SeKyung Hi-Tech, a manufacturer of optical films for foldable phones (CEO Ki-Seung Lee), announced its business performance for the second quarter of this year through a public disclosure on the 14th. The sales revenue for the second quarter reached 100.1 billion KRW, and operating profit was 12.9 billion KRW, representing increases of 48% and 127% respectively compared to the same period last year.
The company explained that the main factors driving the performance growth in the first half of the year were ▲ increased sales of optical films and ▲ strong orders for back cover items in the first half. However, net profit turned into a net loss due to a derivative valuation loss of 56.2 billion KRW recorded under non-operating expenses.
Regarding this, the company stated, “The derivative valuation loss occurred due to the difference between the conversion price of redeemable convertible preferred shares and the stock price following the stock price increase in the first half. This loss is an unrealized valuation loss that does not cause cash outflow and is an accounting loss unrelated to the actual business operations.”
A representative from SeKyung Hi-Tech said, “Maintaining quality competitiveness across all business items, along with steady yield improvement and cost reduction activities, were effective,” and added, “Based on this competitiveness, we expect sales expansion to Chinese customers in the second half of the year.”
Meanwhile, SeKyung Hi-Tech exclusively supplies functional films for foldable phones and is raising expectations for its performance as a parts supplier in the expanding foldable phone market, especially with news of Apple’s entry into the foldable market. Recently, the company has also entered the secondary battery-related business, attracting attention as a secondary battery-related stock.
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