[Public Notice+] NewG Lab Achieves Triple-Digit Sales Growth YoY Last Year... "Focusing on Profitability Improvement This Year"

[Asia Economy Reporter Hyunseok Yoo] Newgelab announced on the 28th that its consolidated sales last year reached 95.8 billion KRW, a 414.05% increase compared to the same period the previous year. During the same period, operating loss and net loss were 100 million KRW and 2.7 billion KRW, respectively.

However, last year's individual operating profit turned positive at 2.2 billion KRW, alleviating concerns about being classified as a management warning stock.

In particular, last year's sales stood out in the mobile distribution business, including devices and smartphone accessories, driven by form factor innovations such as the launch of 5G and foldable phones. Newgelab's separate sales last year reached 95.8 billion KRW, expanding by 416.18% compared to the previous year.

The CCTV business also enhanced its overseas competitiveness by effectively exploiting the niche market created by the security issues between the U.S. and China, which led to a decline in sales of Chinese products. Additionally, the company is strengthening market competitiveness through sales of intelligent CCTV products such as thermal imaging cameras and the development of customized new products for customers.

Newgelab has been actively advancing a new business in new drug development, including fourth-generation large anticancer agents, to secure new growth engines last year, resulting in a slight increase in investment costs for the new drug development business. The results of investments in the new drug development business last year are expected to become visible starting this year, with meaningful performance growth anticipated.

Recently, Newgelab has been accelerating the production of active pharmaceutical ingredients for clinical trials and sales in collaboration with the German global pharmaceutical company Merck. Since last year, it has also been conducting preclinical stages together with Covance, the world's leading clinical research organization (CRO), which is expected to speed up the entry into clinical trials. A company official stated, “The CCTV and mobile device distribution businesses are supporting stable growth, and the new drug development business, a new venture, is expected to show tangible results this year. With last year's turnaround in individual operating profit, concerns about management warning stock have been completely resolved, and this year we plan to focus on enhancing shareholder value through substantial achievements.”