SKC Reports Q2 Operating Loss of 70.2 Billion Won... 6% Improvement from Previous Quarter

Revenue Reaches 467.3 Billion Won, Up 3.1% Year-on-Year

On July 30, SKC announced in a regulatory filing that its consolidated operating loss for the second quarter was provisionally tallied at 70.2 billion won, an increase in losses compared to the same period last year (61.6 billion won).

Revenue reached 467.3 billion won, marking a 3.1% increase compared to the same period last year. Net loss narrowed to 4 billion won. Compared to the previous quarter, SKC explained that revenue grew by about 7% and operating loss improved by approximately 6%.

By business segment, the secondary battery materials business recorded revenue of 127.3 billion won and an operating loss of 38.1 billion won. Revenue increased by 29% compared to the previous quarter, surpassing the 100 billion won mark for the first time in seven quarters. The improvement in performance was driven by a 44% increase in sales volume in North America, as major customers in the region began full-scale operation of their factories.

The semiconductor materials business posted revenue of 60.6 billion won and operating profit of 14.4 billion won, up 37% and 112% respectively from the previous quarter. The resumption of research and development (R&D) and mass production schedules by major customers led to increased demand in the non-memory sector, and the operating profit margin rose to around 30%.

The chemical business saw a decline in revenue due to sluggish downstream demand and the impact of tariffs; however, operating loss decreased slightly thanks to lower raw material costs.

The company’s financial structure also showed improvement. SKC proactively liquidated non-core business assets and issued perpetual exchangeable bonds using treasury shares, reducing net debt by about 500 billion won compared to the end of the previous quarter. As a result of these measures, SKC maintained its credit rating at the same level as the previous year.

In the second half of the year, SKC plans to strengthen the stable profit base of its semiconductor materials business and focus on restoring profitability in the secondary battery materials business. The semiconductor segment is expected to see an increase in new supply volumes to non-memory customers, while the secondary battery segment is seeking customer certification for its Malaysian plant.

For the glass substrate business, prototype production is underway at the first plant in Georgia, United States, and the company aims to accelerate prototype delivery and certification procedures with the goal of commercializing the business in the second half of the year.

An SKC representative stated, "Despite an uncertain market environment, we will respond with even more flexible strategies," adding, "In the second half of the year, we will continue to strengthen the competitiveness of our core businesses and carry out timely strategic investments to accelerate new business initiatives."