Solus Advanced Materials Reports Operating Profit of 2 Billion KRW Last Year, Down 93.5% Year-on-Year

Impact of European Power Shortage, Raw Material Price Increase, and Rising Operating Costs at Hungarian Factory
Production Volume Rises, Sales Increase 31.4% to 381.2 Billion Won, 'Record High'

[Asia Economy Reporter Lee Hyeyoung] Solus Advanced Materials announced on the 9th that its consolidated operating profit for last year decreased by 93.5% compared to the previous year, recording 2 billion KRW. Sales reached 381.2 billion KRW, up 31.4% from the previous year, marking the highest performance since the split establishment from its predecessor, Doosan Solus, in 2019.

Despite increased costs due to the intensified power shortage in Europe, rising raw material prices, and increased operating expenses from mass production at the Hungary battery copper foil Plant 1, production volume showed a stable growth trend.

By business segment, the battery copper foil division (battery copper foil and copper foil) achieved record sales of 241.4 billion KRW last year. The battery copper foil business began generating full-scale sales with the operation of the Hungary battery copper foil Plant 1. The stable growth of the copper foil business, which holds a portfolio of copper foil for 5G, semiconductors, smart chips, and aerospace, also supported the performance of the battery copper foil division.

The advanced materials division (electronic materials and bio) also achieved record sales of 139.8 billion KRW. The electronic materials business led the advanced materials division’s performance by successfully diversifying customers for light-emitting materials and expanding into non-light-emitting materials. The bio business also increased its sales contribution as ceramide materials were adopted as core materials by client companies.

Solus Advanced Materials set its sales target for this year at 600 billion KRW, a 57% increase from last year.

Kwak Geunman, Chief Financial Officer (CFO) of Solus Advanced Materials, said, “We will secure future growth opportunities through the development of customer-tailored materials in all business divisions, supported by the surge in global electric vehicle demand, resumption of 5G investments, the mainstreaming of organic light-emitting diode (OLED) panels, and the advancement of bio-material technology. In particular, this year, we will firmly establish our status as a global materials company by completing the Hungary battery copper foil Plant 2, signing new supply contracts, increasing sales of high-margin high-end copper foil, starting mass production at the China OLED materials plant, and expanding applications for bio materials.”

Meanwhile, Solus Advanced Materials’ board of directors resolved on the same day to pay dividends for the second consecutive year following last year. The cash dividend is 100 KRW per common share.

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