Seokgyeong AT Reports Q1 Sales of 2.37 Billion KRW, Down 22% YoY

Decrease in Client Orders and Increase in Fixed Costs
Recovery Trend from Q2 with Business Normalization
Securing Growth Engines in Core Materials such as Telecommunications, Secondary Batteries, and Semiconductors

Nanotechnology developer Seokgyeong AT announced on the 12th that its operating profit for the first quarter of this year, based on consolidated financial statements, was 107.6 million KRW, a 91.9% decrease compared to the same period last year. Sales amounted to 2.37066 billion KRW, down 22.1% from the same period last year.

A Seokgyeong AT representative explained, "Sales volume decreased due to changes in major customers' inventory policies caused by the economic downturn," adding, "Operating profit also declined due to increased fixed costs such as expenses from asset growth and research and development costs." He continued, "Sales and profit structures are gradually recovering in the second quarter," and added, "There will be no problem achieving the annual target."

The global dental materials business division, which accounts for more than half of total sales, saw a decrease in export volume due to customers' minimum inventory holding policies. Orders have been proceeding normally since the second quarter. The 3D dental printing materials, expected to be a new cash cow, are being actively marketed in cooperation with partners in the North American region. The domestic business division for coatings and absorbers is also showing a trend of gradually normalizing orders due to customers' new product launches.

Seokgyeong AT plans to seek ways to increase production capacity (CAPA) to achieve significant growth in the future, while focusing on diversifying its business portfolio through the concretization of future new growth engines such as ▲ ultra-high-speed communication materials for 5G and 6G ▲ secondary battery electrolyte materials and additives ▲ TIM thermal interface materials ▲ semiconductor underfill materials.

Im Hyeongseop, CEO of Seokgyeong AT, said, "Existing businesses experienced temporary sluggishness due to the worsening external business environment," adding, "We are maintaining a good flow from a mid- to long-term perspective." He added, "We will continue to show growth through relentless research and development and early commercialization of new businesses."