Jongkundang Reports 1.6924 Trillion Won in Sales Last Year... Operating Profit Down 19%

"Impact of Expanded R&D and Increased SG&A Expenses"

Jongkundang's consolidated sales increased last year, but operating profit and net profit both saw double-digit declines due to higher research and development expenses and increased selling and administrative costs.

On February 2, Jongkundang announced via a public disclosure that its consolidated sales for 2025 reached 1.6924 trillion won, up 6.7% from the previous year. During the same period, operating profit dropped by 19.0% to 80.6 billion won, while net profit decreased by 30.2% to 77.8 billion won.

Jongkundang Headquarters Exterior. Jongkundang

The decline in profit was largely attributed to increased research and development expenses. A company representative explained, "Recently, the number of projects entering new phases has increased as we received clinical approvals in the United States and Europe. When clinical trials progress to the next stage, research and development costs temporarily rise due to factors such as trial design and patient recruitment."

Currently, Jongkundang is conducting European clinical trials for its biosimilar pipeline products CKD-704 and CKD-706. The company is also accelerating clinical development for major pipeline candidates such as the ADC-based anticancer drug CKD-703.

The decrease in net profit was also affected by a one-off factor related to a corporate tax refund in the previous year. A company representative stated, "In the previous fiscal year, net profit temporarily increased due to the reflection of a corporate tax refund. This year, as that factor disappeared, the decline in net profit became more pronounced."

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