Operating Losses in July-August Ahead of KOSDAQ Debut... IntelliVix Targets "40% Growth"

KOSDAQ listing on October 30
Retail investor subscription on October 21-22
"Strengthening new businesses in industrial safety, defense and robotics"

Growth built on public-sector market... overseas expansion remains slow
Operating losses in July and August ahead of IPO, but
"Targeting 40% revenue growth from last year"

IntelliVix, a safety artificial intelligence (AI) solutions company set to list on the KOSDAQ market on October 30, said it plans to use about 65% of its IPO proceeds for research and development through 2028 to strengthen new businesses in areas including industrial safety, defense and robotics.

Jang Jeonghun, CEO of Intelivix. Photo provided by Intelivix.

Jang Jeonghun, CEO of IntelliVix, made the announcement at an IPO press conference at the Conrad Hotel in Yeouido on October 16. "With our listing, we plan to combine our existing safety AI business with new businesses in defense AI, physical AI and natural-language video search to increase our future corporate value," he said.

In the defense sector, the company aims to meet demand for military perimeter surveillance and specialized security infrastructure with Vixallcam, an all-weather AI camera that precisely identifies targets even in bad weather and at night. In the physical AI sector, it plans to offer autonomous mobile smart safety operations solutions based on Argos, a four-legged AI patrol robot. It will target Southeast Asian markets with VixSearch, which uses natural-language queries to identify situations in video footage.

IntelliVix has grown on the strength of the domestic public-sector market. Revenue rose from 18.3 billion won in 2023 to 34 billion won in 2024 and 46.6 billion won last year. Over the same period, operating profit increased from 1.8 billion won to 2.3 billion won and then 4.9 billion won. In the first half of this year, the company recorded revenue of 23.4 billion won and operating profit of 1.2 billion won. IntelliVix cited its "full-stack safety AI" technology, spanning AI models, monitoring infrastructure, platforms and customized on-site solutions, as a key growth driver.

However, revenue growth has slowed recently. The growth rate fell from 85.9% in 2024 to 37.2% last year, and reached just 8.2% in the first half of this year. The operating margin also declined, from 10.47% for the full year last year to 5.19% in the first half of this year.

The company also recorded operating losses in two consecutive months in the second half of the year. According to preliminary figures prepared by IntelliVix and included in its prospectus, it posted operating losses of 580 million won in July and 444 million won in August. As a result, cumulative operating profit fell from 1.217 billion won in the first half to 192 million won at the end of August. An IntelliVix representative explained, "Revenue is concentrated in the second and fourth quarters, depending on the timing of public institutions' project orders and budget execution."

Slow expansion into overseas markets is a risk factor for IntelliVix. Since entering Japan in 2020, the company has expanded its operations to the Philippines, Bangladesh, Australia and New Zealand, among other markets. However, overseas markets accounted for just 0.6% of total revenue last year. IntelliVix plans to invest 8.5% of its IPO proceeds in establishing overseas bases and expanding its international presence.

IntelliVix will hold its retail offering for individual investors on October 21 and 22, following the institutional investor subscription period, which ends today. The company will issue 2.5 million new shares. The indicative offering price is 7,600-9,000 won per share, with the offering expected to raise 19 billion to 22.5 billion won.

This content was produced with the assistance of AI translation services.