Geumyang Reports Operating Profit of 2.5 Billion KRW in Q2, Up 154% YoY

[Asia Economy Reporter Yoo Hyun-seok] Kumyang, a specialty company in precision chemical industry, announced on the 18th that its consolidated operating profit for the second quarter of this year recorded 2.5 billion KRW, an increase of 154% compared to the same period last year. Sales during the same period increased by 29% to 51.9 billion KRW.

The performance for the first half of the year also showed good results. Operating profit for the first half reached 6.6 billion KRW, up 63% compared to the same period last year. Sales also rose 15% to 102.3 billion KRW, and net profit turned positive at 2.6 billion KRW.

The company attributed the strong performance to increased exports of foaming agents to Europe, including ‘OBSH’. OBSH, Kumyang’s flagship product, is an eco-friendly foaming agent used in automotive weatherstrips and other applications. Along with the recent global economic recovery, the growth of the electric vehicle market has increased demand for the company’s products. Additionally, Kumyang reported that production at its China factory increased due to efficiency improvements through production plant relocation.

Kumyang’s eco-friendly foaming agents do not generate harmful substances or odors (such as sulfur compounds and sulfur oxides) during the manufacturing process, making them applicable to various products including mats, wallpapers, flooring materials, and shoes. The company is actively targeting related markets by launching new products such as the eco-friendly puzzle mat ‘evaZERO’ that applies eco-friendly foaming agents.

Furthermore, Kumyang is pursuing sales diversification through new growth engines such as secondary battery materials and hydrogen fuel cell businesses. The company received catalyst technology capable of synthesizing ultrafine nanoparticles from the Korea Institute of Science and Technology (KIST). In February, Kumyang signed a memorandum of understanding (MOU) with KIST for joint research and development of fuel cell technology and materials. The company is also actively promoting hydrogen fuel cell development by successfully recruiting Jang Seok-young, former 2nd Vice Minister of the Ministry of Science and ICT.

Alongside this, Kumyang expects demand for lithium hydroxide for cathode materials to increase. Lithium hydroxide is a key material that facilitates the synthesis of ‘high-nickel’ cathode materials, the next-generation secondary batteries. Based on the technology and know-how accumulated in the foaming agent business, Kumyang has successfully established processing facilities for lithium hydroxide. Kumyang is also conducting an additive business for cathode materials.

A Kumyang official stated, "As demand for localization and internalization of cathode materials increases, interest in our secondary battery and hydrogen fuel cell businesses will also grow. We will lead long-term performance growth through continuous investment in new businesses alongside our core foaming agent business."

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