1. Yulho’s H1 2025 Performance: A Mixed Bag

Yulho recorded KRW 22.9 billion in revenue for the first half of 2025, demonstrating growth, but also posted an operating loss of KRW 600 million and a net loss of KRW 3 billion. This is attributed to increased investment in new businesses and delayed profitability in existing operations.

2. New Business Ventures: Opportunities and Risks

Beyond its server/storage business, Yulho is diversifying into secondary batteries, waste treatment, mineral resource development, and AI. The focus on recycled batteries and nickel mining aligns well with ESG trends. However, the financial strain of these investments and uncertainty around synergy pose risks.

3. Financial Stability: Warning Signs Flashing

Yulho’s debt-to-equity ratio has climbed to 167.60%, and its net debt-to-equity ratio stands at a concerning 82.42%. Issuing convertible bonds and increasing debt to fund new ventures raises concerns about financial stability.

4. Investor Action Plan: Proceed with Caution

While Yulho is striving to secure future growth engines, short-term profitability and financial stability remain uncertain. Investors should carefully monitor the performance of new ventures, improvements in financial health, and management stability before making investment decisions.