[Public Notice+] NewG Lab Reports Operating Profit of 2.4 Billion KRW... "Concerns Over Management Item Resolved"

[Asia Economy Reporter Yoo Hyun-seok] Newgelab announced on the 7th that its separate basis operating profit last year recorded 2.38 billion KRW, achieving a turnaround. During the same period, sales reached 95.81 billion KRW, showing a significant growth of about 416% compared to the previous year.

On a consolidated basis, operating profit was 76.3 million KRW, and net loss for the period was about 600 million KRW, reflecting the profit and loss from investments in newly started subsidiaries.

The sharp increase in sales and operating profit was driven by the 5G division. With the full-scale opening of the 5G era last year, sales of mobile devices and accessories expanded significantly. The CCTV business also enhanced its overseas competitiveness by appropriately exploiting the niche market created by the US-China security issues, which led to a decline in sales of Chinese products. Additionally, the company is strengthening market competitiveness through sales of intelligent CCTV products such as thermal imaging cameras and the development of customized new products for customers.

A company official explained, “Although the company had received positive evaluations in the stock market due to quarterly performance improvements and expectations for the development of anticancer drugs, stock price growth was limited throughout the year due to concerns about being classified as a management item. However, with the successful turnaround to profitability after three years, the negative factors have been completely resolved.” He added, “In 2020, we plan to continue the growth of existing businesses while further enhancing corporate value through the full-scale development of anticancer drug new drugs secured as future growth engines.”

Furthermore, the anticancer drug new drug development project being conducted through Newgelab Pharma, a 100% subsidiary in the United States, is expected to accelerate. Since last year, Newgelab has been conducting preclinical stages in collaboration with Covance, the global No.1 clinical research organization (CRO). The company is also speeding up business progress by producing active pharmaceutical ingredients for clinical trials and sales use at Merck, a global German pharmaceutical company.

This content was produced with the assistance of AI translation services.