L&K Biomed Exceeds Expectations with Strong Performance... Continued Growth This Year

[Asia Economy Reporter Hyungsoo Park] L&K Biomed recorded sales of 4.5 billion KRW and operating profit of 1.8 billion KRW in the fourth quarter of last year.

According to the Financial Supervisory Service's electronic disclosure system on the 14th, L&K Biomed posted sales of 18.2 billion KRW and operating profit of 4.2 billion KRW last year based on separate financial statements.

The company explained that it completely resolved the issue of being designated as a 'management item' and achieved business results exceeding expectations.

A company official stated, "Since winding down domestic operations at the end of 2019, total sales last year slightly decreased," adding, "However, product sales increased due to strong exports of the new expandable cage to the US and increased demand for sterilized products caused by COVID-19."

L&K Biomed received an adverse opinion on its internal accounting control system in the first half of 2019 and underwent a substantial review of listing eligibility. After being granted a 10-month improvement period, trading resumed in April last year.

During the trading suspension period, L&K Biomed focused on developing new products. In September 2019, it received US FDA approval for the expandable cage. Despite the US market contraction caused by the COVID-19 pandemic in 2020, the strong performance of the expandable cage enabled the company to achieve sales at the average level.

Through active management improvements as well as strategic selection and concentration, the company reduced the proportion of cost of sales and selling and administrative expenses. It also lowered its debt ratio by redeeming previously issued convertible bonds or converting some into capital stock.

Since the second half of last year, the company has been expanding its sales network with small- and medium-sized distributors in the US market. It is planning large-scale supply of the expandable cage through strategic partnerships with global companies. Based on the excellence of the expandable cage product, it is attracting interest from numerous world-leading companies.

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