Jaeyoung Solutek has signaled a structural reform aimed at improving its business structure with a focus on profitability.
On the 30th, Jaeyoung Solutek announced that it will cease operations of its loss-making mold business division. As a specialized company in camera actuators, the company plans to concentrate all its capabilities on its core nano-optics business and the discovery of new businesses that will drive future growth.
Jaeyoung Solutek's mold business division has produced molds and plastic products such as pallets and trays for logistics based on precise mold technology and long-standing experience. However, it recently faced difficulties due to intensified competition and sluggish domestic demand, resulting in stagnation in growth and deteriorating profitability. Despite self-help measures such as reorganizing the production system and focusing on profitability-based orders, the division continued to incur an operating loss of approximately 3 billion KRW annually.
A company official stated, “Although the mold business was the foundation of the company's establishment and development, we made a difficult decision to maximize shareholder value through management efficiency and profitability improvement. While a temporary decrease in scale is expected due to the suspension of the mold business, the high growth trend of the nano-optics business and the new businesses under review will sufficiently sustain growth.”
He added, “With the withdrawal from the mold business, which recorded an annual operating loss of around 3 billion KRW, the overall profitability of the company is expected to show a steeper upward trend.”
Meanwhile, Jaeyoung Solutek's performance centered on the nano-optics business continues to soar this year. It has already exceeded last year's total operating profit in the first half alone. If the current trend continues, this year's performance is expected to be the best ever.
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