ChabioTech Reports Operating Loss Increase from 9.5 Billion to 59.6 Billion KRW... Significant Deficit Expansion

2024 Operating Profit Down 523% Year-on-Year
"Impacted by New Business Investments in U.S. Subsidiary"

CHA Biotech recorded an operating loss of 59.6 billion KRW on a consolidated basis last year, significantly widening its deficit. This represents a 523% decline compared to the 9.5 billion KRW operating loss in 2023.

On the 28th, CHA Biotech announced through a disclosure that it posted consolidated sales of 1.045 trillion KRW and an operating loss of 59.6 billion KRW in 2024. Sales increased by 9.5% compared to the previous year. The net loss for the period was 12.5 billion KRW.

CHA Biotech analyzed that the operating loss was affected by increased costs due to new business investments by its U.S. subsidiary, Matica Biotechnology, and delays in the construction of the new ward at the Hollywood CHA Hospital. Meanwhile, the growth of the domestic business sector and the expansion of overseas healthcare businesses in the U.S. and Australia contributed to the increase in sales.

CHA Biotech stated that it is focusing on strengthening its research and development (R&D) capabilities by accelerating the global commercialization of its cell therapy pipeline, which is in the development stage. In the global contract development and manufacturing business sector, Matica Biotechnology signed consecutive contracts with U.S. biotech companies last year, achieving order receipts worth approximately 10 billion KRW.

Osanghoon, CEO of CHA Biotech, said, "As a bio company, we achieved a significant milestone by surpassing 1 trillion KRW in consolidated sales," adding, "We will actively invest in accelerating R&D and focus on the early commercialization of cell and gene therapies."

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