SKC

● Recorded KRW 438.5 billion in revenue and KRW 74.5 billion in operating loss in Q1 2025

​● ​Battery copper foil sales rebounding on increased demand; global customer contracts underway

​● ​Semiconductor test socket sales growth to accelerate in Q2; U.S. subsidy for Absolics anticipated

SKC (CEO Woncheol Park) announced its consolidated financial results for the first quarter of 2025 on April 30, reporting revenue of KRW 438.5 billion and an operating loss of KRW 74.5 billion. Despite continued weakness in downstream industries, revenue rose by approximately 3% and the operating loss narrowed by about 10% compared to the previous quarter.

By business segment, the battery materials division showed clear sign of recovery. Copper foil sales rebounded on growing demand for electric vehicle (EV) batteries, with Q1 sales volume increasing by 14% quarter-over-quarter and 8% year-over-year. Notably, sales in the North American market surged 69% from the previous quarter and 149% from the same period last year, significantly contributing to the segment's performance. In addition, the operating loss narrowed by 18% quarter-over-quarter, driven by a sharp rise in the utilization at the Malaysia plant.

In the semiconductor materials segment, sales of test sockets for non-memory applications temporarily declined due to adjustments in customers’ R&D and mass production schedules. Nevertheless, the segment maintained a solid operating margin of over 20%, demonstrating stable performance. The chemicals business achieved revenue growth from the previous quarter, despite continued weakness in styrene monomer (SM) spreads. Sales of its key product, propylene glycol (PG) remained stable, particularly in high-value markets such as North America and Europe.

SKC plans to focus on improving profitability in the battery materials business, driving stable revenue growth in its semiconductor test sockets, and commercializing its glass substrates business in 2025.

The battery materials business is expected to continue its upward momentum into Q2, driven by increasing utilization rates at customer battery plants in North America. In particular, SKC plans to finalize multiple supply agreements with global battery manufacturers during the quarter, which—together with the full-scale ramp-up of its Malaysia plant—will further enhance profitability.

In the semiconductor segment, sales growth is expected to accelerate in Q2, led by increased demand from North American customers and the resumption of R&D orders from major global tech companies. In addition, U.S. government subsidies for Absolics’ manufacturing operations under the CHIPS Act are expected to be disbursed during the quarter.

An SKC representative said, “We are seeing a clear recovery in copper foil sales within the battery materials business. Meanwhile, our test socket business continues to show stable performance, and preparations for the commercialization of glass substrates are proceeding as planned. We will further accelerate our efforts to strengthen the fundamentals of existing businesses while making tangible progress in new growth areas to support a performance rebound.”​