Reduced Losses, Revenue Up 34%
Increased Sales Volume and Improved Efficiency Drive Results
SK IE Technology (SKIET) announced on July 30 that its consolidated operating loss for the second quarter of this year was provisionally calculated at 53.7 billion KRW. This represents a slight reduction in losses compared to the same period last year, when the operating loss was 58.7 billion KRW.
Revenue reached 82.7 billion KRW, marking a 34.09% increase compared to the same period last year. The net loss was 19 billion KRW, showing a narrowing of losses. Compared to the previous quarter, SKIET explained that revenue increased by approximately 42%, and the operating loss improved by about 23%.
SKIET attributed these results to a roughly 60% increase in sales volume for the second quarter compared to the previous quarter, driven by higher sales in North America and Europe and expanded sales of products for energy storage systems (ESS).
An SKIET representative stated, "Sales volume increased in the second quarter and inventory levels decreased, leading to higher utilization rates," adding, "In particular, utilization rates at the Poland plant increased significantly."
Additionally, SKIET improved operational efficiency through inventory adjustments and the liquidation of non-core assets. By the end of the second quarter, SKIET's inventory assets had decreased to nearly half of last year's peak level. On July 1, the company sold its non-core asset, the Cheongju plant, and is currently negotiating with multiple companies to sign a contract for the sale of its flexible cover window (FCW) business assets within the year.
In the second half of the year, SKIET plans to focus on expanding its ESS customer base, particularly in North America and Europe, where demand is spreading. SKIET stated, "Since the beginning of this year, we have been supplying separators for small-scale ESS to customers, and we are in discussions with multiple potential customers regarding product supply."
The investments in Poland Plants 3 and 4 are expected to be mostly completed within this year, and Poland Plant 2 is targeting the start of commercial operations in early next year. SKIET has determined that, due to the U.S. tax reduction bill passed in early July, the necessity for short-term entry into the North American market has decreased.
However, in response to the U.S. policy of containing China, SKIET plans to actively respond to the growing demand for non-Chinese materials in the second half of the year. The funds raised through the third-party allotment capital increase of 300 billion KRW will be used for the stable operation of overseas production bases, strengthening research and development capabilities, and improving production facilities.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
