DA Technology Surpasses 10 Billion KRW in CS Sales... Increased Demand for Renovation and Replacement

As the performance of secondary batteries advances, shortening the repair cycles for equipment and parts, DA Technology's CS (Customer Service) business has emerged as a key driver of revenue.

DA Technology announced on the 29th that its CS sales surpassed 10 billion KRW for the first time this year. CS sales generate revenue from maintenance, modification, and replacement of secondary battery equipment and facilities previously delivered domestically and internationally. According to the company, based on a preliminary settlement at the end of November, CS sales are around 10 billion KRW, with additional growth expected through the end of December.

For secondary battery equipment, although there are differences by process and equipment, modification and replacement demands typically arise every 2 to 3 years or 3 to 4 years. Additionally, ongoing maintenance, regular parts replacement, inspection, and repair demands continue annually, sustaining long-term sales relationships with existing customers.

In particular, with recent advancements in secondary battery performance and the expansion of the electric vehicle market driving increased battery demand, the frequency of equipment use has risen, leading to shorter cycles for parts replacement and equipment modification or replacement.

DA Technology expects significant growth in CS sales next year. This is because the replacement cycles for most equipment delivered to Poland and China in 2018 and 2019 are approaching. The rapid growth in CS sales this year was partly due to reflected CS sales from Poland and China.

A company representative stated, “While it is natural that large-scale new orders related to major facility expansions drive significant sales growth, the CS business, including maintenance, modification, and replacement, also plays a positive role in stable sales and profitability. We expect additional sales growth and profit improvement next year as replacement demand for equipment previously delivered returns, along with securing new orders.”