Telcon RF Pharmaceutical Reports 30% Sales Increase to 36.3 Billion KRW Last Year

Operating Profit 1.1 Billion KRW · Net Profit 16.3 Billion KRW
Return to Profitability After 3 Years

Telcon RF Pharmaceutical announced on the 14th that its consolidated sales for 2023 reached 36.3 billion KRW, a 30% increase compared to the same period last year. During the same period, operating profit and net income were 1.1 billion KRW and 16.3 billion KRW, respectively, marking a successful turnaround from a deficit structure that had persisted since 2020.

On a separate basis, sales and operating profit were 34.9 billion KRW and 1.6 billion KRW, respectively, representing a 35% increase compared to the same period last year and a shift to profitability. Net income during this period was 13.5 billion KRW, a significant turnaround from a 58 billion KRW loss last year.

A company representative stated, "Last year's performance was greatly influenced by the increase in sales and operating profit of the pharmaceutical division," adding, "We plan to pursue additional facility investments this year to continuously drive growth in sales and operating profit."

Telcon RF Pharmaceutical's pharmaceutical division recorded sales of 11.7 billion KRW in 2021, 12.2 billion KRW in 2022, and 21.6 billion KRW last year, a 77% increase compared to the previous year. In particular, operating profit rose 224% year-on-year to 2.6 billion KRW, achieving a double-digit operating profit margin.

Since the pharmaceutical division's sales and operating profit significantly exceed those of the existing RF (Radio Frequency) division, Telcon RF Pharmaceutical plans to apply for an industry classification change in May. After changing to the pharmaceutical industry classification, the company intends to expand additional facilities to establish a growth foundation for continuous increases in sales and operating profit.

The largest shareholder and related parties of Telcon RF Pharmaceutical are Hanil Vacuum and one other person, holding a 24.45% stake. Hanil Vacuum is scheduled to change its company name to NewOn on the 18th. Due to the stock price decline caused by Telcon RF Pharmaceutical's continued poor performance, which affected the designation as a management item due to valuation losses, the company plans to focus on restoring corporate value. The anticipated turnaround of Telcon RF Pharmaceutical this year is expected to greatly assist Hanil Vacuum in escaping the management item designation.