Lioncemtec Reports Operating Profit of 15.9 Billion KRW Last Year, Up 38% Year-on-Year

[Asia Economy Reporter Hyunseok Yoo] Lionchemtech announced on the 17th that its operating profit for last year reached 15.9 billion KRW, a 37.5% increase compared to the same period last year. Sales amounted to 132.6 billion KRW, and net profit was 7.7 billion KRW, decreasing by 15.0% and 28.0%, respectively. The net profit decline was due to a one-time write-off of non-performing assets resulting from conservative accounting treatment.

A company representative stated, “Market demand and plant operating rates, which had decreased due to the spread of COVID-19, recovered in the second half of the year,” adding, “In particular, profitability improved due to increased sales of high value-added products such as Engineered Stone (E-stone) and materials for eco-friendly adhesives.”

Last year, Lionchemtech’s operating profit was 6.5 billion KRW in the first half but increased by 2.8 billion KRW to 9.3 billion KRW in the second half. The operating profit margin also rose from 9.8% in the first half to 14.1% in the second half.

Meanwhile, the low level of oil prices enabled cost reductions. Lionchemtech uses materials refined from crude oil such as Methyl Methacrylate (MMA) and Polyethylene (PE).

A Lionchemtech representative said, “With new product launches and the recovery of domestic and international construction markets, sales of artificial marble are expected to increase,” and added, “The synthetic wax division will also grow as its applications expand to eco-friendly adhesives and other uses.”

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