SKC

●EV battery materials: North America sales expand; Malaysia plant sales increase, boosting profitability

●Test socket/equipment merger synergies materialize; glass substrate samples enter customer qualification process

●Bolsters financial health via increased cash inflows; aims for an efficient capital structure centered on core businesses

SKC announced on November 5 that it recorded consolidated revenue of KRW 506 billion and an operating loss of KRW 52.8 billion for the third quarter of 2025. Compared to the previous quarter, sales rose by 9 percent, while the operating loss improved by KRW 17.5 billion. The Company surpassed the 500-billion-KRW quarterly sales mark for the first time in two years, continuing a clear trend of sales growth and improved profitability.

By business segment, the EV battery materials division posted sales of KRW 166.7 billion and an operating loss of KRW 35.0 billion. Sales to North America expanded significantly, resulting in a 31 percent quarter-over-quarter increase in revenue. In particular, sales of copper foil for LFP-based energy storage systems (ESS) applications grew sharply, driving overall sales growth. The Malaysian plant also steadily increased sales volume, contributing to improved profitability.

The semiconductor materials business recorded KRW 64.5 billion in sales and operating profit of KRW 17.4 billion. Synergies from the merger of the test socket and equipment businesses began to materialize in earnest, driving the division to its highest-ever quarterly revenue. In particular, the test socket business achieved a quarterly operating margin of 33 percent, supported by strong sales of high value-added products for AI-driven non-memory applications.

SKC's glass substrate business, which the Company aims to commercialize as a world first, has commenced the customer qualification process following the production of its first mass-production prototype samples at the Georgia plant. The prototypes achieved positive results in simulation tests, putting commercialization on track for next year.

The chemical business posted sales of KRW 273.5 billion and an operating loss of KRW 7.4 billion. Backed by stable demand, the division maintained steady sales, while the operating loss narrowed significantly from the previous quarter due to stabilization in raw material costs. In the fourth quarter, demand for PG is expected to rise due to seasonal factors, and the Company plans to continue its cost-optimization efforts.

Financial performance also showed notable progress. The Company significantly increased cash inflows through the issuance of perpetual bonds exchangeable into shares (EBs) and the sale of non-core semiconductor businesses, thereby accelerating efforts to strengthen its financial health. SKC plans to complete its rebalancing initiatives by year-end and establish an efficient capital structure centered on its core businesses.

An SKC official said, “We are focusing on strengthening the competitiveness of each business and establishing a profitability-centered growth model”, adding, “Alongside continued efforts to generate results from new businesses such as glass substrates, we will also focus our efforts on strengthening medium- to long-term financial stability.” [End]