Aju IB Investment Q1 Operating Profit 10.3 Billion Won Reaffirms 'Profitability'

1Q Operating Profit Increased by 11.6 Billion Won YoY
AUM Expansion and Investment Asset Gains Drive Strong Performance
Performance Growth Expected from Additional Listings of Investee Companies

AJU IB Investment has reaffirmed its profit-generating capability.

According to the electronic disclosure on the 15th, AJU IB Investment recorded an operating profit of 10.3 billion KRW based on consolidated financial statements for the first quarter of this year. This represents an increase of 11.6 billion KRW compared to the same period last year and a significant rise compared to the operating profit of 2 billion KRW in the fourth quarter of last year.

The increase in investment profits from proactively invested promising portfolios and the expansion of assets under management (AUM) were key factors. The company that greatly contributed to AJU IB Investment’s performance growth is Nanoteam. Nanoteam, a producer of thermal management materials for electric vehicle batteries that went public in March this year, is generating stable profits. AJU IB invested 3 billion KRW in Nanoteam in 2019 and recorded an overwhelming multiple of about 30 times.

Among AJU IB Investment’s portfolio companies, GI Innovation, an innovative new drug development company; Novomics, which developed the world’s first gastric cancer prognosis diagnostic kit; and Selbio Humantech, a specialized mask pack sheet material company, have also been listed on the securities market. Charismatherapeutics, discovered through the U.S. local subsidiary Solarstar Ventures, has entered the Nasdaq market through a reverse merger. The company expects that with many other portfolio companies pursuing IPOs, including Curatis, a vaccine and immune disease specialist, the profit growth will continue to expand beyond the first quarter through successful exits of these companies.

AJU IB also stood out in terms of investment assets. The company successfully launched the AJU Solarstar Life Science 4.0 Fund (113 billion KRW) in May last year, the AJU Good No.3 PEF (267.9 billion KRW) in March this year, and the AJU December Knox Fund (24.8 billion KRW). Thanks to these efforts, the company’s assets under management (AUM) surpassed 2.3 trillion KRW as of the end of March this year.

AJU IB Investment’s accelerator (AC) business is also progressing smoothly. Building on the growth of existing business areas, the company began its accelerator business by securing the operation rights for the TIPS (Tech Incubator Program for Startups) program in August 2020. It expanded deep-tech-based startup investments after being selected as the operator for the second phase of Scale-up TIPS in July last year. This year, it has applied for the ‘AJU Good Super Gap Scale-up Fund (tentative name)’ in the regular fund of funds, and if successfully selected and raised, it is expected that AJU IB Investment’s strength will be further highlighted by investing across the entire lifecycle of companies.

Kim Ji-won, CEO of AJU IB Investment, said, “In a rapidly changing investment environment paradigm, AJU IB Investment is proactively investing in promising companies and has proven solid performance through steady fund formation and liquidation. This year, we will not only achieve a successful performance turnaround but also fulfill our role and responsibility in revitalizing the venture ecosystem and supporting the growth of invested companies, striving to enhance shareholder value and share profits.”