L&K Biomed Reports 8% Sales Growth to 38.9 Billion Won Last Year, Expects Further Increases with Global Supply Chain Expansion

L&K Biomed, a company specializing in spinal implants, announced in a disclosure on March 12 that on a consolidated basis, it recorded sales of 38.9 billion won, operating profit of 700 million won, and a net loss of 16.8 billion won for the previous year. Sales increased by 8% compared to 36 billion won in the prior year, but operating profit and net profit decreased by 2.3 billion won and 27 billion won, respectively, compared to the previous year.

The increase in sales is attributed to expanded sales of height-expandable cage products in Southeast Asian regions such as Vietnam and Thailand, as well as in the United States. However, profitability temporarily declined due to increased costs from hiring additional personnel to expand the global supply chain and greater investment in research and development. In addition, a decrease in translation gains and losses due to foreign exchange fluctuations, as well as an increase in valuation losses on complex financial products resulting from rising stock prices, led to both income before tax and net income from continuing operations turning negative compared to the previous year.

The company explained that ongoing investments to expand its global market presence and strengthen its overseas business foundations are making its mid- to long-term growth base even more solid. In particular, demand for its products continues to grow in the United States and Southeast Asia, and the company is steadily expanding its presence in the global market by strengthening overseas distribution networks and expanding local partnerships.

Recently, L&K Biomed also moved to secure production infrastructure for expanding the global supply chain by acquiring land and buildings for a new factory. The company plans to use this facility as a dedicated production base for new products, including those to be contracted with major global companies and height-expandable cervical cages. Through this, it aims to double its overall production capacity compared to before, thereby responding to the increase in global demand.

In addition, negotiations with overseas partners are proceeding smoothly, and the company expects to sign sequential contracts starting in the Asian region.

A company representative said, "Last year was a phase of proactive investment and preparation for expanding the global market and supply chain," adding, "As we are about to expand our sales base in key markets such as the United States, Asia, and Europe, we plan to further strengthen our global business competitiveness through the construction of the new factory and expansion of overseas partnerships." He further stated, "We expect solid improvement in our performance through diversification of our distribution network and expansion of our product portfolio going forward."

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