Setopia Reports 25.6 Billion KRW in Q1 Revenue, Up 1426% Year-on-Year

Setopia announced on the 15th that it recorded sales of 25.6 billion KRW on a separate basis in the first quarter of this year, marking a 1,426% increase compared to the same period last year.

During the same period, operating loss was 700 million KRW, but the operating deficit decreased by 57%. On a consolidated basis, sales were 25.7 billion KRW, operating loss was 2.2 billion KRW, and net loss was 2.9 billion KRW. Sales increased by 35%, and the operating deficit decreased by 7.8%.

In the first quarter, due to the absorption merger of Jason & Company, a stainless steel import distribution and processing company, the steel business established itself as the main source of sales, with steel business sales reaching 23.6 billion KRW, signaling a full-scale transformation from the existing security software business to the steel business as the main business.

However, the company explained that the first quarter results were due to last year’s economic issues, including the all-around raw material shock, logistics crisis, and exchange rate volatility. As these issues are gradually being resolved and a stable environment is being established, the company is confident that steel-related performance will improve in the second quarter compared to the first quarter.

This year, sales growth is expected to be prominent in newly promoted rare earth-related businesses and electronic cigarette distribution businesses. Prior to the rare earth business, which requires medium- to long-term investment and facilities, operating profit generation through sales in the distribution sector, including electronic cigarettes, is expected to begin in earnest.

Setopia holds the exclusive domestic distribution rights for the electronic cigarette ELFBar and is selling it through both online and offline channels. Starting sales on Coupang this month, the company is expanding its online and offline sales network. The company stated that due to consumer response and an increase in sales outlets both online and offline, it has placed an additional order for 800,000 ELFBar units.

Another new business, the rare earth business, is steadily progressing as planned. In April, the company acquired shares in KCM Industry, which possesses neodymium permanent magnet powder (NdFeB) production technology. Additionally, on the 2nd, it established a joint venture, GCM (Global Critical Material Limited), with Vietnam VTRE (Vietnam Rare Earth JSC), and plans to begin full-scale investment starting on the 25th.

The joint venture GCM plans to complete its establishment by receiving investment from VTRE once the foreign-invested enterprise registration procedures with Vietnam VTER are completed. It will then receive rare earth oxides from VTRE and sell them domestically and internationally, excluding Vietnam.

A Setopia representative said, “The new businesses we are promoting, including rare earths and electronic cigarettes, are all progressing smoothly, and especially the electronic cigarette business is growing as a business that will lead to performance improvement in the short term,” adding, “We will strive to operate the business stably and contribute to the company’s development and enhancement of shareholder value.”

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