SKC Reports Q3 Operating Loss of 52.8 Billion Won... Losses Narrowed

Secondary Battery Materials: Expanded Sales to North America
Increased Sales Volume at Malaysian Plant Improves Profitability

SKC announced on the 5th that, on a consolidated basis, it recorded sales of 506 billion won and an operating loss of 52.8 billion won in the third quarter of this year. Sales increased by 14% compared to the same period last year, and the size of the loss decreased compared to the previous year’s third quarter loss of 59.5 billion won.

SKC

By business segment, the secondary battery materials business posted sales of 166.7 billion won and an operating loss of 35 billion won. Sales increased by 31% quarter-on-quarter, driven by a significant expansion in sales to North America. In particular, sales of copper foil for lithium iron phosphate (LFP)-based energy storage systems (ESS) grew substantially, supporting the sales growth. The sales volume from the Malaysian plant also continued to increase, improving profitability.

The semiconductor materials business recorded sales of 64.5 billion won and operating profit of 17.4 billion won. The merger of the test socket and equipment businesses has created synergies, resulting in the highest quarterly sales to date. Notably, the test socket business achieved an operating margin of 33% for the quarter, as sales of high-value-added products for non-memory applications focused on artificial intelligence (AI) increased.

SKC, which is pursuing the world’s first commercialization of glass substrates, produced its first mass production samples at its Georgia, USA plant and began the customer certification process. The prototypes received positive results in simulation evaluations, and the company is making steady progress toward its goal of commercializing the product next year.

The chemical business recorded sales of 273.5 billion won and an operating loss of 7.4 billion won. Supported by stable demand, the business maintained solid sales, and the operating loss improved significantly quarter-on-quarter due to factors such as stable raw material prices.

Financial soundness was strengthened as cash inflows expanded significantly through the issuance of exchangeable bonds (EB) and the sale of non-core semiconductor businesses. SKC plans to complete its rebalancing tasks by the end of the year and establish an efficient capital structure focused on its core businesses.

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