1. What Happened?: Ilwol GML’s Business Transition and H1 2025 Performance

Ilwol GML shifted its focus from electronic components to distributing seasonal appliances like electric mats and fans. However, H1 2025 revenue decreased by 12.5% year-over-year to KRW 6.73 billion, with an operating loss of KRW 1.29 billion, widening the deficit. While the sale of a subsidiary provided a temporary cash inflow, accumulated losses remain at KRW 71.5 billion.

2. Why Did This Happen?: Transition Challenges and Market Competition

The decline can be attributed to difficulties during the business transition, intensified competition in the seasonal appliance market, and seasonality. Competition with low-priced Chinese products is fierce, and macroeconomic uncertainties, including exchange rate and interest rate fluctuations, pose ongoing threats. However, the electric mat market itself is projected to grow at an average annual rate of 8.7%, offering a silver lining.

3. What’s Next?: Investment Strategy and Future Outlook

Ilwol GML is exploring new growth engines, including venturing into the food and beverage business. Efforts to improve financial structure through the sale of a subsidiary are positive. However, persistent capital erosion and accumulated losses remain key challenges. Investors should focus on long-term fundamental changes and growth potential rather than short-term performance improvements.

4. Investor Action Plan

  • Check Q3 2025 Earnings: Assess the business stability through peak season performance.
  • Monitor New Business Plans: Scrutinize the specifics and execution of the food and beverage venture.
  • Track Financial Metrics: Continuously monitor financial health indicators like accumulated deficit reduction and debt ratio changes.