RF Tech establishes 'RF Bio' through bio business spin-off... Accelerating industry specialization

[Asia Economy Reporter Hyunseok Yoo] RF Tech announced on the 14th that it has completed all legal procedures related to the physical division of its bio business division and established ‘RF Bio’.

RF Bio has completed all procedures including establishment registration, business registration, and approval change processes with relevant authorities such as the Ministry of Food and Drug Safety. Starting this month, it will be a 100% subsidiary of RF Tech and will be in charge of the medical aesthetic business, including hyaluronic acid (HA) fillers. Through this, the company plans to strengthen its identity and expertise, as well as establish an independent management system to focus on company growth through responsible management.

Furthermore, the company aims to increase its market share in the domestic and international medical aesthetic markets by expanding market competitiveness and adding new business items, with the goal of pursuing an independent listing.

RF Tech succeeded in reversing its performance after six years in 2019. Through this physical division, it plans to focus all its capabilities on IT manufacturing industries such as 5G communication equipment and mobile components to continue its performance improvement trend. Last year, consolidated sales amounted to 284.8 billion KRW, an 18.5% increase compared to the previous year, and operating profit recorded 14 billion KRW, a 143% growth compared to the previous year.

A company official stated, “Through this physical division, we plan to strengthen industry expertise and core competencies for both our core IT business and the bio business, which is our next-generation growth engine, and focus on improving profitability.” He added, “The bio business division will focus on strengthening growth potential and pursue an independent listing by establishing RF Bio as an independent corporation to become a specialized medical aesthetic company.” He continued, “RF Tech will strive to achieve a qualitative leap where both the core IT business and bio business grow together this year as well, following last year.”

Recently, RF Tech’s listing section in the KOSDAQ market was changed from the excellent enterprise section to the mid-sized enterprise section. This was due to a derivative product evaluation loss on convertible bonds caused by the stock price increase, resulting in a net loss for the last fiscal year. A company official said, “The derivative product evaluation loss is an accounting loss that does not involve cash flow and is unrelated to the company’s performance or operations, so it is not an issue that affects corporate value,” and added, “After the convertible bonds are converted or redeemed, the listing section may be changed back to the excellent enterprise section.”

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