DA Technology Contributes to Strong CS Sales Performance... Arrival of Secondary Battery Equipment Replacement Cycle

DA Technology announced on the 21st that its CS (Customer Support) business has achieved record-high sales, driven by the replacement cycle of secondary battery equipment.

This year, the CS business generated approximately 11.7 billion KRW in sales, primarily from maintenance, remodeling, and replacement projects for secondary battery equipment and facilities delivered 4 to 5 years ago, mainly in China and Southeast Asia.

Furthermore, the expected sales recognition amount for the first quarter of next year, including ongoing CS projects, has already exceeded 5 billion KRW. Since DA Technology recognizes sales based on shipment and project completion, some sales from orders received in the second half of this year and profits from CS projects requested by customers are expected to be reflected in the first quarter sales.

In particular, the company explained that the CS business is highly profitable and is expected to contribute to excellent performance, including not only external growth but also plans for a quarterly turnaround to profitability.

A company representative stated, “Although the first quarter is traditionally considered an off-season for the equipment industry, we expect a full-scale performance turnaround based on the existing order backlog and growth in the CS business. The setup of Z-stacking equipment in Indonesia and China is also progressing smoothly, so we will make every effort to secure new orders next year.”

Additional order expansion is expected next year according to the order and replacement cycle of the secondary battery business. If the operating rate of the upstream industry remains high, it will lead to strong sales in the CS business, including consumables and maintenance.

As a first-generation equipment company related to secondary batteries with over 20 years of experience and references, DA Technology expects an expansion of new orders and CS orders from existing clients.

Given the characteristics of the battery industry, where speed and yield are critical, equipment that can improve yield and margin based on technology is preferred during expansions like the current one. Since it is important to expand as much capacity as possible with stable yield, changing equipment or clients from existing equipment carries significant risk.

A company representative said, “DA Technology has maintained a long-term stable cooperative relationship with existing clients through technological capability and equipment responsiveness. We plan to continue the record-breaking order rally next year through the expansion of CS business sales according to the remodeling and replacement cycle of previously supplied equipment and securing new orders driven by growth in the upstream market.”