Softcen "Expecting Performance Improvement Centered on UTG and X-Ray Inspection Equipment"

Plan to Focus on Expanding High Value-Added Markets

Softcen plans to drive a performance rebound this year by focusing on high value-added products such as UTG (Ultra Thin Glass, ultra-thin tempered glass for foldable displays) manufacturing equipment and X-Ray inspection equipment for secondary batteries.

Softcen announced on the 28th that its sales last year amounted to 61.1 billion KRW, down 16.70% from the previous year, with an operating loss of 1.4 billion KRW. The net loss for the period was 7.3 billion KRW. The company explained, “Sales and operating profit decreased due to the postponement of orders for highly profitable UTG equipment,” and added, “One-time costs related to investment in new X-Ray inspection equipment were also reflected at a high level.”

Softcen plans to overcome one-time costs and book losses and focus on expanding the high value-added market to improve performance. The company expects large-scale equipment orders driven by its customers’ expansion and production line increases.

Since 2021, Softcen has successfully delivered two small- and medium-sized UTG production lines to Jiangsu Suqian Technology, which produces UTG in China, recording related sales of 40 billion KRW. Jiangsu Suqian Technology, a strategic investor in Softcen, is currently constructing a new factory on a 50,000-pyeong site. They plan to expand large-scale UTG production facilities with a total of 10 lines, raising expectations for large-scale new equipment orders this year.

Additionally, Softcen has successfully entered the LFP (Lithium Iron Phosphate) battery market by supplying X-Ray inspection equipment for LFP batteries to ONE (Our Next Energy, hereafter ONE), a partner of Tesla. LFP batteries have recently seen a surge in demand due to their advantages of lower fire risk, longer lifespan, and affordability.

ONE plans to invest 1.6 billion USD (approximately 2.1368 trillion KRW) by 2027 to produce LFP batteries sufficient for 200,000 electric vehicles. With ONE preparing to fully operate its factory in the second half of the year, Softcen anticipates the possibility of supplying a large volume of additional equipment.

Furthermore, Softcen recently secured orders for next-generation battery production facilities at a domestic research institute established through cooperation between a major domestic battery company and a U.S. company S. A Softcen official stated, “Once the customer’s R&D line stabilizes, we expect large-scale additional orders for full-scale production lines to follow.”

The official also said, “As this is the last year of the government-designated audit, conservative accounting treatment led to the reflection of losses on provisions, valuation amounts, and inventory assets,” adding, “These are all book losses and are expected to be reversed as profits in the future.” They further added, “In line with the rapid growth of the electric vehicle market and the Chinese foldable phone market, we will focus all our capabilities on the X-Ray inspection equipment and UTG equipment businesses this year to enhance profitability and increase shareholder value.”