Setopia Reports Operating Profit of 2.4 Billion KRW in First Half... Turns to Black Compared to Previous Year

Setopia announced that its consolidated sales for the first half of this year reached 59.6 billion KRW, marking a 1.8% increase compared to the same period last year, while operating losses decreased by 76.5% from 3.38 billion KRW to 790 million KRW.

On a separate basis, sales amounted to 59.4 billion KRW, representing a 1922% growth compared to 2.9 billion KRW in the same period last year, and operating profit turned positive at 2.39 billion KRW, the company revealed on the 14th.

Notably, in the second quarter’s separate results, the core steel business maintained a solid foundation despite external volatility and sluggish economic recovery, and the newly launched distribution division contributed to achieving sales of 33.7 billion KRW and operating profit of 3.1 billion KRW, reflecting a 2586% increase in sales and a 331% increase in operating profit compared to the second quarter of last year.

A company representative stated, “The steel business has emerged from the downturn experienced in the first quarter, and with the stabilization of raw material and exchange rate issues expected in the second half, we anticipate gradually improving performance through the end of the year. Additionally, the electronic cigarette sales and profits in the distribution business have grown significantly beyond expectations, which we expect will continue to greatly support qualitative growth.”

They added, “Regarding the IT security division, which has been experiencing ongoing losses, changes in the existing security certification system have negatively impacted sales and performance. We are currently focusing on completing the new security certification process, and after obtaining the certificate in the third quarter, we plan to start sales concentrated on government procurement by year-end. From next year, we expect the full-scale expansion of IT security business operations to contribute positively to the company’s performance.”

The rare earth business, a new venture currently underway, is also expected to proceed smoothly and swiftly according to the project schedule, with initial sales planned for August and September this year. This will coincide with the full-scale production at the local rare earth metal smelting plant (GCM Vina Metals) in Vietnam and aims to secure long-term supply contracts within the year.

The company stated, “As the rare earth business requires medium- to long-term investment and facilities, we will systematically establish goals and continuously accompany them with performance, progressing with the mindset of building a solid foundation.”

Furthermore, following the surprising performance in the distribution sector, including electronic cigarettes, the company plans to stabilize this business as a long-term profit-generating venture through aggressive marketing efforts such as managing and expanding sales channels, influencer marketing, and pop-up stores in the second half of the year.

A Setopia representative said, “The new businesses we are pursuing, including rare earths and electronic cigarettes, are all progressing smoothly. We are meticulously preparing to finalize additional rare earth value chains and begin full-scale business operations. Through medium- to long-term supply contracts with global rare earth demand companies, we will manage the business while securing both profitability and stability, making 2023 a landmark year that clearly demonstrates the company’s transformation, and we will do our best to achieve this.”

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