EM&AI Posts 1.7 Billion Won in Q1 Revenue, "Bottom Passed"

"Deuterium-Processed and Battery Materials Sales to Ramp Up in Second Quarter"

EM&AI announced on May 15 that its profitability temporarily deteriorated in the first quarter due to a decline in sales of its core organic light-emitting diode (OLED) materials and non-recurring expenses related to a management rights dispute. The company plans to drive a rebound in performance starting in the second quarter by ramping up sales of deuterium-processed products and battery materials.

On a standalone basis, EM&AI recorded revenue of 1.7 billion won, an operating loss of 800 million won, and a net loss of 700 million won for the first quarter. Sales from supply models in its main OLED materials business were sluggish. In addition, one-time costs were incurred, including non-recurring legal expenses associated with the management rights dispute and research and development (R&D) expenses for all-solid-state batteries at its subsidiary, EmergiLabs.

The company considers the first quarter to be the bottom for its performance. Starting in the second quarter, it expects to see a recovery trend as sales of deuterium-processed products for semiconductors and displays begin in earnest.

Specifically, the company anticipates visible progress in the following areas: ▲ the start of deuterium-processed product supply in the second quarter; ▲ expansion of battery sales in India; and ▲ increased sales of materials for all-solid-state batteries. By reducing monthly fixed costs by 17% compared to previous levels, the company has improved its cost structure, enabling revenue growth to translate into improved profitability. EM&AI plans to strengthen its core OLED materials business while securing new growth engines, such as deuterium-processed products and battery materials, focusing the organization’s capabilities on restoring profitability in the second half of the year.

The company is also maintaining a stable financial structure. As of the end of the first quarter, its current ratio stood at 200%, debt ratio at 45%, and equity ratio at 69%.

A representative from EM&AI stated, "Although we saw weak performance in the first quarter due to decreased sales and temporary expenses, it was largely a process of reorganizing for future improvement," adding, "From the second quarter, we expect to see the effects of reduced fixed costs, recovery in supply to existing clients, and expansion into new businesses reflected sequentially."

The representative continued, "Along with the stabilization of the OLED materials business, we are expanding into high-growth potential areas such as deuterium-processed products and battery materials," emphasizing, "In the second half of the year, we will strive to achieve both revenue recovery and profitability improvement simultaneously."

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