Sujentek "Last Year Operating Profit 22.5 Billion KRW... Large-Scale Turnaround to Profit"

[Asia Economy Reporter Yoo Hyun-seok] SuzenTech announced on the 10th that its sales last year reached 41.3 billion KRW, a 975% increase compared to the previous year, and operating profit reached 22.5 billion KRW, successfully turning profitable. Despite fierce competition among diagnostic companies, SuzenTech recorded an outstanding operating profit margin of 54%, successfully managing profitability. However, the company explained that due to accounting regulations, a one-time derivative product valuation loss related to convertible bonds caused by stock price increases resulted in a non-operating loss, leading to a pre-tax loss of 40.8 billion KRW.

The increase in sales last year was the result of actively responding to the acceptance of diagnostics by major overseas countries, based on the development and mass production of diversified COVID-19 diagnostic kits. SuzenTech succeeded in developing a diverse portfolio of COVID-19 diagnostic kits last year through swift responses, including antigen rapid diagnostic kits, antibody rapid diagnostic kits, and neutralizing antibody test kits.

In particular, following FDA approval of the antibody rapid diagnostic kit, the neutralizing antibody diagnostic kit, which was the second to be developed worldwide, received European CE certification. The product lineup developed so far has been externally validated for its outstanding technological capabilities by obtaining various international certifications and certifications from major countries.

A SuzenTech official stated, "Healthcare industry insiders expect COVID-19 to become endemic like the common cold or flu, and the diagnostic market is expected to continue growing." He added, "SuzenTech is developing diagnostic products based on various diagnostic platforms such as multiplex diagnostics, point-of-care testing, and self-diagnosis to respond to market diversification, and some product lines have already completed development and are about to be launched." He continued, "Since the global diagnostic kit market has grown significantly due to COVID-19, we will strive to maintain growth momentum by releasing new diagnostic products based on continuous technological development."

Meanwhile, the International Financial Reporting Standards (IFRS) require companies to recognize the increase in value of convertible bonds (CB) and bonds with warrants (BW) due to stock price rises as derivative financial liabilities and treat them as non-operating expenses. This is a one-time loss reflected in accounting. SuzenTech recognized derivative financial liabilities related to convertible bonds issued in September 2019 due to stock price increases and recorded this as a non-operating loss.

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