FineMtech Reports Consolidated Sales of 43.5 Billion KRW in Q1

FineMtech, a company specializing in electronic components and led by CEO Lee Jaekyu, announced on May 12 that its consolidated results for the first quarter of this year showed sales of 43.5 billion KRW and an operating loss of 3 billion KRW, based on provisional figures.

Compared to the same period last year, sales declined and the company shifted to an operating loss. The main reasons for this are identified as a slowdown in demand for core components related to foldable smartphones?continuing from the fourth quarter of last year?and a decrease in component orders due to stagnation in the growth of the electric vehicle industry.

In particular, the slowdown in the global foldable smartphone market and adjustments in electric vehicle production plans by finished car manufacturers are understood to have had a direct impact on the company's performance. As a result, deliveries to major customers temporarily declined, placing pressure on both sales and profitability.

A FineMtech representative stated, "Despite the temporary contraction in our core markets, we expect a gradual recovery in demand in the second half of the year as the global IT and electric vehicle markets rebound. We plan to focus on improving profitability by securing new clients and expanding our portfolio of high value-added products."

Meanwhile, FineMtech recorded annual sales of 382.2 billion KRW and an operating loss of 7.9 billion KRW last year.