J's Co Holdings Achieves Operating Profit of 800 Million KRW in Q2... Reaches Black Ink

[Asia Economy Reporter Jang Hyowon] J-Sco Holdings announced on the 17th through a disclosure that its sales in the second quarter of this year slightly decreased to 21.4 billion KRW compared to the same period last year (22.5 billion KRW), and operating profit was 800 million KRW, successfully maintaining a profit trend following the second quarter of last year. However, due to amortization from the effective interest rate method applied to convertible bonds and derivative product valuation losses, a net loss of 4 billion KRW was recorded for the period.

A J-Sco Holdings official stated, “Although sales slightly declined due to the impact of the global economic recession, sales growth is expected in the second half of the year,” adding, “Additional sales are anticipated from the medical device distribution business, including the Helicobacter saliva rapid diagnostic kit, which is being promoted as a new business besides the steel business.”

He continued, “Despite a decrease in operating profit compared to last year due to the sharp rise in raw material prices caused by the Ukraine war and global supply chain instability, a profit was recorded, and the net loss was due to amortization and valuation losses related to convertible bonds, so no actual cash outflow occurred,” adding, “In the second half, profitability is expected to improve with expanded sales in the steel business and additional performance from the new medical device distribution business, leading to increased profits.”

J-Sco Holdings is pursuing business diversification beyond its existing steel business. First, in May, J-Sco Holdings signed a contract to acquire shares in Willings, a renewable energy specialist company. With the first payment made in July, J-Sco Holdings acquired a 14.7% stake in Willings, securing the position of largest shareholder, and upon completion of the contract, J-Sco Holdings’ stake will increase to 24.5%. Willings, established in 2003, is engaged in manufacturing electric conversion devices (inverters) and solar power generation business.

Through the acquisition of Willings, J-Sco Holdings plans to secure mid- to long-term growth engines by newly entering the solar inverter (electric conversion device) business. J-Sco Holdings also plans to promote battery-related businesses, including small batteries for drones, through Willings, in addition to the renewable energy business.

Additionally, J-Sco Holdings recently entered the medical device distribution business by signing a nationwide exclusive distribution contract with Rapamedics, a domestic medical device specialized distribution company, for the Helicobacter pylori saliva test device. The Helicobacter saliva rapid diagnostic kit qualitatively detects Helicobacter pylori urease from the saliva of the test subject, allowing determination of Helicobacter infection within 15 minutes.

Due to its convenience and speed, the Helicobacter saliva rapid diagnostic kit is suitable for suspected Helicobacter-infected patients such as ▲ elderly patients who have difficulty undergoing endoscopy ▲ pregnant women and infants ▲ patients with strong aversion to endoscopy. Moreover, it can be usefully applied to patients with a tendency for gastrointestinal bleeding and to determine the presence or absence of results after Helicobacter eradication therapy.