Setopia Reports 86.2 Billion KRW in Cumulative Q3 Sales... Continued Growth Through New Businesses

Setopia announced on the 14th that its separate basis cumulative sales for the third quarter reached 86.2 billion KRW, marking a 1908% growth compared to 4.5 billion KRW in the same period last year. Operating profit improved significantly to 1.1 billion KRW from an operating loss of 3.8 billion KRW in the previous year.

On a consolidated basis, third-quarter sales were 86.5 billion KRW, maintaining the previous year's level of 87.1 billion KRW. Operating loss improved substantially to 3.3 billion KRW from an operating loss of 7.6 billion KRW in the same period last year.

The cumulative sales for the third quarter this year were driven by the stable revenue stream from Setopia STS (formerly Jason Company) Steel Division, which was merged in January, along with sales from the distribution division including the electronic cigarette Elf Bar, resulting in high sales growth and significant improvement in operating losses compared to the previous year.

The company stated that the operating loss and quarterly net loss were due to initial investment costs incurred from entering new businesses. Although losses occurred in the short term, the company expects to turn a profit next year as the business becomes fully operational.

Additionally, the company explained that approximately 13.6 billion KRW of non-operating losses in the third quarter were related to derivative product losses. The main cause was losses reflected in the income statement due to valuation differences from stock price increases, in accordance with Korean International Financial Reporting Standards (K-IFRS).

A company representative said, “The company’s steel business is stable and steadily operating, and we plan to accelerate growth by generating substantial sales in the rare earth business, which is being developed as a core growth engine.” He added, “This year, preparations to produce high value-added rare earth neodymium products will be completed, and from next year, when stable mass production and sales of neodymium products begin, profitability is expected to gradually increase.”

He continued, “We will communicate consistently with investors and shareholders to convey the future value the company holds and grow together as a company.”

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