●​ EBITDA surges threefold QoQ to KRW 29.1 billion... Financial structure improved following the completion of a paid-in capital increase​

●​ Chemical business leads earnings recovery with a 218% spike in operating profit... Driven by a focus on high-value-added products

●​ Copper foil business achieves record quarterly sales & Semiconductor materials business shows solid growth... Tangible results in the glass substrate business​

SKC (CEO Kim Jong-woo) announced on the 27th that it recorded KRW 645.4 billion in sales and KRW 14.4 billion in operating loss for the second quarter of this year.

Sales increased by approximately 30% compared to the previous quarter, and the operating loss narrowed by about 50%. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key indicator of cash-generating capability, expanded roughly threefold quarter-on-quarter to KRW 29.1 billion, marking the second consecutive quarter in the black. Furthermore, by successfully completing a paid-in capital increase of KRW 1.1647 trillion, the company significantly improved its net borrowings and debt-to-equity ratio.

The profitability recovery of the chemical business played a major role in this quarter's performance. The chemical division posted KRW 317.8 billion in sales and KRW 30.5 billion in operating profit, a 218% jump from the previous quarter. Although production and sales volumes declined due to global supply chain uncertainties, rising prices of PG (Propylene Glycol) and PO (Propylene Oxide) drove up revenue. In addition, expanded sales of high-value-added products, combined with intensive cost-reduction efforts and process efficiency improvements initiated early this year, led to maximized profitability.

The copper foil business achieved record-high quarterly sales of KRW 254 billion. With the sales proportion in North America expanding to 67%, the sales volume of copper foil for ESS (Energy Storage Systems) and EVs (Electric Vehicles) increased by 76% and 28%, respectively, driving growth. In the second half of the year, the company plans to further enhance its cost-competitiveness by fully operationalizing its Malaysia-centric production and sales system.

The semiconductor materials business recorded sales of KRW 72.9 billion and an operating profit of KRW 21.3 billion. Sales of test sockets for AI data centers surged 66% year-on-year, continuing its growth trajectory, and solid profitability was maintained through expanded sales of high-value-added products. For the second half, the company aims to actively respond to growing customer demand by expanding production capacity backed by the expansion of its Plant 1 in Vietnam.

The glass substrate business accelerated its "two-track" strategy to commercialize both _ _ embed__ding and non-_ _ embed__ding products simultaneously. Initial reliability tests for _ _ embed__ding products have commenced, and the company has embarked on a new project by supplying non-_ _ embed__ding prototypes for next-generation network semiconductors to a U.S. telecommunications company. In the second half, the glass substrate division plans to successfully conclude the reliability tests for _ _ embed__ding products and ensure seamless preparation for the Proof of Concept (POC) for non-_ _ embed__ding products.

An SKC official stated, "In the second quarter, we were able to lay the foundation for earnings recovery as profitability improved across all businesses and achievements in new businesses materialized." The official added, "In the second half, we will continue to improve profitability by enhancing operational efficiency, while solidifying our mid-to-long-term growth foundation by strengthening the technological competitiveness of our new businesses." [End]

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