[Asia Economy Reporter Jang Hyowon] J-Sco Holdings, which is pursuing new businesses diversely along with a recent name change, announced through a disclosure on the 17th that its sales in the first quarter of this year reached 30 billion KRW, an 87.7% increase compared to 16 billion KRW in the same period last year.
However, due to major repairs on the production line conducted earlier this year and a sharp rise in raw material prices caused by recent wars, the company recorded an operating loss of 1.44 billion KRW, turning to a deficit. Net loss for the same period was 3.65 billion KRW.
A J-Sco Holdings official stated, “Although we recorded the highest sales since the company’s founding in this first quarter, the manufacturing cost increased inevitably due to major repairs and the surge in raw material prices, resulting in an operating loss. Since April, products have been sold at increased prices reflecting the rise in raw material costs, so we expect operating profit to improve in the upcoming half-year period.”
He added, “Currently, we have secured enough raw materials to continue production activities without disruption for the time being, but since the outbreak of the Ukraine war, we have been continuously doing our best to ensure stable raw material procurement. Along with our main steel business, we are carefully reviewing entry into new business fields to generate additional operating profit, and will announce details once internally finalized.”
Meanwhile, according to the Ministry of Trade, Industry and Energy, the recent domestic scrap metal wholesale price is currently 735,000 KRW per ton. This is about 260,000 KRW more expensive compared to 470,000 KRW in the same period last year. Industry sources explained that the rise in raw material prices and inflation is due to the ongoing Russia-Ukraine war since early this year.
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