SKC Reports Q1 Sales of 669.1 Billion KRW and Operating Loss of 21.7 Billion KRW

SKC announced on the 4th that it recorded sales of 669.1 billion KRW and an operating loss of 21.7 billion KRW in the first quarter.

The secondary battery materials business, centered on the copper foil business investment company SK Nexilis, achieved sales of 180.4 billion KRW and an operating profit of 300 million KRW. Despite a slowdown in market demand, sales volume expanded compared to the previous quarter, and from the second quarter, sales volume and revenue are expected to increase due to demand expansion mainly in North America and Europe. SK Nexilis is laying the foundation for full-scale growth through global expansions in Malaysia and Poland. The operation of the Malaysia plant in the second half of the year will secure excellent cost competitiveness.

The chemical business, centered on SK PIC Global and SK PU Core, recorded sales of 393.3 billion KRW with an operating loss of 6 billion KRW. The market prices of key products such as propylene oxide (PO) and propylene glycol (PG) continued to weaken, but by expanding sales volume, the loss margin was significantly improved compared to the previous quarter.

The semiconductor materials business, centered on SK Enpulse, recorded sales of 87.5 billion KRW and an operating profit of 7.9 billion KRW. Despite the global semiconductor downturn, operating profit increased by 60% year-on-year as growth in CMP pads and blank mask businesses began in earnest.

SKC is promoting future growth businesses such as semiconductor glass substrates and silicon anode materials. The glass substrate business is constructing a production plant aiming for commercialization in the second half of next year, with the current progress rate exceeding 30%. The silicon anode material business will start pilot production investment in the second quarter and push for full-scale commercialization. The eco-friendly biodegradable materials business is also planning to start construction within the year, targeting commercialization in 2025.

An SKC official stated, "After completing the sale of the film business, our core business, last year, SKC is establishing a foundation for full-scale growth as a global ESG (Environmental, Social, and Governance) materials solution company," adding, "Through strong innovation to counter the deteriorating business environment, we will achieve a rapid performance rebound and enter a growth trajectory."