacturing) method with global brands.

Operating Profit Surges 132% · Debt Ratio Drops Significantly… Caught 'Two Birds with One Stone' in Profitability and Finances

Along with the expansion in sales volume, profitability also improved noticeably. Operating profit in 2025 was about 4.52 billion won, surging 132% from the previous year (about 1.95 billion won). Thanks to cost reductions and the establishment of an efficient production system, the operating profit margin jumped from about 8.5% in 2024 to 13.1% in 2025.

Financial soundness has also dramatically improved through large-scale capital expansion. During 2025, KESolution executed a paid-in capital increase (about 2.57 billion won), conversion of convertible bonds into shares (about 5.73 billion won), and the issuance of redeemable convertible preferred shares (about 550 million won). As a result, its equity capital, which was about 8.2 billion won at the end of 2024, more than doubled to 18.3 billion won by the end of 2025, and its debt ratio (post-adjustment basis), which reached 359.8% at the end of 2024, dropped significantly to the 124.3% level at the end of 2025, securing solid financial stability ahead of the listing.

Stable Corporate Governance and 'Selection and Concentration' Investment… The Task is 'Diversification of Sales Channels'

In terms of the business environment, the stability of the corporate governance structure stands out. As the largest shareholder with a 64.55% stake, CEO Hong Jin-gi exercises firm management rights, paving the way for stable business promotion even after the listing.

The company is simultaneously carrying out investments in preparation for future mid-to-long-term demand and qualitative management. Since 2023, it has preemptively invested about 980 million won in LFP battery packing processes and facilities. Conversely, in the case of its local US subsidiary (KESOLUTION USA, INC.), which had fallen into a state of total capital impairment, it impaired the entire amount of investment stock (about 270 million won) and plans to liquidate it, boldly cutting out insolvent businesses.

However, it also faces tasks that need to be resolved for sustainable growth. Currently, KESolution has a somewhat high sales reliance on its top major client companies. Based on 2025, specific clients such as Company C (14.0%) and Company A (11.7%) account for a large portion of total sales, posing a risk that performance could be affected by future business relations with these companies or fluctuations in the downstream industry conditions. It is pointed out that alleviating sales concentration through the diversification of clients is essential for a successful listing and long-term external expansion.